Press Releases

OncoSec Announces First Quarter Financial Results for Fiscal Year 2017

SAN DIEGO, Dec. 8, 2016 /PRNewswire/ -- OncoSec Medical Incorporated ("OncoSec") (NASDAQ: ONCS), a company developing DNA-based intratumoral cancer immunotherapies, today announced financial results for the fiscal first quarter 2017.

"We are delivering on our commitment to address an unmet medical need in melanoma with ImmunoPulse® IL-12. We are pleased with the early clinical response data presented from the melanoma combination trial, and we are focused on advancing our lead program – ImmunoPulse® IL-12 – in anti-PD-1 non-responder advanced melanoma patients. Based on our current cash runway, we are positioned to meet our value-driving clinical and regulatory milestones into calendar 2018 and have a clear strategy to expand our therapeutic platform," noted Punit Dhillon, OncoSec President and Chief Executive Officer. "Our primary focus for the next year is to initiate a melanoma registration-directed clinical study. We believe we will generate meaningful data in 2017 and 2018 to support the discussions with the FDA and a future biologics license application (BLA) to attract a partner, who is ready to advance this innovative therapy."

FINANCIAL RESULTS
For the first quarter of fiscal 2017, OncoSec reported a net loss of $5.6 million or $0.29 per share, compared to a net loss of $7.0 million, or $0.47 per share for the same period last year. The decrease in net loss for the quarter ended October 31, 2016, compared with the same period in fiscal 2016, resulted primarily from (i) the completion of the melanoma monotherapy extension clinical trial, (ii) decreased engineering and lab supplies costs due to the completion of next-generation electroporation prototypes, (iii) decreased outside service fees due to leveraging in-house capabilities, and (iv) decreased stock-based compensation expense. There were no revenues for the quarter ended October 31, 2016 or October 31, 2015.

Research and development expenses were $3.1 million for the first quarter of fiscal 2017, compared to $3.7 million for the same period in fiscal 2016. General and administrative expenses were $2.5 million for the first quarter of fiscal 2017, compared to $3.4 million for the same period in fiscal 2016.

At October 31, 2016, OncoSec had $24.4 million in cash and cash equivalents, as compared to $28.7 million of cash and cash equivalents at July 31, 2016. OncoSec expects these funds to be sufficient to allow it to continue to operate its business for at least the next 12 months.

About OncoSec Medical Incorporated
OncoSec is a biotechnology company developing DNA-based intratumoral immunotherapies with an investigational technology, ImmunoPulse®, for the treatment of cancer. ImmunoPulse® is designed to enhance the local delivery and uptake of DNA-based immune-targeting agents, such as IL-12. In Phase I and II clinical trials, ImmunoPulse® IL-12 has demonstrated a favorable safety profile and evidence of anti-tumor activity in the treatment of various solid tumors as well as the potential to initiate a systemic immune response. OncoSec's lead program, ImmunoPulse® IL-12, is currently in clinical development for several indications, including metastatic melanoma, and triple-negative breast cancer. The program's current focus is on the significant unmet medical need in patients with melanoma who are refractory or non-responsive to anti-PD-1/PD-L1 therapies. In addition to ImmunoPulse® IL-12, the Company is also identifying and developing new immune-targeting agents for use with the ImmunoPulse® platform. For more information, please visit www.oncosec.com.

Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "expects," "designed to," "potential," and similar references to future periods.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on management's current preliminary expectations and are subject to risks and uncertainties, which may cause our results to differ materially and adversely from the statements contained herein. Potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, the following our ability to raise additional funding necessary to fund continued operations; delays and other uncertainties inherent in pre-clinical studies and clinical trials, such as the ability to enroll patients in clinical trials and the risk of adverse events; our ability to recruit and retain qualified personnel; unexpected new data, safety and technical issues; and the other factors discussed in OncoSec's filings with the Securities and Exchange Commission.

Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. OncoSec disclaims any obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.

OncoSec Medical Incorporated

Condensed Consolidated Balance Sheet and Condensed Balance Sheet




October 31, 2016



July 31, 2016




(unaudited)





Assets









Current assets









Cash and cash equivalents


$

24,350,898



$

28,746,224


Prepaid expenses and other current assets



861,070




671,184


Total Current Assets



25,211,968




29,417,408


Property and equipment, net



2,687,992




2,799,930


Other long-term assets



189,785




189,309


Total Assets


$

28,089,745



$

32,406,647











Liabilities and Stockholders' Equity


















Liabilities









Current liabilities









Accounts payable and accrued liabilities


$

3,011,475



$

3,223,327


Accrued compensation



309,463




242,924


Total Current Liabilities



3,320,938




3,466,251


Other long-term liabilities



1,130,166




887,292


Total Liabilities



4,451,104




4,353,543











Commitments and Contingencies


















Stockholders' Equity









Common stock authorized - 160,000,000 common shares with a par value of $0.0001, common stock issued and outstanding — 19,584,645 and 18,036,263 common shares as of October 31, 2016 and July 31, 2016, respectively



25,424




25,269


Additional paid-in capital



89,664,757




88,233,965


Warrants issued and outstanding — 11,478,693 and 12,859,286 warrants as of October 31, 2016 and July 31, 2016, respectively



13,046,712




13,288,527


Accumulated other comprehensive loss



(9)





Accumulated deficit



(79,098,243)




(73,494,657)


Total Stockholders' Equity



23,638,641




28,053,104


Total Liabilities and Stockholders' Equity


$

28,089,745



$

32,406,647


 

OncoSec Medical Incorporated

Condensed Consolidated Statement of Operations and Condensed Statement of

Operations (unaudited)




Three
Months
Ended
October 31,
2016


Three
Months
Ended
October 31,
2015


Revenue


$


$


Expenses:






Research and development


3,099,739


3,659,313


General and administrative


2,502,455


3,375,906


Net loss before income taxes


(5,602,194)


(7,035,219)


Provision for income taxes


1,391


2,172


Net loss, net of tax


$

(5,603,585)


$

(7,037,391)


Basic and diluted net loss per common share


$

(0.29)


$

(0.47)


Weighted average shares used in computing basic and diluted net loss per common share


19,020,982


14,826,887








 

OncoSec Medical Incorporated

Condensed Consolidated Statement of Cash Flows and Condensed Statement of

 Cash Flows (unaudited)




Three Months Ended
October 31, 2016



Three Months Ended
October 31, 2015


Operating activities









Net loss


$

(5,603,585)



$

(7,037,391)


Adjustments to reconcile net loss to net cash used in operating activities:









Depreciation and amortization



94,774




65,125


Loss on disposal of property and equipment






572


Stock-based compensation



1,148,209




1,562,066


Changes in operating assets and liabilities:









(Increase) Decrease in prepaid expenses and other current assets



(189,886)




441,669


(Increase) Decrease in other long-term assets



(476)




26,685


(Decrease) Increase in accounts payable and accrued liabilities



(183,121)




549,221


Increase in accrued compensation



66,539





Increase (Decrease) in other long-term liabilities



242,874




(265,735)


Net cash used in operating activities



(4,424,662)




(4,657,788)


Investing activities









Purchases of property and equipment



(9,578)




(481,107)


Net cash used in investing activities



(9,578)




(481,107)


Financing activities









Proceeds from issuance of common stock through employee stock purchase plan



25,617





Proceeds from exercise of warrants



13,306





Net cash provided by financing activities



38,923





Effect of exchange rate changes on cash



(9)






Net (decrease) in cash



(4,395,326)




(5,138,895)


Cash and cash equivalents, at beginning of period



28,746,224




32,035,264


Cash and cash equivalents, at end of period


$

24,350,898



$

26,896,369











Supplemental disclosure for cash flow information:









Cash paid during the period for:









Interest


$



$


Income taxes


$

1,391



$

2,172











Noncash investing and financing transaction:









Issuance of common stock in connection with a contractual agreement


$




$

55,500


Noncash expiration of warrants


$

228,509



$


Noncash activity related to the issuance of warrants in-transit


$

2,000



$

 __


 

Contact
Investor Relations:
Sophia Ononye, PhD MPH MBA
OncoSec Medical Incorporated
855-662-6732
investors@oncosec.com

Media Relations:
Sophia Ononye, PhD MPH MBA
OncoSec Medical Incorporated
855-662-6732
media@oncosec.com

 

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SOURCE OncoSec Medical Incorporated