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
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Announcing Poland #DigitalTransformation Pavilion
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...