InVivo Therapeutics Reports 2014 Third Quarter Financial Results and Business Update

InVivo Therapeutics Holdings Corp. (NVIV) today reported financial results for the quarter ended September 30, 2014.

Mark Perrin, InVivo’s CEO, said, “We made substantial progress on all fronts during the third quarter and have continued to build upon that momentum in the weeks since. In that timeframe, we enrolled our first subject in our first-in-human pilot trial, expanded the number of potential clinical sites, broadened subject eligibility criteria, increased our communications outreach through scientific, medical, and investor conferences, and significantly strengthened our intellectual property portfolio. We ended the quarter with a strong cash position, which will allow us to further these important initiatives, and project our funds will extend through March of 2016.”

Financial Results

For the quarter ended September 30, 2014, the Company reported a net loss of approximately $1,213,000 or $.01 per diluted share, compared to a net loss of $5,437,000 or $.07 per diluted share, for the quarter ended September 30, 2013. The 2014 results were favorably impacted by a gain in the derivative warrant liability of $3,005,000 Excluding the impact of the derivative warrant liability, the quarters ended September 30, 2014 and 2013 earnings loss per diluted share were $.04 and $.07 respectively.

For the nine months ended September 30, 2014, the Company reported a net loss of approximately $9,961,000 or $.12 per diluted share, compared to a net loss of $33,048,000 or $.46 per diluted share, for the nine months ended September 30, 2013. The 2014 results were impacted by a $4,132,000 gain in the derivative warrant liability and $309,000 of costs related to the re-alignment of resources completed in the second quarter. The results for the nine months ended September 30, 2013 were adversely impacted by non-cash gains (losses) from modification of warrants and derivatives of $19,636,000, reflecting changes in the fair market value of the derivative warrant liability. Exclusive of these items, the nine months ended September 30, 2014 and 2013 earnings per diluted share losses were $.17 and $.19 respectively.

The Company ended the quarter with $17,634,000 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 and biotechnology company 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, MD, who then was at Boston Children’s Hospital and who now 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. These statements can be identified by words such as "believe," "anticipate," "intend," "estimate," "will," "may," "should," "expect" and similar expressions, and include statements regarding the Company’s cash position and its forecast projections. Any forward-looking statements contained herein are based on current expectations, and are subject to a number of risks and uncertainties. Factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company’s ability to successfully open additional clinical sites for enrollment and to enroll additional patients in the scaffold pilot study following the reopening of enrollment; the timing of the Institutional Review Board process; the Company’s ability to obtain FDA approval to commercialize its products; the Company’s ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company’s products and technology in connection with spinal cord injuries; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and other risks associated with the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies identified and described in more detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as amended, and its other filings with the SEC, including the Company’s Form 10-Qs and current reports on Form 8-K. The Company does not undertake to update these forward-looking statements.