KemPharm Reports Third Quarter 2019 Results
Conference Call and Live Audio Webcast with Slide Presentation Scheduled for Today,
“The third quarter of 2019 was highlighted by our entry into a licensing agreement (the KP415/KP484 Licensing Agreement) with an affiliate of
Dr. Mickle continued, “Since our last announcement,
Q3 2019 Financial Results:
“Since the beginning of 2019, we have undertaken measures to reduce our operating spend, including a 33% workforce reduction, other general and administrative cost reductions, and the conclusion of the clinical phase for KP415. The KP415/KP484 License Agreement provides several milestone payments, including the
For Q3 2019,
As of
“We continue to explore additional options to reduce our near-term cash requirements, including pushing out the timing of upcoming near-term principal and interest payments with the goal of extending our cash runway past the potential approval of the KP415 NDA. In addition, we have initiated a process to explore addressing our debt in its entirety. For that purpose, we have engaged
The Company also reported that it expects to receive a notification from the
Conference Call Information:
- (866) 395-2480 (U.S.)
- (678) 509-7538 (international)
- Conference ID: 8076615
An audio webcast with slide presentation will be accessible via the Investor Relations section of the
About
Caution Concerning Forward Looking Statements:
This press release may contain forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. These include statements about development and potential commercialization of KP415 and KP484, and our efforts to restructure debt and the potential outcomes of those efforts. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to
KemPharm Contacts: |
Jason Rando / Maureen McEnroe Tiberend Strategic Advisors, Inc. 212-375-2665 / 2664 jrando@tiberend.com mmcenroe@tiberend.com |
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue | $ | 11,463 | $ | — | $ | 11,463 | $ | — | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue | 1,000 | — | 1,000 | — | ||||||||||||
Research and development | 3,616 | 13,330 | 16,950 | 35,455 | ||||||||||||
General and administrative | 3,613 | 2,992 | 9,440 | 9,544 | ||||||||||||
Severance expense | — | 1,636 | — | 1,636 | ||||||||||||
Total operating expenses | 8,229 | 17,958 | 27,390 | 46,635 | ||||||||||||
Income (loss) from operations | 3,234 | (17,958 | ) | (15,927 | ) | (46,635 | ) | |||||||||
Other (expense) income: | ||||||||||||||||
Interest expense related to amortization of debt issuance costs and discount | (371 | ) | (326 | ) | (981 | ) | (1,106 | ) | ||||||||
Interest expense on principal | (1,208 | ) | (1,367 | ) | (3,669 | ) | (4,228 | ) | ||||||||
Fair value adjustment related to derivative and warrant liability | 1,351 | 4,468 | 1,783 | 289 | ||||||||||||
Interest and other income, net | 60 | 52 | 295 | 290 | ||||||||||||
Total other (expense) income | (168 | ) | 2,827 | (2,572 | ) | (4,755 | ) | |||||||||
Income (loss) before income taxes | 3,066 | (15,131 | ) | (18,499 | ) | (51,390 | ) | |||||||||
Income tax benefit | (3 | ) | 60 | 14 | 107 | |||||||||||
Net income (loss) | $ | 3,063 | $ | (15,071 | ) | $ | (18,485 | ) | $ | (51,283 | ) | |||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.09 | $ | (0.94 | ) | $ | (0.65 | ) | $ | (3.33 | ) | |||||
Diluted | $ | 0.06 | $ | (0.94 | ) | $ | (0.65 | ) | $ | (3.33 | ) | |||||
Weighted average number of shares of common stock outstanding: | ||||||||||||||||
Basic | 30,126,704 | 16,033,923 | 28,417,450 | 15,385,663 | ||||||||||||
Diluted | 31,672,149 | 16,033,923 | 28,417,450 | 15,385,663 |
CONDENSED BALANCE SHEETS
(in thousands, except share and par value amounts)
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,518 | $ | 18,409 | ||||
Marketable securities | — | 3,260 | ||||||
Accounts and other receivables | 1,638 | 140 | ||||||
Prepaid expenses and other current assets | 528 | 1,912 | ||||||
Total current assets | 8,684 | 23,721 | ||||||
Property and equipment, net | 1,541 | 1,753 | ||||||
Operating lease right-of-use assets | 1,649 | — | ||||||
Restricted cash | 490 | 710 | ||||||
Other long-term assets | 526 | 562 | ||||||
Total assets | $ | 12,890 | $ | 26,746 | ||||
Liabilities and stockholders' deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 3,095 | $ | 8,342 | ||||
Current portion of convertible notes | 6,718 | 3,333 | ||||||
Current portion of capital lease obligation | — | 214 | ||||||
Current portion of operating lease liabilities | 369 | — | ||||||
Other current liabilities | 227 | 115 | ||||||
Total current liabilities | 10,409 | 12,004 | ||||||
Convertible notes, less current portion, net | 70,553 | 78,105 | ||||||
Derivative and warrant liability | 335 | 2,118 | ||||||
Capital lease obligation, less current portion | — | 396 | ||||||
Operating lease liabilities, less current portion | 1,976 | — | ||||||
Other long-term liabilities | 237 | 689 | ||||||
Total liabilities | 83,510 | 93,312 | ||||||
Stockholders’ deficit: | ||||||||
Preferred stock: | ||||||||
Series A convertible preferred stock, $0.0001 par value, 9,578 shares authorized, 9,577 shares issued and 3,337 shares outstanding as of September 30, 2019 (unaudited) and December 31, 2018 | — | — | ||||||
Series B-1 convertible preferred stock, $0.0001 par value, 1,576 shares authorized, 1,576 shares issued and 789 shares outstanding as of September 30, 2019 (unaudited); no shares authorized, issued or outstanding as of December 31, 2018 | — | — | ||||||
Series B-2 convertible preferred stock, $0.0001 par value, 27,000 shares authorized, no shares issued or outstanding as of September 30, 2019 (unaudited); no shares authorized, issued or outstanding as of December 31, 2018 | — | — | ||||||
Undesignated preferred stock, $0.0001 par value, 9,961,846 shares authorized, no shares issued or outstanding as of September 30, 2019 (unaudited); 9,990,422 shares authorized, no shares issued or outstanding as of December 31, 2018 | — | — | ||||||
Common stock, $0.0001 par value, 250,000,000 shares authorized, 32,387,382 shares issued and outstanding as of September 30, 2019 (unaudited); 26,455,352 shares issued and outstanding as of December 31, 2018 |
3 | 3 | ||||||
Additional paid-in capital | 169,054 | 154,623 | ||||||
Accumulated deficit | (239,677 | ) | (221,192 | ) | ||||
Total stockholders' deficit | (70,620 | ) | (66,566 | ) | ||||
Total liabilities and stockholders' deficit | $ | 12,890 | $ | 26,746 |
Source: KemPharm