Neuralstem Reports Year End 2018 Fiscal Results
GERMANTOWN, Md., March 22, 2019 (GLOBE NEWSWIRE) -- Neuralstem, Inc. (Nasdaq: CUR), a biopharmaceutical company focused on the development of nervous system therapies based on its neural stem cell and small molecule technologies, today reported its financial results for the year ended December 31, 2018.
Financial Results for the Year Ended December 31, 2018
Cash Position and Liquidity: At December 31, 2018, cash and investments was approximately $5.8 million as compared to approximately $11.7 million for the same period of 2017. The $8.9 million decrease is due to cash used in operations of approximately $7.7 million partially offset by the proceeds from our October 2017 registered direct offering of common stock and warrants.
Operating Loss: Operating loss for the year ended December 31, 2018 was $8.3 million compared to a loss of $13.3 million for the same period of 2017. The decrease in operating loss for the year was primarily due to a $4.0 million decrease in research and development expenses coupled with a $0.9 million decrease in general and administrative expenses.
Net Loss: Net loss for the year ended December 31, 2018 was $4.9 million, or $0.32 per share (basic), compared to a loss of $15.7 million, or $1.20 per share (basic), for year ended 2017. The decrease in net loss was primarily due to a $5.0 decrease in operating loss coupled with a $3.3 million non-cash gains related to the change in the fair value of our liability classified stock purchase warrants
R&D Expenses: Research and development expense for the year ended December 31, 2018 was $4.0 million as compared to $8.1 million for the same period of 2017. The decrease of $4.1 million, or 50% compared to the same period of 2017 was primarily attributable to (i) a $1.6 million decrease in costs related to our completed NS-189 Phase 2 clinical trial, (ii) a $1.0 million decrease in our personnel, facility and other expenses due to our ongoing corporate restructuring and cost reduction efforts (iii) a $1.0 million decrease in non-cash share-based compensation expense and (iv) a $0.5 million increase in reimbursements under our research grants.
G&A Expenses: General and administrative expense for the year ended December 31, 2018 was $4.6 million as compared to $5.5 million for the same period of 2017. The decrease of $1.1 million, or 20% compared to the same period of 2017 was primarily attributable to a decrease in personnel, facility and related expenses due to our ongoing corporate restructuring and cost reduction efforts.
Liquidity: The Company expects its existing cash, cash equivalents and short-term investments to fund its operations based on our current operating plans, into the third quarter of 2019.
| Neuralstem, Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| December 31, | |||||||
| 2018 | 2017 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 5,787,110 | $ | 6,674,940 | |||
| Short-term investments | - | 5,000,000 | |||||
| Trade and other receivables | 294,057 | 312,802 | |||||
| Current portion of related party receivable, net of discount | 63,938 | 58,784 | |||||
| Prepaid expenses | 363,288 | 402,273 | |||||
| Total current assets | 6,508,393 | 12,448,799 | |||||
| Property and equipment, net | 90,311 | 172,886 | |||||
| Patents, net | 763,543 | 883,462 | |||||
| Related party receivable, net of discount and current portion | 298,238 | 365,456 | |||||
| Other assets | 23,965 | 13,853 | |||||
| Total assets | $ | 7,684,450 | $ | 13,884,456 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable and accrued expenses | $ | 832,564 | $ | 875,065 | |||
| Accrued bonuses | - | 418,625 | |||||
| Other current liabilities | 218,602 | 220,879 | |||||
| Total current liabilities | 1,051,166 | 1,514,569 | |||||
| Warrant liabilities, at fair value | 583,734 | 3,852,882 | |||||
| Other long term liabilities | - | 1,876 | |||||
| Total liabilities | 1,634,900 | 5,369,327 | |||||
| STOCKHOLDERS' EQUITY | |||||||
| Preferred stock, 7,000,000 shares authorized, $0.01 par value; 1,000,000 shares issued and outstanding in both 2018 and 2017 | 10,000 | 10,000 | |||||
| Common stock, $0.01 par value; 300 million shares authorized, 18,205,060 and 15,160,014 shares issued and outstanding in 2018 and 2017, respectively | 182,051 | 151,600 | |||||
| Additional paid-in capital | 219,481,805 | 217,050,174 | |||||
| Accumulated other comprehensive income (loss) | (413 | ) | 2,631 | ||||
| Accumulated deficit | (213,623,893 | ) | (208,699,276 | ) | |||
| Total stockholders' equity | 6,049,550 | 8,515,129 | |||||
| Total liabilities and stockholders' equity | $ | 7,684,450 | $ | 13,884,456 | |||
| Neuralstem, Inc. | |||||||
| Consolidated Statements of Operations and Comprehensive Loss | |||||||
| Year Ended December 31, | |||||||
| 2018 | 2017 | ||||||
| Revenues | $ | 260,000 | $ | 260,000 | |||
| Operating expenses: | |||||||
| Research and development costs | 3,960,191 | 8,096,095 | |||||
| General and administrative expenses | 4,559,265 | 5,471,010 | |||||
| Total operating expenses | 8,519,456 | 13,567,105 | |||||
| Operating loss | (8,259,456 | ) | (13,307,105 | ) | |||
| Other income (expense): | |||||||
| Interest income | 78,780 | 70,269 | |||||
| Interest expense | (7,698 | ) | (159,066 | ) | |||
| Gain (loss) from change in fair value of liability classified warrants | 3,269,148 | (1,470,174 | ) | ||||
| Fees related to issuance of liability classified warrants and other expenses | (5,391 | ) | (799,907 | ) | |||
| Total other income (expense) | 3,334,839 | (2,358,878 | ) | ||||
| Net loss | $ | (4,924,617 | ) | $ | (15,665,983 | ) | |
| Net loss per common share - basic and diluted | $ | (0.32 | ) | $ | (1.20 | ) | |
| Weighted average common shares outstanding - basic and diluted | 15,156,925 | 13,064,422 | |||||
| Comprehensive loss: | |||||||
| Net loss | $ | (4,924,617 | ) | $ | (15,665,983 | ) | |
| Foreign currency translation adjustment | (3,044 | ) | (1,274 | ) | |||
| Comprehensive loss | $ | (4,927,661 | ) | $ | (15,667,257 | ) | |
Cautionary Statement Regarding Forward Looking Information
This news release contains “forward-looking statements” made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Neuralstem’s periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (SEC), and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.
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