Press Release
Sio Gene Therapies Announces Fiscal Third Quarter 2022 Financial Results
– Three-Month and Nine-Month Losses decline by 84.2% and 73.5%, respectively
– Operating Cash Outflows for the Nine Months Ended
– $46.1 million of cash and cash equivalents as of
“Our financial results continue to show the beneficial effects on operating expenses and cash burn resulting from the termination of the licenses to our three clinical-stage programs, the significant workforce reduction initiated last year April and successful negotiations with vendors and landlords. We are now focused on taking the steps necessary to put the Company and its three subsidiaries into the liquidation and dissolution process, including a stockholder vote expected to be held in April,” said
Fiscal Third Quarter Financial Summary
Research and development expenses were
(i) program-specific costs relating to our prior AXO-Lenti-PD and AXO-AAV-GM1 and AXO-AAV-GM2 programs, which decreased
(ii) unallocated internal costs, which decreased
General and administrative expenses were
The net loss for the fiscal third quarter ended
As of
Fiscal Nine Months Financial Summary
Research and development expenses were
(i) program-specific costs relating to our prior AXO-Lenti-PD and AXO-AAV-GM1 and AXO-AAV-GM2 programs, which decreased
(ii) unallocated internal costs, which decreased
General and administrative expenses were
The net loss for the nine months ended
Forward-Looking Statements
This press release contains forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws. The use of words such as "expect," "estimate," "may" and other similar expressions are intended to identify forward-looking statements. For example, all statements Sio makes regarding the proposed dissolution and its timing, including for holding a special stockholder meeting to approve the dissolution, cash position to support the dissolution, costs associated with its operating activities, potential cost savings and other benefits from cost reduction activities, and funding requirements and/or cash burn runway are forward-looking. All forward-looking statements are based on estimates and assumptions by Sio’s management that, although Sio believes to be reasonable, are inherently uncertain. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that Sio expected. Such risks and uncertainties include, among others, the
availability, timing and amount of liquidating distributions; the amounts that will need to be set aside by Sio; the adequacy of such reserves to satisfy Sio’s obligations; potential unknown contingencies or liabilities, including tax claims, and Sio’s ability to favorably resolve them or at all; the amount of proceeds that might be realized from the sale or other disposition of any remaining assets; the application of, and any changes in, applicable tax laws, regulations, administrative practices, principles and interpretations; the incurrence by Sio of expenses relating to the dissolution; the ability of the board of directors to abandon, modify or delay implementation of the dissolution, even after stockholder approval; the uncertain macroeconomic environment; continuing impact of the COVID-19 pandemic on Sio’s operations; the actual funds required for planned operating activities; costs, risks and timing related to headcount reductions and capital conservation plans; and the outcome of interactions with regulatory agencies. These statements are also subject to a number of material risks and uncertainties that are described in Sio’s most recent Quarterly Report on Form 10-Q filed with the
IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed dissolution, the Company has filed with the
Participants in the Solicitation
Sio and its executive officer and directors may be deemed to be participants in the solicitation of proxies from its stockholders with respect to the proposed dissolution and related matters and any other matters to be voted on at the special meeting of stockholders. Information regarding the names, affiliations and interests of such directors and executive officer will be included in the proxy statement (when available). Additional information regarding such directors and executive officer is included in Sio’s Annual Report on Form 10-K for the fiscal year ended
Information regarding the persons who may, under
Contacts:
Media, Investors and Analysts
Chief Executive Officer, Chief Financial Officer and General Counsel
david.nassif@siogtx.com
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share amounts)
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development expenses | ||||||||||||||||
| (includes stock-based compensation expense (benefit) of |
$ | 1,883 | $ | 21,287 | $ | 7,761 | $ | 40,793 | ||||||||
| General and administrative expenses | ||||||||||||||||
| (includes stock-based compensation expense of |
2,600 | 4,086 | 8,533 | 17,693 | ||||||||||||
| Total operating expenses | 4,483 | 25,373 | 16,294 | 58,486 | ||||||||||||
| Other (income) expenses: | ||||||||||||||||
| Other (income) expense, net | (464 | ) | 83 | (785 | ) | 105 | ||||||||||
| Loss before income tax benefit | (4,019 | ) | (25,456 | ) | (15,509 | ) | (58,591 | ) | ||||||||
| Income tax benefit | — | — | (4 | ) | (28 | ) | ||||||||||
| Net loss | $ | (4,019 | ) | $ | (25,456 | ) | $ | (15,505 | ) | $ | (58,563 | ) | ||||
| Net loss per share of common stock — basic and diluted | $ | (0.05 | ) | $ | (0.35 | ) | $ | (0.21 | ) | $ | (0.80 | ) | ||||
| Weighted-average shares of common stock outstanding — basic and diluted | 73,975,196 | 73,335,279 | 73,905,737 | 73,046,889 | ||||||||||||
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share amounts)
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 46,127 | $ | 63,729 | ||||
| Restricted cash | — | 1,184 | ||||||
| Prepaid expenses and other current assets | 789 | 5,214 | ||||||
| Income tax receivable | 356 | 1,609 | ||||||
| Total current assets | 47,272 | 71,736 | ||||||
| Operating lease right-of-use assets | — | 2,444 | ||||||
| Property and equipment, net | — | 900 | ||||||
| Total assets | $ | 47,272 | $ | 75,080 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 201 | $ | 3,984 | ||||
| Accrued expenses | 1,951 | 8,232 | ||||||
| Current portion of operating lease liabilities | — | 786 | ||||||
| Total current liabilities | 2,152 | 13,002 | ||||||
| Operating lease liabilities, net of current portion | — | 1,730 | ||||||
| Total liabilities | 2,152 | 14,732 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, par value |
1 | 1 | ||||||
| Additional paid-in capital | 923,249 | 922,966 | ||||||
| Accumulated deficit | (878,461 | ) | (862,956 | ) | ||||
| Accumulated other comprehensive income | 331 | 337 | ||||||
| Total stockholders’ equity | 45,120 | 60,348 | ||||||
| Total liabilities and stockholders’ equity | $ | 47,272 | $ | 75,080 | ||||
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
| Nine Months Ended |
||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (15,505 | ) | $ | (58,563 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Non-cash lease expenses | 2,444 | 229 | ||||||
| Stock-based compensation expense | 283 | 10,017 | ||||||
| Depreciation and non-cash amortization | 137 | 187 | ||||||
| Change in operating lease liabilities | (2,516 | ) | (265 | ) | ||||
| Other | 857 | 7 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid expenses and other current assets | 4,425 | 2,104 | ||||||
| Income tax receivable | 1,253 | (76 | ) | |||||
| Accounts payable | (3,783 | ) | 5,270 | |||||
| Accrued expenses | (6,281 | ) | (1,434 | ) | ||||
| Net cash used in operating activities | (18,686 | ) | (42,524 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash proceeds from sale of long-term investment | — | 4,343 | ||||||
| Cash proceeds from sale of property and equipment | 190 | — | ||||||
| Purchases of property and equipment | (290 | ) | (336 | ) | ||||
| Net cash (used in) provided by investing activities | (100 | ) | 4,007 | |||||
| Cash flows from financing activities: | ||||||||
| Cash proceeds from issuance of shares of common stock, net of issuance costs | — | 1,441 | ||||||
| Net cash provided by financing activities | — | 1,441 | ||||||
| Net change in cash and cash equivalents, restricted cash and long-term restricted cash | (18,786 | ) | (37,076 | ) | ||||
| Total cash and cash equivalents, restricted cash and long-term restricted cash—beginning of period | 64,913 | 120,170 | ||||||
| Total cash and cash equivalents, restricted cash and long-term restricted cash—end of period | $ | 46,127 | $ | 83,094 | ||||
| Cash and cash equivalents —beginning of period | 63,729 | 118,986 | ||||||
| Restricted cash included in current assets—beginning of period | 1,184 | — | ||||||
| Restricted cash included in long-term assets—beginning of period | — | 1,184 | ||||||
| Total cash and cash equivalents, restricted cash and long-term restricted cash—beginning of period | $ | 64,913 | $ | 120,170 | ||||
| Cash and cash equivalents—end of period | 46,127 | 81,910 | ||||||
| Restricted cash included in current assets—end of period | — | 1,184 | ||||||
| Total cash and cash equivalents and restricted cash—end of period | $ | 46,127 | $ | 83,094 | ||||
Source: Sio Gene Therapies, Inc.