PORT HUENEME, CA--(Marketwired - Jul 10, 2014) - Stellar Biotechnologies, Inc. ("Stellar" or "the Company") (
Third Quarter and Nine Months ended May 31, 2014 Results
Operational Updates:
"This has been an important strategic year for Stellar and we are pleased to report positive momentum in key facets of our KLH business," said Frank Oakes, President and CEO of Stellar Biotechnologies. "Our corporate collaborations, where Stellar KLH is used as the critical carrier molecule in new therapeutic vaccines, are strong and poised for clinical advancement. And we are on track in the preclinical development of our own C. diff immunotherapy program. We are confident that these initiatives will enhance valuation for our shareholders as well as expand Stellar's long-term commercial potential."
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About Stellar Biotechnologies, Inc.
Stellar Biotechnologies, Inc. (
Visit www.stellarbiotech.com and the KLH knowledge base www.klhsite.org.
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. 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; governmental regulations and the ability or failure to comply with governmental regulations; the timing of anticipated results; and other factors referenced in the Company's filings with securities regulators. For a discussion of further risks and uncertainties related to the Company's business, please refer to the Company's public company reports filed with the TSX Venture Exchange and the U.S. Securities and Exchange Commission. All forward-looking statements are made as of the date hereof and are subject to change. Except as required by law, the Company 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. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the information contained in this press release.
Condensed Interim Consolidated Statements of Financial Position | |||||||||
(Unaudited - Prepared by Management) | |||||||||
(Expressed in US Dollars ) | |||||||||
May 31, | August 31, | ||||||||
2014 | 2013 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 14,785,468 | $ | 7,859,889 | |||||
Other current assets | 182,039 | 274,633 | |||||||
Noncurrent assets | 538,258 | 378,836 | |||||||
Total Assets | $ | 15,505,765 | $ | 8,513,358 | |||||
Liabilities and Shareholders' Equity (Deficiency): | |||||||||
Accounts payable and accrued liabilities | $ | 492,970 | $ | 454,063 | |||||
Warrant liability, including current portion | 3,859,412 | 11,200,807 | |||||||
Shareholders' equity (deficiency) | 11,153,383 | (3,141,512 | ) | ||||||
Total Liabilities and Shareholders' Equity (Deficiency) | $ | 15,505,765 | $ | 8,513,358 |
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | ||||||||||||||||||
(Unaudited - Prepared by Management) | ||||||||||||||||||
(Expressed in US Dollars ) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
May 31, | May 31, | May 31, | May 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues: | ||||||||||||||||||
Contract income | $ | 60,000 | $ | 15,000 | $ | 147,000 | $ | 45,000 | ||||||||||
Commercial sales | 42,581 | 12,050 | 69,269 | 51,275 | ||||||||||||||
Grant revenue | - | 46,164 | 36,579 | 154,147 | ||||||||||||||
Total Revenues | 102,581 | 73,214 | 252,848 | 250,422 | ||||||||||||||
Costs of Production, Aquaculture and Grants | 135,351 | 101,964 | 353,919 | 366,387 | ||||||||||||||
Gross Margin (Loss) | (32,770 | ) | (28,750 | ) | (101,071 | ) | (115,965 | ) | ||||||||||
Operating Expenses: | ||||||||||||||||||
Research and development | 462,129 | 178,202 | 1,370,581 | 684,662 | ||||||||||||||
Other operating expenses | 864,485 | 582,152 | 2,982,529 | 1,741,517 | ||||||||||||||
Total Operating Expenses | 1,326,614 | 760,354 | 4,353,110 | 2,426,179 | ||||||||||||||
Other Income (Loss): | ||||||||||||||||||
Foreign exchange gain (loss) | 141,700 | (30,389 | ) | (195,310 | ) | (60,343 | ) | |||||||||||
Change in fair value of warrant liability | 3,023,391 | (353,119 | ) | 822,919 | (2,981,740 | ) | ||||||||||||
Interest income | 16,583 | 1,075 | 43,223 | 3,708 | ||||||||||||||
Income tax expense | 9,000 | - | 21,200 | 800 | ||||||||||||||
Net Income (Loss) and Comprehensive Income (Loss) for the Period | $ | 1,813,290 | $ | (1,171,537 | ) | $ | (3,804,549 | ) | $ | (5,581,319 | ) | |||||||
Income (loss) per common share - basic and diluted | $ | 0.02 | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.11 | ) | |||||||
Weighted average number of common shares outstanding | 78,115,549 | 53,489,763 | 75,049,659 | 50,409,302 | ||||||||||||||
Condensed Interim Consolidated Statements of Cash Flows | ||||||||||
(Unaudited - Prepared by Management) | ||||||||||
(Expressed in US Dollars ) | ||||||||||
Nine Months Ended | ||||||||||
May 31, | May 31, | |||||||||
2014 | 2013 | |||||||||
Cash Flows Used In Operating Activities: | ||||||||||
Loss for the period | $ | (3,804,549 | ) | $ | (5,581,319 | ) | ||||
Items not affecting cash: | ||||||||||
Amortization and depreciation | 119,633 | 92,853 | ||||||||
Share-based payments | 899,461 | 521,987 | ||||||||
Foreign exchange (gain) loss | 26,778 | 23,597 | ||||||||
Change in fair value of warrant liability | (822,919 | ) | 2,981,740 | |||||||
Changes in non-cash working capital items | 131,501 | (275,920 | ) | |||||||
Net cash used in operating activities | (3,450,095 | ) | (2,237,062 | ) | ||||||
Net cash provided by financing activities | 10,681,507 | 2,992,413 | ||||||||
Net cash used in investing activities | (279,055 | ) | (2,411 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (26,778 | ) | 36,746 | |||||||
Net change in cash and cash equivalents | 6,925,579 | 789,686 | ||||||||
Cash and cash equivalents - beginning of period | 7,859,889 | 998,998 | ||||||||
Cash and cash equivalents - end of period | $ | 14,785,468 | $ | 1,788,684 | ||||||