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Edge Therapeutics Reports Third Quarter 2018 Financial Results

BERKELEY HEIGHTS, N.J., Nov. 01, 2018 (GLOBE NEWSWIRE) -- Edge Therapeutics, Inc. (Nasdaq: EDGE) today announced financial results for the quarter ended September 30, 2018.

Third Quarter Financial Results

Cash Position: Cash, cash equivalents and marketable securities as of September 30, 2018 were $36.8 million, compared with $88.1 million as of December 31, 2017.

Operating Expenses:  Research and development (R&D) expenses decreased to $0.3 million in the third quarter of 2018 from $6.9 million in the third quarter of 2017. The decrease in R&D expense was primarily due to a decrease in expenses related to the previously announced discontinuance of the NEWTON 2 clinical study and reduction in workforce. General and administrative (G&A) expenses decreased to $3.3 million for the three months ended September 30, 2018 from $4.0 million in the comparable period in 2017. The decrease in G&A expense was largely due to decreases in departmental operating expenses, professional fees and marketing costs. In the third quarter of 2018, Edge recorded a restructuring charge of $0.8 million related to the previously announced discontinuance of the NEWTON 2 study.

Net Loss: Net loss for the third quarter ended September 30, 2018 was $4.3 million, including the $0.8 million restructuring charge. Net loss in the third quarter of 2017 was $11.3 million.

Review of Strategic Alternatives

Edge continues to be actively engaged in its review of strategic alternatives to maximize stockholder value, a review that was announced in April 2018. At that time, Edge retained Piper Jaffray & Co. to act as its financial advisor to assist with this review process. Potential strategic alternatives that may be explored or evaluated as part of this review include, but are not limited to, an acquisition, merger, business combination or other strategic transaction involving Edge. Edge has reduced the scope of its operations, including the size of its workforce, in order to preserve its cash resources during the strategic alternatives review process.

There is no defined timeline for completion of the review process. There is no assurance that this review will result in Edge pursuing any transaction or that a transaction, if pursued, will be completed. Edge does not intend to discuss or disclose further developments regarding the strategic review process unless and until its Board of Directors has approved a specific action or otherwise determined that further disclosure is appropriate or required by law.

About Edge Therapeutics, Inc.
Edge Therapeutics, Inc. is a clinical-stage biotechnology company that seeks to discover, develop and commercialize novel therapies capable of transforming treatment paradigms for the management of serious medical conditions. For additional information about Edge, please visit www.edgetherapeutics.com.

Forward-Looking Statements

This press release and any statements of representatives of Edge Therapeutics, Inc. related thereto that are not historical in nature contain, or may contain, among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, without limitation, statements with respect to Edge’s plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," “seeks,” "intends," "plans," "potential" or similar expressions. These statements are based upon the current beliefs and expectations of Edge’s management and are subject to significant risks and uncertainties. Actual results may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various risk factors (many of which are beyond Edge's control) as described under the heading "Risk Factors" in Edge’s filings with the United States Securities and Exchange Commission.


EDGE THERAPEUTICS, INC.
Statements of Operations and Comprehensive Loss
(Unaudited)

  Three Months Ended September 30,   Nine Months Ended September 30,
  2018     2017     2018     2017  
Operating expenses:              
Research and development expenses $ 317,684     $ 6,913,171     $ 15,583,565     $ 23,477,971  
General and administrative expenses   3,286,891       3,990,283       11,303,446       12,365,509  
Restructuring expenses   847,852             7,494,094        
Impairment charges               2,672,581        
Total operating expenses   4,452,427       10,903,454       37,053,686       35,843,480  
Loss from operations   (4,452,427 )     (10,903,454 )     (37,053,686 )     (35,843,480 )
Other income (expense):                      
Interest income   187,256       214,064       696,035       479,297  
Interest expense         (592,089 )     (1,425,255 )     (1,591,998 )
Net loss and comprehensive loss   (4,265,171 )     (11,281,479 )     (37,782,906 )     (36,956,181 )
Loss per share basic and diluted $ (0.14 )   $ (0.37 )   $ (1.21 )   $ (1.23 )
Weighted average common shares outstanding basic and diluted   31,328,128       30,852,514       31,198,804       30,091,640  


EDGE THERAPEUTICS, INC.
Balance Sheets

  September 30, 2018   December 31, 2017
ASSETS (unaudited)    
Current assets:      
Cash and cash equivalents $ 36,814,899     $ 88,067,647  
Prepaid expenses and other current assets   247,182       986,680  
Total current assets   37,062,081       89,054,327  
Property and equipment, net   468,170       3,423,880  
Other assets   142,870       142,870  
Total assets $ 37,673,121     $ 92,621,077  
LIABILITIES AND STOCKHOLDERS' EQUITY          
LIABILITIES          
Current liabilities:          
Accounts payable $ 590,694     $ 4,369,133  
Accrued expenses   917,871       5,422,205  
Restructuring reserve   5,179,722        
Short term debt         3,075,421  
Total current liabilities   6,688,287       12,866,759  
Noncurrent liability:          
Long term debt         17,382,907  
STOCKHOLDERS' EQUITY          
Preferred stock, 5,000,000  shares authorized at September 30, 2018 and December 31, 2017, 0 outstanding          
Common stock, $ 0.00033 par value, 75,000,000 shares authorized at September 30, 2018 and December 31, 2017, 31,328,128 shares and 30,869,205 shares issued and outstanding at September 30, 2018 and  December 31, 2017, respectively   10,551       10,400  
Additional paid-in capital   220,705,548       214,309,370  
Accumulated deficit   (189,731,265 )     (151,948,359 )
Total stockholders' equity   30,984,834       62,371,411  
Total liabilities and stockholders' equity $ 37,673,121     $ 92,621,077  

 

Investor and Media Contact:
Gregory Gin
Edge Therapeutics, Inc.
Tel: 1-800-208-EDGE (3343)
Email: ir@edgetherapeutics.com

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Edge Therapeutics, Inc.