"During the third quarter, we continued our assessment of strategic
alternatives for the Company. While that assessment is underway, we are
working diligently to conserve working capital and enhance stockholder
value. We plan to announce additional information once our assessment is
- The Company has stopped its clinical trials in MND and CMT and the wind-down of the associated activities was completed in the third quarter of 2018.
The reduction in the Company's workforce announced on
June 13, 2018was completed by September 30, 2018.
Third Quarter 2018 Financial Results
- Cash Position: As of
September 30, 2018, Flex Pharmahad cash and cash equivalents of $13.0 million. The Company held no marketable securities at September 30, 2018. During the three months ended September 30, 2018, cash and cash equivalents decreased by $2.8 million.
- Total Revenue: Total HOTSHOT revenue for the three months ended
September 30, 2018was approximately $251,000.
- Cost of Product Revenue: Cost of product revenue for the three
September 30, 2018was approximately $92,000. There were no inventory write-offs during the three months ended September 30, 2018.
- R&D Expense: Research and development expense for the three
September 30, 2018was $0.9 million. Research and development expense for this period primarily included costs associated with the Company’s clinical operations and wind-down of FLX-787 Phase 2 clinical studies, personnel costs (including salaries, termination-related costs, retention-related costs and stock-based compensation costs) and external consultant costs.
- SG&A Expense: Selling, general and administrative expense
for the three months ended
September 30, 2018was $2.0 million. Selling, general and administrative expense for this period primarily included personnel costs (including salaries, retention-related costs and stock-based compensation costs), fulfillment costs related to HOTSHOT, legal and professional costs, and external consultant costs.
- Net Loss and Cash Flow: Net loss for the three months ended
September 30, 2018was ($2.6) million, or ($0.15)per share and included $0.3 millionof stock-based compensation expense. As of September 30, 2018, Flex Pharmahad 18,066,767 shares of common stock outstanding. The net loss for the third quarter of 2018 was primarily driven by the Company’s operating expenses related to its research and development efforts, costs associated with HOTSHOT, and general and administrative costs.
This press release contains forward-looking statements for purposes of
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements include statements
regarding our intentions, beliefs, projections, outlook, analyses or
current expectations concerning, among other things: the corporate
restructuring; the reduction in force and restructuring charges; the
potential cost savings resulting from these changes; the ability to
achieve cash flow savings; the discontinuation of the Company’s trials
of FLX-787 in Motor Neuron Disease and Charcot-Marie-Tooth disease; the
ability to continue to develop FLX-787; and the potential for a sale or
merger of the Company or its HOTSHOT consumer business. These
forward-looking statements are based on management's expectations and
assumptions as of the date of this press release and are subject to
numerous risks and uncertainties, which could cause actual results to
differ materially from those expressed or implied by such statements.
These risks and uncertainties include, without limitation: uncertainties
regarding the Company will be able to effectively manage the
organizational changes brought about by the restructuring and have
sufficient capital resources to fund its continuing operations in future
periods to realize its anticipated cost savings; availability of funding
sufficient for our foreseeable and unforeseeable operating expenses and
capital expenditure requirements; other matters that could affect the
availability or commercial potential of our consumer or drug product
candidates; and the inherent uncertainties associated with intellectual
property. Other factors that may cause actual results to differ from
those expressed or implied in the forward-looking statements in this
press release are discussed in our filings with the
- Financial Tables to Follow -
|Flex Pharma, Inc.|
|Unaudited Selected Consolidated Balance Sheet Information|
|Cash and cash equivalents||$||12,961||$||19,186|
|Prepaid expenses and other current assets||479||777|
|Property and equipment, net||127||331|
|Liabilities and stockholders' equity:|
|Accounts payable and accrued expenses||$||2,834||$||5,717|
|Total liabilities and stockholders’ equity||$||13,938||$||34,993|
|Unaudited Condensed Consolidated Statements of Operations|
|(in thousands, except loss per share amounts)|
|Net product revenue||$||247||$||407||$||665||$||978|
|Costs and expenses:|
|Cost of product revenue||92||149||356||373|
|Research and development||865||4,739||11,720||12,731|
Selling, general and
|Total costs and expenses||2,917||9,823||20,728||27,625|
|Loss from operations||(2,666||)||(9,409||)||(20,053||)||(26,633||)|
|Interest income, net||28||77||140||228|
Net loss per share-basic and
Weighted-average number of
|(1)||In 2014, the Company issued approximately 5.4 million shares of restricted stock that vested over four years, through February 2018. These shares were considered outstanding for purposes of computing weighted average shares as they vested. All of these shares have vested and are considered outstanding as of September 30, 2018.|
Flex Pharma, Inc.
John McCabe, 617-874-1824
Chief Financial Officer