Full Press Release Details
Ruthigen Reports Fourth Quarter and Fiscal Year 2014 Financial Results
SANTA ROSA, Calif. - (June 30, 2014) - Ruthigen,
Inc. (NASDAQ: RTGN) today reported financial results for its fourth quarter and fiscal year ended March 31, 2014.
"We are poised to commence patient enrollment in the initial
phase of our first human clinical trial using RUT58-60 in July 2014, and plan to complete our Phase 1/2 clinical trial in less
than nine months," said Hoji Alimi, Chairman, CEO and CSO of Ruthigen. "We believe that the completion of our recent
initial public offering has provided Ruthigen with sufficient funding to complete our planned Phase 1/2 clinical trial and fund
our operations for approximately 18 months."
Mr. Alimi continued, "The key potential clinical and economic
advantages of RUT58-60 versus the current standard of care stem from the broad-spectrum antimicrobial effectiveness of RUT58-60
against gram-negative and gram-positive bacteria with the potential to prevent the emergence of newly developed superbugs. If ultimately
approved, we believe RUT58-60 will be the first prophylactic drug for use in all abdominal surgeries for prevention of infection
without concerns regarding bacterial resistance or tolerability."
Fiscal Fourth Quarter 2014 Financial Results
As of March 31, 2014, Ruthigen had cash of $15.6 million. Subsequently,
the Company raised additional net proceeds of approximately $0.9 million in May 2014 when the underwriters in Ruthigen's
initial public offering completed a partial exercise of their over-allotment option.
For the three months ended March 31, 2014, Ruthigen reported
a net loss of $1.0 million, or $0.46 per share, compared to a net loss of $0.5 million, or $0.23 per share, for the prior fiscal
Research and development expenses for the three months ended
March 31, 2014 were $0.3 million compared to $0.2 million for the same period in fiscal 2013. The increase was primarily a result
of the commencement of Ruthigen's operations directly related to RUT58-60 in January 2013.
Selling, general and administrative expenses for the three months
ended March 31, 2014 were $0.7 million, compared to $0.3 million for the same period in fiscal 2013. This increase was primarily
a result of the commencement of Ruthigen's independent operations in January 2013, when it was incorporated, executive and
director bonuses, legal and accounting costs, and other consulting and professional fees.
Fiscal Year 2014 Financial Results
For the year ended March 31, 2014, Ruthigen reported a net loss
of $3.1 million, or $1.53 per share, compared to a net loss of $0.5 million, or $0.26 per share, for the prior fiscal year.
Research and development expenses for the year ended March 31,
2014 were $1.4 million compared to $0.3 million for the prior fiscal year. The increase was primarily a result of the commencement
of Ruthigen's operations directly related to RUT58-60 in January 2013. Expenses of the Company for the year ended March 31,
2013 contain carve-out expense allocations related to salaries and consulting activities, which benefited the Company, from Oculus
Innovative Sciences, the Company's former parent from April 1, 2012 through January 18, 2013, prior to the incorporation
Selling, general and administrative expenses for the year ended
March 31, 2014 were $1.7 million, compared to $0.3 million in fiscal 2013. This increase was primarily a result of the commencement
of Ruthigen's independent operations in January 2013, when it was incorporated.
Ruthigen's management will host a conference call at
1:30 p.m. PDT (4:30 p.m. EDT) on June 30, 2014, to discuss the Company's fiscal year 2014 results. Individuals interested
in participating in the conference call may do so by dialing 1-877-870-4263 for domestic callers or 1-412-317-0790 for international
callers. Those interested in listening to the conference call live via the internet may do so at http://www.videonewswire.com/event.asp?id=99848.
Please log on approximately 30 minutes prior to the presentation in order to complete the registration process.
A telephone replay will be available for seven days following
the conclusion of the call by dialing 877-344-7529 for domestic callers, or 412-317-0088 for international callers, and entering
conference code 10048626. A webcast replay will be available on the site at http://www.videonewswire.com/event.asp?id=99848
for one year following the call.
Ruthigen is a biopharmaceutical company focused on the discovery,
development, and commercialization of novel therapeutics designed to prevent and treat infection in invasive applications. The
Company's lead drug candidate, RUT58-60, is a broad spectrum anti-infective that Ruthigen is developing for the prevention
and treatment of infection in surgical and trauma procedures. The Company plans to initiate patient enrollment for its Phase 1/2
clinical trial for RUT58-60 in the United States as early as July 2014; and, pending the successful completion of that trial, Ruthigen
plans to conduct pivotal clinical trials, the first of which it anticipates will be its planned Phase 2B trial and the second of
which it anticipates will be its planned Phase 3 trial.
Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. These statements are often, but not always, made through the use of words or phrases
such as "anticipates," "expects," "plans," "believes," "intends," and
similar words or phrases. These forward-looking statements include, without limitation, statements regarding the timing, progress
and anticipated results of the clinical development of RUT58-60, including the timing of the initiation of planned clinical trials
of RUT58-60 and regulatory submissions, statements regarding the indications for which we may seek approval of RUT58-60, statements
regarding our ability to fund further development of our clinical programs, our ability to achieve our milestones, as well as Ruthigen's
strategy, future operations, outlook, future financial position, future financial results, plans and objectives. We may not actually
achieve these plans, intentions or expectations and we caution investors not to place undue reliance on our forward-looking statements.
Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements
we make. Various important factors could cause actual results or events to differ from the forward-looking statements that we make.
Such factors include, among others, risks and uncertainties associated with the results of clinical trials, which may not support
our claims or beliefs concerning the safety and effectiveness of RUT58-60, our ability to obtain and maintain regulatory approval
of RUT58-60 and any other product candidates we may develop, the labeling under any approval we may obtain, our ability to finance
the development of RUT58-60, approvals for clinical trials, which may be delayed or withheld by regulatory agencies, regulatory
risks, risk that our pre-clinical and clinical studies may not be successful or confirm earlier results or meet expectations or
meet regulatory requirements or meet performance thresholds for commercial success, risks associated with our relationship with
our former parent, Oculus Innovative Sciences, Inc., our ability to attract collaborators and partners and our reliance on third
party organizations. Additional risks are described in the reports we file with the Securities and Exchange Commission. Ruthigen
is providing this information as of the date hereof and expressly disclaims any obligation to update any forward-looking statements
contained herein, whether as a result of new information, future events or otherwise, except as required by law.
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 15,571,000 | $ | 96,000 | ||||
| Prepaid expenses and other current assets | 3,000 | 4,000 | ||||||
| Total Current Assets | 15,574,000 | 100,000 | ||||||
| Property and equipment, net | 2,000 | 4,000 | ||||||
| Deferred offering costs | - | 44,000 | ||||||
| Total Assets | $ | 15,576,000 | $ | 148,000 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 410,000 | $ | 101,000 | ||||
| Payable to Former Parent | 537,000 | - | ||||||
| Total Current Liabilities | 947,000 | 101,000 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock, $0.0001 par value; | ||||||||
| 500,000 shares authorized; | ||||||||
| no shares issued and outstanding | ||||||||
| at March 31, 2014 and 2013, respectively | - | - | ||||||
| Common stock, $0.0001 par value; | ||||||||
| 100,000,000 shares authorized; | ||||||||
| 4,650,000 and 2,000,000 shares issued and outstanding | ||||||||
| at March 31, 2014 and 2013, respectively | 465 | 200 | ||||||
| Additional paid-in capital | 18,297,535 | 597,800 | ||||||
| Accumulated deficit | (3,669,000 | ) | (551,000 | ) | ||||
| Total Stockholders' Equity | 14,629,000 | 47,000 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 15,576,000 | $ | 148,000 |
STATEMENTS OF OPERATIONS
| For The Years Ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| Revenues | $ | - | $ | - | ||||
| Operating Expenses | ||||||||
| Research and development | 1,382,000 | 258,000 | ||||||
| Selling, general and administrative | 1,736,000 | 265,000 | ||||||
| Total Operating Expenses | 3,118,000 | 523,000 | ||||||
| Net Loss | $ | (3,118,000 | ) | $ | (523,000 | ) | ||
| Net Loss Per Share | ||||||||
| - Basic and Diluted | $ | (1.53 | ) | $ | (0.26 | ) | ||
| Weighted Average Number of | ||||||||
| Common Shares Outstanding | ||||||||
| - Basic and Diluted | 2,036,301 | 2,000,000 |
| For The Three Months Ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenues | $ | - | $ | - | ||||
| Operating Expenses | ||||||||
| Research and development | 317,000 | 202,000 | ||||||
| Selling, general and administrative | 672,000 | 255,000 | ||||||
| Total Operating Expenses | 989,000 | 457,000 | ||||||
| Net Loss | $ | (989,000 | ) | $ | (457,000 | ) | ||
| Net Loss Per Share | ||||||||
| - Basic and Diluted | $ | (0.46 | ) | $ | (0.23 | ) | ||
| Weighted Average Number of | ||||||||
| Common Shares Outstanding | ||||||||
| - Basic and Diluted | 2,147,222 | 2,000,000 |
Media and Investor Contact: Ruthigen, Inc.
Sameer Harish, Chief Financial
Officer, info@ruthigen.com