Helix BioMedix Reports Third Quarter 2012 Financial Results
Helix BioMedix Reports Third Quarter 2012 Financial Results
BOTHELL, Wash.--(BUSINESS WIRE)-- Helix BioMedix, Inc. (OTCQB: HXBM), a developer of bioactive peptides, today announced financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights
Revenue was $469,000 for the third quarter of 2012, compared to $395,000 for the third quarter of 2011.
Net loss was $785,000 for the third quarter of 2012, compared to $606,000 for the same period in 2011. The increase in net loss reflects higher operating expenses and professional fees.
Revenue for the first nine months of 2012 was $1,620,000 compared to $1,445,000 for the first nine months of 2011.
Cash and cash equivalents were $217,000 at September 30, 2012, compared to $1,689,000 at December 31, 2011.
Third Quarter 2012 Results
Total revenue for the third quarter of 2012 was $469,000, compared to $395,000 for the third quarter of 2011. Revenue in the third quarter reflected an increase in peptide and consumer product sales and license fees, offset by a decrease in sales to NuGlow Cosmaceuticals, LLC (NuGlow), an affiliated company. For the first nine months of 2012, revenue was $1,620,000 compared to $1,445,000 for the same period in 2011.
Total operating expenses were $1,082,000 for the third quarter of 2012, compared to $858,000 in the prior year period. The increase in expenses was primarily attributable to higher spending in marketing activities, external trial studies, patent maintenance expenses, and professional fees related to the company's proposed reverse stock split and "going private" transaction.
Net loss for the third quarter of 2012 was $785,000, or $(0.02) per share, compared to a net loss of $606,000, or $(0.01) per share, for the third quarter of 2011. For the nine months of 2012, net loss was $2,035,000, or ($0.04) per share, compared to a net loss of $1,940,000, or ($0.04) per share, for the first nine months of 2011.
As of September 30, 2012, cash and cash equivalents were $217,000, compared to $1,689,000 at December 31, 2011. The decrease in cash was due primarily to cash used in operations. On October 12, 2012, the company drew down $750,000 against its existing $2.0 million line of credit agreement to fund working capital needs.
Commenting on the results, R. Stephen Beatty, President and Chief Executive Officer of Helix BioMedix, stated, "License fees and peptide and consumer sales grew in the third quarter; however, our affiliated company's sales dipped due to certain operational issues with its direct mail program, which it believes have since been resolved. We look forward to continued progress in 2012."
About Helix BioMedix, Inc.
Helix BioMedix, Inc. is a biopharmaceutical company with an extensive library of structurally diverse bioactive peptides and patents covering hundreds of thousands of peptide sequences. Core competencies include peptide design, synthesis and characterization together with assay development, screening, tissue culture and microbiology, leveraged through relationships with contract research organizations and peptide manufacturers. The company takes product development programs from theoretical concept to a qualified skin care active ingredient fully validated as to efficacy and safety. Applications for Helix BioMedix peptides include anti-aging cosmeceutical skin care and acne treatment as well as other topical anti-infective pharmaceuticals and wound healing applications. Striking and SmartPeptides are registered trademarks and Cerakine, Apothederm and SmartPeptide are trademarks of Helix BioMedix, Inc. More information about the company and its proprietary peptides may be found on the company's website at www.helixbiomedix.com.
Forward-Looking Statements
This press release contains forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding activities, events or developments that the company expects, believes or anticipates may occur in the future, including statements related to its potential growth, product development and commercialization and revenue. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the company's ability to consummate its proposed reverse stock split and "going private" transaction, raise additional capital, enter into revenue generating license agreements, continue its research and development efforts, including pre-clinical and clinical studies, and continue developing marketable peptide-based products, and general economic conditions. Additional assumptions, risks and uncertainties are described in detail in the company's reports and other filings with the Securities and Exchange Commission. Such filings are available on the company's website or at www.sec.gov. Readers are cautioned that such forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances.
HELIX BIOMEDIX, INC. CONDENSED BALANCE SHEETS (Unaudited) | ||||||||
September 30, | December 31, | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 216,534 | $ | 1,688,945 | ||||
Accounts receivable, net | 284,809 | 239,773 | ||||||
Accounts receivable, affiliated company, net | 112,691 | 200,935 | ||||||
Inventory | 330,989 | 363,869 | ||||||
Deferred debt issuance costs, current | 201,040 | — | ||||||
Prepaid expenses and other assets | 64,009 | 64,583 | ||||||
Total current assets | 1,210,072 | 2,558,105 | ||||||
Property and equipment, net | 19,602 | 26,098 | ||||||
Intangible assets, net | 95,470 | 146,297 | ||||||
Deferred debt issuance costs, non-current | 150,917 | — | ||||||
Other long term assets | 8,522 | 20,884 | ||||||
Investment in affiliated company | 217,339 | 223,255 | ||||||
Total assets | $ | 1,701,922 | $ | 2,974,639 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 321,565 | $ | 125,324 | ||||
Accrued compensation and benefits | 64,933 | 87,859 | ||||||
Accrued expenses | 63,603 | 55,463 | ||||||
Deferred revenue | 7,060 | — | ||||||
Deferred gross profit, affiliated company | 62,509 | 134,842 | ||||||
Deferred rent, current | — | 7,155 | ||||||
Total current liabilities | 519,670 | 410,643 | ||||||
Deferred rent, non-current | 32,258 | 28,660 | ||||||
Total liabilities | 551,928 | 439,303 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, $0.001 par value, 25,000,000 shares authorized; no shares issued or outstanding | — | — | ||||||
Common stock, $0.001 par value, 100,000,000 shares authorized; 49,720,255 shares outstanding at September 30, 2012 and December 31, 2011 | 49,721 | 49,721 | ||||||
Additional paid-in capital | 49,192,432 | 48,542,453 | ||||||
Accumulated deficit | (48,092,159 | ) | (46,056,838 | ) | ||||
Total stockholders' equity | 1,149,994 | 2,535,336 | ||||||
Total liabilities and stockholders' equity | $ | 1,701,922 | $ | 2,974,639 | ||||
HELIX BIOMEDIX, INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenue: | ||||||||||||||||
Licensing fees | $ | 240,550 | $ | 176,922 | $ | 729,095 | $ | 513,322 | ||||||||
Peptide and consumer product sales | 176,669 | 100,884 | 605,190 | 576,165 | ||||||||||||
Consumer product sales to affiliated company | 51,852 | 116,901 | 285,730 | 355,951 | ||||||||||||
Total revenue | 469,071 | 394,707 | 1,620,015 | 1,445,438 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of peptide and consumer product sales | 113,407 | 70,834 | 380,543 | 409,829 | ||||||||||||
Cost of consumer product sales to affiliated company | 21,832 | 56,961 | 128,684 | 191,486 | ||||||||||||
Total cost of revenue | 135,239 | 127,795 | 509,227 | 601,315 | ||||||||||||
Gross profit | 333,832 | 266,912 | 1,110,788 | 844,123 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 133,009 | 109,221 | 308,036 | 425,131 | ||||||||||||
Marketing and business development | 302,040 | 225,732 | 874,791 | 674,187 | ||||||||||||
General and administrative | 418,868 | 327,162 | 1,132,679 | 1,043,843 | ||||||||||||
Accounting, legal and professional fees | 205,192 | 168,043 | 605,615 | 477,676 | ||||||||||||
Depreciation and amortization | 22,896 | 27,845 | 68,054 | 82,609 | ||||||||||||
Total operating expenses | 1,082,005 | 858,003 | 2,989,175 | 2,703,446 | ||||||||||||
Loss from operations | (748,173 | ) | (591,091 | ) | (1,878,387 | ) | (1,859,323 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest income | 133 | 704 | 1,257 | 2,836 | ||||||||||||
Amortization of debt issuance costs | (50,673 | ) | — | (112,913 | ) | — | ||||||||||
Equity in income (loss) of affiliated company | 14,674 | (23,373 | ) | (32,916 | ) | (74,446 | ) | |||||||||
Change in fair value of option to purchase interest in affiliated company | (1,145 | ) | 8,143 | (12,362 | ) | (9,293 | ) | |||||||||
Total other income (expense), net | (37,011 | ) | (14,526 | ) | (156,934 | ) | (80,903 | ) | ||||||||
Net loss and comprehensive loss | $ | (785,184 | ) | $ | (605,617 | ) | $ | (2,035,321 | ) | $ | (1,940,226 | ) | ||||
Basic and diluted net loss per share | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.04 | ) | ||||
Weighted average shares outstanding | 49,720,255 | 49,720,255 | 49,720,255 | 49,720,255 | ||||||||||||
Investor Contact:
Shelton Group Investor Relations
Matt Kreps, 972-239-5119 X 125
mkreps@sheltongroup.com
or
Company Contact:
Helix BioMedix, Inc.
R. Stephen Beatty, 425-402-8400
President and CEO
sbeatty@helixbiomedix.com
KEYWORDS: United States North America Washington
INDUSTRY KEYWORDS:
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