TORONTO, March 27, 2014 /CNW/ - Spectral Diagnostics Inc., (TSX:SDI) (OTCQX: DIAGF), a Phase III company developing the first theranostic treatment for
patients with severe sepis and septic shock, today announced its
audited financial results for the fourth quarter and year ended
December 31, 2013.
Fourth Quarter Highlights:
-
Continued to enroll patients into the Company's Phase III EUPHRATES
trial. As of March 26, 2014, 265 patients have been randomized into the
study.
-
On January 27, 2014 announced that the Data Safety Monitoring Board
(DSMB) had evaluated the safety, efficacy and futility of its EUPHRATES
trial based on actual data for 184 randomized patients followed for 28
days. The DSMB recommended that the trial continue, but asked that
further analysis be performed before recalculation of the trial's
sample size is finalized.
-
Subsequent to year end, on February 20, 2014, the Company extended the
expiry date of its $0.60 warrants from March 2, 2014 to September 2,
2014, subject to obtaining all regulatory and shareholder approvals.
-
On March 11, 2014, the Company disclosed that it has scheduled the next
quarterly DSMB meeting in early April, 2014 at which time it
anticipates receiving the recommendations of the DSMB based on its
review of the requested detailed analysis, as well as data from
additional patients enrolled since the 184 patient cut off for the
second interim analysis. The Company expects to announce its clinical
path forward after receiving and evaluating the DSMB recommendations.
"The progress that we made in 2013 with the EUPHRATES trial has put us
in a good position to better understand the path forward for our Phase
III sepsis product," stated Dr. Paul Walker, President and CEO of
Spectral. "We look forward to sharing that disclosure with the market
in the coming weeks."
Financial Review
Revenue for the three months ended December 31, 2013 was $713,000
compared to $647,000 for the same three month period last year. Revenue
for the year ended December 31, 2013 was $2,672,000 compared to
$2,589,000 for the prior year, representing an increase of $83,000.
For the quarter ended December 31, 2013, the Company reported operating
costs of $4,396,000 compared to $2,752,000 for the corresponding period
in 2012. Operating costs for the year ended December 31, 2013 amounted
to $14,062,000 compared to $11,313,000 in 2012. The $2,749,000 increase
in operating costs is almost entirely attributable to increased
EUPHRATES trial activities. During the year, 19 clinical sites were
added and 142 patients were enrolled into the study. Apart from
clinical trial activities, the Company continues to maintain a low cost
operating structure for its base business operations.
Loss for the quarter ended December 31, 2013 was $3,673,000 ($0.03 per
share) compared to $2,067,000 ($0.02 per share) for the same quarter
last year. For the year ended December 31, 2013, the Company reported a
loss of $11,307,000, ($0.09 per share), compared to a loss of
$8,543,000 ($0.08 per share), for the year ended December 31, 2012.
The Company concluded the 2013 year with cash and cash equivalents of
$7,229,000 compared to $10,562,000 cash and cash equivalents on hand as
of December 31, 2012.
The total number of shares outstanding for the Company was 134,462,561
as at December 31, 2013.
About Spectral Diagnostics
Spectral is a Phase III company seeking U.S. FDA approval for its lead
theranostics product for the treatment of severe sepsis with septic
shock. PMX is a therapeutic hemoperfusion device that removes
endotoxin, which can cause sepsis, from the bloodstream. Directed by
the Company's Endotoxin Activity Assay (EAA™), the only FDA cleared
diagnostic for the risk of developing sepsis. Spectral's EUPHRATES
trial is the world's only active and most innovative Phase III study in
the area of septic shock.
PMX has been approved for therapeutic use in Japan and Europe, and has
been used safely and effectively on more than 100,000 patients to date.
In March 2009, Spectral obtained the exclusive development and
commercial rights in the U.S. for PMX, and in November 2010, signed an
exclusive distribution agreement for this product in Canada.
Approximately 350,000 patients are diagnosed with severe sepsis and
septic shock in North America each year, representing a greater than $1
billion market opportunity for Spectral. Spectral is listed on the
Toronto Stock Exchange under the symbol SDI, and on the OTCQX under the
symbol DIAGF. For more information please visit www.spectraldx.com
Forward-looking statement
Information in this news release that is not current or historical
factual information may constitute forward-looking information within
the meaning of securities laws. Implicit in this information,
particularly in respect of the future outlook of Spectral and
anticipated events or results, are assumptions based on beliefs of
Spectral's senior management as well as information currently available
to it. While these assumptions were considered reasonable by Spectral
at the time of preparation, they may prove to be incorrect. Readers are
cautioned that actual results are subject to a number of risks and
uncertainties, including the availability of funds and resources to
pursue R&D projects, the successful and timely completion of clinical
studies, the ability of Spectral to take advantage of business
opportunities in the biomedical industry, the granting of necessary
approvals by regulatory authorities as well as general economic, market
and business conditions, and could differ materially from what is
currently expected.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this statement.
Spectral Diagnostics Inc.
Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars)
|
|
|
|
December 31
2013
|
|
December 31
2012
|
|
|
$
|
|
$
|
|
|
|
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
7,229
|
|
5,425
|
Short-term investment
|
|
-
|
|
5,137
|
Trade and other receivables
|
|
569
|
|
590
|
Inventories
|
|
315
|
|
277
|
Prepayments
|
|
289
|
|
226
|
|
|
8,402
|
|
11,655
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
627
|
|
497
|
Intangible asset
|
|
409
|
|
434
|
|
|
1,036
|
|
931
|
|
|
|
|
|
Total assets
|
|
9,438
|
|
12,586
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
3,636
|
|
1,913
|
Deferred revenue
|
|
106
|
|
99
|
Total liabilities
|
|
3,742
|
|
2,012
|
|
|
|
|
|
Equity
|
|
|
|
|
Share capital
|
|
33,957
|
|
27,101
|
Contributed surplus
|
|
3,864
|
|
3,864
|
Other equity reserves
|
|
7,833
|
|
8,260
|
Deficit
|
|
(39,958)
|
|
(28,651)
|
Total equity
|
|
5,696
|
|
10,574
|
|
|
|
|
|
Total liabilities and equity
|
|
9,438
|
|
12,586
|
Spectral Diagnostics Inc.
Statement of Loss and Comprehensive Loss
For the years ended December 31, 2013 and 2012
|
|
|
|
|
|
|
|
|
|
(in thousands of Canadian dollars, except for share and per share data)
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
$
|
|
$
|
|
|
|
|
|
Revenue
|
|
2,672
|
|
2,589
|
|
|
|
|
|
Other income
|
|
24
|
|
110
|
|
|
|
|
|
Expenses
|
|
|
|
|
Changes in inventories of finished goods and work-in-process
|
|
274
|
|
277
|
Raw materials and consumables used
|
|
593
|
|
471
|
Employee benefits
|
|
3,332
|
|
2,944
|
Consulting and professional fees
|
|
7,399
|
|
4,619
|
Management services
|
|
275
|
|
1,013
|
Regulatory and investor relations
|
|
250
|
|
502
|
Travel and entertainment
|
|
1,191
|
|
772
|
Depreciation and amortization
|
|
238
|
|
216
|
Foreign exchange loss
|
|
14
|
|
26
|
Other expenses
|
|
496
|
|
473
|
|
|
14,062
|
|
11,313
|
|
|
|
|
|
Operating loss
|
|
(11,366)
|
|
(8,614)
|
|
|
|
|
|
Finance income
|
|
59
|
|
71
|
|
|
|
|
|
Loss and comprehensive loss for the year
|
|
(11,307)
|
|
(8,543)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per common share
|
|
(0.09)
|
|
(0.08)
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
128,265,141
|
|
113,883,394
|
Spectral Diagnostics Inc.
Statement of Changes in Equity
For the years ended December 31, 2013 and 2012
|
|
(in thousands of Canadian dollars)
|
|
|
Issued capital
|
Contributed
surplus
|
Share-based
compensation
|
Warrants
|
Deficit
|
Total Equity
|
|
|
Number
|
|
|
|
$
|
$
|
$
|
$
|
|
|
|
$
|
$
|
Balance, January 1, 2012
|
|
113,883,394
|
|
|
|
27,101
|
3,864
|
2,939
|
5,143
|
|
|
|
(20,108)
|
18,939
|
Loss and comprehensive loss for the year
|
|
-
|
|
|
|
-
|
-
|
-
|
-
|
|
|
|
(8,543)
|
(8,543)
|
Share-based compensation
|
|
-
|
|
|
|
-
|
-
|
178
|
-
|
|
|
|
-
|
178
|
Balance, December 31, 2012
|
|
113,883,394
|
|
|
|
27,101
|
3,864
|
3,117
|
5,143
|
|
|
|
(28,651)
|
10,574
|
Private placement
|
|
18,666,667
|
|
|
|
5,480
|
-
|
-
|
-
|
|
|
|
-
|
5,480
|
Share options exercised
|
|
450,000
|
|
|
|
242
|
|
(106)
|
-
|
|
|
|
-
|
136
|
Warrants exercised
|
|
1,462,500
|
|
|
|
1,134
|
-
|
-
|
(549)
|
|
|
|
-
|
585
|
Loss and comprehensive loss for the year
|
|
-
|
|
|
|
-
|
-
|
-
|
-
|
|
|
|
(11,307)
|
(11,307)
|
Share-based compensation
|
|
-
|
|
|
|
-
|
-
|
228
|
-
|
|
|
|
-
|
228
|
Balance, December 31, 2013
|
|
134,462,561
|
|
|
|
33,957
|
3,864
|
3,239
|
4,594
|
|
|
|
(39,958)
|
5,696
|
Spectral Diagnostics Inc.
Statement of Cash Flows
For the years ended December 31, 2013 and 2012
|
|
(in thousands of Canadian dollars)
|
|
|
2013
|
|
2012
|
|
|
$
|
|
$
|
Cash flow provided by (used in)
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
Loss and comprehensive loss for the year
|
|
(11,307)
|
|
(8,543)
|
Adjustments for:
|
|
|
|
|
|
Depreciation on property, plant, and equipment
|
|
213
|
|
191
|
|
Amortization of intangible asset
|
|
25
|
|
25
|
|
Share-based compensation
|
|
228
|
|
178
|
Changes in items of working capital :
|
|
|
|
|
|
Trade and other receivables
|
|
21
|
|
(75)
|
|
Inventories
|
|
(38)
|
|
18
|
|
Prepayments
|
|
(63)
|
|
181
|
|
Trade and other payables
|
|
1,723
|
|
303
|
|
Deferred revenue
|
|
7
|
|
(3)
|
Net cash used in operating activities
|
|
(9,191)
|
|
(7,725)
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Property, plant and equipment expenditures
|
|
(343)
|
|
(269)
|
Redemption of short-term investment
|
|
15,499
|
|
5,086
|
Purchase of short-term investment
|
|
(10,362)
|
|
(5,137)
|
Net cash provided by (used in) investing activities
|
|
4,794
|
|
(320)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Private placement
|
|
5,480
|
|
-
|
Share options exercised
|
|
136
|
|
-
|
Warrants exercised
|
|
585
|
|
-
|
Net cash provided by financing activities
|
|
6,201
|
|
-
|
|
|
|
|
|
Increase(decrease) in cash and cash equivalents
|
|
1,804
|
|
(8,045)
|
|
|
|
|
|
Cash and cash equivalents, beginning of year
|
|
5,425
|
|
13,470
|
Cash and cash equivalents, end of year
|
|
7,229
|
|
5,425
|
SOURCE Spectral Diagnostics Inc.