SAN JOSE, Calif., Dec. 10, 2019 /PRNewswire/ -- BioPharmX
Corporation (NYSE American: BPMX), a specialty pharmaceutical
company focused on developing innovative medical dermatology
products, today reports financial results for the fiscal quarter
ended October 31, 2019.
Corporate Update
In the third quarter, we retained Locust Walk Partners, LLC, a
global life science transaction firm focused on biopharmaceutical
and medical technology companies, to provide transaction advisory
services. Strategic transactions that have been or are being
considered include a license or sale of our late-stage topical
minocycline product candidates, a sale of the company or a
strategic business combination. In order to preserve cash, the
company has taken additional steps to reduce operating costs.
"The process with Locust Walk is ongoing," said Dr. Tierney,
BioPharmX CEO. "We are optimistic that we will be able to announce
a strategic transaction before the end of our fiscal year."
Third Quarter Financial Results
For the third fiscal quarter ended October 31, 2019, total
operating expenses were $2.1 million, compared with total
operating expenses of $4.4 million in the prior fiscal
year's third quarter.
Net loss for the fiscal quarter ended October 31,
2019 was $2.1 million, or $0.14 per share,
compared with a net loss of $4.4 million, or $0.57 per
share, during the prior fiscal year's third quarter.
Excluding stock-based compensation expense, non-GAAP net loss
for the fiscal quarter ended October 31,
2019 was $1.9 million, or $0.13 per share.
During the third quarter of the prior fiscal year, the comparable
non-GAAP net loss was $3.7 million, or $0.49 per
share.
Cash and cash equivalents were $1.4 million as
of October 31, 2019.
About BioPharmX® Corporation
BioPharmX Corporation (NYSE American: BPMX) is a specialty
pharmaceutical company focused on developing prescription products
utilizing its proprietary HyantX Topical Delivery System for
dermatology indications. To learn more about BioPharmX, visit
www.BioPharmX.com.
About Locust Walk
Locust Walk Partners, LLC is a global life science transaction
firm. Their integrated team-based approach across capabilities,
geographies, and industry segments delivers the right products, the
right partners, and the most attractive sources of capital to get
the right deals done for biopharma and medtech companies.
Use of Non-GAAP Measures
BioPharmX Corporation has supplemented its financial information
prepared in accordance with generally accepted accounting
principles in the United States
("GAAP") with non-GAAP measures, including non-GAAP net loss and
non-GAAP net loss per share, which do not include stock-based
compensation expense and the impact of changes in fair value of
warrant liability. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for
results prepared in accordance with GAAP. Management uses the
non-GAAP information internally to evaluate its ongoing business,
operational performance and cash requirements and believes these
non-GAAP measures are useful to investors as they provide the same
basis for evaluating BioPharmX Corporation's performance as applied
by management.
BioPharmX Corporation has provided a reconciliation of each
non-GAAP financial measure to the most directly comparable GAAP
financial measure. These non-GAAP measures may be different from
non-GAAP measures used by other companies, including peer
companies, and therefore, comparability may be limited. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. BioPharmX
Corporation believes that non-GAAP measures have limitations in
that they do not reflect all of the amounts associated with its
results of operations as determined in accordance with GAAP and
that these measures should be considered in addition to, not as a
substitute for or in isolation from, measures prepared in
accordance with GAAP. BioPharmX Corporation encourages investors
and others to review the company's financial information in its
entirety and not rely on a single financial measure.
Stock-based compensation expense represents non-cash charges
related to equity awards granted by BioPharmX Corporation. The
change in fair value of warrant liability results from the periodic
revaluing of the warrant liability. These amounts are excluded
from the company's non-GAAP net loss and non-GAAP net loss per
share because they are not reflective of ongoing operating results
in the period incurred. Although these may be recurring charges to
BioPharmX Corporation's operations, management believes the
measurement of these amounts can vary considerably from period to
period and depend substantially on factors that are not a direct
consequence of operating performance that is within management's
control. Thus, management believes that excluding these charges
from non-GAAP net loss and non-GAAP net loss per share facilitates
comparisons of BioPharmX Corporation's operational performance in
different periods, as well as with similarly determined non-GAAP
financial measures of comparable companies.
Forward-Looking Statements
The information in this press release contains forward-looking
statements and information within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which are subject to
the "safe harbor" created by those sections. This press release
contains forward-looking statements about the company's
expectations, plans, intentions, and strategies, including, but not
limited to the company's engagement with Locust Walk and whether
any strategic transactions will be entered into or as to the terms
or timing of any such strategic transactions, and level of
operating expenditures. Additional risks are set forth in our
filings with the Securities and Exchange Commission, including
those described in the company's Quarterly Report on Form 10-Q for
the quarter ended October 31, 2019.
The forward-looking statements included in this press release are
made only as of the date hereof, and the company undertakes no
obligation to publicly update such statements.
BioPharmX and HyantX are registered trademarks of BioPharmX,
Inc.
--TABLES TO FOLLOW --
|
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
-
|
|
$
10
|
|
$
-
|
|
$
52
|
Cost of goods
sold
|
-
|
|
60
|
|
-
|
|
80
|
Gross
margin
|
|
-
|
|
(50)
|
|
-
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
740
|
|
2,228
|
|
4,314
|
|
7,285
|
|
Sales and
marketing
|
139
|
|
550
|
|
572
|
|
1,717
|
|
General and
administrative
|
1,241
|
|
1,624
|
|
3,534
|
|
4,252
|
|
|
Total operating
expenses
|
2,120
|
|
4,402
|
|
8,420
|
|
13,254
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(2,120)
|
|
(4,452)
|
|
(8,420)
|
|
(13,282)
|
Change in fair value
of warrant liability
|
-
|
|
42
|
|
11
|
|
(1)
|
Other income,
net
|
7
|
|
20
|
|
29
|
|
83
|
|
Loss before provision
for income taxes
|
(2,113)
|
|
(4,390)
|
|
(8,380)
|
|
(13,200)
|
|
Provision for income
taxes
|
-
|
|
-
|
|
2
|
|
2
|
Net and
comprehensive loss
|
$
(2,113)
|
|
$
(4,390)
|
|
$(8,382)
|
|
$(13,202)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
($0.14)
|
|
($0.57)
|
|
($0.69)
|
|
($1.76)
|
Shares used in
computing net loss per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
14,672
|
|
7,654
|
|
12,146
|
|
7,502
|
|
|
|
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
January
31,
|
|
|
|
|
2019
|
|
2019
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,427
|
|
$
3,069
|
|
|
Prepaid expenses and
other
|
391
|
|
316
|
|
|
|
Total current
assets
|
1,818
|
|
3,385
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
186
|
|
148
|
|
Operating lease
right-of-use asset, net
|
1,002
|
|
—
|
|
Other
|
|
121
|
|
121
|
|
|
|
Total
assets
|
$
3,127
|
|
$
3,654
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
687
|
|
$
1,363
|
|
|
Accrued expenses and
other
|
863
|
|
934
|
|
|
|
Total current
liabilities
|
1,550
|
|
2,297
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
860
|
|
59
|
|
|
|
Total
liabilities
|
2,410
|
|
2,356
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
717
|
|
1,298
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,127
|
|
$
3,654
|
|
|
|
BIOPHARMX
CORPORATION
|
Reconciliation of
GAAP Net Loss to Non-GAAP Net Loss
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(2,113)
|
|
$
(4,390)
|
|
$(8,382)
|
|
$(13,202)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of warrant liability
|
—
|
|
(42)
|
|
(11)
|
|
1
|
|
|
Stock-based
compensation expense:
|
|
|
|
|
|
|
|
|
|
|
- Research and
development
|
30
|
|
166
|
|
218
|
|
525
|
|
|
|
- Sales and
marketing
|
12
|
|
114
|
|
45
|
|
355
|
|
|
|
- General and
administrative
|
187
|
|
438
|
|
334
|
|
877
|
|
|
|
Total
stock-based compensation expense
|
229
|
|
718
|
|
597
|
|
1,757
|
|
|
Total reconciling
items
|
229
|
|
676
|
|
586
|
|
1,758
|
|
Non-GAAP net loss
available to common stockholders
|
$
(1,884)
|
|
$
(3,714)
|
|
$(7,796)
|
|
$(11,444)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(0.14)
|
|
$
(0.57)
|
|
$
(0.69)
|
|
$
(1.76)
|
|
|
Reconciling
items
|
|
|
|
|
|
|
|
|
|
|
- Change in fair
value of warrant liability
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
- Stock-based
compensation expense
|
0.01
|
|
0.08
|
|
0.05
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
per share: basic and diluted
|
$
(0.13)
|
|
$
(0.49)
|
|
$
(0.64)
|
|
$
(1.53)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP net loss per share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
14,672
|
|
7,654
|
|
12,146
|
|
7,502
|
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SOURCE BioPharmX Corporation