PolarityTE to host conference call and webcast
today, May 16, 2022, at 8:30 a.m. ET
SALT
LAKE CITY, May 16, 2022 /PRNewswire/
-- PolarityTE, Inc. (Nasdaq: PTE) a biotechnology
company developing regenerative tissue products and biomaterials,
today provided a business update and reported financial results for
the three-month period ended March 31,
2022.
Recent Business and Financial
Updates
- Thus U.S. Food and Drug Administration (FDA) granted
PolarityTE's request for SkinTE to be designated as a Regenerative
Medicine Advanced Therapy (RMAT). As noted in a press release
issued on May 13th, RMAT
designation is a dedicated program designed to expedite the drug
development and review processes for promising regenerative
medicine products intended to treat, modify, reverse, or cure a
serious or life-threatening disease or condition, where preliminary
clinical evidence indicates that the drug or therapy has the
potential to address unmet medical needs for such disease or
condition. As a result of the RMAT designation grant, PolarityTE
plans to coordinate with the FDA a multidisciplinary, comprehensive
discussion regarding the SkinTE development program, including
planned clinical trials and plans for expediting the manufacturing
development strategy.
- PolarityTE announced on May
3rd that the first subject has been enrolled in
its Phase III randomized controlled trial (RCT), which is a pivotal
study under the Company's open IND, and since that announcement
additional subjects have been screened and enrolled. The RCT is
entitled "Closure Obtained with Vascularized Epithelial
Regeneration for DFUs with SkinTE," or "COVER DFUs." COVER DFUs
will enroll up to 100 subjects at up to 20 clinical sites in
the United States. Subjects will
be randomized to one of two treatment groups, receiving either
SkinTE plus the standard of care (SOC) or the SOC alone. The
primary endpoint is the incidence of DFUs closed at 24 weeks.
Secondary endpoints include percent area reduction (PAR) at 4, 8,
12, 16 and 24 weeks; improved quality of life, including social
isolation, depression, odor, improved function, ambulation, and
return to activities based on changes in wound quality of life; and
new onset infection of the DFU requiring treatment with topical
and/or systemic antibiotics.
- The Company has received additional patent issuances and
allowances, and the total number of allowed and granted utility
patents worldwide is now 18, 4 in the
United States and 14 internationally. The Company continues
to pursue additional patent applications in the United States and abroad related to its
regenerative technologies, including SkinTE®.
-
- The USPTO notified the Company that U.S. patent application no.
17/326,734 will issue on May 24,
2022, as U.S. Patent No. 11,338,060. The claims to be issued
are for compositions that relate to the Company's minimally
polarized functional unit (MPFU) technology in combination with a
cryoprotectant.
- The Company is also pleased to announce that the Costa Rican
Patent Office (CRPTO) has issued a notification of issuance for
patent application no. 2017-0296. Israeli patent application No.
252613 also granted on March 2, 2022,
as Israeli Patent No. 252613. The application in Costa Rica and the patent in Israel also relate to the Company's MPFU
technology. New Zealand patent
application no. 755260 was granted on March
25, 2022, as New Zealand Patent No. 755260. This patent in
New Zealand relates to the
Company's MPFU technology. Additionally, the Company received a
notice of allowance for Vietnamese patent application no.
1-2017-02498, also relating to the Company's MPFU technology.
- At the end of April 2022, we sold
our preclinical research services business operated under our
subsidiary, IBEX Preclinical Research, Inc., and related real
estate assets, and we received a promissory note in the principal
amount of $400,000 for the IBEX
Preclinical Research business and net cash proceeds of $2.6 million from sale of the real property
associated with that business.
- Cash used in operations for the three months ended March 31, 2022, was $6.0
million, or an average of $2.0
million per month, representing a 9% reduction from the
comparable period in 2021.
- The Company had cash and cash equivalents of $18.7 million and working capital of $17.2 million at March 31,
2022.
Richard Hague, Chief Executive
Officer, commented, "We are very excited to be underway and
enrolling patients in COVER DFUs, and I am very proud of our team
for accomplishing that milestone so effectively after we announced
our transition for SkinTE from a 361 HCT/P to a 351 HCT/P last
year. FDA designating SkinTE as an RMAT enhances this
milestone, and we believe the RMAT designation will help us advance
our development program, efficiently. We continue to focus on
being disciplined with our finances and were pleased to complete
the divestiture of our Ibex Preclinical Research business as we
complete our transition to a clinical-stage company advancing our
key asset, SkinTE—now with the benefit of an approved IND,
actively-enrolling Phase III pivotal study, and RMAT
designation."
Financial Results for the Period
Ended March 31, 2022
There have been significant changes in our operations affecting
our results of operations for the three-month period ended
March 31, 2022, compared to
three-month period ended March 31,
2021.
On July 23, 2021, we submitted an
IND for SkinTE to the FDA through our subsidiary, PTE-MD, as the
first step in the regulatory process for obtaining licensure for
SkinTE under Section 351 of the Public Health Service Act.
The FDA subsequently issued clinical hold correspondence to us
identifying certain issues that needed to be addressed before the
IND could be approved. We provided responses to the FDA, and
on January 14, 2022, the FDA sent
correspondence informing us that the clinical hold had been
removed. Acceptance of the IND by the FDA enables us to
commence the first of two expected pivotal studies needed to
support a BLA seeking a chronic cutaneous ulcer indication for
SkinTE. We ceased selling SkinTE at the end of May 2021, when the period of enforcement
discretion previously announced by the FDA with respect to its IND
and premarket approval requirements for 361 HCT/Ps came to an end,
and we do not expect to be able to commercialize SkinTE until our
BLA is approved, which we believe will take at least three to four
years. Consequently, we recognized products net revenues in
the first quarter of 2021, and did not have any such revenues in
the first quarter of 2022.
Our subsidiary, Arches Research, Inc. ("Arches") began offering
COVID-19 testing services in May 2020
under 30-day renewable testing agreements with multiple nursing
home and pharmacy facilities in the state of New York controlled by a single company, which
substantially added to our services net revenues in the first three
months of 2021. When the New
York nursing homes and pharmacies adopted on-site employee
testing at the end of March 2021, our
COVID-19 testing revenues declined substantially, and in
August 2021, we decided to cease
COVID-19 testing. Arches focused its research and development
resources on supporting our IND and clinical trial efforts for the
remainder of 2021 and continued in that role in the first quarter
of 2022. However, going forward we do not expect we will have
the same need for research and development staff associated with
product development and, as a result, we reduced research and
development staff in April 2022.
While we were exploring the opportunities for selling IBEX and
the IBEX Property, IBEX assumed a more passive approach to
marketing its services, which resulted in a decline in IBEX
services revenues in the first quarter of 2022 compared to the
first quarter of 2021. With the sale of IBEX and the IBEX
Property completed at the end of April
2022, we expect our services net revenues will be nominal in
the second quarter of 2022 and absent in the last six months of
2022.
As a result of the foregoing developments, we made a number of
changes to our operations that impacted our results of
operations. These included reductions in our work force and
reducing the services and infrastructure needed to support a larger
work force and commercial sales effort.
Comparison of the three months
ended March 31, 2022, and the three
months ended March 31,
2021
Net Revenues and Gross Profit. Net revenues decreased
$4.0 million, or 84%, for the
three-month period ended March 31,
2022, compared to the three-month period ended March 31, 2021, due to the cessation of SkinTE
commercial efforts and COVID-19 testing in 2021 and a decrease in
IBEX services net revenues for the three-month period ended
March 31, 2022, compared to the
three-month period ended March 31,
2021. With the decrease in revenues, cost of sales also
decreased by $1.7 million, or
77%. As a result of these changes gross profit decreased by
$2.3 million, or 90%, for the
three-month period ended March 31,
2022, compared to the three-month period ended March 31, 2021.
Operating Costs and Expenses. Operating costs and expenses
decreased $1.6 million, or 15%, for
the three-month period ended March 31,
2022, compared to the three-month period ended March 31, 2021.
Research and development expenses increased 18% for the
three-month period ended March 31,
2022, compared to the three-month period ended March 31, 2021. The increase is primarily
attributable to the SkinTE manufacturing and overhead personnel
redirecting their efforts following the cessation of SkinTE sales
to research and development activities and increased costs related
to quality control supplies and infrastructure implemented for the
COVER FDUs Trial. The costs of our pre-IND clinical trials
incurred during the three-month period ended March 31, 2021, were slightly more than replaced
by costs of the COVER DFUs Trial incurred during the three-month
period ended March 31, 2022.
The amount of general and administrative expenses for the
three-month period ended March 31,
2022, remained essentially unchanged compared to the
three-month period ended March 31,
2021. We effectuated a reduction in force for our commercial
operations in the second quarter of 2021. Consequently, there
were reductions in cash compensation, stock compensation,
consulting fees, and travel expense. Furthermore, with the
cessation of SkinTE sales we re-allocated manufacturing supplies
and compensation from general and administrative expenses to
research and development costs. These reductions were offset
by professional fees incurred in connection with our pursuit of a
strategic transaction that did not materialize and investment
banking fees paid in connection with an at-the-market offering we
terminated in the first quarter of 2022.
In the first quarter of 2021, we incurred sales and marketing
costs related to our commercial sales effort that did not recur in
the first quarter of 2022. In connection with terminating
commercial sales of SkinTE, we recorded as a restructuring charge a
loss on impairment of property and equipment in the amount of
$0.4 million during the first quarter
of 2021 and no similar charge was recognized in the first quarter
of 2022. The absence of $1.5
million in sales and marketing costs in the first quarter of
2022 compared to the first quarter of 2021 and the $0.4 million of restructuring charges in the
first quarter of 2021 that did not recur in the first quarter of
2022 offset the increase in research and development costs from the
first quarter of 2021 to the first quarter of 2022, and accounts
for the $1.6 million decrease in
operating costs and expenses for the three-month period ended
March 31, 2022, compared to the
three-month period ended March 31,
2021.
Operating Loss and Net Loss. Operating loss increased
$0.7 million, or 8%, for the
three-month period ended March 31,
2022, compared to the three-month period ended March 31, 2021. The increase in operating
loss is due to the substantial reduction in total net revenues for
the three-month period ended March 31,
2022, compared to the three-month period ended March 31, 2021, which was only partially offset
by decreases in cost of revenues and operating costs and
expenses.
Net loss decreased $13.6 million,
or 78%, for the three-month period ended March 31, 2022, compared to the three-month
period ended March 31, 2021.
Warrants issued in connection with financings we completed in 2022,
2021 and 2020 are classified as liabilities and remeasured each
period until settled, classified as equity, or expiration. As
a result of the periodic remeasurement, we recorded a gain for
change in fair value of common stock warrant liability of
$5.1 million for the three-month
period ended March 31, 2022, compared
to a loss of $4.0 million for the
three-month period ended March 31,
2021. We issued common stock purchase warrants in
January 2021, as an inducement to
holders of warrants issued in December
2020 to exercise those December warrants. As a result,
we recognized an inducement loss of $5.2
million for the three-month period ended March 31, 2021. There was no similar
inducement loss in the first quarter of 2022.
Non-GAAP Financial
Measure
The table below provides a reconciliation of adjusted net loss,
which is a non-GAAP measure that shows net loss before fair value
adjustments relating to our common stock warrant liability and
warrant inducement loss, to GAAP net loss. We believe
adjusted net loss is useful to investors because it eliminates the
effect of non-operating items that can significantly fluctuate from
period to period due to fair value remeasurements. For
purposes of calculating non-GAAP per share metrics, the same
denominator is used as that which was used in calculating net loss
per share under GAAP. Other companies may calculate adjusted
net loss differently than we do. Adjusted net loss has limitations
as an analytical tool and you should not consider adjusted net loss
in isolation or as a substitute for our financial results prepared
in accordance with GAAP.
Adjusted Net Loss
Attributable to Common Stockholders
|
(in thousands -
unaudited non-GAAP measure)
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
2022
|
|
|
2021
|
|
GAAP Net
loss
|
|
$
|
(3,771)
|
|
|
$
|
(17,410)
|
|
Change in fair value of
common stock warrant liability
|
|
|
(5,105)
|
|
|
|
4,027
|
|
Inducement loss on sale
of liability classified warrants
|
|
|
–
|
|
|
|
5,197
|
|
Non-GAAP adjusted net
loss attributable to common stockholders – basic &
diluted
|
|
$
|
(8,876)
|
|
|
$
|
(8,186)
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share
attributable to common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.04)
|
|
|
$
|
(0.23)
|
|
Diluted
|
|
$
|
(0.09)
|
|
|
$
|
(0.24)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net
loss per share attributable to common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.11)
|
|
|
$
|
(0.11)
|
|
Diluted
|
|
$
|
(0.10)
|
|
|
$
|
(0.11)
|
|
Cash and Liquidity as of
March 31, 2022
As of March 31, 2022, we had
$18.7 million in cash and cash
equivalents and working capital of approximately $17.2 million. We believe cash and cash
equivalents on our balance sheet, together with the net proceeds of
the IBEX Property sale, will fund our business activities into the
fourth calendar quarter of 2022. For the three-month period
ended March 31, 2022, cash used in
operating activities was $6.0
million, or an average of $2.0
million per month, compared to $6.6
million of cash used in operating activities, or an average
of $2.2 million per month, for the
three-month period ended March 31,
2021.
Conference Call and Webcast
Details
The conference call can be accessed by calling 1-800-289-0459
with passcode 399675 and referencing "PolarityTE First Quarter 2022
Business Update". A webcast of the conference call can be
accessed by using the link below.
Earnings Call Webcast - CLICK HERE
A replay of the earnings conference call will be available for
30 days, beginning approximately one hour after the conclusion of
the call and can be found by visiting PolarityTE's website at
https://www.polarityte.com/news-media/events, or by clicking on the
link above.
About PolarityTE®
PolarityTE, Inc., headquartered in Salt Lake City, Utah, is a biotechnology
company developing regenerative tissue products. PolarityTE's
first regenerative tissue product is SkinTE®. PolarityTE has
an open investigational new drug application (IND) for SkinTE® with
the U.S. Food and Drug Administration (FDA) and is now pursuing the
first of two pivotal studies on SkinTE® needed to support a
biologics license application (BLA) for a chronic cutaneous ulcer
indication. SkinTE® is available for investigational use
only. Learn more at www.PolarityTE.com.
Forward Looking
Statements
Certain statements contained in this release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. They are generally
identified by words such as "believes," "may," "expects,"
"anticipates," "intend," "plan," "will," "would," "should" and
similar expressions. Readers should not place undue reliance on
such forward-looking statements, which are based upon the Company's
beliefs and assumptions as of the date of this release. The
Company's actual results could differ materially due to the impact
of the COVID-19 pandemic, future clinical studies, and FDA
regulatory matters, which cannot be predicted, and the risk factors
and other items described in more detail in the "Risk Factors"
section of the Company's Annual Reports and other filings with the
SEC (copies of which may be obtained at www.sec.gov). Subsequent
events and developments may cause these forward-looking statements
to change. The Company specifically disclaims any obligation or
intention to update or revise these forward-looking statements as a
result of changed events or circumstances that occur after the date
of this release, except as required by applicable law.
POLARITYTE, the POLARITYTE logo, SKINTE, WHERE SELF REGENERATES
SELF and WELCOME TO THE SHIFT are registered trademarks of
PolarityTE, Inc.
CONTACTS
Investors:
PolarityTE Investor Relations
ir@PolarityTE.com
385-831-5284
Media:
David Schull or
Ignacio Guerrero-Ros
David.schull@russopartnersllc.com
Ignacio.guerrero-ros@russopartnersllc.com
POLARITYTE, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited, in
thousands, except share and per share amounts)
|
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
18,723
|
|
|
$
|
19,375
|
|
Accounts receivable,
net
|
|
|
10
|
|
|
|
978
|
|
Assets held for
sale
|
|
|
3,550
|
|
|
|
441
|
|
Prepaid expenses and
other current assets
|
|
|
1,988
|
|
|
|
1,595
|
|
Total current
assets
|
|
|
24,271
|
|
|
|
22,389
|
|
Property and equipment,
net
|
|
|
4,197
|
|
|
|
6,923
|
|
Operating lease
right-of-use assets
|
|
|
854
|
|
|
|
1,146
|
|
Other assets
|
|
|
720
|
|
|
|
720
|
|
TOTAL
ASSETS
|
|
$
|
30,042
|
|
|
$
|
31,178
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
4,609
|
|
|
$
|
3,115
|
|
Other current
liabilities
|
|
|
2,221
|
|
|
|
1,520
|
|
Deferred
revenue
|
|
|
–
|
|
|
|
74
|
|
Liabilities held for
sale
|
|
|
215
|
|
|
|
–
|
|
Total current
liabilities
|
|
|
7,045
|
|
|
|
4,709
|
|
Common stock warrant
liability
|
|
|
4,868
|
|
|
|
6,844
|
|
Operating lease
liabilities
|
|
|
74
|
|
|
|
43
|
|
Other long-term
liabilities
|
|
|
262
|
|
|
|
338
|
|
Total
liabilities
|
|
|
12,249
|
|
|
|
11,934
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies (Note 16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock –
25,000,000 shares authorized, 0 shares issued
and outstanding at March 31, 2022 and December 31, 2021
|
|
|
–
|
|
|
|
–
|
|
Common stock - $.001
par value; 250,000,000 shares authorized;
99,334,758 and 82,484,462 shares issued and outstanding at
March 31, 2022 and December 31, 2021, respectively
|
|
|
99
|
|
|
|
82
|
|
Additional paid-in
capital
|
|
|
529,863
|
|
|
|
527,560
|
|
Accumulated
deficit
|
|
|
(512,169)
|
|
|
|
(508,398)
|
|
Total stockholders'
equity
|
|
|
17,793
|
|
|
|
19,244
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
30,042
|
|
|
$
|
31,178
|
|
POLARITYTE, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(Unaudited, in
thousands, except share and per share amounts)
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
2022
|
|
|
2021
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
–
|
|
|
$
|
1,729
|
|
Services
|
|
|
741
|
|
|
|
2,980
|
|
Total net
revenues
|
|
|
741
|
|
|
|
4,709
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Products
|
|
|
–
|
|
|
|
241
|
|
Services
|
|
|
491
|
|
|
|
1,924
|
|
Total costs of
revenues
|
|
|
491
|
|
|
|
2,165
|
|
Gross
profit
|
|
|
250
|
|
|
|
2,544
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
2,860
|
|
|
|
2,431
|
|
General and
administrative
|
|
|
6,209
|
|
|
|
6,371
|
|
Sales and
marketing
|
|
|
–
|
|
|
|
1,526
|
|
Restructuring and other
charges
|
|
|
–
|
|
|
|
425
|
|
Impairment of assets
held for sale
|
|
|
54
|
|
|
|
–
|
|
Total operating costs
and expenses
|
|
|
9,123
|
|
|
|
10,753
|
|
Operating
loss
|
|
|
(8,873)
|
|
|
|
(8,209)
|
|
Other income
(expense), net
|
|
|
|
|
|
|
|
|
Change in fair value of
common stock warrant liability
|
|
|
5,105
|
|
|
|
(4,027)
|
|
Inducement loss on sale
of liability classified warrants
|
|
|
–
|
|
|
|
(5,197)
|
|
Interest expense,
net
|
|
|
(15)
|
|
|
|
(38)
|
|
Other income,
net
|
|
|
12
|
|
|
|
61
|
|
Net loss and
comprehensive loss
|
|
$
|
(3,771)
|
|
|
$
|
(17,410)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.04)
|
|
|
$
|
(0.23)
|
|
Diluted
|
|
$
|
(0.09)
|
|
|
$
|
(0.24)
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
84,113,385
|
|
|
|
76,158,275
|
|
Diluted
|
|
|
89,399,261
|
|
|
|
76,396,078
|
|
POLARITYTE, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited, in
thousands)
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
|
2022
|
|
2021
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,771)
|
|
$
|
(17,410)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
|
762
|
|
|
1,651
|
|
|
Depreciation and
amortization
|
|
|
455
|
|
|
701
|
|
|
Impairment of assets
held for sale
|
|
|
54
|
|
|
–
|
|
|
Amortization of
intangible assets
|
|
|
–
|
|
|
47
|
|
|
Bad debt
expense
|
|
|
–
|
|
|
97
|
|
|
Inventory
write-off
|
|
|
–
|
|
|
391
|
|
|
Change in fair value of
common stock warrant liability
|
|
|
(5,105)
|
|
|
4,027
|
|
|
Inducement loss on sale
of liability classified warrants
|
|
|
–
|
|
|
5,197
|
|
|
Loss on restructuring
and other charges
|
|
|
–
|
|
|
425
|
|
|
(Gain) Loss on sale of
property and equipment
|
|
|
(2)
|
|
|
7
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
256
|
|
|
(598)
|
|
|
Inventory
|
|
|
–
|
|
|
119
|
|
|
Prepaid expenses and
other current assets
|
|
|
(393)
|
|
|
(1,639)
|
|
|
Operating lease
right-of-use assets
|
|
|
292
|
|
|
328
|
|
|
Other
assets/liabilities, net
|
|
|
–
|
|
|
245
|
|
|
Accounts payable and
accrued expenses
|
|
|
1,702
|
|
|
138
|
|
|
Other current
liabilities
|
|
|
(1)
|
|
|
(15)
|
|
|
Deferred
revenue
|
|
|
(52)
|
|
|
39
|
|
|
Operating lease
liabilities
|
|
|
(238)
|
|
|
(360)
|
|
|
Net cash used in
operating activities
|
|
|
(6,041)
|
|
|
(6,610)
|
|
|
CASH FLOWS FROM
(USED IN) INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(31)
|
|
|
(12)
|
|
|
Proceeds from sale of
property and equipment
|
|
|
7
|
|
|
10
|
|
|
Net cash used in
investing activities
|
|
|
(24)
|
|
|
(2)
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from insurance
financing arrangements
|
|
|
1,027
|
|
|
1,028
|
|
|
Principal payments on
term note payable and financing arrangements
|
|
|
(10)
|
|
|
(9)
|
|
|
Principal payments on
financing leases
|
|
|
(116)
|
|
|
(135)
|
|
|
Net proceeds from the
sale of common stock, warrants and pre-funded warrants
|
|
|
–
|
|
|
9,884
|
|
|
Proceeds from the sale
of warrants
|
|
|
–
|
|
|
1,002
|
|
|
Proceeds from warrants
exercised
|
|
|
–
|
|
|
6,671
|
|
|
Proceeds from
pre-funded warrants exercised
|
|
|
–
|
|
|
8
|
|
|
Proceeds from the sale
of warrants and preferred stock net of issuance costs
|
|
|
4,814
|
|
|
–
|
|
|
Cash paid for tax
withholdings related to net share settlement
|
|
|
(127)
|
|
|
(125)
|
|
|
Proceeds from stock
options exercised
|
|
|
–
|
|
|
3
|
|
|
Net cash provided by
financing activities
|
|
|
5,588
|
|
|
18,327
|
|
|
Net increase (decrease)
in cash and cash equivalents, including cash classified within
assets held for sale
|
|
|
(477)
|
|
|
11,715
|
|
|
Less: net increase in
cash and cash equivalents classified within assets held for
sale
|
|
|
175
|
|
|
–
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
(652)
|
|
|
11,715
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of period
|
|
|
19,375
|
|
|
25,522
|
|
|
Cash and cash
equivalents - end of period
|
|
$
|
18,723
|
|
$
|
37,237
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
16
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
Fair value of placement
agent warrants issued in connection with offering
|
|
$
|
144
|
|
$
|
838
|
|
|
Reclassification of
warrant liability to stockholders' equity upon exercise of
warrant
|
|
$
|
–
|
|
$
|
8,964
|
|
|
Conversion of Series A
and Series B preferred stock into common stock
|
|
$
|
16
|
|
$
|
–
|
|
|
Allocation of financing
to warrant liability
|
|
$
|
3,129
|
|
$
|
8,629
|
|
|
Deferred and accrued
offering costs
|
|
$
|
104
|
|
$
|
500
|
|
|
Reclassification of
assets held for sale
|
|
$
|
3,163
|
|
$
|
–
|
|
|
Reclassification of
liabilities held for sale
|
|
$
|
215
|
|
$
|
–
|
|
|
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SOURCE PolarityTE, Inc.