LOS ANGELES, Feb. 5, 2019 /PRNewswire/ -- Stellar
Biotechnologies, Inc. (Nasdaq: SBOT), a leading manufacturer of a
key protein utilized in multiple immunotherapy and immuno-oncology
development pipelines, today reported financial results for the
three months ended December 31, 2018
and provided an update on its business.
Stellar President and Chief Executive Officer Frank R. Oakes said that the company continues
to execute on its strategy to unlock new opportunities for growth.
"During the quarter, we continued to advance our growth strategy
and took steps designed to increase the flexibility and efficiency
of Stellar's aquaculture production systems."
The company ended its first fiscal quarter with approximately
$9 million in cash and short-term
investments. "Our expenditures were largely in line with our
expectations and historical results," said Stellar Chief Financial
Officer Kathi Niffenegger. "We
believe it's prudent to be vigilant with our working capital and
management continues to take steps intended to conserve cash."
Financial Results for the Three Months Ended December 31, 2018
Total revenues increased by $0.03
million to $0.05 million for
the three months ended December 31,
2018 compared to $0.02 million
for the same period last year primarily due to increased sales of
higher value, clinical-grade KLH products.
Total operating expenses increased by $0.05 million to $1.46
million for the three months ended December 31, 2018 compared $1.41 million for the same period last year:
- Cost of sales increased by $0.03
million to $0.03 million for
the three months ended December 31,
2018 compared to less than $0.01
million for the same period last year primarily due to
increased product sales.
- Cost of aquaculture decreased by $0.02
million to $0.08 million for
the three months ended December 31,
2018 compared to $0.10 million
for the same period last year primarily due to a decrease in
contracted quality testing services.
- Research and development expenses decreased by $0.16 million to $0.47
million for the three months ended December 31, 2018 compared to $0.63 million for the same period last year. The
decrease was primarily due to a decrease in contracted research
services and materials.
- General and administrative expenses increased by $0.20 million to $0.88
million for the three months ended December 31, 2018 compared to $0.68 million for the same period last year
primarily due to increased legal and professional fees and public
company expenses.
For the first quarter of fiscal year 2019, Stellar reported a
net loss of $1.41 million, or
$0.26 per basic share, compared to a
net loss of $1.40 million, or
$ 0.93 per basic share, for the first
quarter of the prior fiscal year.
At December 31, 2018, the company
had working capital of $8.87 million.
Cash, cash equivalents and short-term investments totaled
$8.96 million.
Stellar will file its Form 10-Q for the quarter ended
December 31, 2018 with the Securities
and Exchange Commission on or about February
5, 2019. To view the company's filings with the Canadian
Securities Administrators (CSA), visit the CSA's SEDAR website.
About Stellar Biotechnologies
Based north of
Los Angeles at the Port of
Hueneme, Stellar Biotechnologies, Inc. (Nasdaq: SBOT) is the leader
in sustainable manufacture of Keyhole Limpet Hemocyanin (KLH), an
immune-stimulating protein utilized as a carrier molecule in
therapeutic vaccine pipelines (targeting cancers, immune disorders,
Alzheimer's and inflammatory diseases) and for assessing immune
system function. KLH can also be used in immunotoxicology studies
for monitoring the immunomodulatory effects of drug candidates.
Stellar is committed to meeting the growing demand for
commercial-scale supplies of GMP grade KLH, ensuring
environmentally sound KLH production, and supporting the
development of KLH-based active immunotherapies. Stellar KLH is a
trademark of Stellar Biotechnologies.
Follow Stellar: LinkedIn | Twitter | Facebook
Stellar Forward-Looking Statements
This press
release may contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements may be identified by the use of words
such as "anticipate," "believe," "plan," "estimate," "expect,"
"intend," "may," "will," "would," "could," "should," "might,"
"potential," or "continue" and variations or similar expressions.
This press release contains forward-looking statements regarding
management's steps to conserve cash. Readers should not unduly rely
on these forward-looking statements, which are not a guarantee of
future performance. There can be no assurance that forward-looking
statements will prove to be accurate, as all such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause actual results or future events to differ
materially from the forward-looking statements. Such risks include,
but may not be limited to: general economic and business
conditions; technology changes; competition; changes in strategy or
development plans; availability of funds and resources; anticipated
requirements for operating capital; governmental regulations and
the ability or failure to comply with governmental regulations;
changes in trade policy and international law; the timing of
Stellar's or its partners' anticipated results, including in
connection with clinical trials; the ability to meet the goals of
Stellar's joint ventures and strategic partnerships; and other
factors referenced in Stellar's filings with securities regulators.
For a discussion of further risks and uncertainties related to the
Stellar's business, please refer to Stellar's public company
reports filed with the U.S. Securities and Exchange Commission and
the British Columbia Securities Commission. All forward-looking
statements are made as of the date hereof and are subject to
change. Except as required by law, Stellar assumes no obligation to
update such statements. This press release does not constitute an
offer or solicitation of an offer for sale of any securities in any
jurisdiction, including the United
States.
|
Condensed Interim
Consolidated Statements of Operations
|
|
(Unaudited - Prepared
by Management)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
December
31,
|
|
|
|
2018
|
2017
|
|
|
|
|
|
|
Total
Revenues
|
$
53,033
|
$
20,487
|
|
|
|
|
|
|
Expenses:
|
|
|
|
Cost of
sales
|
27,993
|
2,801
|
|
Costs of
aquaculture
|
78,280
|
98,050
|
|
Research and
development
|
470,283
|
631,034
|
|
General and
administrative
|
882,798
|
678,481
|
|
|
|
|
|
|
Total
Expenses
|
1,459,354
|
1,410,366
|
|
|
|
|
|
|
Loss from
Operations
|
(1,406,321)
|
(1,389,879)
|
|
|
|
|
|
|
Net Other Income
(Loss)
|
1,417
|
(10,067)
|
|
|
|
|
|
|
Income tax
expense
|
800
|
800
|
|
|
|
|
|
|
Net
Loss
|
$
(1,405,704)
|
$
(1,400,746)
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
Basic and
diluted
|
$
(0.26)
|
$
(0.93)
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic and
diluted
|
5,330,715
|
1,502,870
|
|
Condensed Interim
Consolidated Balance Sheets
|
|
(Unaudited - Prepared
by Management)
|
|
|
|
|
|
|
|
|
December
31,
|
September
30,
|
|
|
|
2018
|
2018
|
|
|
|
|
|
|
Assets:
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$
8,963,729
|
$
10,303,552
|
|
Other current
assets
|
498,667
|
352,432
|
|
Noncurrent
assets
|
1,037,552
|
1,123,991
|
|
|
|
|
|
|
Total
Assets
|
$
10,499,948
|
$
11,779,975
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
592,023
|
$
493,385
|
|
Shareholders'
equity
|
9,907,925
|
11,286,590
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
$
10,499,948
|
$
11,779,975
|
|
Condensed Interim
Consolidated Statements of Cash Flows
|
|
(Unaudited - Prepared
by Management)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
December
31,
|
|
|
|
2018
|
2017
|
|
|
|
|
|
|
Cash Flows Used In
Operating Activities:
|
|
|
|
Net loss
|
$
(1,405,704)
|
$
(1,400,746)
|
|
Items not affecting
cash:
|
|
|
|
|
Depreciation and
amortization
|
44,468
|
49,309
|
|
|
Share-based
compensation
|
27,039
|
20,706
|
|
|
Foreign exchange
(gain) loss
|
27,139
|
17,929
|
|
|
Other
|
46,456
|
10,835
|
|
Changes in working
capital items
|
(48,234)
|
157,504
|
|
|
|
|
|
|
Net cash used in
operating activities
|
(1,308,836)
|
(1,144,463)
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Purchase of property,
plant and equipment
|
(5,666)
|
(34,767)
|
|
Net (purchases)
proceeds of short-term investments
|
4,478,964
|
995,826
|
|
|
|
|
|
|
Net cash provided
by investing activities
|
4,473,298
|
961,059
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(25,321)
|
(17,876)
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
3,139,141
|
(201,280)
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of period
|
4,225,521
|
4,570,951
|
|
|
|
|
|
|
Cash and cash
equivalents - end of period
|
$
7,364,662
|
$
4,369,671
|
|
|
|
|
|
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SOURCE Stellar Biotechnologies, Inc.