NeuroBo Pharmaceuticals Reports First Quarter 2020 Financial Results
"The first quarter and subsequent months have been another productive period for the company, marked by the successful completion, in a very challenging capital market, of a registered direct common stock offering in April that bolstered our cash position by
First Quarter Financial and Operating Results Highlights
Upon the merger between Gemphire Therapeutics, Inc. and
- Research and Development (R&D) Expenses were
$2 .2 million for the three months endedMarch 31, 2020 compared with$1.8 million for the three months endedMarch 31, 2019 . The$0.4 million increase in 2020 was primarily attributed to the CRO termination costs associated with the Phase 3 clinical trials of NB-01 in the amount of$0.7 million , and to the further development of Gemcabene under the Contingent Value Rights Agreement in the amount of$0.4 million , offset in part by the overall reduction of clinical trial activity in the current quarter when compared to the comparable period in the prior year. R&D expenses during the three months endedMarch 31, 2020 and 2019 included stock-based compensation of$14,000 and$39,000 , respectively.
- General and Administrative Expenses were
$2 .6 million for the first quarter endedMarch 31, 2020 , compared with$0 .7 million for the three months endedMarch 31, 2019 . The increase of$1 .9 million was primarily due to the ramp up costs associated with operating and reporting as a public company and to post-Merger support costs in the first quarter of 2020.
- Net Loss for the first quarter ended
March 31, 2020 was approximately$4.8 million , or$0.30 per basic and diluted share, based on 15,670,800 weighted average common shares outstanding, compared with a net loss of approximately$2.5 million , or$0.48 per basic and diluted share, based on 5,166,812 weighted average common shares outstanding for the same period in 2019.
- Cash and Cash Equivalents were
$9.8 million as ofMarch 31, 2020 , compared with$13.9 million atDecember 31, 2019 . The company expects that its cash position, including the net proceeds from theApril 2020 registered direct common stock offering, will be adequate to fund operations through the first quarter of 2021.
About
NeuroBo Pharmaceuticals was jointly founded by Dr. Roy Freeman, professor of neurology at Harvard Medical School and renowned expert in neuropathic pain, and JK BioPharma Solutions, a biotechnology consulting company, to commercialize natural product-based research into ethical medicines. In
Forward Looking Statements
Any statements in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements regarding the development of NeuroBo's product candidates and the therapeutic potential, timing and nature of clinical trials and potential regulatory approval of NeuroBo's clinical programs and pipeline. Forward-looking statements are usually identified by the use of words, such as "believes," "anticipates," "expects," "intends," "plans," "may," "potential," "will," "could" and similar expressions. Actual results may differ materially from those indicated by forward-looking statements as a result of various important factors and risks. These factors, risks and uncertainties include, but are not limited to: the occurrence of health epidemics or contagious diseases, such as COVID-19, and potential effects on NeuroBo's business, clinical trial sites, supply chain and manufacturing facilities; NeuroBo's ability to continue as a going concern; the timing of completion of NeuroBo's planned clinical trials; the timing of the availability of data from NeuroBo's clinical trials; NeuroBo's plans to research, develop and commercialize its current and future product candidates, including the potential alternative pathways for NB-01; NeuroBo's ability to successfully collaborate with existing collaborators or enter into new collaborations and to fulfill its obligations under any such collaboration agreements; the clinical utility, potential benefits and market acceptance of NeuroBo's product candidates; the impact of government laws and regulations; NeuroBo's ability to protect its intellectual property position; and NeuroBo's need for additional financing to fulfill its stated goals; and other factors discussed in the "Risk Factors" section of NeuroBo's Annual Report on Form 10-K and in our other filings with the
Contacts:
+1-917-322-2571
mcarey@rxir.com
- Tables to Follow -
Condensed Consolidated Balance Sheets (in thousands, except share amounts and par value) |
|||||||
|
|
||||||
2020 |
2019 |
||||||
(unaudited) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash |
$ |
9,799 |
$ |
13,908 |
|||
Restricted cash |
15 |
15 |
|||||
Prepaid expenses |
1,332 |
153 |
|||||
Other assets |
65 |
42 |
|||||
Total current assets |
11,211 |
14,118 |
|||||
Right-of-use assets and other |
143 |
150 |
|||||
Property and equipment, net |
181 |
200 |
|||||
Total assets |
$ |
11,535 |
$ |
14,468 |
|||
Liabilities and stockholders' equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
1,273 |
$ |
638 |
|||
Accrued liabilities |
2,411 |
1,422 |
|||||
Lease liability, short-term |
22 |
22 |
|||||
Total current liabilities |
3,706 |
2,082 |
|||||
Lease and other long-term liabilities |
89 |
94 |
|||||
Total liabilities |
3,795 |
2,176 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity: |
|||||||
Preferred stock, |
— |
— |
|||||
Common stock, |
16 |
16 |
|||||
Additional paid–in capital |
49,342 |
49,130 |
|||||
Accumulated other comprehensive income |
(22) |
12 |
|||||
Accumulated deficit |
(41,596) |
(36,866) |
|||||
Total stockholders' equity |
7,740 |
12,292 |
|||||
Total liabilities and stockholders' equity |
$ |
11,535 |
$ |
14,468 |
Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share amounts) (unaudited) |
|||||||
For the Three Months Ended |
|||||||
|
|||||||
2020 |
2019 |
||||||
Operating expenses: |
|||||||
Research and development |
$ |
2,152 |
$ |
1,800 |
|||
General and administrative |
2,597 |
651 |
|||||
Total operating expenses |
4,749 |
2,451 |
|||||
Loss from operations |
(4,749) |
(2,451) |
|||||
Interest (expense) income, net |
20 |
(13) |
|||||
Other income (expense), net |
(1) |
— |
|||||
Loss before income taxes |
(4,730) |
(2,464) |
|||||
Provision for income taxes |
— |
— |
|||||
Net loss |
(4,730) |
(2,464) |
|||||
Other comprehensive loss: |
|||||||
Foreign currency translation loss, net of tax |
(34) |
(2) |
|||||
Total other comprehensive loss |
(34) |
(2) |
|||||
Comprehensive loss |
$ |
(4,764) |
$ |
(2,466) |
|||
Loss per share: |
|||||||
Net loss per share, basic and diluted |
$ |
(0.30) |
$ |
(0.48) |
|||
Weighted average common shares outstanding: |
|||||||
Basic and diluted |
15,670,800 |
5,166,812 |
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