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,
2012

December 31,
2011

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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