OncoSec Medical Incorporated (OTCBB: ONCS), which is developing its advanced-stage ElectroOncology therapies to treat solid tumor cancers, today reported financial results for the quarter ended April 30, 2011.
Total operating expenses for the three and nine months ended April 30, 2011, were $496,000 and $503,000 as compared to $3,000 and $15,000 for the three and nine months ended April 30, 2010.
The net loss attributable to common stockholders for the three and nine months ended April 30, 2011, was $499,000, or $0.01 per share, and $506,000, or $0.01 per share, as compared with a net loss attributable to common stockholders of $3,000, or $0.00 per share, and $15,000, or $0.00 per share, for the three and nine months ended April 30, 2010.
Research and development expenses for the three and nine months ended April 30, 2011, were $217,000 and $217,000 as compared to $0 for both the three and nine months ended April 30, 2010. The increase in research and development expenses for the comparable three month and nine month periods was due to our shift in focus from the online inventory services industry to the biomedical industry, which occurred in conjunction with the previously announced closing on March 24, 2011 of the asset purchase agreement with Inovio Pharmaceuticals, Inc. (Inovio) to acquire certain technology and related assets. The technology and related assets embodied in the asset purchase agreement relate to the use of drug-medical device combination products for the treatment of different cancers.
General and administrative expenses for the three and nine months ended April 30, 2011, were $280,000 and $287,000 as compared to $3,000 and $15,000 for the three and nine months ended April 30, 2010. The increase for the comparable three and nine month periods was due to an increase in salary, legal and other expenses associated with the increase in operations stemming from our shift in focus to the biomedical industry.
Net Loss Attributable to Common Stockholders
The $491,000 increase in net loss attributable to common stockholders for the nine months ended April 30, 2011, compared with the same period in 2010, resulted from our shift in focus to be a biomedical company concentrated on developing cancer therapeutic products.
As of April 30, 2011, our cash balance was $543,000, compared to $237 as of July 31, 2010. This change primarily resulted from an increase in cash resulting from proceeds of $1,092,000 we received in connection with a private placement of common stock announced on March 18, 2011. This was offset by the initial scheduled payment of $250,000 made to Inovio during March 2011, in accordance with the Asset Purchase Agreement, and operating expenses incurred during the nine month period ended April 30, 2011. With this private placement, we issued 1,456,000 units at a purchase price of $0.75 per unit for gross proceeds of $1,092,000. Each unit consisted of one share of common stock and one share purchase warrant entitling the holder to acquire one share of common stock at a price of $1.00 per share for a period of five years from the closing of the private placement.
Stockholders Equity (Deficit)
As of April 30, 2011, we had a stockholder’s equity balance of $556,000 compared to a deficit balance of $30,000 at July 31, 2010, and also had 52,656,000 and 68,480,000 shares of common stock issued and outstanding for the same respective periods.
In this quarter, OncoSec purchased certain non-DNA vaccine technology and intellectual property from Inovio relating to electroporation delivery of chemotherapeutic agents and nucleic acids encoding cytokines for the treatment of solid tumors. Pursuant to the agreement, OncoSec made an upfront payment of $250,000 and will pay up to an additional amount of $2.75M by March 24, 2013, based on achievement of milestones. OncoSec will also pay Inovio royalties based on commercial product sales.
OncoSec announced that it will initiate three Phase II clinical trials to evaluate its lead ElectroImmunotherapy technology, DNA IL-12 locally delivered using electroporation, in patients with melanoma, Merkel cell carcinoma and cutaneous T-cell lymphoma. The company is building on positive Phase I dose-escalation trial results in 24 patients with metastatic melanoma. This previous study demonstrated that treatment with DNA IL-12 in conjunction with electroporation was safe and well tolerated, and suggested a systemic objective response in more than half of the subjects, 15% of patients showing 100% clearance of distant, untreated tumors. Each respective trial will be run under a physician-sponsored IND. These studies are expected to start before the end of 2011.
OncoSec Medical Incorporated