Seneca Biopharma, Inc. (Nasdaq: SNCA), a clinical-stage biopharmaceutical company developing novel treatments for various diseases of high unmet medical need, reported its financial results for the three and nine months ended September 30, 2019.
RECENT HIGHLIGHTS & ACCOMPLISHMENTS:
- Name change to Seneca Biopharma, Inc. (SNCA) in October 2019;
- Signed non-binding term sheet for an exclusive license to a pipeline of monoclonal antibody product candidates for a range of auto-immune and other diseases;
- Completed $7.5 million underwritten public offering; and
- Regained compliance with the NASDAQ listing requirements.
"We are pleased at the progress we have made to reshape our company. Changing our name to Seneca Biopharma, Inc. is symbolic of our new focus and direction. Additionally, with our recently announced non-binding term sheet with Jiangsu QYuns Therapeutics Co., Ltd., we have accomplished one of our primary objectives in moving forward with the transformation of the Company" said Ken Carter, Executive Chairman of Seneca.
Financial Results for the Quarter Ended September 30, 2019
Research and Development Expenses: R&D expenses for the quarter ended September 30, 2019 decreased to $0.8 million versus the comparable period of 2018 of $0.9 million. The decrease reflects reduced clinical activities offset by increases in costs of identification and evaluation of strategic program opportunities.
R&D expenses for the nine months ended September 30, 2019 increased by $0.2 million, 7%, to $3.3 million from $3.1 million over the comparable period of 2018. This increase was primarily attributable to increases in costs of identification and evaluation of strategic program opportunities, a $0.5 million write-off related to an employee payable in connection with such employee's termination, and partially offset by a decrease in clinical costs.
General and Administrative Expenses: G&A expenses for the quarter ended September 30, 2019 increased by $0.1 million to $1.3 million, or 10%, over the $1.2 million reflected in the comparable period of 2018. This increase primarily relates to an increase in non-cash compensation expense which was partially offset by a decrease in tax expense.
G&A expenses for the nine months ended September 30, 2019 decreased by $0.4 million to $3.2 million, or 13%, from $3.6 million reflected in the comparable period of 2018. This decrease is the result of general expense reduction efforts across multiple areas including consulting, outside services, tax and insurance expense as well as an increase in non-cash compensation expense.
Net Loss: Net loss for the quarter ended September 30, 2019 was $1.8 million, or $0.59 per share, compared to a loss of $1.8 million, or $2.41 per share, for the comparable period of 2018. Weighted average shares outstanding were 3.0 million shares at September 30, 2019 compared to 0.76 million shares at September 30, 2018.
Net loss for the nine months ended September 30, 2019 was $6.3 million, or $4.80 per share, compared to a loss of $4.6 million, or $6.08 per share, for the comparable period of 2018. Weighted average shares outstanding were 1.3 million shares at September 30, 2019 compared to 0.76 million shares at September 30, 2018.
All per share numbers have been retroactively adjusted for our 1-for-20 reverse stock split.
The net loss in the three and nine-month periods of 2018 were positively impacted by reductions in the derivative liabilities related to outstanding warrants reflected on the September 30, 2018 statement of operations of $0.2 and $1.8 million, respectively. The corresponding 2019 three- and nine-month periods also reflect reduced derivative liabilities with the impact reflected on the statement of operations in the amounts of $0.3 and $0.4 million, respectively.
Cash Position and Liquidity: At September 30, 2019, cash, cash equivalents and short-term investments were $7.3 million as compared to $5.8 million at December 31, 2018. The Company anticipates its existing cash, cash equivalents to fund its operations, based on its current operating plans, into the third quarter of 2020.
About Seneca Biopharma, Inc.
Seneca Biopharma, Inc., is a clinical-stage biopharmaceutical company developing novel treatments for various diseases of high unmet medical need. The Company is in the process of transforming the organization through the acquisition or in-licensing of new science and technologies, to develop with the goal of providing meaningful therapies for patients.
