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InVivo Therapeutics Reports 2015 First Quarter Financial Results and Business Update

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InVivo Therapeutics Holdings Corp. (NVIV) today reported financial results for the quarter ended March 31, 2015.

Mark Perrin, the CEO and Chairman of InVivo, said, “We continued to make great progress in the first quarter. We reported very encouraging results from the first patient in the ongoing pilot study of our investigational Neuro-Spinal Scaffold. We were able to quickly enroll the second patient and later reopened the study for concurrent enrollment of the final three patients. We also significantly improved our cash position through a registered direct offering in January and the proceeds from warrant exercises that together brought in about $13.6 million during the quarter. We project our cash position will last us into the fourth quarter of 2016.”

Financial Results

For the quarter ended March 31, 2015, the Company reported a net loss of approximately $15,830,000 or $.64 per diluted share, compared to a net loss of $5,103,000 or $.28 per diluted share, for the quarter ended March 31, 2014. First quarter 2015 results were adversely impacted by a loss in the derivative warrant liability of $10,286,000. Excluding the impact of the derivative warrant liability, the earnings loss per diluted share for the quarters ended March 31, 2015 and 2014 were $.22 and $.28, respectively.

The Company ended the quarter with $24,516,000 of cash and cash equivalents. During the first quarter, the Company received $2.6 million from warrant exercises, representing approximately 26% of the warrants issued in the Company’s May 2014 public offering.

Adjusted net loss and adjusted net loss per share are non-GAAP financial measures that exclude the items noted. A reconciliation of these measures to the comparable GAAP measure is included with the tables contained in this release. The Company believes a presentation of these non-GAAP measures provides useful information to investors to better understand, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, the Company’s operations.

About InVivo Therapeutics

InVivo Therapeutics Holdings Corp. is a pioneering biomaterials and biotechnology company with a focus on treatment of spinal cord injuries. The company was founded in 2005 with proprietary technology co-invented by Robert Langer, ScD, Professor at Massachusetts Institute of Technology, and Joseph P. Vacanti, M.D., who then was at Boston Children’s Hospital and who now is affiliated with Massachusetts General Hospital. In 2011 the company earned the David S. Apple Award from the American Spinal Injury Association for its outstanding contribution to spinal cord injury medicine. The publicly-traded company is headquartered in Cambridge, MA. For more details, visit www.invivotherapeutics.com.

Safe Harbor Statement

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as “believe,” “anticipate,” “intend,” “estimate,” “will,” “may,” “should,” “expect” and similar expressions, and include statements regarding the Company’s cash position . Any forward-looking statements contained herein are based on current expectations, and are subject to a number of risks and uncertainties. Factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the volatility of the trading price of the Company’s common stock; the Company’s ability to successfully open additional clinical sites for enrollment and to enroll additional patients; the timing of the Institutional Review Board process; the Company’s ability to obtain FDA approval to commercialize its products; the Company’s ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company’s products and technology in connection with the treatment of spinal cord injuries; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and other risks associated with the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies identified and described in more detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 , and its other filings with the SEC, including the Company’s Form 10-Qs and current reports on Form 8-K. The Company does not undertake to update these forward-looking statements.

InVivo Therapeutics Holdings Corp.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
As of

March 31,
2015

December 31,
2014

ASSETS:
Current assets:
Cash and cash equivalents $ 24,516 $ 13,459
Restricted cash 361 422
Prepaid expenses and other current assets 543 1,072
Total current assets 25,420 14,953
Property, equipment and leasehold improvements, net 1,431 1,605
Other assets 130 135
Total assets $ 26,981 $ 16,693
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 793 $ 569
Loan payable-current portion 320 320
Note Payable – Current portion 18
Derivative warrant liability 12,644 7,224
Accrued expenses 1,364 1,044
Total current liabilities 15,121 9,175
Loan payable 1,600 1,600
Total liabilities 16,721 10,775
Commitments and Contingencies
Stockholders’ equity:

Common stock, $0.00001 par value, authorized 50,000,000 shares; issued and outstanding
26,011,852 and 23,453,000 shares at March 31, 2015 and December 31, 2014,
respectively.

1 1
Additional paid-in capital 126,344 106,172
Accumulated deficit (116,085 ) (100,255 )
Total stockholders’ equity 10,260 5,918
Total liabilities and stockholders’ equity $ 26,981 $ 16,693

InVivo Therapeutics Holdings Corp.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

Three Months Ended
March 31,

2015 2014
Operating expenses:
Research and development $ 2,303 $ 3,242
General and administrative 3,208 1,829
Total operating expenses 5,511 5,071
Operating loss (5,511 ) (5,071 )
Other income (expense):
Interest income 1 1
Interest expense (34 ) (33 )
Derivatives gain (loss) (10,286 )
Other income (expense), net (10,319 ) (32 )
Net loss $ (15,830 ) $ (5,103 )
Net loss per share, basic $ (0.64 ) $ (0.28 )
Net loss per share, diluted $ (0.64 ) $ (0.28 )
Weighted average number of common shares outstanding, basic 24,909,876 18,540,697
Weighted average number of common shares outstanding, diluted 24,909,876 18,540,697
InVivo Therapeutics Holdings Corp.

Reconciliation of GAAP to non-GAAP Measures

(In thousands, except share and per share data)
Three Months Ended
March 31,
2015 2014
Reported GAAP Net loss (15,830 ) (5,103 )
Add Back: Derivative Loss 10,286
(5,544 ) (5,103 )
Reported GAAP net loss per diluted share (0.64 ) (0.28 )
Derivative loss per diluted share 0.42
Adjusted net loss per diluted share (0.22 ) (0.28 )

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