IRVINE, Calif., May 19, 2014 (GLOBE NEWSWIRE) -- AtheroNova Inc. (OTCBB:AHROD), a biotech company focused on the research and development of compounds to safely regress atherosclerotic plaque and improve lipid profiles in humans, today announced its financial results for the fiscal quarter ended March 31, 2014 and provided a corporate update on operations and progress on lead candidate AHRO-001.
Q1 2014 Financial Results:
- Total operating expenses for the 3 months ended March 31, 2013 were $2.1 million, compared to $1.5 million in the same period of 2013.
- Net loss attributable to common stockholders for the 3 months ended March 31, 2014 was $6.1 million, or $1.46 per basic and diluted share. This compares to a net loss of $1.6 million, or $0.43 per basic and diluted share in the same period of 2013.
- As of March 31, 2014, the Company had cash & cash equivalents of approximately $1.1 million.
Q1 2014 Corporate Highlights:
- Completed senior secured convertible note and warrant placement of $1.9 million in February 2014.
- Announced positive Phase 1 safety and tolerability results from one clinical study of AHRO-001 in healthy volunteers with mild dyslipidemia.
- Submitted protocol for initiation of next AHRO-001 clinical study to Russian Ministry of Healthcare.
- Received second issued patent (number 8,697,633) covering an additional bile acid compound in the treatment of atherosclerotic plaque.
- Strengthened management team with the addition of Dr. Randolph Johnson as Chief Operating Officer.
"We will continue to broaden our clinical experience with the next planned clinical trial currently under final review by the Russian regulatory agency," said Thomas Gardner, AtheroNova's Chairman and Chief Executive Officer. "We continue to execute on the CardioNova program as well as expansion of the U.S. based clinical and pre-clinical development programs in anticipation of filing our Investigational New Drug (IND) application for AHRO-001 with the FDA later this year. The addition of Dr. Randolph Johnson as COO will accelerate not only our clinical development programs, but also will increase our drug discovery program as we further develop proprietary molecules within our family of compounds. Our latest patent issuance broadens our platform and opens up opportunities for an accelerated path to market for this new intellectual property. All in all, Q1 was lean on expenses and heavy on accomplishments. Our core operating cash usage increased modestly from $0.8 million in the first 3 months of 2013 to $1.0 million in the first three months of 2014 and we will continue this conservative cash management in future periods. I'm very proud of the AtheroNova team."
About AtheroNova
AtheroNova Inc. is a biotechnology company focused on the discovery, research, development and licensing of novel compounds to safely reduce or regress atherosclerotic plaque deposits and improve lipid profiles in humans. In addition to its lead compound AHRO-001, AtheroNova plans to develop multiple applications for its patented and patents-pending therapies in market sectors that include: Cardiovascular Disease, Stroke and Peripheral Artery Disease, all of which have been linked to atherosclerosis. Atherosclerosis and its related pharmaceutical expenses for these indications cost consumers more than $41 billion annually in the United States alone. For more information, please visit www.AtheroNova.com.
Forward-Looking Statements
This news release includes "forward-looking statements". These statements are based upon the current beliefs and expectations of AtheroNova's management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; significant fluctuations in expenses associated with clinical trials, failure to secure additional financing, the inability to complete regulatory filings with the Food and Drug Administration, general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; AtheroNova's ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of AtheroNova's patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions. Examples of forward-looking statements in this release include statements related to data produced by the subject clinical study and the Company's clinical development plan.
AtheroNova undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in AtheroNova's 2013 Annual Report on Form 10-K and the Company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov).
| AtheroNova Inc. | ||
| Statement of Operations | ||
| (In thousands, except per share amounts) | ||
| 3 months ended | ||
| March 31, | ||
| 2014 | 2013 | |
| Research and development | $1,549 | $435 |
| General and administrative | 515 | 1,068 |
| Total operating expenses | 2,064 | 1,503 |
| Interest expense | 482 | 121 |
| Private placement costs | 3,340 | -- |
| Non-cash derivative (gains)/loss, net | 245 | -- |
| Other (income)/expense | -- | (1) |
| Income taxes | 2 | 1 |
| Net loss attributable to holders of Common Stock | ($6,133) | ($1,624) |
| Net basic and diluted loss per share | $(1.46) | $(0.43) |
| Weighted average number of shares used in computing basic and diluted net loss per share* | 4,212,375 | 3,798,337 |
| *Reflects 1-for-10 reverse stock split effective on April 22, 2014 | ||
| AtheroNova Inc. | ||
| Balance Sheet Data | ||
| (In thousands) | ||
| March 31, | December 31, | |
| ASSETS | 2013 | 2013 |
| Current assets: | ||
| Cash and cash equivalents | $ 1,143 | $ 266 |
| Prepaid expenses | 62 | 23 |
| Total current assets | 1,205 | 289 |
| Equipment, Net | 6 | 7 |
| Deposits and other assets | 13 | 13 |
| Total assets | $ 1,224 | $ 309 |
| LIABILITIES AND SHAREHOLDERS' DEFICIENCY | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $ 816 | $ 812 |
| Interest payable | 87 | 76 |
| Derivative liabilities | 4,833 | -- |
| Current portion of Senior secured notes, net of discount | 417 | 390 |
| Total Current liabilities | 6,153 | 1,278 |
| Senior secured notes, net of discount | 372 | 363 |
| Research and development costs payable in common stock | -- | 1,171 |
| Shareholders' equity (deficiency): | ||
| Common stock | -- | -- |
| Additional paid-in capital | 20,709 | 19,527 |
| Common stock issuable | 2,153 | -- |
| Deficit accumulated during the development stage | (28,163) | (22,030) |
| Total shareholders' deficiency | (5,301) | (2,503) |
| Total liabilities and shareholders' deficiency | $ 1,224 | $ 309 |