GLEN ROCK, NJ--(Marketwired - May 16, 2016) - RespireRx Pharmaceuticals Inc. (
Comments by Chief Executive Officer
James S. Manuso, Ph.D., President, Chief Executive Officer and Vice Chairman of RespireRx, commented, "We are pleased to report to our shareholders that the RespireRx team has accomplished a great deal during the first quarter of 2016, further laying the foundation for our growth going forward. Our Phase 2 trials, consisting of CX 1739 for opioid-induced respiratory depression and dronabinol for Obstructive Sleep Apnea, are on schedule to conclude and report results in the coming quarters. We have successfully raised additional capital to fund our operations and we are continuing our efforts to strengthen our balance sheet."
Dr. Manuso continued, "We are particularly concerned about the opioid epidemic in our country and we remain committed to addressing this problem with our Ampakine platform. Our current Phase 2A trial at Duke University is specifically designed to examine the ability of CX1739 to mitigate the respiratory depressant actions of an opioid, the primary cause of opioid lethality, without interfering with the pain management benefits of the opioid."
Dr. Manuso concluded, "We encourage those interested in learning more about the current clinical landscape for treating respiratory diseases to follow continuing developments at RespireRx."
Corporate Overview
Key corporate developments during the three months ended March 31, 2016 included the following:
Key subsequent events after March 31, 2016 included the following:
Research and Development Overview
RespireRx is a leader in the development of medicines for respiratory disorders, holding exclusive licenses and owning patents and patent applications for certain families of chemical compounds that claim the chemical structures and their use in the treatment of a variety of disorders, as well as claims for novel uses of known drugs.
The Company has a pipeline of compounds in Phase 2 clinical development focused on developing drug treatments for a variety of different breathing disorders. Clinical development in the area of respiratory disorders, particularly drug-induced respiratory depression and sleep apnea, has created opportunities for the development and commercialization of the Company's compounds.
RespireRx's pharmaceutical candidates in development, which are derived from two platforms, are as follows:
Information with respect to current clinical trials involving RespireRx's pharmaceutical candidates is as follows:
Financial Overview and Selected Financial Information
The Company incurred net losses of $2,680,951 and $727,952 for the three months ended March 31, 2016 and 2015, respectively, and negative operating cash flows of $343,300 and $200,403 for the three months ended March 31, 2016 and 2015, respectively. The Company expects to continue to incur net losses and negative operating cash flows for the next few years.
As a result of adjustments related to the Series G 1.5% Convertible Preferred Stock, the Company incurred net losses attributable to common stockholders of $2,681,932 and $731,150 for the three months ended March 31, 2016 and 2015, respectively, reflecting a net loss per share of $0.01 for 2016 and $0.00 for 2015.
At March 31, 2016, the Company had 498,622,133 shares of common stock outstanding, as compared to 489,846,883 shares of common stock outstanding at December 31, 2015. The exercise of all outstanding stock options and warrants, and the conversion of all outstanding convertible debt and equity securities, would have resulted in the issuance of an additional 699,518,827 shares of common stock.
Subsequent to March 31, 2016, the Company entered into various financing and exchange transactions to raise additional working capital and relieve short-term debt obligations, which included the exchange of $303,500 of the $579,500 principal amount of the 10% convertible notes due September 15, 2016. In addition, on April 17, 2016, the remaining unconverted 259.7 shares of Series G 1.5% Convertible Preferred Stock outstanding (including accrued but unpaid dividends) were automatically and mandatorily redeemed by conversion into 78,706,282 newly issued shares of common stock at a conversion price of $0.0033 per share.
At March 31, 2016, the Company had a working capital deficit of $3,838,542, as compared to a working capital deficit of $2,922,279 at December 31, 2015, reflecting an increase in the working capital deficit of $916,263 for the three months ended March 31, 2016. At March 31, 2016, the Company had cash aggregating $6,053, as compared to $53,199 at December 31, 2015, reflecting a decrease in cash of $47,146 for the three months ended March 31, 2016.
The Company is continuing its efforts to raise additional capital in order to be able to pay its liabilities and fund its business activities on a going forward basis, including a recent increase in the Company's research and development activities. The Company regularly evaluates various measures to satisfy the Company's liquidity needs, including developing agreements with collaborative partners and, when necessary, seeking to exchange or restructure the Company's outstanding securities. As a result of the Company's current financial situation, the Company has limited access to external sources of debt and equity financing. Accordingly, there can be no assurances that the Company will be able to secure additional financing in the amounts necessary to fully fund its operating and debt service requirements. If the Company is unable to access sufficient cash resources, the Company may be forced to discontinue its operations entirely and liquidate.
Additional information with respect to the Company's financial condition, results of operations, cash flows, capital structure and other matters involving the business, operations and research and development activities of the Company is included in the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016, as filed with the U. S. Securities and Exchange Commission.
About RespireRx Pharmaceuticals Inc.
RespireRx Pharmaceuticals Inc. is a leader in the development of medicines for respiratory disorders, with a focus on sleep apneas and drug-induced respiratory depression. The Company holds exclusive licenses and owns patents and patent applications for certain families of chemical compounds that claim the chemical structures and their use in the treatment of a variety of disorders, as well as claims for novel uses of known drugs.
Additional information about the Company and the matters discussed herein can be obtained on the Company's website at www.RespireRx.com or in the Company's filings with the U.S. Securities and Exchange Commission at www.sec.gov.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and we intend that such forward-looking statements be subject to the safe harbor created thereby. These might include statements regarding the Company's financial position, business strategy and other plans and objectives for future operations, and assumptions and predictions about future product demand, supply, manufacturing, costs, marketing and pricing factors are all forward-looking statements.
In some cases, forward-looking statements may be identified by words including "anticipates," "believes," "intends," "estimates," "expects," "plans," and similar expressions include, but are not limited to, statements regarding (i) future research plans, expenditures and results, (ii) potential collaborative arrangements, (iii) the potential utility of our proposed products, and (iv) the need for, and availability of, additional financing.
The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. These forward-looking statements are based on assumptions regarding our business and technology, which involve judgments with respect to, among other things, future scientific, economic and competitive conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, actual results may differ materially from those set forth in the forward-looking statements. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved.
Factors that could cause or contribute to such differences include, but are not limited to, regulatory policies or changes thereto, available cash, research and development results, competition from other similar businesses, and market and general economic factors. This press release should be read in conjunction with the condensed consolidated financial statements (unaudited) and notes thereto included in Item 1 of the Company's recently filed Quarterly Report on Form 10-Q and the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, including the section entitled "Item 1A. Risk Factors." The Company does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
Contact Information:
Company Contact:
Jeff Margolis
Vice-President, Treasurer and Secretary
Telephone: (917) 834-7206
E-mail: jmargolis@respirerx.com