ANNAPOLIS, Md., Aug. 4, 2016 /PRNewswire/ -- PharmAthene, Inc.
(NYSE MKT: PIP), a biodefense company developing medical
countermeasures against anthrax, today reported its financial and
operational results for the second quarter of 2016.
Under SIGA's Reorganization Plan, approved by U.S. Bankruptcy
Court for the Southern District of New
York, PharmAthene received from SIGA an initial payment of
$5 million in April 2016, and an aggregate of $3.9 million in payments calculated as interest
on the PharmAthene judgment for the period from April 12 to June 30, 2016. PharmAthene received
an additional $20 million from SIGA
in July 2016, as payment to extend by
90 days, until October 19, 2016, the
date by which SIGA must satisfy the PharmAthene judgment.
$25 million of these payments are
creditable against final satisfaction of the judgment in favor of
PharmAthene of approximately $208
million plus interest and is not refundable.
For the three months ended June 30,
2016, PharmAthene recognized revenue of $2.1 million compared to $1.1 million for the corresponding period in
2015. The Company recognized $1.3 and
$1.1 million in revenue during the
second quarters of 2016 and 2015, respectively, under its contract
with the National Institute of Allergy and Infectious Diseases for
the development of a next generation lyophilized anthrax vaccine.
Under PharmAthene's contract with the Biomedical Advanced Research
and Development Authority for the development of
SparVax®, the Company recognized $0.8 million in revenue in the second quarter of
2016.
Research and development expenses in the second quarter of 2016
and 2015 were $1.1 million and
$1.2 million, respectively. These
expenses resulted from research and development activities related
primarily to the Company's anthrax vaccine programs.
Expenses associated with general and administrative functions
were $1.4 million in the second
quarter of 2016 compared to $1.8
million in the second quarter of 2015. The decrease resulted
from implementation of the Company's restructuring and a reduction
in legal expenses.
For the second quarter of 2016, the Company's net income was
$8.0 million, or $0.12 per share, compared to net loss of
$2.3 million, or $(0.04) per share, for the corresponding period
in 2015. Cash at the end of the second quarter of 2016 was
$23.2 million compared to a cash
balance of $15.6 million at the end
of fiscal year 2015.
On April 8, 2016, the U.S.
Bankruptcy Court for the Southern District of New York entered an order confirming SIGA's
third amended reorganization plan (the Plan), effective
April 12, 2016. Subsequently, SIGA
and PharmAthene filed a joint motion, which is subject to approval
by the bankruptcy court, seeking approval of amendments to the Plan
that would extend the deadline for SIGA to satisfy the previously
disclosed judgment owed to PharmAthene from October 19, 2016 to November 30, 2016, conditioned on SIGA paying to
PharmAthene a nonrefundable $100
million on or prior to October 19,
2016 that will be applied against PharmAthene's
judgment. SIGA will continue to calculate interest on any
unpaid balance which will continue to accrue at 8.75% per year and
be paid monthly to PharmAthene by SIGA.
The Plan provides that SIGA will satisfy PharmAthene's judgment
through one of the following ways:
|
(i)
|
payment in full in
cash of the unpaid balance of the PharmAthene $208 million claim
plus interest;
|
|
(ii)
|
delivery to
PharmAthene of 100% of SIGA's common stock; or
|
|
(iii)
|
such other treatment
as may be mutually agreed upon in writing by SIGA and PharmAthene
and approved by the Bankruptcy Court.
|
PharmAthene's taxable income from receipt of the SIGA judgment
is expected in part to be offset by PharmAthene's net operating
loss (NOLs) carryforwards. At December 31,
2015 PharmAthene had available $156
million in NOLs. The Company is evaluating tax effects of
winding down its UK subsidiary which it believes may increase U.S.
tax NOLs by an estimated $9 million to $22
million.
If SIGA pays PharmAthene cash in full and barring any unexpected
material events, PharmAthene intends to distribute at least 90% of
the after tax net cash proceeds of such payment to its
shareholders. The timing and form of such a potential distribution
will depend upon PharmAthene's analysis of its current situation,
applicable corporate statutes relating to distributions and the
economic consequences to its shareholders.
Concurrently, PharmAthene is developing a transition plan and
strategy for operating SIGA as a separate business without
disruption in the event SIGA chooses to pay the claim by turning
over 100% of its common stock to PharmAthene.
About PharmAthene
PharmAthene is a biodefense company engaged in the development
of next generation medical countermeasures against biological
threats. The Company's development portfolio includes one next
generation Anthrax vaccine that is intended to improve protection
while having favorable dosage and storage requirements compared to
other Anthrax vaccines.
Forward-Looking Statement Disclaimer
Except for the historical information presented herein, matters
discussed may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to certain risks and uncertainties that could
cause actual results to differ materially from any future results,
performance or achievements expressed or implied by such
statements. Statements that are not historical facts, including
statements preceded by, followed by, or that include the
words "potential"; "believe"; "anticipate"; "intend"; "plan";
"expect"; "estimate"; "could"; "may"; "should"; "will"; "project";
or similar statements are forward-looking statements. Risks and
uncertainties include risks associated with our ability to fully
collect a money judgment from SIGA; risks relating to the timing of
payments, if any, under the SIGA litigation; our ability to make
distributions of a substantial portion of the cash proceeds we may
receive from SIGA; the timing, amount and form of such a
distribution; our ability to develop a successful transition plan
and strategy for operating SIGA as a separate business; risks
relating to our continuing ability to recognize cost reductions;
funding delays and/or reductions or elimination of U.S. government
funding and/or non-renewal of expiring funding; risks associated
with the availability of our NOLs, the amounts of available NOLs
and any increases thereof and preservation of such NOLs; risks
associated with our implementation of the shareholder rights plan
to protect the tax benefits of our NOLs; risks associated with
accomplishing any future strategic partnerships or business
combinations; and other risks detailed from time to time in
PharmAthene's Forms 10-K and 10-Q under the caption "Risk Factors"
and in its other reports filed with the U.S. Securities and
Exchange Commission. PharmAthene disclaims any intent or obligation
to update these forward-looking statements other than as required
by law.
Copies of PharmAthene's public disclosure filings are available
on our website under the investor relations tab at
www.PharmAthene.com.
Tables Follow
PHARMATHENE,
INC.
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
23,157,883
|
|
$
15,569,813
|
|
Billed accounts
receivable
|
|
1,024,374
|
|
511,994
|
|
Unbilled accounts
receivable
|
|
797,913
|
|
963,345
|
|
Prepaid expenses and
other current assets
|
|
418,636
|
|
181,714
|
Total current
assets
|
|
25,398,806
|
|
17,226,866
|
|
|
|
|
|
|
Property and
equipment, net
|
|
183,695
|
|
233,694
|
Other long-term
assets and deferred costs
|
|
-
|
|
53,384
|
Goodwill
|
|
2,348,453
|
|
2,348,453
|
Total
assets
|
|
$
27,930,954
|
|
$
19,862,397
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
711,106
|
|
$
521,122
|
|
Accrued expenses and
other liabilities
|
|
1,510,003
|
|
1,248,708
|
|
Accrued restructuring
expenses - current
|
|
237,125
|
|
381,950
|
|
Other short-term
liabilities
|
|
11,588
|
|
11,250
|
|
Current portion of
derivative instruments
|
|
798,788
|
|
16,411
|
Total current
liabilities
|
|
3,268,610
|
|
2,179,441
|
|
|
|
|
|
|
Accrued restructuring
expenses, less current portion
|
|
-
|
|
108,641
|
Other long-term
liabilities
|
|
411,640
|
|
433,407
|
Derivative
instruments, less current portion
|
|
-
|
|
491,791
|
Total
liabilities
|
|
3,680,250
|
|
3,213,280
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, $0.0001
par value; 100,000,000 shares authorized; 64,785,846 and 64,382,086
shares issued and outstanding at June 30, 2016 and December 31,
2015, respectively
|
|
6,479
|
|
6,438
|
|
Additional
paid-in-capital
|
|
241,150,682
|
|
240,366,704
|
|
Accumulated
deficit
|
|
(216,906,457)
|
|
(223,724,025)
|
Total stockholders'
equity
|
|
24,250,704
|
|
16,649,117
|
Total liabilities and
stockholders' equity
|
|
$
27,930,954
|
|
$
19,862,397
|
|
|
|
|
|
|
PHARMATHENE,
INC.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Contract
revenue
|
|
$
2,111,254
|
|
$
1,149,570
|
|
$
3,116,948
|
|
$
8,218,316
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,143,182
|
|
1,222,527
|
|
2,172,313
|
|
2,836,154
|
|
General and
administrative
|
|
1,435,381
|
|
1,819,241
|
|
2,628,679
|
|
4,015,361
|
|
Restructuring
expense
|
|
-
|
|
35,982
|
|
-
|
|
2,096,791
|
|
Depreciation
|
|
40,435
|
|
36,687
|
|
78,136
|
|
73,793
|
Total operating
expenses
|
|
2,618,998
|
|
3,114,437
|
|
4,879,128
|
|
9,022,099
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
$
(507,744)
|
|
$
(1,964,867)
|
|
$
(1,762,180)
|
|
$
(803,783)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
1,478
|
|
(13,279)
|
|
428
|
|
(38,604)
|
|
Realization of
cumulative translation adjustment
|
|
-
|
|
(229,192)
|
|
-
|
|
(229,192)
|
|
Change in fair value
of derivative instruments
|
|
(330,484)
|
|
(120,615)
|
|
(290,586)
|
|
217,630
|
|
Other income -
litigation
|
|
8,895,038
|
|
-
|
|
8,895,038
|
|
-
|
|
Other income
(expense)
|
|
1,622
|
|
(1,911)
|
|
5,741
|
|
7,285
|
Total other income
(expense)
|
|
8,567,654
|
|
(364,997)
|
|
8,610,621
|
|
(42,881)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes
|
|
8,059,910
|
|
(2,329,864)
|
|
6,848,441
|
|
(846,664)
|
|
Income tax
provision
|
|
(15,436)
|
|
(11,068)
|
|
(30,873)
|
|
(30,873)
|
Net income
(loss)
|
|
$
8,044,474
|
|
$
(2,340,932)
|
|
$
6,817,568
|
|
$
(877,537)
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
|
$
0.12
|
|
$
(0.04)
|
|
$
0.11
|
|
$
(0.01)
|
Diluted net income
(loss) per share
|
|
$
0.12
|
|
$
(0.04)
|
|
$
0.10
|
|
$
(0.01)
|
Weighted average
shares used in calculation of basic net income (loss) per
share
|
|
64,737,820
|
|
63,745,834
|
|
64,571,108
|
|
63,691,214
|
Weighted average
shares used in calculation of diluted net income (loss) per
share
|
|
65,206,075
|
|
63,745,834
|
|
64,917,267
|
|
63,691,214
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pharmathene-reports-second-quarter-2016-financial-and-operational-results-300309516.html
SOURCE PharmAthene, Inc.