SOURCE: VistaGen Therapeutics, Inc.

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February 12, 2018 16:30 ET

VistaGen Therapeutics Reports Third Quarter Fiscal 2018 Financial Results

SOUTH SAN FRANCISCO, CA--(Marketwired - February 12, 2018) - VistaGen Therapeutics, Inc. (NASDAQ: VTGN), a clinical-stage biopharmaceutical company focused on developing new generation medicines for depression and other central nervous system (CNS) disorders, today reported financial results for its third fiscal quarter ended December 31, 2017.

"Building on our significant progress last quarter, our team is prepared and eager to launch, during the current quarter, our AV-101 Phase 2 clinical development program, initially focused on adjunctive treatment of Major Depressive Disorder patients with an inadequate response to standard, FDA-approved antidepressants. This year has the potential to be transformative for VistaGen and the millions of depression patients seeking new generation treatment options that are fundamentally different from all currently available therapies," commented Shawn Singh, Chief Executive Officer of VistaGen.

Financial Results for the Fiscal Quarter Ended December 31, 2017:
Net loss attributable to common stockholders for the fiscal quarter ended December 31, 2017 was approximately $3.5 million, compared to $2.9 million for the fiscal quarter ended December 31, 2016.

Research and development expense totaled approximately $1.6 million for the fiscal quarter ended December 31, 2017, compared with approximately $1.6 million for the fiscal quarter ended December 31, 2016. Research and development expense was primarily attributable to the Company's development of AV-101, its oral, new generation CNS drug candidate initially focused on displacing adjunctive atypical antipsychotics in the current Major Depressive Disorder (MDD) treatment paradigm, including final preparations to launch its AV-101 MDD Phase 2 adjunctive treatment study in patients with an inadequate response to standard FDA-approved antidepressants.

General and administrative expense was approximately $1.3 million in the fiscal quarter ended December 31, 2017, compared to approximately $2.3 million in the fiscal quarter ended December 31, 2016. The decrease was primarily attributable to decreased professional services expenses, a decrease in noncash expense attributable to grants of common stock for services, and a decrease in noncash warrant modification expense, partially offset by increased salary and benefits and noncash stock compensation expenses.

At December 31, 2017, the Company had cash and cash equivalents of approximately $13.0 million, compared to approximately $2.9 million at March 31, 2017.

About VistaGen
VistaGen Therapeutics, Inc. (NASDAQ: VTGN), is a clinical-stage biopharmaceutical company focused on developing new generation medicines for depression and other CNS disorders. VistaGen's lead CNS product candidate, AV-101, is in Phase 2 development, initially as a new generation oral antidepressant drug candidate for MDD. AV-101's mechanism of action is fundamentally different from all FDA-approved antidepressants and atypical antipsychotics used adjunctively to treat MDD, with potential to drive a paradigm shift towards a new generation of safer and faster-acting antidepressants. AV-101 is currently being evaluated by the U.S. National Institute of Mental Health (NIMH) in a small Phase 2 monotherapy study in MDD being fully funded by the NIMH and conducted by Dr. Carlos Zarate Jr., Chief, Section on the Neurobiology and Treatment of Mood Disorders and Chief of Experimental Therapeutics and Pathophysiology Branch at the NIMH. VistaGen is preparing to launch a 180-patient Phase 2 study of AV-101 as an adjunctive treatment for MDD patients with an inadequate response to standard, FDA-approved antidepressants. Dr. Maurizio Fava of Harvard University is the Principal Investigator of the VistaGen's AV-101 MDD Phase 2 adjunctive treatment study. AV-101 may also have the potential to treat multiple CNS disorders and neurodegenerative diseases in addition to MDD, including neuropathic pain, epilepsy, Huntington's disease, Parkinson's disease levodopa-induced dyskinesia (PD LID) and other CNS diseases and disorders where modulation of the NMDA receptors, activation of AMPA pathways and/or key active metabolites of AV-101 may achieve therapeutic benefit.

For more information, please visit www.vistagen.com and connect with VistaGen on:
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Forward-Looking Statements
The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to the successful launch, continuation and results of the NIMH's Phase 2 (MDD monotherapy) and/or the Company's planned Phase 2 (MDD adjunctive treatment) clinical studies of AV-101, allowance of patent applications and continued protection of its intellectual property, and the availability of substantial additional capital to support its operations, including the AV-101 Phase 2 clinical development activities described above. These and other risks and uncertainties are identified and described in more detail in VistaGen's filings with the Securities and Exchange Commission (SEC). These filings are available on the SEC's website at www.sec.gov. VistaGen undertakes no obligation to publicly update or revise any forward-looking statements.

  
VISTAGEN THERAPEUTICS  
Condensed Consolidated Balance Sheets  
Amounts in Dollars  
          
          
   December 31,   March 31,  
   2017   2017  
   (Unaudited)      
          
ASSETS  
Current assets:           
 Cash and cash equivalents  $13,031,800   $2,921,300  
 Prepaid expenses and other current assets   940,400    456,600  
   Total current assets   13,972,200    3,377,900  
Property and equipment, net   222,800    286,500  
Security deposits and other assets   47,800    47,800  
   Total assets  $14,242,800   $3,712,200  
            
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:           
 Accounts payable  $509,300   $867,300  
 Accrued expenses   770,900    443,000  
 Current notes payable   43,700    54,800  
 Capital lease obligations   2,600    2,400  
   Total current liabilities   1,326,500    1,367,500  
             
Non-current liabilities:           
 Accrued dividends on Series B Preferred Stock   2,344,400    1,577,800  
 Deferred rent liability   299,100    139,200  
 Capital lease obligations   10,000    11,900  
  Total non-current liabilities   2,653,500    1,728,900  
  Total liabilities   3,980,000    3,096,400  
            
Commitments and contingencies           
            
Stockholders' equity:           
 Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2017 and March 31, 2017:           
  Series A Preferred, 500,000 shares authorized, issued and outstanding at December 31, 2017 and March 31, 2017   500    500  
  Series B Preferred; 4,000,000 shares authorized at December 31, 2017 and March 31, 2017; 1,160,240 shares issued and outstanding at December 31, 2017 and March 31, 2017   1,200    1,200  
  Series C Preferred; 3,000,000 shares authorized at December 31, 2017 and March 31, 2017; 2,318,012 shares issued and outstanding at December 31, 2017 and March 31, 2017   2,300    2,300  
 Common stock, $0.001 par value; 100,000,000 and 30,000,000 shares authorized at December 31, 2017 and March 31, 2017, respectively; 22,723,504 and 8,974,386 shares issued and outstanding at December 31, 2017 and March 31, 2017, respectively   22,700    9,000  
 Additional paid-in capital   166,669,200    146,569,600  
 Treasury stock, at cost, 135,665 shares of common stock held at December 31, 2017 and March 31, 2017   (3,968,100 )  (3,968,100 )
 Accumulated deficit   (152,465,000 )  (141,998,700 )
   Total stockholders' equity   10,262,800    615,800  
   Total liabilities and stockholders' equity  $14,242,800   $3,712,200  
            
  
VISTAGEN THERAPEUTICS  
STATEMENT OF OPERATIONS  
Amounts in Dollars, except share amounts  
              
UNAUDITED  
              
  Three Months Ended December 31,  Nine Months Ended December 31,  
  2017  2016  2017  2016  
Revenues:                 
 Sublicense revenue $-  $1,250,000  $-  $1,250,000  
  Total revenues  -   1,250,000   -   1,250,000  
Operating expenses:                 
 Research and development  1,601,800   1,611,000   5,124,600   4,042,800  
 General and administrative  1,266,000   2,276,600   4,997,400   4,907,800  
  Total operating expenses  2,867,800   3,887,600   10,122,000   8,950,600  
Loss from operations  (2,867,800 ) (2,637,600 ) (10,122,000 ) (7,700,600 )
Other expenses, net:                 
 Interest expense, net  (2,000 ) (900 ) (7,700 ) (3,700 )
 Loss on extinguishment of accounts payable  (135,000 ) -   (135,000 ) -  
                  
Loss before income taxes  (3,004,800 ) (2,638,500 ) (10,264,700 ) (7,704,300 )
Income taxes  -   -   (2,400 ) (2,400 )
Net loss and comprehensive loss  (3,004,800 ) (2,638,500 ) (10,267,100 ) (7,706,700 )
                  
 Accrued dividend on Series B Preferred stock  (263,000 ) (237,700 ) (766,600 ) (1,018,500 )
 Deemed dividend from trigger of down round provision feature  (199,200 ) -   (199,200 ) -  
 Deemed dividend on Series B Preferred Units  -   -   -   (111,100 )
                  
Net loss attributable to common stockholders $(3,467,000 )$(2,876,200 )$(11,232,900 )$(8,836,300 )
                  
Basic and diluted net loss attributable to common stockholders per common share $(0.25 )$(0.34 )$(1.03 )$(1.23 )
                  
Weighted average shares used in computing basic and diluted net loss attributable to common stockholders per common share  13,895,642   8,381,824   10,947,556   7,181,307  
                  

Contact Information

  • Company Contact
    Mark A. McPartland
    VistaGen Therapeutics Inc.
    Phone: +1 (650) 577-3600
    Email: IR@vistagen.com

    Investor Contact:

    Valter Pinto / Allison Soss
    KCSA Strategic Communications
    Phone: +1 (212) 896-1254/+1 (212) 896-1267
    Email: VistaGen@KCSA.com