Capnia Reports Fourth Quarter and Full Year 2014 Financial Results
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Fourth Quarter 2014 and Recent Highlights
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Completion of Series B Warrant Transaction. In
March 2015 ,Capnia completed a privately negotiated transaction with certain holders ofCapnia's Series B warrants who agreed to exercise their Series B warrants to purchase an aggregate of 589,510 shares ofCapnia's Common Stock at an exercise price of$6.50 per share, resulting in gross proceeds to the Company of approximately$3.8 million . In connection with this exercise of Series B warrants,Capnia issued to each investor who exercised Series B warrants, new Series C warrants exercisable at$6.25 per share for the same number of shares of Common Stock underlying the Series B warrants that were exercised. The cashless exercise feature that was contained in the Series B warrant that results in an increasing number of shares of Common Stock issuable without consideration as the price of the Common Stock decreases is not contained in the Series C warrants.Capnia intends to offer to all remaining holders of Series B warrants pursuant to a formal tender/registered exchange offer process, subject to certain limitations, the opportunity to exercise the Series B warrants held by them and receive Series C warrants on the same basis as in the private transaction.
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Announced First U.S. Commercial Sales of CoSense. In
February 2015 ,Capnia announced the first commercial sales of the Company's CoSense ETCO Monitors and single-use sampling sets to leading healthcare institutions.
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Presented CoSense Data at the 2014
American Society of Hematology . InDecember 2014 ,Capnia presented proof-of-concept data for the Company's CoSense ETCO Monitor in patients with sickle cell anemia (SCA) at the 2014American Society of Hematology Annual Meeting and Exposition inSan Francisco . The Company believes CoSense has potential applications in the monitoring of a range of diseases involving hemolysis and altered bilirubin metabolism, and data from this study supports the potential of CoSense as a screening tool for neonates at risk for SCA.
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Applied for Orphan Drug Designation in the U.S. for the Treatment of Trigeminal Neuralgia. In
December 2014 ,Capnia submitted an application to theU.S. Food and Drug Administration (FDA ) requesting Orphan Drug Designation for its nasal CO2 technology for the treatment of TN. TN is a clinical condition characterized by debilitating pain in regions of the face innervated by one or more divisions of the trigeminal nerve.
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Planned Partnership with Clinvest® to Develop Treatment for Cluster Headache. InJanuary 2015 ,Capnia announced the execution of a Memorandum of Understanding (MOU), whereby the Company and Clinvest®, a research organization dedicated to the advancement of medicine and health management through clinical research, will collaborate to develop a therapeutic product for the treatment of cluster headache usingCapnia's proprietary nasal CO2 technology. Under the terms of the MOU, Clinvest is expected to conduct an investigator-sponsored clinical trial evaluatingCapnia's nasal CO2 on up to 50 patients with episodic cluster headaches.Capnia will provide the investigational product and logistical support for the trial, as well as limited financial support.
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Completion of Initial Public Offering. In
November 2014 ,Capnia completed its IPO of 1,650,000 units, each unit consisting of one share of common stock, one Series A warrant (exercisable into one share of common stock) and one Series B warrant (exercisable into one share of common stock) resulting in aggregate net proceeds of approximately$8.0 million . Proceeds from the IPO will be used to fund the ongoing commercial launch of CoSense, and related costs, and for working capital, capital expenditures, and other corporate purposes.
Fourth Quarter 2014 Financial Results
No revenue was recognized in the three months ended
Research and development expenses in the fourth quarter of 2014 were
Sales and marketing expenses in the fourth quarter of 2014 were
General and administrative expenses in the fourth quarter of 2014 increased to
Interest expense increased by
Other expense in the fourth quarter of 2014 increased by
Net loss for the fourth quarter of 2014 was
Cash, cash equivalents, and marketable securities at
Full Year 2014 Financial Results
There was no revenue for the twelve months ended
Research and development expenses for the twelve months ended
Sales and marketing expenses for the twelve months ended
General and administrative expenses for the twelve months ended
Interest expense increased by
Other expense for the twelve months ended
Net loss for the twelve months ended
About
Forward-Looking Statements
This press release contains forward-looking statements that are subject to many risks and uncertainties. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things, our ongoing and planned product development and clinical trials and the ability to receive Orphan Drug Designation approval from the
We may use terms such as "believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," "approximately" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained herein, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from the forward-looking statements contained in this presentation. As a result of these factors, we cannot assure you that the forward-looking statements in this presentation will prove to be accurate. Additional factors that could materially affect actual results can be found in
| Capnia, Inc. | ||||
| Condensed Statements of Operations and Comprehensive Loss | ||||
| (In thousands, except per share amounts) | ||||
| Three Months Ended | Fiscal Year Ended | |||
| December 31, | December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenue | -- | -- | -- | $ 3,000 |
| Expenses | ||||
| Research and Development | 608 | 360 | 2,242 | 2,380 |
| Sales and Marketing | 157 | -- | 253 | -- |
| General and Administrative | 1,080 | 199 | 2,665 | 1,467 |
| Total expenses | 1,845 | 559 | 5,160 | 3,847 |
| Operating income (loss) | (1,845) | (559) | (5,160) | (847) |
| Interest and other income (expense) | ||||
| Interest income | -- | -- | 1 | 2 |
| Interest expense | (2,319) | (389) | (4,130) | (2,860) |
| Other expense | (3,690) | (26) | (4,586) | (2) |
| Net loss and comprehensive loss | $ (7,854) | $ (974) | $ (13,875) | $ (3,707) |
| Basic and diluted net loss per common share | $ (2.23) | $ (1.82) | $ (10.92) | $ (5.10) |
| Weighted-average common shares outstanding used to calculate basic and diluted net loss per common share | 3,516,886 | 535,685 | 1,270,033 | 535,648 |
| Capnia, Inc. | ||
| Condensed Balance Sheets | ||
| (In thousands) | ||
| As of December 31, | As of December 31, | |
| 2014 | 2013 | |
| Assets | ||
| Current Assets | ||
| Cash & Cash Equivalents | $ 7,957 | $ 1,269 |
| Restricted Cash | 20 | 20 |
| Accounts Receivable | -- | 150 |
| Inventory | 109 | -- |
| Prepaid expenses and other current assets | 252 | 85 |
| Total Current Assets | 8,338 | 1,524 |
| Long-term Assets | ||
| Property & Equipment, net | 58 | 63 |
| Total Assets | $ 8,396 | $ 1,587 |
| Liabilities, convertible preferred stock and stockholders' deficit | ||
| Current Liabilities | ||
| Accounts Payable | $ 987 | $ 58 |
| Accrued expenses | 201 | 129 |
| Line of Credit | 102 | -- |
| Convertible promissory notes and accrued interest | -- | 13,992 |
| Total Current Liabilities | 1,290 | 14,179 |
| Long-Term Liabilities | ||
| Series B Warrant Liability | 17,439 | -- |
| Convertible preferred stock warrant liability | -- | 1,464 |
| Commitments and Contingencies | ||
| Convertible Preferred Stock | ||
| Series A convertible preferred stock, $0.001 par value, 40,000 shares authorized, 0 and 31,250 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively; (aggregate liquidation preference of $1,500) | -- | 1,500 |
| Series B convertible preferred stock, $0.001 par value, 320,000 shares authorized, 0 and 119,140 shares issued and outstanding at December 31, 2014 and December 31, 2013 respectively; (aggregate liquidation preference of $6,863) | -- | 6,863 |
| Series C convertible preferred stock, $0.001 par value, 1,500,000 shares authorized, 0 and 715,039 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively; (aggregate liquidation preference of $15,445) | -- | 15,445 |
| Stockholder's deficit | ||
| Common stock, $0.001 par value, 100,000,000 shares authorized at December 31, 2014 and 10,000,000 shares authorized at December 31, 2013; 6,769,106 and 535,685 shares issued and outstanding at December 31, 2014 and December 31, 2013 | 7 | 1 |
| Additional paid-in-capital | 60,635 | 19,235 |
| Accumulated deficit | (70,975) | (57,100) |
| Total stockholders' deficit | (10,333) | (37,864) |
| Total liabilities and stockholders' deficit | $ 8,396 | $ 1,587 |
CONTACT: Capnia Contact:
David O'Toole
Chief Financial Officer
Capnia, Inc.
(650) 353-5146
dotoole@capnia.com
Investor Relations Contact:
Michelle Carroll /Susie Kim
Argot Partners
(212) 600-1902
michelle@argotpartners.com
susie@argotpartners.com
