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Aptose Biosciences reports results for the four months ended September 30, 2014
Effective July 15, 2014 the Company changed its fiscal year end from May 31 to December 31. As a result of that change, the current interim period being reported is for the four months ended September 30, 2014, while the prior year comparative period is for the three months ended August 31, 2013 and therefore not directly comparable to the current four-month period. The current fiscal year will be from June 1, 2014 to December 31, 2014.
The net loss for the four months ending September 30, 2014 was $4.2 million, or ($0.36) per share, compared with a net loss of $1.1 million, or ($0.31) per share, for the three months ended August 31, 2013. Total cash and cash equivalents and short term investments as of September 30, 2014 totaled $33.1 million.
"The four-month period ended September 30, 2014 has been marked by significant corporate achievement," said William G. Rice, Ph.D., Chairman, President and Chief Executive Officer. "Our listing on the NASDAQ Exchange is a major milestone for the Company and caps off a year of solid execution under a new leadership team. We are now well-positioned to advance our lead program APTO-253 into later stage clinical development."
Phase 1b Trial
Beat AML Collaboration
American Society of Hematology
Net loss for the four months ended September 30, 2014 was $4.2 million ($0.36 per share) compared with $1.1 million ($0.31 per share) during the three months ended August 31, 2013. The increase in net loss is due to the comparison of a four-month period in the current period with a three-month period in the prior year, in addition to increased research and development costs associated with increased clinical activity on APTO-253 and higher general and administrative costs associated with higher stock-based compensation and increased corporate activities including the Company's name change, share consolidation and NASDAQ listing.
Research and development expenses totaled $1.3 million in the four months ended September 30, 2014 compared to $615 thousand during the three months ended August 31, 2013. Research and development costs consist of the following:
The increase in research and development costs in the four months ended September 30, 2014 compared with the three months ended August 31, 2013 is due to a four-month period compared with a three-month period in the prior year, as well as increased costs associated with APTO-253 and research, clinical and manufacturing activities as the Company prepares to launch a Phase I clinical trial. In the prior year period there were minimal research and development activities ongoing.
General and administrative expenses totaled $3.0 million for the four months ended September 30, 2014 compared to $451 thousand in the three months ended August 31, 2013. General and administrative expenses consist of the following:
General and administrative costs excluding salaries are higher in the four months ended September 30, 2014 due to a four-month period compared with a three-month period ended August 31, 2013. In addition, in the current period, the Company had higher legal and patent costs associated with corporate activities (including the name change, share consolidation and NASDAQ listing), as well as re-branding costs associated with Aptose's name change and new website and higher levels of administrative costs associated with additional employees.
Salary costs have increased in the four-month period ended September 30, 2014 compared with the three-month period ended August 31, 2013 due to an additional month in the period as well as the addition of senior executives who were not employed at Aptose in the three months ended August 31, 2013.
Stock-based compensation costs increased in the four months ended September 30, 2014 compared with the three months ended August 31, 2013 due to option grants during the four-month period compared with no option grants in the three-month period in the prior year.
Aptose utilized cash of $3.9 million in operating activities in the four months ended September 30, 2014 compared with $933 thousand in the three months ended August 31, 2013. The increase in cash used in operating activities during the four-month period is primarily related to an increased net loss as well as a reduction in accounts payable and accrual balances compared with the three months ended August 31, 2013.
At September 30, 2014 Aptose had cash and cash equivalents and short-term investments of $33.1 million compared to $30.4 million at May 31, 2014.
Subsequent to the four months ended September 30, 2014, the Board of Directors approved a 1-for-12 share consolidation which became effective October 1, 2014. The share consolidation affected all of Aptose's common shares, stock options and warrants outstanding at the effective time. Fractional shares were not issued. Prior to consolidation there were approximately 139 million shares outstanding and following the share consolidation, there are approximately 11.6 million common shares outstanding. Similarly, prior to consolidation, Aptose had approximately 17.1 million stock options and 2.6 million warrants to purchase common shares outstanding. Following the share consolidation, there are approximately 1.4 million stock options and 218 thousand warrants to purchase common shares outstanding.
For further details and to view Aptose's May 31, 2014 Audited Consolidated Financial Statements and Management's Discussion and Analysis, please see Aptose's filings on www.sedar.com and on www.aptose.com.
CONFERENCE CALL AND WEBCAST
Aptose will host a conference call to discuss results for the four months ended September 30, 2014 on Tuesday, November 4, 2014 at 5:00 p.m. EDT. Participants can access the conference call by dialing 1-888-231-8191 (North American toll free number) or 647-427-7450 (local). The conference call will be available via a live webcast at http://www.newswire.ca/en/webcast/detail/1435873/1595769, and will also be available through a link on the Investor Relations section of Aptose's website at http://www.aptose.com/events/. Please log on to the webcast at least 10 minutes prior to the start of the call to ensure time for any software downloads that may be required. An archived version of the webcast will be available on the Company's website for 30 days. An audio replay of the webcast will be available approximately two hours after the conclusion of the call for 30 days by dialing 1-855-859-2056, using the passcode 28685150.
The information contained in this news release is unaudited.
Aptose Biosciences is a clinical-stage biotechnology company committed to discovering and developing personalized therapies addressing unmet medical needs in oncology. Aptose is advancing new therapeutics focused on novel cellular targets on the leading edge of cancer research, coupled with companion diagnostics to identify the optimal patient population for our products. The Company's small molecule cancer therapeutics pipeline includes products designed to provide enhanced efficacy with existing anti-cancer therapies and regimens without overlapping toxicities. Aptose Biosciences Inc. is listed on NASDAQ under the symbol APTO and on the TSX under the symbol APS.
This press release contains forward-looking statements within the meaning of Canadian and U.S. securities laws. Such statements include, but are not limited to, statements relating to Aptose's plans, objectives, expectations and intentions and other statements including words such as "continue", "expect", "intend", "will", "should", "would", "may", and other similar expressions. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements described in this press release. Such expressed or implied factors include, among others: changes in our stock price; our ability to meet listing requirements; our ability to obtain the capital required for research and operations; the inherent risks in early stage drug development including demonstrating efficacy; development time/cost and the regulatory approval process; the progress of our clinical trials; our ability to find and enter into agreements with potential partners; our ability to attract and retain key personnel; changing market conditions; stock market volatility; and other risks detailed from time-to-time in our ongoing quarterly filings, annual information forms, annual reports and annual filings with Canadian securities regulators and the United States Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in our filings with Canadian securities regulators and the United States Securities and Exchange Commission underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by law. We cannot assure you that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
SOURCE Aptose Biosciences Inc.
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