Full Press Release Details
Aquinox Pharmaceuticals Announces First Quarter 2014 Financial Results
Vancouver, British Columbia May 13, 2014 Aquinox Pharmaceuticals, Inc. ( Aquinox , NASDAQ: AQXP), a clinical-stage pharmaceutical
company discovering and developing targeted therapeutics for inflammatory disease and cancer, today provided a corporate update and reported financial results for the first quarter ending March 31, 2014.
The first quarter marked an important milestone in Aquinox s history, with the successful completion of our initial public offering, said
Mr. David Main, President and CEO of Aquinox. The proceeds allow us to advance the clinical development program for AQX-1125 in chronic obstructive pulmonary disease (COPD) exacerbations and bladder
pain syndrome/interstitial cystitis (BPS/IC). Over the next 12 months, we expect to report top line data from our randomized, placebo-controlled Phase 2 studies in both of these indications.
Summary of Financial Results
Going forward, Aquinox intends to host biannual conference calls and
webcasts in conjunction with the reporting of financial results. These calls will correspond with the reporting of second quarter and year-end financial results.
About Aquinox Pharmaceuticals
Aquinox Pharmaceuticals,
Inc. is a clinical-stage pharmaceutical company discovering and developing novel, small molecule therapeutics targeting SH2-containing inositol-5 -phosphatase 1 ( SHIP1 ) for the treatment of inflammatory disease and cancer. For more
information, please visit www.aqxpharma.com.
Cautionary Note on Forward-looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are based on our management s beliefs and assumptions and on information currently available to our management. All statements other than statements of historical facts are
forward-looking statements for purposes of these provisions, including those relating to future events or our future financial performance and financial guidance. In some cases, you can identify forward-looking statements by terminology
such as may, might, will, should, expect, plan, anticipate, project, believe, estimate, predict,
potential, intend or continue, the negative of terms like these or other comparable terminology, and other words or terms of similar meaning in connection with any discussion of future operating or financial
performance. These statements are only predictions. All forward-looking statements included in this press release are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements.
Any or all of our forward-looking statements in this document may turn out to be wrong. Actual events or results may differ materially. Our forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown
risks, uncertainties and other factors. In evaluating these statements, you should specifically consider various factors, including the risks outlined under the caption Risk Factors set forth in our final prospectus for our initial
public offering, which was filed with the Securities and Exchange Commission (the SEC ) on March 7, 2014, and is available on the SEC s website at www.sec.gov. Additional information will also be set forth in our Annual Report
on Form 10-Q for the quarter ended March 31, 2014, which we expect to file with the SEC in the near future and other reports and filings we will make with the SEC from time to time. We caution investors that our business and financial
performance are subject to substantial risks and uncertainties.
Senior Manager, Investor Relations
MacDougall Biomedical Communications
AQUINOX PHARMACEUTICALS, INC.
(a development stage company)
Condensed consolidated and combined balance sheets
(Unaudited) (Expressed in U.S. dollars)
| MARCH 31, 2014 | DECEMBER 31, 2013 | |||||||
| Assets | ||||||||
| Cash and investments | $ | 55,632,427 | $ | 13,856,992 | ||||
| Other current assets | 614,338 | 1,469,359 | ||||||
| Other assets | 202,723 | 352,755 | ||||||
| Total assets | $ | 56,449,488 | $ | 15,649,106 | ||||
| Liabilities | ||||||||
| Current liabilities | $ | 1,237,602 | $ | 2,620,105 | ||||
| Non-current liabilities | 114,644 | 4,863,987 | ||||||
| Total liabilities | $ | 1,352,246 | $ | 7,484,092 | ||||
| Redeemable convertible preferred stock | 73,858,722 | |||||||
| Stockholders equity | 55,097,242 | (65,693,708 | ) | |||||
| Total liabilities and stockholders equity | $ | 56,449,488 | $ | 15,649,106 |
AQUINOX PHARMACEUTICALS, INC.
(a development stage company)
Condensed consolidated and combined statements of operations and comprehensive loss
(Unaudited) (Expressed in U.S. dollars)
| THREE MONTHS ENDED MARCH 31, 2014 | THREE MONTHS ENDED MARCH 31, 2013 | DECEMBER 26, 2003 (INCEPTION) TO MARCH 31, 2014 | ||||||||||
| Operating expenses | ||||||||||||
| Research and development | $ | 1,879,514 | $ | 572,967 | $ | 43,789,126 | ||||||
| General and administrative | 734,824 | 423,865 | 10,241,412 | |||||||||
| Total operating expenses | 2,614,338 | 996,832 | 54,030,538 | |||||||||
| Other income (expenses) | ||||||||||||
| Bank charges and financing costs | (453,808 | ) | (1,834 | ) | (590,023 | ) | ||||||
| Interest income | 2,835 | 1,446 | 365,881 | |||||||||
| Sale of equipment | 29,396 | 134,553 | ||||||||||
| Change in fair value of derivative liabilities | 913,929 | 2,102,193 | ||||||||||
| Amortization and extinguishment of remaining discount on preferred shares upon conversion of preferred shares | (1,884,233 | ) | (25,438 | ) | (2,395,575 | ) | ||||||
| Foreign exchange loss | (192,063 | ) | (17,005 | ) | (239,484 | ) | ||||||
| (1,613,340 | ) | (13,435 | ) | (622,455 | ) | |||||||
| Net loss before income taxes | (4,227,678 | ) | (1,010,267 | ) | (54,652,993 | ) | ||||||
| Income tax recovery | 3,150,406 | |||||||||||
| Net loss and comprehensive loss incurred in the development stage | $ | (4,227,678 | ) | $ | (1,010,267 | ) | $ | (51,502,587 | ) |