Welcome!

News Feed Item

Aeolus Announces First Quarter Fiscal Year 2014 Financial Results

MISSION VIEJO, CA -- (Marketwired) -- 02/14/14 -- Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS), a biotechnology company developing compounds to protect against radiological and chemical threats with significant funding from the US Government, announced today financial results for the three months ended December 31, 2013.

The Company reported a net loss of approximately $695,000, or $0.01 per share for the three months ended December 31, 2013. This compares to a net profit of $4,028,000, or $0.03 per share, which includes a non-cash adjustment of approximately $4,510,000 related to decreases in the fair value of warrants that are included as a component of other income (expenses) in the statement of operations, for the three months ended December 31, 2012.

"During the quarter, we announced positive data from studies demonstrating that AEOL 10150 significantly improves survival and protects lungs in mice exposed to lethal radiation. This data builds on the growing body of positive data that we hope will form the basis of a pre-Emergency Use Authorization application later this year," stated John L. McManus, President and Chief Executive Officer. "We also filed a new provisional patent application that, if granted, would substantially increase the life of the patent protection surrounding AEOL 10150. Work under the contract is expected to accelerate during the second quarter as we expect to initiate up to 6 murine efficacy studies, continue a large non-human primate efficacy study, finalize process development and validation of our drug substance and prepare our IND filing for lung acute radiation syndrome."

Revenue for the three months ended December 31, 2013 was approximately $793,000, which compares to revenue of $1,342,000 for the three months ended December 31, 2012. The revenue is from the contract with BARDA announced on February 11, 2011. Lower revenue in 2013 reflects both the timing of the initiation of program items as well as revenue recognition under accounting rules.

Research and development expenses decreased to approximately $707,000 for the three months ended December 31, 2013, from approximately $1,169,000 for the three months ended December 31, 2012. The decrease in 2013 expenses reflects both the timing of the initiation of program items under the BARDA contract as well as expense recognition under accounting rules.

General and administrative expenses were approximately $781,000 for the three months ended December 31, 2013 compared to approximately $655,000 for the three months ended December 31, 2012. The higher expense was primarily due to stock option expense.

Key accomplishments during the quarter include:

  • Announced data from BARDA-funded studies demonstrating AEOL-10150 increased survival at 180 days from 10% to 40% in mice receiving lethal irradiation
  • Filed a provisional patent application covering novel synthesis routes, crystal forms and pharmaceutical compositions of AEOL 10150 and related porphyrin compounds

As of December 31, 2013, the Company had approximately $534,000 in cash and cash equivalents and 134,550,068 common shares outstanding. The Company had accounts receivable of $1,111,000 and accounts payable of $1,395,000 on December 31, 2013. Aeolus has filed today with the SEC its Quarterly Report on Form 10-Q for the quarter ended December 31, 2013. Aeolus urges its investors to read this quarterly filing as well as its Annual Report on Form 10-K, also filed with the SEC, for further details concerning the Company. The Quarterly Report on Form 10-Q and the Annual Report on Form 10-K are also available on the Company's website, at http://www.aeoluspharma.com.

About AEOL 10150
AEOL 10150 is a broad-spectrum catalytic antioxidant specifically designed to neutralize reactive oxygen and nitrogen species. The neutralization of these species reduces oxidative stress, inflammation, and subsequent tissue damage-signaling cascades resulting from radiation exposure. AEOL 10150 may have a profound beneficial impact on people who have been exposed, or are about to be exposed, to high-doses of radiation in the treatment of oncology.

AEOL 10150 has performed well in preclinical and non-clinical studies, demonstrating statistically significant survival efficacy in an acute radiation-induced lung injury model, and was well-tolerated in two human clinical trials. The Company believes it could have a profound beneficial impact on people who have been exposed, or are about to be exposed, to high-doses of radiation, whether from cancer therapy or a nuclear event.

About Aeolus Pharmaceuticals
Aeolus Pharmaceuticals is developing a platform of a new class of broad-spectrum, catalytic-antioxidant compounds that protect healthy tissue from the damaging effects of radiation. Its first compound, AEOL 10150, is being developed, with funding by the US Department of Health and Human Services, as a medical countermeasure against chemical and radiological weapons, where its initial target indications are as a protective agent against the effects of acute radiation syndrome and delayed effects of acute radiation exposure. Aeolus' strategy is to leverage the substantial investment in toxicology, manufacturing, and preclinical and clinical studies made by US Government agencies in AEOL 10150, including the contract with BARDA valued, with options, at up to $118.4 million, to efficiently develop the compound for use in oncology. For more information, please visit Aeolus's corporate website at www.aeoluspharma.com.

Forward-Looking Statements

The statements in this press release that are not purely statements of historical fact are forward-looking statements. Such statements include, but are not limited to, those relating to Aeolus' product candidates, as well as its proprietary technologies and research programs, the Company's potential initiation of large efficacy studies in mice and NHPs, as well as a phase 1 study in healthy normal volunteers, the BARDA Contract, and the expected use of proceeds from the financing. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Aeolus' actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Important factors that could cause results to differ include risks associated with uncertainties of progress and timing of clinical trials, scientific research and product development activities, difficulties or delays in development, testing, obtaining regulatory approval, the need to obtain funding for pre-clinical and clinical trials and operations, the scope and validity of intellectual property protection for Aeolus' product candidates, proprietary technologies and their uses, and competition from other biopharmaceutical companies, and whether BARDA exercises one or more additional options under the BARDA Contract. Certain of these factors and others are more fully described in Aeolus' filings with the Securities and Exchange Commission, including, but not limited to, Aeolus' Annual Report on Form 10-K for the year ended September 30, 2013. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.


                        AEOLUS PHARMACEUTICALS, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)
                    (In thousands, except per share data)

                                                December 31,  September 30,
                                                    2013           2013
                                               -------------  -------------
                    ASSETS
Current assets:
  Cash and cash equivalents                    $         534  $         869
  Accounts receivable                                  1,111            370
  Deferred subcontractor cost                          1,043            656
  Prepaids and other current assets                       38             39
                                               -------------  -------------
    Total current assets                               2,726          1,935

Investment in CPEC LLC                                    32             32
                                               -------------  -------------
    Total assets                               $       2,758  $       1,966
                                               =============  =============

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses        $       1,395  $         579
  Deferred revenue                                     1,085            682
                                               -------------  -------------
    Total current liabilities                          2,480          1,261

    Total liabilities                                  2,480          1,261
                                               -------------  -------------

Commitments and contingencies (Note F)

Stockholders' equity:
  Preferred stock, $.01 par value per share,
   10,000,000 shares authorized:
  Series A nonredeemable convertible preferred
   stock, 1,250,000 shares authorized as of
   December 31, 2013 and September 30, 2013,
   respectively; no shares issued and
   outstanding as of December 31, 2013 and
   September 30, 2013, respectively                       --             --
  Series B nonredeemable convertible preferred
   stock, 1,600,000 shares authorized as of
   December 31, 2013 and September 30, 2013,
   respectively; 526,080 shares issued and
   outstanding as of December 31, 2013 and
   September 30, 2013, respectively                        5              5
  Common stock, $.01 par value per share,
   200,000,000 shares authorized; 134,550,068
   shares issued and outstanding as of
   December 31, 2013 and September 30, 2013,
   respectively                                        1,346          1,346
  Additional paid-in capital                         183,544        183,276
  Accumulated deficit                               (184,617)      (183,922)
                                               -------------  -------------
    Total stockholders' equity                           278            705
                                               -------------  -------------
    Total liabilities and stockholders' equity $       2,758  $       1,966
                                               =============  =============

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



                        AEOLUS PHARMACEUTICALS, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)
                    (In thousands, except per share data)

                                                     Three Months Ended
                                                        December 31,
                                                 --------------------------
                                                     2013          2012
                                                 ------------  ------------
Revenue:
  Contract revenue                               $        793  $      1,342

Costs and expenses:
  Research and development                                707         1,169
  General and administrative                              781           655
                                                 ------------  ------------
    Total costs and expenses                            1,488         1,824
                                                 ------------  ------------
Loss from operations                                     (695)         (482)

Non-cash financing charges and change in fair
 value of warrants                                         --         4,510
                                                 ------------  ------------
Net (loss) income                                $       (695) $      4,028
                                                 ============  ============

Net (loss) income per weighted share
 attributable to common stockholders:
  Basic                                          $       (695) $      2,049
                                                 ------------  ------------
  Diluted                                        $       (695) $       (200)
                                                 ============  ============

  Basic net (loss) income per common share       $      (0.01) $       0.03
                                                 ------------  ------------
  Diluted net (loss) income per common share     $      (0.01) $       0.00
                                                 ============  ============

Weighted average common shares outstanding:
  Basic                                               134,550        62,732
                                                 ------------  ------------
  Diluted                                             134,550        65,635
                                                 ============  ============

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



                        AEOLUS PHARMACEUTICALS, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                                (In thousands)

                                                     Three Months Ended
                                                        December 31,
                                                 --------------------------
                                                     2013          2012
                                                 ------------  ------------
Cash flows from operating activities:
  Net (loss) income                              $       (695) $      4,028
  Adjustments to reconcile net (loss) income to
   net cash used in operating activities:
    Stock-based compensation                              268            72
    Change in fair value of warrants                       --        (4,510)
    Change in assets and liabilities:
      Accounts receivable                                (741)         (668)
      Deferred subcontractor cost                        (387)           --
      Prepaid and other assets                              1             7
      Accounts payable and accrued expenses               816           792
      Deferred revenue                                    403            --
                                                 ------------  ------------
Net cash used in operating activities                    (335)         (279)
                                                 ------------  ------------
Net decrease in cash and cash equivalents                (335)         (279)
Cash and cash equivalents at beginning of period          869           281
                                                 ------------  ------------
Cash and cash equivalents at end of period       $        534  $          2
                                                 ============  ============

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact:
John McManus
President and Chief Executive Officer
Aeolus Pharmaceuticals, Inc.
1-(949) 481-9825

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-securit...
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.