– Company accelerating late-stage corporate development activities to in-license/acquire synergistic assets to build GI-focused pipeline
– Strong financial position with cash to fund operations through 2024
Carlsbad, CA, Aug. 11, 2023 (GLOBE NEWSWIRE) -- Palisade Bio, Inc. (Nasdaq: PALI) (“Palisade” or the “Company”), a biopharmaceutical company advancing therapies for acute and chronic gastrointestinal (GI) complications, today summarized the Company’s recent corporate developments and reported its financial results for the second quarter 2023.
Recent Corporate Developments
- The Company’s evaluation of novel therapeutics has resulted in a non-binding term sheet and the Company will provide an update when definitive agreements are entered into.
- As previously announced, the Company reported topline results from its LB1148 Phase 2 PROFILE study.
“Palisade Bio remains committed to our mission to develop novel therapeutics that target and improve the integrity of the gastrointestinal barrier,” commented J.D. Finley, Chief Executive Officer. “I am very pleased with the progress of our efforts to identify pipeline expanding therapeutics and look forward to providing an update as our potential transactions progress.”
Summary of Financial Results for the Second Quarter Ended June 30, 2023
As of June 30, 2023, the Company had cash and cash equivalents of $16.4 million, which includes proceeds from the $6.0 million registered direct offering and concurrent private placement completed in early April 2023. The Company believes it has sufficient capital to fund operations through 2024.
Net loss was $3.4 million for the three months ended June 30, 2023, compared to $2.3 million for the same period in 2022.
Research and development expenses for the three months ended June 30, 2023 were $2.2 million, an increase of approximately $0.9 million, or 65%, compared to $1.3 million for the same period last year. The increase was primarily attributable to the Company's increased clinical trial activity.
General and administrative expenses for the three months ended June 30, 2023 decreased approximately $0.8 million, or 36%, from $2.3 million for three months ended June 30, 2022, to $1.4 million for the three months ended June 30, 2023. The decrease was primarily attributable to cost-saving opportunities implemented by the Company in the third and fourth quarters of 2022, as well as decreased employee compensation costs in the period ended June 30, 2023 compared to the same period last year.
About Palisade Bio
Palisade Bio is a biopharmaceutical company focused on developing therapeutics that protect the integrity of the intestinal barrier. The Company utilizes over three decades of research and established science that links the role of intestinal barrier biology with human disease to advance novel therapeutics that target and improve the integrity of the intestinal barrier.
The Company believes that addressing the disruption of the intestinal barrier can fundamentally change the way diseases are treated and establish new standards of patient care. For more information, please go to www.palisadebio.com.
Forward Looking Statements
This communication contains “forward-looking” statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the Company’s intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the extent of our cash runway; our ability to diversify our product pipeline; estimates about the size and growth potential of the markets for our product candidates, and our ability to serve those markets, including any potential revenue generated; future regulatory, judicial, and legislative changes or developments in the United States (U.S.) and foreign countries and the impact of these changes; our ability to build a commercial infrastructure in the U.S. and other markets; our ability to compete effectively in a competitive industry; our ability to identify and qualify additional manufacturers to provide API and manufacture drug product; our ability to enter into commercial supply agreements; the success of competing technologies that are or may become available; our ability to attract and retain key scientific or management personnel; the accuracy of our estimates regarding expenses, future revenues, capital requirements and needs for additional financing; our ability to obtain funding for our operations; our ability to attract collaborators and strategic partnerships; and the impact of the COVID-19 pandemic on our business, and operations, and supply. Any statements contained in this communication that are not statements of historical fact may be deemed to be forward-looking statements. These forward-looking statements are based upon the Company’s current expectations. Forward-looking statements involve risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the Company’s ability to advance its clinical programs, the uncertain and time-consuming regulatory approval process; and the Company’s ability to achieve additional financing to fund future operations. Additional risks and uncertainties can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 22, 2023. These forward-looking statements speak only as of the date hereof and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
Investor Relations Contact
JTC Team, LLC
Jenene Thomas
833-475-8247
PALI@jtcir.com
Source: Palisade Bio
Palisade Bio, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)
| June 30, 2023 | December 31, 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 16,403 | $ | 12,383 | ||||
| Prepaid expenses and other current assets | 1,008 | 2,350 | ||||||
| Total current assets | 17,411 | 14,733 | ||||||
| Restricted cash | 26 | 26 | ||||||
| Property and equipment, net | 11 | 10 | ||||||
| Right-of-use asset | 250 | 300 | ||||||
| Other noncurrent assets | 592 | 694 | ||||||
| Total assets | $ | 18,290 | $ | 15,763 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 922 | $ | 1,759 | ||||
| Accrued liabilities | 598 | 574 | ||||||
| Accrued compensation and benefits | 291 | 486 | ||||||
| Current portion of lease liability | 113 | 105 | ||||||
| Debt | 411 | 88 | ||||||
| Total current liabilities | 2,335 | 3,012 | ||||||
| Warrant liability | 2 | 61 | ||||||
| Lease liability, net of current portion | 153 | 211 | ||||||
| Total liabilities | 2,490 | 3,284 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Series A Convertible Preferred Stock, $0.01 par value, 7,000,000 shares authorized; 200,000 issued and outstanding at June 30, 2023 and December 31, 2022 | 2 | 2 | ||||||
| Common stock, $0.01 par value; 280,000,000 shares authorized; 6,849,362 and 2,944,306 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 69 | 30 | ||||||
| Additional paid-in capital | 130,652 | 121,637 | ||||||
| Accumulated deficit | (114,923 | ) | (109,190 | ) | ||||
| Total stockholders' equity | 15,800 | 12,479 | ||||||
| Total liabilities and stockholders' equity | $ | 18,290 | $ | 15,763 | ||||
Palisade Bio, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| License revenue | $ | — | $ | — | $ | 250 | $ | — | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,177 | 1,317 | 3,418 | 2,276 | ||||||||||||
| General and administrative | 1,432 | 2,255 | 2,970 | 5,184 | ||||||||||||
| Total operating expenses | 3,609 | 3,572 | 6,388 | 7,460 | ||||||||||||
| Loss from operations | (3,609 | ) | (3,572 | ) | (6,138 | ) | (7,460 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (3 | ) | (5 | ) | (3 | ) | (6 | ) | ||||||||
| Other income | 219 | 1,233 | 408 | 2,027 | ||||||||||||
| Loss on issuance of warrants | — | — | — | (1,110 | ) | |||||||||||
| Total other income, net | 216 | 1,228 | 405 | 911 | ||||||||||||
| Net loss | $ | (3,393 | ) | $ | (2,344 | ) | $ | (5,733 | ) | $ | (6,549 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.53 | ) | $ | (5.77 | ) | $ | (1.07 | ) | $ | (17.91 | ) | ||||
| Basic and diluted weighted average shares used in computing basic and diluted net loss per common share | 6,417,927 | 405,893 | 5,363,584 | 365,635 | ||||||||||||
Palisade Bio, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
| Six Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| Net loss | $ | (5,733 | ) | $ | (6,549 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 3 | 1 | ||||||
| Noncash lease expense | 50 | 94 | ||||||
| Loss on issuance of warrants | — | 1,110 | ||||||
| Change in fair value of warrant liabilities | (59 | ) | (2,018 | ) | ||||
| Stock-based compensation | 237 | 694 | ||||||
| Other | (108 | ) | (213 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid and other assets and other noncurrent assets | 497 | 228 | ||||||
| Accounts payable and accrued liabilities | (367 | ) | 170 | |||||
| Accrued compensation | (195 | ) | (435 | ) | ||||
| Operating lease liabilities | (50 | ) | (96 | ) | ||||
| Net cash used in operating activities | (5,725 | ) | (7,014 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (4 | ) | — | |||||
| Net cash used in investing activities | (4 | ) | — | |||||
| Cash flows from financing activities: | ||||||||
| Payments on debt | (138 | ) | (260 | ) | ||||
| Proceeds from issuance of common stock and warrants | 7,681 | 1,775 | ||||||
| Proceeds from the exercise of warrants | 2,758 | — | ||||||
| Payment of equity issuance costs | (552 | ) | (16 | ) | ||||
| Net cash provided by financing activities | 9,749 | 1,499 | ||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 4,020 | (5,515 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of year | 12,409 | 10,521 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 16,429 | $ | 5,006 | ||||
| Reconciliation of cash, cash equivalents and restricted cash to the balance sheets: | ||||||||
| Cash and cash equivalents | $ | 16,403 | $ | 4,980 | ||||
| Restricted cash | 26 | 26 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 16,429 | $ | 5,006 | ||||
