HTG Molecular Diagnostics Reports Third Quarter 2022 Results
“We are delighted with the continued and rapid progress we have made this past quarter in our effort to reposition HTG as a platform-based drug discovery company. Our strategy is to build best-in-class drug candidates for known targets with high unmet medical needs. We have achieved our third quarter 2022 milestones and remain on track to begin partnering conversations for our first target and indication by the end of 2022,” said
“Our profiling business has not returned to pre-pandemic product and product-related services revenue levels. However, we have seen a slow but steady increase in first time orders and repeat orders from new pharma customers in 2022. While these trends cannot offset the significant decline in large trial cohorts that has resulted from the slowdown in clinical trials in 2020 and 2021, we see them as leading indicators that our pharma market is slowly coming back. In response to this reality, we have taken actions to reduce operating expenses and minimize the impact of these trends on our operating loss and cash runway, including a reduction in force late in the second quarter of 2022,”
Third Quarter Business Highlights:
Transcriptome-Informed Drug Discovery:
The company's drug discovery unit, HTG Therapeutics, is leveraging its HTG EdgeSeq technology in conjunction with its machine learning-based chemical library design platform with the goal of ultimately yielding de-risked drug candidate molecules with a greater potential for development success. Through the completion of its planned milestones for the third quarter of 2022, HTG Therapeutics continued to drive the machine-learning component of its platform with the refinement of key proprietary algorithms and generation of internal data to support training sets. In addition, HTG Therapeutics made capital investments to establish internal cell culture capabilities. Such capabilities provide HTG Therapeutics the ability to conduct investigative cell-based studies on site, supporting the development and evolution of its transcriptome-informed drug discovery platform more efficiently and with greater flexibility.
Dr.
Transcriptome-wide Profiling:
HTG’s profiling unit is leveraging its HTG EdgeSeq technology to deliver what the company believes is an exceptional technology for high plex gene expression profiling. As of
“While we continually strive to increase our period-over-period revenue, we are encouraged by the number of new customers and orders that we received during the quarter and what we see in our fourth quarter pipeline. We believe that both of these trends are indicators that the market is beginning to recover from the pandemic-induced disruptions to oncology trials,” said
Third Quarter 2022 Financial Highlights:
Revenue for the quarter ended
Net loss from operations for the quarter ended
Cash, cash equivalents and short-term available-for-sale securities totaled
About HTG:
HTG is accelerating precision medicine from diagnosis to treatment by harnessing the power of transcriptome-wide profiling to drive translational research, novel therapeutics and clinical diagnostics across a variety of disease areas.
Building on more than a decade of pioneering innovation and partnerships with biopharma leaders and major academic institutes, HTG’s proprietary RNA platform technologies are designed to make the development of life science tools and diagnostics more effective and efficient and to unlock a differentiated and disruptive approach to transformative drug discovery. For more information visit www.htgmolecular.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategy and ability to build best-in-class drug candidates, our expectation to begin partnering conversations for our first target and indication by the end of 2022, our belief that our pharma market is coming back, our intention to make operating adjustments, our goal of yielding de-risked drug candidate molecules, our belief that we will develop a transformational drug discovery platform and our expectations for that platform, our plans and expectations for follow-on indications and a second target, additional incensing or partnering opportunities, and other statements related to the future. Words such as “designed to,” “believe,” “anticipate,” “expect,” “potential,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based upon management’s current expectations, are subject to known and unknown risks, and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation, risks associated with drug discovery and development; the risk that HTP and our RNA platform and medicinal chemistry technologies may not provide the benefits that we expect; risks associated with our ability to develop and commercialize our products and our HTG Therapeutics business, including by entering into licensing or partnering agreements for any candidates we develop; the risk that our products and services may not be adopted by biopharmaceutical companies or other customers as anticipated, or at all; our ability to manufacture our products to meet demand; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; risks associated with the impact of the COVID-19 pandemic on us and our customers; and product liability claims. These and other factors are described in greater detail in our filings with the
HTG Investor Contact:
Ashley Robinson
Phone: (617) 430-7577
Email: arr@lifesciadvisors.com
-Financial tables follow-
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Product and product-related services revenue | $ | 1,250,879 | $ | 2,520,410 | $ | 3,926,915 | $ | 6,029,760 | ||||||||
| Operating expenses: | ||||||||||||||||
| Cost of product and product-related services revenue | 670,863 | 983,761 | 2,540,380 | 2,740,004 | ||||||||||||
| Selling, general and administrative | 3,400,998 | 4,232,313 | 12,370,925 | 11,995,747 | ||||||||||||
| Research and development | 1,527,036 | 1,534,818 | 5,294,567 | 4,188,219 | ||||||||||||
| Total operating expenses | 5,598,897 | 6,750,892 | 20,205,872 | 18,923,970 | ||||||||||||
| Operating loss | (4,348,018 | ) | (4,230,482 | ) | (16,278,957 | ) | (12,894,210 | ) | ||||||||
| Other income (expense) | (166,558 | ) | (258,206 | ) | (616,081 | ) | (774,820 | ) | ||||||||
| Gain on forgiveness of PPP Loan | — | — | — | 1,735,792 | ||||||||||||
| Net loss before income taxes | (4,514,576 | ) | (4,488,688 | ) | (16,895,038 | ) | (11,933,238 | ) | ||||||||
| Provision for income taxes | (1,572 | ) | (1,934 | ) | (6,838 | ) | (20,643 | ) | ||||||||
| Net loss | $ | (4,516,148 | ) | $ | (4,490,622 | ) | $ | (16,901,876 | ) | $ | (11,953,881 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.41 | ) | $ | (0.60 | ) | $ | (1.68 | ) | $ | (1.78 | ) | ||||
| Shares used in computing net loss per share, basic and diluted | 11,048,171 | 7,440,287 | 10,031,923 | 6,727,916 | ||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| 2022 | 2021 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,212,451 | $ | 9,599,950 | ||||
| Short-term investments available-for-sale, at fair value | 3,317,627 | 12,343,456 | ||||||
| Accounts receivable, net of allowance of |
960,414 | 2,092,466 | ||||||
| Inventory, net | 1,690,234 | 1,987,753 | ||||||
| Prepaid directors and officers insurance | 654,772 | 365,453 | ||||||
| Prepaid expenses and other | 936,358 | 797,886 | ||||||
| Total current assets | 10,771,856 | 27,186,964 | ||||||
| Operating lease right-of-use assets | 1,039,999 | 1,345,361 | ||||||
| Property and equipment, net | 654,813 | 1,118,886 | ||||||
| Inventory - non-current, net | 1,007,811 | 711,296 | ||||||
| Other non-current assets | 135,824 | 98,180 | ||||||
| Total assets | $ | 13,610,303 | $ | 30,460,687 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 709,905 | $ | 1,649,440 | ||||
| Accrued liabilities | 1,378,302 | 2,022,569 | ||||||
| Current portion of long-term debt | 3,694,979 | 5,167,586 | ||||||
| NuvoGen obligation - current | 472,624 | 548,301 | ||||||
| Operating lease liabilities - current | 435,377 | 413,865 | ||||||
| Other current liabilities | 129,437 | 141,749 | ||||||
| Total current liabilities | 6,820,624 | 9,943,510 | ||||||
| NuvoGen obligation - non-current, net of discount | 3,595,276 | 3,900,880 | ||||||
| Long-term debt, net of current portion, discount and debt issuance costs | 1,302,021 | 5,178,629 | ||||||
| Operating lease liabilities - non-current, net of discount | 620,607 | 949,461 | ||||||
| Other non-current liabilities | 63,399 | 88,383 | ||||||
| Total liabilities | 12,401,927 | 20,060,863 | ||||||
| Commitments and Contingencies | ||||||||
| Total stockholders’ equity | 1,208,376 | 10,399,824 | ||||||
| Total liabilities and stockholders' equity | $ | 13,610,303 | $ | 30,460,687 | ||||
Source: HTG Molecular Diagnostics, Inc.