• |
Completed the acquisition of Novellus Therapeutics Limited ('Novellus') in July 2021. Novellus is developing next‑generation engineered mesenchymal stem cell ('MSC') therapies using patented mRNA-based cell reprogramming and gene editing technologies licensed from Factor Bioscience ('Factor').
|
• |
Raised nearly $51 million through equity line sales of common stock for general corporate purposes, including working capital to be used to enhance the development of the mRNA gene editing and cell therapies technology recently licensed from Factor.
|
• |
Appointed Jay Sial as chief administrative officer and Kevin D'Amour, Ph.D. as chief scientific officer.
|
• |
Established a research and development center in Cambridge, Massachusetts, to pursue its mRNA-based gene editing and cellular therapies, co-locating with Factor.
|
June 30, 2021 |
December 31, 2020 | |||||||
ASSETS
|
(unaudited)
| |||||||
Current assets:
| ||||||||
Cash
|
$
|
50,164,673
|
$
|
1,630,455
| ||||
Tax receivable
|
23,303
|
-
| ||||||
Prepaid expenses and other current assets
|
1,753,197
|
102,322
| ||||||
Total current assets
|
51,941,173
|
1,732,777
| ||||||
Property and equipment,net
|
582,041
|
594,106
| ||||||
Right-of-use assets - operating leases
|
2,767,804
|
2,092,878
| ||||||
Goodwill
|
2,043,747
|
2,043,747
| ||||||
In-process research and development
|
6,860,000
|
6,860,000
| ||||||
Security deposits and other assets
|
514,881
|
453,252
| ||||||
Total assets
|
$
|
64,709,646
|
$
|
13,776,760
| ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
| ||||||||
Current liabilities:
| ||||||||
Accounts payable
|
$
|
3,679,311
|
$
|
1,275,223
| ||||
Accrued expenses
|
1,916,126
|
1,051,020
| ||||||
Loans payable
|
410,000
|
410,000
| ||||||
PPP loan, current
|
309,905
|
115,972
| ||||||
Operating lease liabilities, current
|
383,923
|
273,217
| ||||||
Other current liabilities
|
985,233
|
-
| ||||||
Total current liabilities
|
7,684,498
|
3,125,432
| ||||||
Contingent consideration
|
19,290,000
|
20,110,000
| ||||||
Operating lease liabilities, non-current
|
2,529,422
|
1,905,395
| ||||||
PPP loan, non-current
|
-
|
193,933
| ||||||
Other liabilities
|
22,863
|
22,863
| ||||||
Total liabilities
|
29,526,783
|
25,357,623
| ||||||
Stockholders' and members' equity (deficit):
| ||||||||
Class A membership units
|
-
|
23,202,005
| ||||||
Class B membership units
|
-
|
1,400,000
| ||||||
Class C membership units
|
-
|
1,000,000
| ||||||
Common units
|
-
|
197,873
| ||||||
Common stock, $0.005 par value, 100,000,000 shares authorized, 44,707,382 issued and outstanding at June 30, 2021; no shares issued and outstanding at December 31, 2020.
|
223,537
|
-
| ||||||
Series A preferred stock
|
781
|
-
| ||||||
Additional paid-in capital
|
100,134,743
|
-
| ||||||
Accumulated deficit
|
(65,176,198
|
)
|
(37,380,741
|
)
| ||||
Total stockholders' and members' equity (deficit)
|
35,182,863
|
(11,580,863
|
)
| |||||
Total liabilities and stockholders' and members' equity (deficit)
|
$
|
64,709,646
|
$
|
13,776,760
|
Three months ended June 30,
|
Six months ended June 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Operating expenses:
| ||||||||||||||||
Research and development
|
5,392,777
|
985,081
|
6,912,410
|
1,376,140
| ||||||||||||
General and administrative
|
4,620,353
|
1,034,120
|
6,256,910
|
1,657,595
| ||||||||||||
Transaction costs
|
-
|
-
|
5,765,407
|
-
| ||||||||||||
Change in fair value of contingent consideration
|
-
|
-
|
(820,000
|
)
|
-
| |||||||||||
Total operating expenses
|
10,013,130
|
2,019,201
|
18,114,727
|
3,033,735
| ||||||||||||
Loss from operations
|
(10,013,130
|
)
|
(2,019,201
|
)
|
(18,114,727
|
)
|
(3,033,735
|
)
| ||||||||
Other expenses:
| ||||||||||||||||
Loss on sale of NTN assets
|
(50,000
|
)
|
-
|
(9,648,173
|
)
|
-
| ||||||||||
Other expense, net
|
(22,187
|
)
|
(14,245
|
)
|
(24,751
|
)
|
(18,923
|
)
| ||||||||
Total other expenses
|
(72,187
|
)
|
(14,245
|
)
|
(9,672,924
|
)
|
(18,923
|
)
| ||||||||
Net loss
|
(10,085,317
|
)
|
(2,033,446
|
)
|
(27,787,651
|
)
|
(3,052,658
|
)
| ||||||||
Series A preferred stock dividend
|
(7,806
|
)
|
-
|
(7,806
|
)
|
-
| ||||||||||
Net loss attributable to common stockholders
|
$
|
(10,093,123
|
)
|
$
|
(2,033,446
|
)
|
$
|
(27,795,457
|
)
|
$
|
(3,052,658
|
)
| ||||
Net loss per common share - basic and diluted
|
$
|
(0.24
|
)
|
$
|
(0.12
|
)
|
$
|
(0.79
|
)
|
$
|
(0.17
|
)
| ||||
Weighted average shares outstanding - basic and diluted
|
42,448,188
|
17,583,489
|
35,187,292
|
17,542,750
|
For the six months ended June 30, | ||||||||
2021
|
2020
| |||||||
Cash flows used in operating activities:
| ||||||||
Net loss
|
$
|
(27,787,651
|
)
|
$
|
(3,052,658
|
)
| ||
Adjustments to reconcile net loss to net cash used in operating activities:
| ||||||||
Depreciation and amortization
|
63,485
|
47,638
| ||||||
Stock-based compensation
|
1,573,393
|
45,468
| ||||||
Amortization of right-to-use asset
|
148,702
|
-
| ||||||
Transaction costs - shares to Financial Advisor
|
5,765,407
|
-
| ||||||
Loss on sale of NTN assets
|
9,648,173
|
-
| ||||||
Change in fair value of contingent consideration
|
(820,000
|
)
|
-
| |||||
Changes in operating assets and liabilities:
| ||||||||
Account receivable
|
4,680
|
-
| ||||||
Prepaid expenses and other current assets
|
(1,509,284
|
)
|
(79,175
|
)
| ||||
Security deposits and other non-current assets
|
(26,909
|
)
|
(84,915
|
)
| ||||
Accounts payable and accrued expenses
|
2,844,135
|
(942,836
|
)
| |||||
Operating lease liability
|
(138,895
|
)
|
(468
|
)
| ||||
Other liabilities
|
-
|
10,324
| ||||||
Net cash used in operating activities
|
(10,234,764
|
)
|
(4,056,622
|
)
| ||||
Cash flows provided by (used in) investing activities:
| ||||||||
Purchase of property and equipment
|
-
|
(26,177
|
)
| |||||
Purchase of NTN, net of cash acquired
|
147,262
|
-
| ||||||
Proceeds from the sale of NTN assets, net of cash disposed
|
118,594
|
-
| ||||||
Net cash provided by (used in) investing activities
|
265,856
|
(26,177
|
)
| |||||
Cash flows provided by financing activities:
| ||||||||
Net proceeds of common stock issued to Lincoln Park
|
48,524,918
|
-
| ||||||
Proceeds from the exercise of stock options
|
10,202
|
-
| ||||||
Proceeds from loans payable
|
-
|
309,905
| ||||||
Repayment of NTN's PPP Loan
|
(531,994
|
)
|
-
| |||||
Proceeds from sale of members' equity
|
10,500,000
|
3,858,750
| ||||||
Net cash provided by financing activities
|
58,503,126
|
4,168,655
| ||||||
Net increase in cash and cash equivalents
|
48,534,218
|
85,856
| ||||||
Cash and cash equivalents at beginning of period
|
1,630,455
|
5,100,819
| ||||||
Cash and cash equivalents at end of period
|
$
|
50,164,673
|
$
|
5,186,675
| ||||
Supplemental disclosures of cash flow information:
| ||||||||
Cash paid during the period for:
| ||||||||
Interest
|
$
|
-
|
$
|
-
| ||||
Income taxes
|
$
|
-
|
$
|
-
| ||||
Supplemental disclosure of non-cash investing and financing activities:
| ||||||||
Issuance of common stock for Series A preferred stock dividend
|
$
|
7,806
|
$
|
-
| ||||
Issuance of Common Stock for business combination
|
$
|
8,177,457
|
$
|
-
| ||||
Forfeiture of unvested restricted stock
|
$
|
(60
|
)
|
$
|
-
| |||
Preferred shares issued in connection with reverse merger
|
$
|
781
|
$
|
-
| ||||
Initial measurement of ROU assets and liabilities
|
$
|
873,629
|
$
|
-
|
CORE IR
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Disclaimer
Brooklyn Immunotherapeutics Inc. published this content on 17 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2021 21:33:03 UTC.