Aptorum Group Limited Reports 2018 Fiscal Year Financial Results and Business Update
April 15, 2019HONG KONG–(BUSINESS WIRE)–Aptorum Group Ltd. (NASDAQ: APM), a preclinical stage pharmaceutical
company developing and commercializing a broad portfolio of projects
under development of therapeutic and diagnostic technologies to tackle
unmet medical needs, today provided a business update and announced
financial results for the fiscal year ended December 31, 2018.
Recent Business Updates
-
Successfully completed an initial public offering (“IPO”) on the
Nasdaq Global Market of 761,419 Class A ordinary shares at a public
offering price of $15.8 per shares -
Private placement of convertible bonds in April 2018 of $15 million of
which $1.5 million was converted into Class A ordinary shares upon IPO
in December 2018 -
Full year 2018 research and development expenses of $3.1 million,
increased $0.5 million compared to the period March 1, 2017 to
December 31, 2017
“Last year was monumental for Aptorum Group. On the business front, we
completed our IPO in the fourth quarter of 2018,” said Ian Huen, Founder
and Chief Executive Officer of Aptorum Group. “In 2019, we look forward
to continued advancement of our projects under development, and expect
to advance our first lead project into IND-enabling studies.”
2018 Fiscal Year Financial Results Highlights
Aptorum Group reported a net loss of $15.1 million in 2018, as compared
to $2.6 million for the period March 1, 2017 through December 31, 2017.
The increase in net loss in 2018 was driven by the decrease in gain on
investment in marketable securities due to the a one-off investment
disposed in last period, increased in general and administration fees
due to the increased headcount in the Group to support the business
development, and increased in net interest expenses due to the
convertible debts issued in 2018.
Research and development expenses were $3.1 million in 2018 as compared
to $2.6 million for the period March 1, 2017 through December 31, 2017.
The increase in research and development expenses in 2018 was primarily
due to the expansion of research and development team to support growing
business and projects.
General and administrative fees were $4.9 million in 2018 as compared to
$1.5 million for the period March 1, 2017 through December 31, 2017. The
increase in general and administrative expenses 2018 was mainly driven
by increased headcount in the Group to support the business development.
Legal and professional fees were $1.8 million in 2018 as compared to
$1.4 million for the period March 1, 2017 through December 31, 2017. The
increase in legal and professional fees was mainly due to the
preparation of IPO and business expansion.
Aptorum Group ended the 2018 with $26.1 million in cash and restricted
cash as compared to $16.7 million as of December 31, 2017. The increase
in cash and restricted cash was mainly the result of the $15 million of
convertible bonds issued during the year.
About Aptorum Group
We are a pharmaceutical company currently in the preclinical stage,
dedicated to developing and commercializing a broad range of therapeutic
and diagnostic technologies to tackle unmet medical needs. We are
pursuing therapeutic and diagnostic projects in neurology, infectious
diseases, gastroenterology, oncology and other disease areas. We also
have projects focused on non-therapeutic area such as surgical robotics
as well as the operations of our medical clinic in Hong Kong, Talem
Medical, with the initial focus on treatment of chronic diseases
resulting from modern sedentary lifestyles and aging population.
For more information about the Company, please visit www.aptorumgroup.com.
Forward-Looking Statements
This press release includes statements concerning Aptorum Group Limited
and its future expectations, plans and prospects that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. For this purpose, any
statements contained herein that are not statements of historical fact
may be deemed to be forward-looking statements. In some cases, you can
identify forward-looking statements by terms such as “may,” “should,”
“expects,” “plans,” “anticipates,” “could,” “intends,” “target,”
“projects,” “contemplates,” “believes,” “estimates,” “predicts,”
“potential,” or “continue,” or the negative of these terms or other
similar expressions. Aptorum has based these forward-looking statements
largely on its current expectations and projections about future events
and trends that it believes may affect its business, financial condition
and results of operations. These forward-looking statements speak only
as of the date of this press release and are subject to a number of
risks, uncertainties and assumptions including, without limitation,
risks related to its announced management and organizational changes,
the continued service and availability of key personnel, its ability to
expand its product assortments by offering additional products for
additional consumer segments, the company’s anticipated growth
strategies, anticipated trends and challenges in its business, and its
expectations regarding, and the stability of, its supply chain, and the
risks more fully described in Aptorum’s Prospectus (File No. 333-227198)
filed with the U.S. Securities and Exchange Commission (the “SEC”) on
December 4, 2018 and other filings that Aptorum may make with the SEC in
the future. Aptorum assumes no obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise.
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APTORUM GROUP LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (SUCCESSOR BASIS)
For Year Ended December 31, 2018 and the Period March 1, 2017 (Stated in U.S. Dollars) |
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| Year Ended |
March 1, 2017 through |
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|
December 31, 2018 |
December 31, 2017 |
||||||||||
| Revenue | |||||||||||
| Healthcare service income | $ | 383,450 | $ | – | |||||||
| Operating expenses | |||||||||||
| Cost of healthcare service | (318,011 | ) | – | ||||||||
| Research and development expenses | (3,101,432 | ) | (2,560,323 | ) | |||||||
| General and administrative fees | (4,919,626 | ) | (1,480,093 | ) | |||||||
| Legal and professional fees | (1,811,770 | ) | (1,395,490 | ) | |||||||
| Other operating expenses | (560,709 | ) | (257,177 | ) | |||||||
| Total expenses | (10,711,548 | ) | (5,693,083 | ) | |||||||
| Other (loss) income | |||||||||||
| Gain on investments in marketable securities, net | 501,522 | 3,912,500 | |||||||||
| Loss on investments in derivatives, net | (974,444 | ) | (827,501 | ) | |||||||
| Changes in fair value of warrant liabilities | 124,726 | – | |||||||||
| Interest (expense) income, net | (4,458,191 | ) | 44,269 | ||||||||
| Dividend income | – | 2,308 | |||||||||
| Total other (loss) income, net | (4,806,387 | ) | 3,131,576 | ||||||||
| Net loss | (15,134,485 | ) | (2,561,507 | ) | |||||||
| Less: net loss attributable to non-controlling interests | (302,762 | ) | (14,045 | ) | |||||||
| Net loss attributable to Aptorum Group Limited | $ | (14,831,723 | ) | $ | (2,547,462 | ) | |||||
| Net loss per share – basic and diluted | $ | (0.53 | ) | $ | (0.09 | ) | |||||
| Weighted-average shares outstanding – basic and diluted | 27,909,788 | 26,963,435 | |||||||||
| Net loss | $ | (15,134,485 | ) | $ | (2,561,507 | ) | |||||
| Other Comprehensive loss | |||||||||||
| Unrealized loss on investments in available-for-sale securities | (1,122,251 | ) | (367,782 | ) | |||||||
| Exchange differences on translation of foreign operations | 5,345 | – | |||||||||
| Other Comprehensive loss | (1,116,906 | ) | (367,782 | ) | |||||||
| Comprehensive loss | (16,251,391 | ) | (2,929,289 | ) | |||||||
| Less: comprehensive loss attributable to non-controlling interests | (302,762 | ) | (14,045 | ) | |||||||
|
Comprehensive loss attributable to the shareholders of Aptorum Group Limited |
(15,948,629 | ) | (2,915,244 | ) | |||||||
|
APTORUM GROUP LIMITED CONSOLIDATED BALANCE SHEETS (SUCCESSOR BASIS) December 31, 2018 and 2017 (Stated in U.S. Dollars) |
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|
December 31, 2018 |
2017 |
|||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash | $ | 12,006,624 | $ | 16,245,807 | ||||||||||
| Restricted cash | 14,100,614 | 480,000 | ||||||||||||
| Accounts receivable | 2,827 | – | ||||||||||||
| Inventories | 30,642 | – | ||||||||||||
| Marketable securities, at fair value | 1,014,338 | 1,972,648 | ||||||||||||
| Investments in derivatives | 115,721 | 1,095,122 | ||||||||||||
| Amounts due from related parties | 169,051 | – | ||||||||||||
| Due from brokers | 818,968 | 179,492 | ||||||||||||
| Other receivables and prepayments | 464,156 | 310,330 | ||||||||||||
| Total current assets | 28,722,941 | 20,283,399 | ||||||||||||
| Property, plant and equipment, net | 4,260,602 | 346,587 | ||||||||||||
| Non-marketable investments | 7,094,712 | 7,394,713 | ||||||||||||
| Intangible assets, net | 1,409,540 | 1,472,707 | ||||||||||||
| Amounts due from related parties | 50,000 | 304,820 | ||||||||||||
| Long-term deposits | 3,417,178 | 1,757,756 | ||||||||||||
| Other non-current asset | 119,667 | – | ||||||||||||
| Total Assets | $ | 45,074,640 | $ | 31,559,982 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| LIABILITIES | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Amounts due to related parties | $ | 33,417 | $ | 197,386 | ||||||||||
| Accounts payable and accrued expenses | 1,247,147 | 653,348 | ||||||||||||
| Finance lease payable, current portion | 43,877 | – | ||||||||||||
| Warrant liabilities | 753,118 | – | ||||||||||||
| Convertible debts | 10,107,306 | 480,000 | ||||||||||||
| Total current liabilities | 12,184,865 | 1,330,734 | ||||||||||||
| Finance lease payable, non-current portion | 143,873 | – | ||||||||||||
| Total Liabilities | $ | 12,328,738 | $ | 1,330,734 | ||||||||||
| Commitments and contingencies | – | – | ||||||||||||
| EQUITY | ||||||||||||||
|
Class A Ordinary Shares ($1.00 par value; 60,000,000 shares |
$ | 6,537,269 | $ | 5,426,381 | ||||||||||
|
Class B Ordinary Shares ($1.00 par value; 40,000,000 shares |
22,437,754 | 22,437,754 | ||||||||||||
| Additional paid-in capital | 23,003,285 | 5,294,402 | ||||||||||||
| Accumulated other comprehensive loss | (1,484,688 | ) | (367,782 | ) | ||||||||||
| Accumulated deficit | (17,379,185 | ) | (2,547,462 | ) | ||||||||||
|
Total equity attributable to the shareholders of Aptorum Group Limited |
33,114,435 | 30,243,293 | ||||||||||||
| Non-controlling interests | (368,533 | ) | (14,045 | ) | ||||||||||
| Total equity | 32,745,902 | 30,229,248 | ||||||||||||
| Total Liabilities and Equity | $ | 45,074,640 | $ | 31,559,982 | ||||||||||
Contacts
Investor relations:
Tel: +852 2117 6611
Email: [email protected]
Media:
Tel:
+ 852 2117 6611
Email: [email protected]