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Press Release

Kalytera Reports Second Quarter 2017 Financial Results


Posted on: 31 Aug 17

SAN FRANCISCO and TEL AVIV, Israel, Aug. 31, 2017 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSXV:KALY) (OTCQB:KALTF), a clinical-stage pharmaceutical company developing cannabinoid therapeutics for Graft versus Host Disease (“GvHD”), today reported financial results for the quarter ended June 30, 2017. (All dollars U.S. unless otherwise noted.)

Second Quarter 2017 Result Highlights

As of June 30, 2017, the Company had cash and cash equivalents of $1.5 million, compared with $0.7 million as of December 31, 2016.

As of August 21, 2017, Kalytera had 129,235,053 common shares outstanding.

Research and development expenses were $1 million for the quarter ended June 30, 2017 compared with $0.7 million for the quarter ended June 30, 2016.

The increase in research and development expenses from the same period last year was due in part to laboratory and regulatory consulting expenses incurred in preparation for the Company’s planned Phase 2 clinical study to evaluate cannabidiol (“CBD”) in the prevention of GvHD. The Company is reviewing a number of alternatives to further finance this study, including discussions with certain potential sources of debt or equity financing, though there can be no assurance at this time that any such financing will be successfully obtained or available on favourable terms.

General and administrative expenses were $0.9 million for the quarter ended June 30, 2017 compared with $0.4 million for the quarter ended June 30, 2016. The increase resulted primarily from a higher level of operations.

Net loss for the quarter ended June 30, 2017 was $1.9 million compared with a net loss of $1.1 million for the quarter ended June 30, 2016.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Kalytera Therapeutics, Inc.
 
U.S. dollars in thousands June 30,
2017
 December 31,
2016
  Unaudited Audited
ASSETS    
CURRENT ASSETS:    
Cash and cash equivalents $1,466  $673 
Other receivables and prepaid expenses  92   4,141 
   1,558   4,814 
     
NON-CURRENT ASSETS:    
Investment in Talent Biotechs Ltd.  16,258   - 
Total assets $17,816  $4,814 
     
     
LIABILITIES AND EQUITY    
Accounts payable $1,129  $1,351 
Other payables and accrued expenses  512   456 
Total current liabilities  1,641   1,897 
     
EQUITY:    
Contributed surplus  32,777   15,994 
Accumulated deficit  (16,602)  (13,077)
Total equity  16,175   2,917 
Total liabilities and equity $17,816  $4,814 


INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
 
U.S. dollars in thousands, except shares and per share data
 
  Three months ended
June 30,
 Six months ended
June 30,
   2017   2016   2017   2016 
  Unaudited
         
Operating expenses:        
Research and development expenses $1,024  $715  $1,428  $871 
General and administrative expenses  890   415   2,099   779 
Total operating expenses  1,914   1,130   3,527   1,650 
Operating loss $1,914  $1,130  $3,527  $1,650 
Finance expense, net  (10)  -   (2)  - 
         
Loss before income taxes  1,904   1,130   3,525   1,650 
Income taxes  -   -   -   - 
Net loss and comprehensive loss $1,904  $1,130  $3,525  $1,650 
Basic and diluted loss per share (in U.S.
dollars)
 $(0.01) $(0.04) $(0.03) $(0.06)
Weighted average number of Common
shares outstanding
  129,235,053   27,582,228   118,072,534   27,333,383 


INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
U.S. dollars in thousands
 
  Six months ended
June 30,
  2017 2016
  Unaudited
Cash flows from operating activities:    
     
Net loss $3,525  $1,650 
Adjustments to reconcile net loss to net cash used in operating activities:    
Share-based compensation  (51)  (199)
Increase in other receivables and prepaid expenses  70   - 
Decrease (increase) in trade payables  222   (467)
Decrease (increase) in other payables and accrued expenses  34  )90)
     
Net cash used in operating activities  (3,800)  (894)
     
Cash flows from investing activities:    
     
Cash paid upon acquisition of Talent Biotechs Ltd.  (10,000)  - 
     
Net cash used in investing activities  (10,000)  - 
     
Cash flows from financing activities:    
     
Net proceeds from issuance of Common shares and warrants in
January-February 2016
  -   230 
Net proceeds from issuance of Common shares in February 2017  10,458   - 
Net proceeds from issuance of Common shares in December 2016  4,119   - 
Proceeds from issuance of Common shares upon exercise of warrants  16   - 
     
Net cash provided by financing activities  14,593   230 
     
Increase (decrease) in cash and cash equivalents  793   (494)
Cash and cash equivalents at the beginning of the period  673   622 
     
Cash and cash equivalents at the end of the period $1,466  $128 
     
Non-cash transactions:    
     
Issuance of Common shares upon acquisition of Talent Biotechs Ltd. $6,258  $- 

About Kalytera Therapeutics
Kalytera Therapeutics is a clinical-stage pharmaceutical company developing cannabinoid therapeutics. Through its proven leadership, drug development expertise, and growing intellectual property portfolio, Kalytera seeks to establish a leading position in the development of novel cannabinoid medicines for a range of important unmet medical needs, with an initial focus on Graft versus Host Disease (“GvHD”).

Kalytera is also developing proprietary cannabidiol (“CBD”) prodrugs intended for commercialization as FDA and EMEA-approved prescription medications. CBD has shown activity against a number of pharmacological targets. However, there are limitations associated with CBD, including its poor oral bioavailability. Kalytera’s CBD prodrugs have been designed to overcome these limitations. In addition to licensed IP rights, Kalytera has filed composition of matter and method of use patents covering its inventions to reinforce its position in the market.

Safe Harbor
This news release contains “forward-looking information” within the meaning of applicable securities laws, including in respect of its product candidate pipeline, planned clinical trials, regulatory approval prospects, intellectual property objectives, management goals, capital raising abilities and other statements included in this news release of a forward-looking nature. Although Kalytera believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Kalytera can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. Kalytera undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Kalytera, its securities, or its respective financial or operating results (as applicable). Kalytera disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Neither 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 this release.

GlobeNewswire
globenewswire.com

Last updated on: 01/09/2017

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