Capnia Reports Second Quarter 2016 Financial Results
“We had a strong first half of 2016, highlighted by the commencement of pilot sales of Serenz® Allergy Relief in pharmacies across the United Kingdom,” said
Second Quarter 2016 and Recent Highlights
Serenz and Therapeutics Pipeline
- Initiated European Commercial Launch of Serenz. Serenz is now available over the counter at more than 150 retail pharmacy locations as well as online across the
UK. As part of a launch tracking initiative, Capniais assessing customer feedback for Serenz. Preliminary feedback shows:
- 95% of survey participants report that Serenz met or exceeded their expectations,
- 85% report that they are very likely or likely to recommend Serenz to a family member or friend, and
- 82% are very likely or likely to purchase the product again in the future.
Survey participants state that rapid relief from allergy symptoms is the most important purchase consideration. Market research commissioned by
- New Nasal, Non-inhaled CO2 Patent Issued by USPTO. The patent, titled “Gas Dispenser for Dispensing Accurate Doses of
Therapeutic Gasfrom a Reservoir Containing Highly Compressed Therapeutic Gas,” was assigned U.S. Patent No. 9,364,620. This patent strengthens Capnia’s IP portfolio and enhances the commercial value and potential of its nasal CO2 technology. Capniais currently evaluating the technology in two Phase 2 clinical trials to assess its effectiveness in treating patients suffering from cluster headache and trigeminal neuralgia.
CoSense and Neonatology-Focused Commercial Product Line
- Early Influential Adopters. CoSense units placed at a number of leading hospitals driving recurring sales and growth of revenue from Precision Sample Sets.
- Exclusive Distribution Arrangements.
Capniahas secured CoSense distribution agreements in China, India, and the United States. Capnia is also finalizing distribution agreements in Singaporeand Saudi Arabiaand is in advanced negotiations with distributors in several other countries.
- CoSense and Other Pipeline Candidate Data Presented at the PAS 2016.
Capnia, in collaboration with academic researchers, presented five posters and one oral presentation at the 2016 Pediatric Academic Societies Annual Meeting highlighting scientific data for its CoSense® ETCO Monitor and other pipeline candidates.
- Private Placement of Convertible Preferred Stock. The transaction, which will take place in two separate closings, will result in gross proceeds to
Capniaof $13.8 million. Approximately $7.8 millionof the proceeds from the offering will be used to redeem 7,780 shares of Series A Convertible Preferred Stock held by the same investor, with the remaining balance of $6 millionavailable for working capital purposes. The first closing, which occurred on July 5, 2016, raised $3,151,000in gross proceeds. Capniaalso repurchased certain shares of Convertible Preferred Stock for an aggregate cost of $1,779,012.
Rajen Dalalappointed to the Board of Directors. Mr. Dalal brings to Capniaextensive leadership experience, having served as a senior executive and board member for various medical device and point-of-care diagnostic companies.
Second Quarter 2016 Financial Results
Total revenue recognized in the three and six months ended
Research and development expenses in the three and six months ended
Sales and marketing expenses in the three and six months ended
General and administrative expenses in the three and six months ended
The change in fair value of warrants for the three months ended
Net loss for the three months ended
Cash and cash equivalents at
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 commercialization and development and our ability to successfully launch Serenz in the EU.
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
|Condensed Consolidated Balance Sheets|
|(In thousands, except share amounts)|
|As of June 30,||As of December 31,|
|Cash & Cash Equivalents||$||2,502||$||5,495|
|Prepaid expenses and other current assets||157||167|
|Total Current Assets||3,756||6,404|
|Property & Equipment, net||118||86|
|Other intangible assets, net||867||917|
|Liabilities and stockholders' equity|
|Accrued compensation and other current liabilities||944||1,634|
|Series B Warrant Liability||-||865|
|Total Current Liabilities||1,901||3,194|
|Series A Warrant Liability||631||1,213|
|Series C Warrant Liability||193||462|
|Total Long-Term Liabilities||1,024||1,784|
|Series A convertible preferred stock, $0.001 par value,|
|40,000 shares authorized, 7,880 and 4,555 shares issued and|
|outstanding at June 30, 2016 and December 31, 2015, respectively||-||-|
|Common stock, $0.001 par value, 100,000,000 shares|
|authorized, 15,761,530 and 14,017,909 shares issued and|
|outstanding at June 30, 2016 and December 31, 2015, respectively||15||14|
|Total stockholders' equity||2,610||3,223|
|Total liabilities and stockholders' equity||$||5,535||$||8,201|
|Condensed Consolidated Statements of Operations|
|(In thousands, except share and per share amounts)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Cost of product revenue||428||22||889||40|
|Gross profit (loss)||(37||)||75||(51||)||79|
|Research and Development||1,327||1,181||3,098||2,059|
|Sales and Marketing||577||506||1,115||772|
|General and Administrative||1,509||1,432||3,449||2,718|
|Operating income (loss)||(3,450||)||(3,044||)||(7,713||)||(5,470||)|
|Interest and other income (expense)|
|Interest expense, net||(1||)|
|Change in fair value of warrant liabilities (expense)||(47||)||4,925||1,123||(1,249||)|
|Inducement charge for Series C warrants||-||-||-||(3,050||)|
|Interest and other income (expense), net||(63||)||4,925||1,011||(4,300||)|
|Net income (loss)||$||(3,513||)||$||1,881||$||(6,702||)||$||(9,770||)|
|Net income (loss) per common share:|
|Weighted-average common shares outstanding used|
|to calculate net income (loss) per common share:|
Investor Relations Contact:
Michelle Carroll/ Susie Kim Argot Partners(212) 600-1902 email@example.com firstname.lastname@example.org