BERKELEY HEIGHTS, N.J., Aug. 01, 2018 (GLOBE NEWSWIRE) --
Edge Therapeutics, Inc. EDGE today announced financial results for the quarter ended June 30, 2018.
Second Quarter Financial Results
Cash Position: Cash, cash equivalents and marketable securities as of June 30, 2018 were $46.0 million, compared with $88.1 million as of December 31, 2017. In June 2018, Edge paid down its entire outstanding debt under the Amended Loan Agreement entered into August 2016 with Hercules Capital, Inc. In the second quarter, Edge substantially reduced its scope of operations, including the size of its workforce, in order to preserve its cash resources.
Operating Expenses: Research and development (R&D) expenses were $2.5 million in the second quarter of 2018, compared to $9.0 million in the second quarter of 2017. The decrease in R&D expense was primarily due to a decrease in external expenses related to the previously announced discontinuance of the NEWTON 2 clinical study. General and administrative (G&A) expenses were $3.3 million for the three months ended June 30, 2018, compared to $4.2 million in the comparable period in 2017. The decrease in G&A expense was largely due to decreases in legal fees, professional fees, marketing costs and personnel costs. In the second quarter of 2018, Edge recorded a restructuring charge of $6.6 million, which consisted primarily of severance expense associated with the previously announced reduction in workforce and financial advisor fees related to the ongoing exploration of strategic alternatives.
Net Loss: Net loss for the second quarter ended June 30, 2018 was $12.7 million, including the $6.6 million restructuring charge. Net loss in the second quarter of 2017 was $13.5 million.
Review of Strategic Alternatives
On April 30, 2018, Edge announced that its Board of Directors is conducting a comprehensive review of strategic alternatives focused on maximizing stockholder value. Edge has retained Piper Jaffray & Co. to act as its financial advisor to assist with this review process. Potential strategic alternatives that may be explored or evaluated as part of this review include, but are not limited to, an acquisition, merger, business combination or other strategic transaction involving Edge.
There is no defined timeline for completion of the review process. There is no assurance that this review will result in Edge pursuing any transaction or that a transaction, if pursued, will be completed. Edge does not intend to discuss or disclose further developments regarding the strategic review process unless and until its Board of Directors has approved a specific action or otherwise determined that further disclosure is appropriate or required by law.
About Edge Therapeutics, Inc.
Edge Therapeutics, Inc. is a clinical-stage biotechnology company that seeks to discover, develop and commercialize novel therapies capable of transforming treatment paradigms for the management of serious medical conditions. For additional information about Edge, please visit www.edgetherapeutics.com.
Forward-Looking Statements
This press release and any statements of representatives of Edge Therapeutics, Inc. related thereto that are not historical in nature contain, or may contain, among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, without limitation, statements with respect to Edge's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "seeks," "intends," "plans," "potential" or similar expressions, including statements with respect to the potential effects of its products and plans to assess and undertake next steps for the company. These statements are based upon the current beliefs and expectations of Edge's management and are subject to significant risks and uncertainties. Actual results may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various risk factors (many of which are beyond Edge's control) as described under the heading "Risk Factors" in Edge's filings with the United States Securities and Exchange Commission.
EDGE THERAPEUTICS, INC.
Statements of Operations and Comprehensive Loss
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Operating expenses: | |||||||||||||||
| Research and development expenses | $ | 2,523,796 | $ | 8,975,304 | $ | 15,265,881 | $ | 16,564,800 | |||||||
| General and administrative expenses | 3,335,039 | 4,173,384 | 8,016,555 | 8,375,226 | |||||||||||
| Restructuring expenses | 6,646,242 | - | 6,646,242 | - | |||||||||||
| Impairment charges | - | - | 2,672,581 | - | |||||||||||
| Total operating expenses | 12,505,077 | 13,148,688 | 32,601,259 | 24,940,026 | |||||||||||
| Loss from operations | (12,505,077 | ) | (13,148,688 | ) | (32,601,259 | ) | (24,940,026 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest income | 262,140 | 168,974 | 508,779 | 265,233 | |||||||||||
| Interest expense | (434,695 | ) | (524,768 | ) | (1,425,255 | ) | (999,909 | ) | |||||||
| Net loss and comprehensive loss | (12,677,632 | ) | (13,504,482 | ) | (33,517,735 | ) | (25,674,702 | ) | |||||||
| Loss per share basic and diluted | $ | (0.41 | ) | $ | (0.44 | ) | $ | (1.08 | ) | $ | (0.86 | ) | |||
| Weighted average common shares outstanding basic and diluted | 31,298,429 | 30,403,419 | 31,133,070 | 29,704,898 | |||||||||||
EDGE THERAPEUTICS, INC.
Balance Sheets
| June 30, 2018 | December 31, 2017 | ||||||
| ASSETS | (unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 45,978,737 | $ | 88,067,647 | |||
| Prepaid expenses and other current assets | 580,279 | 986,680 | |||||
| Total current assets | 46,559,016 | 89,054,327 | |||||
| Property and equipment, net | 510,463 | 3,423,880 | |||||
| Other assets | 142,870 | 142,870 | |||||
| Total assets | $ | 47,212,349 | $ | 92,621,077 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| LIABILITIES | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,723,204 | $ | 4,369,133 | |||
| Accrued expenses | 6,024,527 | 5,422,205 | |||||
| Restructuring reserve | 6,121,781 | - | |||||
| Short term debt | - | 3,075,421 | |||||
| Total current liabilities | 13,869,512 | 12,866,759 | |||||
| Noncurrent liability: | |||||||
| Long term debt | - | 17,382,907 | |||||
| STOCKHOLDERS' EQUITY | |||||||
| Preferred stock, 5,000,000 shares authorized at June 30, 2018 and December 31, 2017, 0 outstanding | - | - | |||||
| Common stock, $0.00033 par value, 75,000,000 shares authorized at June 30, 2018 and December 31, 2017, 31,328,128 shares and 30,869,205 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 10,551 | 10,400 | |||||
| Additional paid-in capital | 218,798,380 | 214,309,370 | |||||
| Accumulated deficit | (185,466,094 | ) | (151,948,359 | ) | |||
| Total stockholders' equity | 33,342,837 | 62,371,411 | |||||
| Total liabilities and stockholders' equity | $ | 47,212,349 | $ | 92,621,077 | |||
Investor and Media Contact: Gregory Gin Edge Therapeutics, Inc. Tel: 1-800-208-EDGE (3343) Email: ir@edgetherapeutics.com
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