Applied Molecular Transport Reports Third Quarter 2023 Financial Results

Company Entered into Definitive Merger Agreement with Cyclo Therapeutics

Cash and Cash Equivalents of $18.1 million, as of September 30, 2023

SOUTH SAN FRANCISCO, Calif., Nov. 09, 2023 (GLOBE NEWSWIRE) -- Applied Molecular Transport, LLC (Nasdaq: AMTI) (AMT), a biopharmaceutical company, today reported financial results for the third quarter ended September 30, 2023.

Recent Business Highlights and Anticipated Milestones

  • Entered into a definitive merger agreement with Cyclo Therapeutics
    • Combined company will operate as Cyclo Therapeutics with primary focus on advancing Trappsol® Cyclo™ for the treatment of Niemann-Pick Disease Type C1 (NPC1)
    • The merger is expected to close by year end 2023
    • Upcoming milestones include completion of enrollment in pivotal Phase 3 clinical trial in NPC1, reporting top line data and preparation for NDA submission

Financial Results for the Third Quarter Ended September 30, 2023

Research and development (R&D) expenses. Total R&D expenses for the third quarter of 2023 were $0.3 million, compared to $18.2 million for the same period in 2022. The overall decrease was attributable to our restructuring of operations, related reductions in workforce implemented in March 2023 and discontinuing all research and development activities.

General and administrative (G&A) expenses. Total G&A expenses for the third quarter of 2023 were $7.0 million, compared to $7.3 million for the same period in 2022. The overall decrease was attributable to our restructuring of operations and related reductions in workforce implemented in March 2023.

Net loss. Net loss for the third quarter of 2023 was $6.9 million, compared to $25.2 million for the same period in 2022. Operating expenses for the third quarter of 2023 were $7.2 million and interest income was $0.3 million.

Cash and cash equivalents. As of September 30, 2023, cash and cash equivalents were $18.1 million.

About Applied Molecular Transport Inc.

AMT is a clinical-stage biopharmaceutical company that has a proprietary technology platform that enables the design of novel biologic product candidates in patient-friendly oral dosage forms.

For additional information on AMT, please visit www.appliedmt.com.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements including statements relating to AMT’s plans, expectations, forecasts and future events. Such forward-looking statements include, but are not limited to, statements regarding the ability of AMT to enter into a strategic transaction and sufficiency of AMT’s cash resources. In some cases, you can identify forward- looking statements by terminology such as “believe,” “estimate,” “intend,” “may,” “plan,” “potentially,” “will,” “expect,” “enable,” “likely” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Actual events, trends or results could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements based on various factors. Information regarding the foregoing and additional risks may be found in the section entitled “Risk Factors” in AMT’s Annual and Quarterly Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission (the “SEC”), and AMT’s future reports to be filed with the SEC. These forward-looking statements are made as of the date of this press release, and AMT assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.

 

Applied Molecular Transport Inc.
Condensed Balance Sheets
(unaudited)
(in thousands)
 
  September 30,
2023
  December 31,
2022
Assets      
Current assets:      
Cash and cash equivalents $ 18,103     $ 61,145  
Prepaid expenses   457       2,688  
Other current assets   259       186  
Total current assets   18,819       64,019  
Property and equipment, net   31       8,183  
Operating lease right-of-use assets   1,165       33,222  
Finance lease right-of-use assets         584  
Restricted cash         916  
Other assets         522  
Total assets $ 20,015     $ 107,446  
Liabilities and stockholders’ equity      
Current liabilities:      
Accounts payable $ 161     $ 1,583  
Accrued expenses   2,261       8,660  
Lease liabilities, operating lease - current   1,353       4,639  
Lease liabilities, finance lease - current         205  
Total current liabilities   3,775       15,087  
Lease liabilities, operating lease         31,228  
Lease liabilities, finance lease         49  
Other liabilities         244  
Total liabilities   3,775       46,608  
Commitments and contingencies      
Stockholders’ equity:      
Common stock   4       4  
Additional paid-in capital   434,393       426,804  
Accumulated deficit   (418,157 )     (365,970 )
Total stockholders’ equity   16,240       60,838  
Total liabilities and stockholders’ equity $ 20,015     $ 107,446  

 

Applied Molecular Transport Inc.
Condensed Statements of Operations
(unaudited)
(in thousands, except share and per share amounts)
 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
    2023       2022       2023       2022  
Operating expenses:              
Research and development $ 250     $ 18,233     $ 15,796     $ 72,273  
General and administrative   7,007       7,281       20,804       28,052  
Restructuring, impairment, and related charges   (40 )     12       16,832       3,799  
Total operating expenses   7,217       25,526       53,432       104,124  
Loss from operations   (7,217 )     (25,526 )     (53,432 )     (104,124 )
Interest income, net   283       321       1,281       393  
Other income (expense), net   (3 )     (1 )     (36 )     5  
Net loss $ (6,937 )   $ (25,206 )   $ (52,187 )   $ (103,726 )
Net loss per share, basic and diluted $ (0.17 )   $ (0.65 )   $ (1.32 )   $ (2.68 )
Weighted-average shares of common stock outstanding, basic and diluted   39,751,028       38,914,570       39,426,218       38,769,226  


Refer to the Company’s applicable SEC filings for previously reported periods.

Investor Relations Contact:
Alexandra Santos
Wheelhouse Life Science Advisors
asantos@wheelhouselsa.com

Media Contact:
Aljanae Reynolds
Wheelhouse Life Science Advisors
areynolds@wheelhouselsa.com

 


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