Full Press Release Details
Reports Fiscal Second Quarter 2022 Financial Results and Provides Corporate Update
Texas / February 14, 2022 / (GLOBE NEWSWIRE) / iBio, Inc. (NYSEA:IBIO) ("iBio"
or the "Company"), a developer of next-generation biopharmaceuticals and pioneer of the sustainable FastPharming
Manufacturing System , today announces its financial results for the fiscal
quarter ended December 31, 2021 and provides a corporate update.
to report that we have now added six new immuno-oncology assets to our pipeline in the six months since we announced our new drug discovery
capabilities," said Tom Isett, Chairman & CEO of iBio. "Our most recent addition progressed the fastest, already advancing
into late-discovery stage thanks to our deployment of artificial intelligence design capabilities. We are also leveraging our research
on a novel peptide with anti-fibrotic effects into oncology by exploring its possible use in treating solid tumors with a strong fibrotic
matrix. Meanwhile, we are in position to move our second-generation COVID-19 vaccine candidate towards the clinic and potentially address
many of the unmet needs that remain in the fight against COVID-19 as it transitions to an endemic disease. Overall, we are elated to see
in this quarter multiple new pipeline additions and advancements as a result of our recent investments in drug discovery R&D."
Recent Business Developments:
Recent Corporate Developments:
by the support we received for each of these proposals," said Mr. Isett. "Stockholders who chose to vote their shares did
so in favor of Proposals 4 and 5 by a large margin of approximately 2-to-1. We will continue to work on solutions to overcome structural
impediments to implementing the will of our voting stockholders and, more broadly, to ensure iBio is in position to continue to grow.
In the meantime, we have made a number of adjustments to our operating and development plans in order to achieve our cash management objectives.
These changes include deferring a number of planned new hires as well as less aggressively advancing the IBIO-100 program, to name a few.
The adjustments will allow us to extend our cash runway by two quarters while still advancing IBIO-202 and other key Biopharmaceutical
and Bioprocess initiatives."
Revenues for the second
quarter ended December 31, 2021, were approximately $0.2 million, which was not a significant change from the prior quarter and a decrease
of 76% from approximately $0.7 million in the same period of 2020. As is commonplace for early-stage Pharma Services companies, iBio has
experienced significant quarter-to-quarter revenue variability, driven by factors such as the number and size of customer contracts, as
well as the timing of revenue recognition. As previously communicated, the Company expects revenue growth to return in the second half
R&D and G&A expenses
for the second quarter of fiscal 2022 increased 40% and 48%, respectively, over the comparable period in fiscal 2020. This reflects the
Company's growing investments in its pipeline, platform technologies, employees, and related infrastructure. iBio anticipates this
trend continuing, however, the rate of growth is expected to moderate over time.
The Company's consolidated
net loss for the second quarter ended December 31, 2021, was approximately $11.9 million, or $0.05 per share, compared to a net loss of
approximately $8.2 million, or $0.04 per share, in the same period of 2020.
As of December 31, 2021,
iBio had cash and cash equivalents plus debt securities of approximately $57.4 million, excluding $5.9 million of restricted cash. The
Company now believes that it has adequate cash to support its activities through September 30, 2023.
Webcast and Conference Call
iBio management will host a webcast and conference
call at 4:30 p.m. Eastern Time today, February 14, 2022, to discuss these results and provide a corporate update.
The live and archived webcast may be accessed
on the Company's website at www.ibioinc.com under "News and Events" in the Investors section. The live call
can be accessed by dialing (833) 672-0651 (domestic) or (929) 517-0227 (international) and referencing conference code: 3527478.
iBio is a developer of next-generation biopharmaceuticals
and a pioneer in sustainable, plant-based biologics manufacturing. Its FastPharming System combines vertical
farming, automated hydroponics, and novel glycosylation technologies to rapidly deliver high-quality monoclonal antibodies, vaccines,
bioinks and other proteins. iBio is developing proprietary biopharmaceuticals for the treatment of cancers, as well as fibrotic and infectious
diseases. The Company's wholly-owned subsidiary, iBio CDMO LLC, provides FastPharming Contract Development and Manufacturing
Services along with Glycaneering Development Services for advanced recombinant protein design. For more
information, visit www.ibioinc.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release
constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may,"
"might," "will," "should," "believe," "expect," "anticipate,"
"estimate," "continue," "predict," "forecast," "project," "plan,"
"intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking
statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding
leveraging IBio's research on a novel peptide with anti-fibrotic effects into oncology by exploring its possible use in
treating solid tumors with a strong fibrotic matrix; the potential of iBio's second generation COVID-19 vaccine candidate to
address many of the unmet needs that remain in the fight against COVID-19; the potential of IBIO-400 to be the first fully approved
vaccine for Classical Swine Fever; plans to file an IND application for IBIO-202 with the U.S. Food and Drug Administration before
the end of calendar 2022; continuing to advance its IL-2 sparing anti-CD25 antibody, IBIO-101, and moving the program from the Lead
Optimization to IND-Enabling stage before the middle of calendar 2022; the potential effects of the endostatin E4 molecule upon
fibrotic tumors in combination with other cancer treatments and initial data from the collaboration with the University of Texas
Southwestern Medical Center expected in the second half of calendar 2022; a potential sale-leaseback transaction; revenue growth
returning in the second half of fiscal 2022; R&D and G&A expenses continuing to increase, however, the rate of growth
becoming moderate over time; and iBio having adequate cash to support its activities through September 30, 2023. While
the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such
forward-looking statements, which are based on information available to us on the date of this release. These forward-looking
statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to
differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements.
Important factors that could cause actual results to differ materially from current expectations include, among others, the
Company's ability to successfully implement its development plans and continue to accelerate the execution of its growth
strategy, including the ability to move product candidates, such as IBIO-101 and IBIO-202 into Late Discovery stage and initiate
IND-Enabling studies as planned; its ability to obtain regulatory approvals for commercialization of its product candidates, or to
comply with ongoing regulatory requirements; regulatory limitations relating to its ability to promote or commercialize its product
candidates for specific indications; acceptance of its product candidates in the marketplace and the successful development,
marketing or sale of products; its ability to maintain its license agreements; the continued maintenance and growth of its patent
estate; its ability to establish and maintain collaborations and attract and increase partnership opportunities for iBio's
bioprocess business, its ability to obtain or maintain the capital or grants necessary to fund its research and development
activities and whether the Company will incur unforeseen expenses or liabilities or other market factors; successful compliance with
governmental regulations applicable to its manufacturing facility; competition; its ability to retain its key employees or maintain
its NYSE American listing; its ability to increase its authorized shares; and the other factors discussed in the Company's
filings with the SEC including the Company's Annual Report on Form 10-K for the year ended June 30, 2021 and the
Company's subsequent filings with the SEC on Forms 10-Q and 8-K. The information in this release is provided only as of the
date of this release, and the Company undertakes no obligation to update any forward-looking statements contained in this release on
account of new information, future events, or otherwise, except as required by law.
iBio, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands, except share and per share amounts)
| December 31, | June 30, | |||||||
| 2021 | 2021 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 39,205 | $ | 77,404 | ||||
| Accounts receivable - trade | 111 | 426 | ||||||
| Settlement receivable - current portion | 5,100 | 5,100 | ||||||
| Investments in debt securities | 18,172 | 19,570 | ||||||
| Inventory | 1,986 | 27 | ||||||
| Prepaid expenses and other current assets | 2,922 | 2,070 | ||||||
| Total Current Assets | 67,496 | 104,597 | ||||||
| Restricted cash | 5,940 | - | ||||||
| Convertible promissory note receivable and accrued interest | 1,594 | 1,556 | ||||||
| Settlement receivable - noncurrent portion | 5,100 | 5,100 | ||||||
| Finance lease right-of-use assets, net of accumulated amortization | 109 | 26,111 | ||||||
| Operating lease right-of-use asset | 5,291 | - | ||||||
| Fixed assets, net of accumulated depreciation | 32,881 | 8,628 | ||||||
| Intangible assets, net of accumulated amortization | 5,041 | 952 | ||||||
| Investment in equity security - at cost | 1,760 | - | ||||||
| Prepaid expenses - noncurrent | 1,195 | - | ||||||
| Security deposits | 41 | 24 | ||||||
| Total Assets | $ | 126,448 | $ | 146,968 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,739 | $ | 2,254 | ||||
| Accrued expenses (related party of $0 and $701 as of December 31, 2021 and June 30, 2021, respectively) | 2,842 | 3,001 | ||||||
| Acquisition Payable | 2,500 | - | ||||||
| Finance lease obligations - current portion | 45 | 367 | ||||||
| Operating lease obligation - current portion | 160 | - | ||||||
| Note payable - PPP loan - current portion | - | 600 | ||||||
| Contract liabilities | 60 | 423 | ||||||
| Total Current Liabilities | 8,346 | 6,645 | ||||||
| Finance lease obligations - net of current portion | 51 | 31,755 | ||||||
| Operating lease obligation - net of current portion | 5,400 | - | ||||||
| Term note payable - net of deferred financing costs | 22,053 | - | ||||||
| Total Liabilities | 35,850 | 38,400 | ||||||
| Equity | ||||||||
| iBio, Inc. Stockholders' Equity: | ||||||||
| Common stock - $0.001 par value; 275,000,000 shares authorized at December 31, 2021 and June 30, 2021; 218,060,597 and 217,873,094 shares issued and outstanding as of December 31, 2021 and June 30, 2021, respectively | 218 | 217 | ||||||
| Additional paid-in capital | 284,957 | 282,058 | ||||||
| Accumulated other comprehensive loss | (91 | ) | (63 | ) | ||||
| Accumulated deficit | (194,486 | ) | (173,627 | ) | ||||
| Total iBio, Inc. Stockholders' Equity | 90,598 | 108,585 | ||||||
| Noncontrolling interest | - | (17 | ) | |||||
| Total Equity | 90,598 | 108,568 | ||||||
| Total Liabilities and Equity | $ | 126,448 | $ | 146,968 |
iBio, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
and Comprehensive Loss
(Unaudited; in Thousands, except per share amounts)
| Three Months Ended | Six Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | $ | 168 | $ | 705 | $ | 379 | $ | 1,115 | ||||||||
| Cost of goods sold | 113 | 211 | 153 | 318 | ||||||||||||
| Gross profit | 55 | 494 | 226 | 797 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 3,331 | 2,374 | 5,842 | 4,236 | ||||||||||||
| General and administrative (related party of $61, $510, $250 and $903) | 8,362 | 5,665 | 14,996 | 11,030 | ||||||||||||
| Total operating expenses | 11,693 | 8,039 | 20,838 | 15,266 | ||||||||||||
| Operating loss | (11,638 | ) | (7,545 | ) | (20,612 | ) | (14,469 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense (related party of $202, $612, $810 and $1,226) | (328 | ) | (615 | ) | (937 | ) | (1,229 | ) | ||||||||
| Interest income | 35 | 27 | 71 | 31 | ||||||||||||
| Royalty income | 5 | 2 | 5 | 2 | ||||||||||||
| Forgiveness of note payable and accrued interest - SBA loan | - | - | 607 | - | ||||||||||||
| Other | 6 | - | 6 | - | ||||||||||||
| Total other income (expense) | (282 | ) | (586 | ) | (248 | ) | (1,196 | ) | ||||||||
| Consolidated net loss | (11,920 | ) | (8,131 | ) | (20,860 | ) | (15,665 | ) | ||||||||
| Net loss attributable to noncontrolling interest | - | 2 | 1 | 3 | ||||||||||||
| Net loss attributable to iBio, Inc. | (11,920 | ) | (8,129 | ) | (20,859 | ) | (15,662 | ) | ||||||||
| Preferred stock dividends | (22 | ) | (65 | ) | (88 | ) | (131 | ) | ||||||||
| Net loss attributable to iBio, Inc. stockholders | $ | (11,942 | ) | $ | (8,194 | ) | $ | (20,947 | ) | $ | (15,793 | ) | ||||
| Comprehensive loss: | ||||||||||||||||
| Consolidated net loss | $ | (11,920 | ) | $ | (8,131 | ) | $ | (20,860 | ) | $ | (15,665 | ) | ||||
| Other comprehensive loss - unrealized loss on debt securities | (27 | ) | (13 | ) | (28 | ) | (20 | ) | ||||||||
| Comprehensive loss | $ | (11,947 | ) | $ | (8,144 | ) | $ | (20,888 | ) | $ | (15,685 | ) | ||||
| Loss per common share attributable to iBio, Inc. stockholders - basic and diluted | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.09 | ) | ||||
| Weighted-average common shares outstanding - basic and diluted | 217,990 | 188,087 | 217,933 | 175,264 |