Welcome!

News Feed Item

Aeolus Announces Second Quarter Financial Results for Fiscal Year 2017

MISSION VIEJO, CA--(Marketwired - May 15, 2017) - Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS), a biotechnology company developing compounds to protect against fibrosis, inflammation, nerve damage and infection announced today financial results for the three months ended March 31, 2017.

The company reported net loss of $1,035,000 or $0.01 per share for the three months ended March 31, 2017. This compares to a net loss (before extraordinary items) of $629,000 or $0.01 per share for the three months ended March 31, 2016. The increase in net loss was primarily attributable to pre-IND work on AEOL 11114, the Company's compound in development for the treatment of Parkinson's disease and lower revenues from the Biomedical Advanced Research and Development Authority ("BARDA").

"During the quarter, we initiated a Phase 1 safety study of AEOL 10150 in healthy volunteers, completed manufacturing optimization and oral formulation development work on AEOL 11114 for Parkinson's disease, and reported positive results in an animal model of Cystic Fibrosis with inhaled AEOL 20415," stated John L. McManus, President and Chief Executive Officer. "Although we were disappointed with BARDA's notification in March that it had elected not to exercise additional options under the contract at this time, we are continuing work in process under the contract through its expiration in May 2019. In addition, we are submitting proposals to and have received indications of interest from other government agencies to expand the funding of AEOL 10150 as a medical countermeasure against the pulmonary effects of radiation exposure and sulfur mustard gas exposure."

Results of Operations for the Three Months Ended March 31, 2017

Revenue for the three months ended March 31, 2017 was $129,000, which compares to $565,000 for the three months ended March 31, 2016. The revenue is from the BARDA Contract and the decline in revenue is primarily attributable to a lower level of activity under that contract.

Research and Development ("R&D") expenses increased $93,000, or 19%, to $594,000 for the three months ended March 31, 2017 from $501,000 for the three months ended March 31, 2016. The increase is primarily attributable to manufacturing optimization and oral formulation development work for AEOL 11114.

General and administrative ("G&A") expenses decreased $123,000, or 18%, to $570,000 for the three months ended March 31, 2017 from $693,000 for the three months ended March 31, 2016. The decrease is primarily attributable to lower accounting and legal fees related to SEC filing requirements.

Results of Operations for the Six Months Ended March 31, 2017

Revenue for the six months ended March 31, 2017 was $212,000, which compares to $870,000 for the six months ended March 31, 2016. The revenue is from the BARDA Contract and the decline in revenue is primarily attributable to a lower level of activity under that contract.

Research and Development ("R&D") expenses increased $89,000, or 9%, to $1,082,000 for the six months ended March 31, 2017 from $993,000 for the six months ended March 31, 2016. The increase is primarily attributable to manufacturing optimization and oral formulation development work for AEOL 11114.

General and administrative ("G&A") expenses decreased $2,000 to $1,252,000 for the six months ended March 31, 2017 from $1,254,000 for the six months ended March 31, 2016. The decrease is primarily attributable to lower investor relations fees.

As of March 31, 2017, the Company had approximately $981,000 in cash and cash equivalents and 152,085,825 common shares outstanding. The Company had accounts receivable of $603,000 and accounts payable of $638,000 on March 31, 2017.

Aeolus has filed today with the SEC its Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. 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 www.aolsrx.com.

About AEOL 10150

AEOL 10150 is a superoxide dismutase (SOD) mimic being developed for the treatment/mitigation of lung damage from exposure to chemical and radiological insults and to reduce/prevent lung damage in patients with Idiopathic Pulmonary Fibrosis (IPF) and in cancer patients receiving radiation therapy. AEOL 10150 protects tissue from damage and increases survival in animal models of lung damage after exposure to radiation toxic chemicals, agents that induce inflammation, and trauma by mitigating and/or preventing cell death, inflammation and fibrosis through its action on oxidative stress (Reactive Oxygen Species, or "ROS") and regulation of growth factors and chemokines including PTEN, TGF-β1, HIF-1α, TNF-α and IL-6, as well as impacting subsequent signaling pathways associated with ROS production, apoptosis and fibrosis such as NADPH-oxidase (Nox-4), PTEN, PI3K/p-Akt and p53/Bax. AEOL 10150 has been shown to improve survival and mitigate pulmonary damage in rodent models of SMG, chlorine gas and radiation exposure and in a nonhuman primate (NHP) model of whole thorax lung irradiation (WTLI). Given these promising results, Aeolus is developing AEOL10150 for the mitigation and/or treatment of pulmonary injury resulting from SMG exposure.

AEOL 10150 has performed well in animal safety studies, was well tolerated in two human clinical trials and is currently being tested in a third human study. Aeolus has received "Orphan Drug" designation for use in treating Lung ARS, Idiopathic Pulmonary Fibrosis and Amyotrophic Lateral Sclerosis and has active IND's for the Lung ARS and ALS indications. Preparations are currently underway to make IND filings for Idiopathic Pulmonary Fibrosis, Cancer Radiation Therapy and Pulmonary Effects of Sulfur Mustard Gas Exposure.

About Aeolus Pharmaceuticals

Aeolus Pharmaceuticals is developing a platform of novel compounds, for use in biodefense, fibrosis, oncology, infectious disease and diseases of the central nervous system. Its lead compound, AEOL 10150, is being developed for the treatment of Idiopathic Pulmonary Fibrosis and as a treatment to reduce side effects caused by radiation toxicity and improve local tumor control in cancer therapy. These development efforts have been aided by substantial funding for toxicology, manufacturing, and preclinical and clinical studies from the US Department of Health and Human Services, for the development of AEOL 10150 as a medical countermeasure against chemical and radiological weapons, where its initial target indications are as a protective agent against the pulmonary effects of radiation exposure and sulfur mustard gas exposure. The Company is also developing AEOL 11114 as a treatment for Parkinson's Disease and AEOL 20415 as a treatment for cystic fibrosis and diseases that have developed a resistance to existing antibiotic and anti-viral therapies. For more information, please visit Aeolus's corporate website at www.aolsrx.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, a potential 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, 2016. 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 share and per share data)              
                                                                            
                                                    March 31,    September  
                                                       2017       30, 2016  
                                                   ------------ ------------
                      ASSETS                                                
Current assets:                                                             
  Cash and cash equivalents                        $       981  $     3,155 
  Accounts receivable                                      603          750 
  Prepaid expenses and other current assets                149          230 
                                                   ------------ ------------
    Total current assets                                 1,733        4,135 
                                                                            
Investment in CPEC LLC                                      32           32 
                                                   ------------ ------------
    Total assets                                   $     1,765  $     4,167 
                                                   ============ ============
                                                                            
  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                            
Current liabilities:                                                        
  Accounts payable and accrued expenses            $       638  $       972 
                                                   ------------ ------------
    Total current liabilities                              638          972 
                                                                            
                                                   ------------ ------------
    Total liabilities                                      638          972 
                                                                            
Commitments and Contingencies (Note H)                                      
                                                                            
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 March                           
   31, 2017 and September 30, 2016, respectively;                           
   no shares issued and outstanding as of March                             
   31, 2017 and September 30, 2016                           -            - 
  Series B nonredeemable convertible preferred                              
   stock, 1,600,000 and 1,600,000 shares                                    
   authorized as of March 31, 2017 and September                            
   30, 2016, respectively; 526,080 and 526,080                              
   shares issued and outstanding as of March 31,                            
   2017 and September 30, 2016                               -            - 
  Series C nonredeemable convertible preferred                              
   stock, 5,000 and zero shares authorized as of                            
   March 31, 2017 and September 30, 2016,                                   
   respectively; 4,500 and zero shares issued and                           
   outstanding as of March 31, 2017 and September                           
   30, 2016                                                  -            - 
  Common stock, $.01 par value per share,                                   
   200,000,000 shares authorized; 152,085,825                               
   shares issued and outstanding as of March 31,                            
   2017 and September 30, 2016                           1,520        1,520 
  Additional paid-in capital                           191,917      191,863 
  Accumulated deficit                                 (192,310)    (190,188)
                                                   ------------ ------------
    Total stockholders' equity (deficit)                 1,127        3,195 
                                                   ------------ ------------
    Total liabilities and stockholders' equity                              
     (deficit)                                     $     1,765  $     4,167 
                                                   ============ ============
                                                                            
                                                                            
                        AEOLUS PHARMACEUTICALS, INC.                        
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (Unaudited)                                 
                    (In thousands, except per share data)                   
                                                                            
                                     Three months Ended   Six Months Ended  
                                          March 31,           March 31,     
                                     ------------------- -------------------
                                       2017      2016      2017      2016   
                                     --------- --------- --------- ---------
Revenue:                                                                    
 Contract revenue                    $    129  $    565  $    212  $    870 
                                                                            
Costs and expenses:                                                         
 Research and development                 594       501     1,082       993 
 General and administrative               570       693     1,252     1,254 
                                     --------- --------- --------- ---------
  Total costs and expenses              1,164     1,194     2,334     2,247 
                                     --------- --------- --------- ---------
Loss from operations                   (1,035)     (629)   (2,122)   (1,377)
                                                                            
Interest expense                            -         -         -      (285)
                                     --------- --------- --------- ---------
Net loss                               (1,035)     (629)   (2,122)   (1,662)
Deemed dividend on Series C                                                 
 preferred stock                            -     1,906         -     2,486 
                                     --------- --------- --------- ---------
Net loss attributable to common                                             
 stockholders                        $ (1,035) $ (2,535) $ (2,122) $ (4,148)
                                     ========= ========= ========= =========
                                                                            
Net loss per weighted share                                                 
 attributable to common                                                     
 stockholders:                                                              
 Basic (Note E)                      $  (0.01) $  (0.02) $  (0.01) $  (0.03)
                                     ========= ========= ========= =========
 Diluted (Note E)                    $  (0.01) $  (0.02) $  (0.01) $  (0.03)
                                     ========= ========= ========= =========
                                                                            
Weighted average common shares                                              
 outstanding:                                                               
 Basic                                152,085   151,560   152,085   145,466 
                                     ========= ========= ========= =========
 Diluted                              152,085   151,560   152,085   145,466 
                                     ========= ========= ========= =========
                                                                            
                                                                            
                        AEOLUS PHARMACEUTICALS, INC.                        
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                                 (Unaudited)                                
                               (In thousands)                               
                                                                            
                                                         Six Months Ended   
                                                             March 31,      
                                                       ---------------------
                                                          2017       2016   
                                                       ---------- ----------
Cash flows from operating activities:                                       
  Net loss                                             $  (2,122) $  (1,662)
  Adjustments to reconcile net loss to net cash used                        
   in operating activities:                                                 
    Amortization of discount on note payable to                             
     shareholders                                              -        273 
    Accrued interest                                           -         12 
    Non-cash compensation                                     54         74 
    Change in assets and liabilities:                                       
      Accounts receivable                                    147        219 
      Deferred subcontractor cost                              -       (176)
      Prepaid expenses and other current assets               81       (111)
      Accounts payable and accrued expenses                 (334)      (567)
      Deferred revenue                                         -        183 
                                                       ---------- ----------
Net cash used in operating activities                     (2,174)    (1,755)
                                                                            
Cash flows from financing activities:                                       
Proceeds from issuance of common stock and common                           
 stock warrants, net                                           -      2,005 
Proceeds from issuance of preferred stock and common                        
 stock warrants, net                                           -      4,165 
                                                       ---------- ----------
Net cash provided by financing activities                      -      6,170 
Net increase (decrease) in cash and cash equivalents      (2,174)     4,415 
Cash and cash equivalents at beginning of period           3,155         94 
                                                       ---------- ----------
Cash and cash equivalents at end of period             $     981  $   4,509 
                                                       ========== ==========
                                                                            
Supplemental disclosure of non-cash financing                               
 activities:                                                                
Conversion of note payable to shareholders for common                       
 stock and warrants                                    $       -  $   1,000 
Conversion of accrued interest on note payable to                           
 shareholders for common stock and warrants            $       -  $      12 
Issuance of warrants for financing costs               $       -  $     266 
Deemed dividend on Series C preferred stock            $       -  $   2,486 
                                                                            

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
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, 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. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
Microsoft Azure Container Services can be used for container deployment in a variety of ways including support for Orchestrators like Kubernetes, Docker Swarm and Mesos. However, the abstraction for app development that support application self-healing, scaling and so on may not be at the right level. Helm and Draft makes this a lot easier. In this primarily demo-driven session at @DevOpsSummit at 21st Cloud Expo, Raghavan "Rags" Srinivas, a Cloud Solutions Architect/Evangelist at Microsoft, wi...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that CAST Software 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. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion 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. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that Evatronix 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. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...