InVivo Therapeutics Reports 2013 Financial Results and Business Update

InVivo Therapeutics Holdings Corp. (NVIV), a life sciences company focused on the development and commercialization of novel drug delivery technologies as well as biopolymer devices for the treatment of spinal cord injuries and other nervous system conditions, today reported financial results for the year ended December 31, 2013.

Mark Perrin, the CEO of InVivo, said, “In the first ten weeks of this year, key leadership additions were made including the appointments of Tamara Joseph as Senior Vice President, General Counsel and Chief Compliance Officer, Thomas Ulich, MD as Chief Scientific Officer, and Louis Vaickus, MD as Chief Medical Officer. Operationally, we continue to focus our efforts to initiate the first-in-man study of our novel scaffolding device to treat acute spinal cord injuries. Lastly, we have significantly increased our business development activities to leverage the opportunities with our scaffold and hydrogel platforms.”

The Company also provided an update with respect to the clinical study of its scaffold device. One clinical site has now received Institutional Review Board approval and finalized its contract and a second site is nearing completion of these steps. Additional sites are progressing through this process. As a result of manufacturing issues with respect to the scaffold, the company expects that its first clinical study site will receive product and be ready to enroll subjects in the second quarter of 2014. The Company also announced that, as a result of ongoing discussions with clinical experts, we are reviewing non-traumatic spinal cord impairment indications that could benefit from our device. This effort could result in additional uses of the scaffold and may expand the entire development program.

Financial Results

For the year ended December 31, 2013, the Company reported a net loss of approximately $38,756,000 or $.52 per diluted share, compared to net income of $4,664,000 or $.06 per diluted share, for the year ended December 31, 2012. Included in results for the years ended December 31, 2013 and 2012 were non-cash gains (losses) from modification of warrants and derivatives of $(18,871,000), and $17,479,000, respectively, reflecting changes in the fair market value of the derivative warrant liability. Exclusive of these non-cash items, the adjusted net loss for the year ended December 31, 2013, was $19,120,000, or $.26 per diluted share, compared to an adjusted net loss of $12,816,000, or $.18 per diluted share for 2012. The Company ended the year with $13,980,000 of cash and cash equivalents. 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 company with unique technologies for drug delivery 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 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. Any forward-looking statements contained herein are based on current expectations, and include statements regarding the Company’s expectations with respect to the commencement of human clinical trials for the scaffold product, increased business development activities, and future uses and indications for its scaffold product. These statements are subject to a number of risks and uncertainties that could cause actual future results to differ materially from current expectations including, but not limited to, risks and uncertainties relating to the Company’s limited operating history and history of net losses, its ability to raise substantial additional capital to finance planned operations, its ability to successfully commercialize current and future product candidates and to successfully complete clinical trials and obtain and maintain regulatory approval of its product candidates, its ability to protect and maintain its intellectual property, and other risks associated with the Company’s business and strategies identified and described in more detail in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent filings with the Securities and Exchange Commission. We do not undertake to update these forward-looking statements made by us.