Capnia Reports Third Quarter 2015 Financial Results
"The third quarter was highlighted by our acquisition of revenue-generating, neonatal pulmonary resuscitation solutions from NeoForce," said
"Since our last quarterly update, we completed two financings that provide access up to
Recent Developments and Highlights
CoSense and Neonatology-Focused Products
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Acquired Marketed Neonatal Pulmonary Resuscitation Solutions From NeoForce. In September,
Capnia increased its presence in neonatology through the acquisition of the assets ofNeoForce Group, Inc. , a developer of innovative pulmonary resuscitation solutions for the inpatient and ambulatory neonatal markets with several currently-marketed products.
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Appointed NeoForce Founder, Otho Boone, as General Manager of Neonatology. Mr. Boone, who founded NeoForce in 2005, brings to
Capnia over 25 years of medical device sales, operations and product development experience at neonatology focused companies such as Drager, Hill-Rom Air Shields and Ohmeda. Prior to founding NeoForce, Mr. Boone was Vice President of Global Marketing at Drager. Mr. Boone has a depth of expertise and broad relationships with top tier hospitals acrossthe United States , whichCapnia plans to leverage to accelerate the adoption of its CoSense ETCO monitor.
- Published Clinical Data in the Journal Neonatology Supporting the Use of the CoSense ETCO Monitor to Detect Hemolysis in Neonates.The results of the study conducted in neonates with bilirubin above the 75th percentile on the Bhutani bilirubin nomogram demonstrated the feasibility of CoSense in detecting hemolysis in jaundiced newborns and reducing jaundice-related readmissions.
Therapeutics Pipeline
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Announced the First Patient Enrolled in Clinical Trial for Cluster Headache. This pilot, single-center clinical trial is designed to enroll 25 patients with episodic cluster headaches. The primary efficacy endpoint of the trial is the greatest change from pre-treatment headache pain intensity to post treatment.
Capnia expects to report top-line data from this trial in 2016.
Financial/Corporate
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Completed Two Financings Providing a Total of up to
$20 Million . The previously-announced financings include a$10 million at-the-market firm commitment Stock Purchase Agreement withAspire Capital completed inJuly 2015 , and a$10 million private placement of convertible preferred stock and Series D Warrants with funds managed bySabby Management, LLC , of which the first closing for$4.5 million occurred inOctober 2015 .
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Acquired Ownership of Patent for Breath End Tidal Gas Monitor. Amended the asset purchase agreement with
BioMedical Drug Development, Inc. (BDDI) originally signed in 2010, which now givesCapnia 100% of the financial interest in the product.
Third Quarter 2015 Financial Results
Total revenue recognized in the three and nine months ended
Research and development expenses in the three and nine months ended
Sales and marketing expenses in the three and nine months ended
General and administrative expenses in the three and nine months ended
Interest expense, net, for the three and nine months ended
The change in fair value of warrants income for the three months ended
The inducement charge for Series C Warrants for the nine months ended
Net loss for three months ended
Cash and cash equivalents at
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, renewed focus on our therapeutic business and our ability to report data from our Cluster Headache pilot trial in 2016.
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 Consolidated Balance Sheets | ||
| (In thousands, except share and per share amounts) | ||
| (unaudited) | ||
| As of September 30, | As of December 31, | |
| 2015 | 2014 | |
| Assets | (Revised) | |
| Current Assets | ||
| Cash & Cash Equivalents | $ 4,720 | $ 7,957 |
| Restricted Cash | 111 | 20 |
| Accounts Receivable | 94 | -- |
| Inventory | 376 | 109 |
| Prepaid expenses and other current assets | 225 | 252 |
| Total Current Assets | 5,526 | 8,338 |
| Long-term Assets | ||
| Property & Equipment, net | 98 | 58 |
| Goodwill | 718 | |
| Other Assets | 946 | -- |
| Total Assets | $ 7,288 | $ 8,396 |
| Liabilities and stockholders' deficit | ||
| Current Liabilities | ||
| Accounts Payable | $ 953 | $ 987 |
| Accrued expenses | 1,224 | 201 |
| Series B Warrant Liability | 3,851 | -- |
| Line of Credit and Accrued Interest | -- | 102 |
| Total Current Liabilities | 6,028 | 1,290 |
| Long-Term Liabilities | ||
| Series A Warrant Liability | 1,819 | 857 |
| Series B Warrant Liability | -- | 17,439 |
| Series C Warrant Liability | 581 | -- |
| Other Liabilities | 151 | -- |
| Total Long-Term Liabilities | 2,551 | 18,296 |
| Total Liabilities | 8,579 | 19,586 |
| Stockholders' deficit | ||
| Common stock, $0.001 par value, 100,000,000 shares authorized at September 30, 2015 and December 31, 2014, 12,318,508 and 6,769,106 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 12 | 7 |
| Additional paid-in-capital | 82,099 | 59,141 |
| Accumulated deficit | (83,402) | (70,338) |
| Total stockholders' deficit | (1,291) | (11,190) |
| Total liabilities and stockholders' deficit | $ 7,288 | $ 8,396 |
| Capnia, Inc. | ||||
| Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||
| (In thousands, except share and per share amounts) | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| September 30, | September 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Government grant revenue | $ 155 | -- | $ 220 | -- |
| Product revenue | 92 | -- | 146 | -- |
| Total Revenue | 247 | 366 | ||
| Cost of product revenue | 56 | -- | 96 | -- |
| Gross Profit | 191 | -- | 270 | -- |
| Expenses | ||||
| Research and Development | 1,193 | 717 | 3,252 | 1,633 |
| Sales and Marketing | 467 | 84 | 1,239 | 96 |
| General and Administrative | 1,714 | 746 | 4,432 | 1,585 |
| Total expenses | 3,374 | 1,547 | 8,923 | 3,314 |
| Operating loss | (3,183) | (1,547) | (8,653) | (3,314) |
| Interest and other income (expense) | ||||
| Interest expense, net | -- | (752) | (1) | (1,810) |
| Change in fair value of warrant liabilities | 73 | (318) | (1,177) | (895) |
| Other expense | (183) | -- | (183) | -- |
| Inducement charge for Series C warrants | -- | -- | (3,050) | -- |
| Net loss | $ (3,293) | $ (2,617) | $ (13,064) | $ (6,019) |
| Net loss per common share basis and diluted net loss per common share | $ (0.33) | $ (4.47) | $ (1.60) | $ (11.24) |
| Weighted-average common shares outstanding used to calculate basic and diluted net loss per common share | 10,040,079 | 535,685 | 8,178,897 | 535,685 |
CONTACT: Investor Relations Contact:
Michelle Carroll /Susie Kim
Argot Partners
(212) 600-1902
michelle@argotpartners.com
susie@argotpartners.com
