BrainStorm Announces Third Quarter 2017 Financial Results

October 17, 2017 |

14 min read

BrainStorm announced financial results for the third quarter ending September 30, 2017.

Conference Call with Management to Discuss Recent Corporate Progress at 8:30am Eastern Time Today

[17-October-2017]

HACKENSACK, N.J. and PETACH TIKVAH, Israel, Oct. 17, 2017 /PRNewswire/ -- BrainStorm Cell Therapeutics Inc. (NASDAQ: BCLI), a leading developer of adult stem cell therapies for neurodegenerative diseases, announced financial results for the third quarter ending September 30, 2017.

"We have had a very active third quarter culminating in the initiation of our Phase 3 trial investigating NurOwn^® in amyotrophic lateral sclerosis(ALS), as announced yesterday. The first patients have enrolled into the trial, and we look forward to data in 2019," said Chaim Lebovits, president and chief executive officer of BrainStorm. "ALS is a devastating disease with very few treatment options for patients. In our placebo-controlled phase 2 trial NurOwn® demonstrated significant clinical benefit for ALS patients. We look forward to providing updates as the Phase 3 trial progresses."

Third Quarter Highlights:

Awarded a $16 million grant from the California Institute for Regenerative Medicine (CIRM) to support the Phase 3 trial of NurOwn^® in ALS. A milestone payment of $5.5 million, representing approximately 30% of the grant, has been received. The trial will evaluate the safety and efficacy of repeated administrations of NurOwn^® and is expected to enroll approximately 200 participants.
Entered into agreements with Massachusetts General Hospital, California Pacific Medical Center, and University of California-Irvine Medical Center to participate in the Phase 3 trial of NurOwn^®in ALS.
Signed a definitive agreement with Worldwide Clinical Trials as the clinical research organization (CRO) for the Phase 3 NurOwn^® trial.

Financial Results for the Third Quarter Ended September 30, 2017

Research and development expenses, net for the three months ended September 30, 2017 and 2016 were $1,168,000 and $790,000, respectively.
General and administrative expenses for the three months ended September 30, 2017 and 2016 were $1,224,000 and $848,000, respectively.
Net loss for the three months ended on September 30, 2017 was $2,403,000, as compared to a net loss of $1,606,000 for the three months ended September 30, 2016. Net loss per share for the three months ended September 30, 2017 and 2016 was $0.13 and $0.09, respectively.
At September 30, 2017, the Company had cash, cash equivalents and short-term bank deposits amounting to $10,547,000.

Financial Results for the Nine Months Ended September 30, 2017

Research and development expenses, net for the nine months ended September 30, 2017 and 2016 were $2,544,000 and $1,927,000, respectively.
General and administrative expenses for the nine months ended September 30, 2017 and 2016 were $2,693,000 and $2,506,000 respectively.
Net loss for the nine months ended on September 30, 2017 was $5,228,000 as compared to a net loss of $4,358,000 for the nine months ended September 30, 2016. Net loss per share for the nine months ended September 30, 2017 and 2016 was $0.28 and $0.23, respectively.

Conference Call on Tuesday, October 17, 2017
Members of BrainStorm's senior management team, including Chaim Lebovits, CEO, and Ralph Kern, M.D., MHSc, COO and CMO, will host a conference call and live webcast for the investment community on Tuesday, October 17, 2017 at 8:30am Eastern Time. The details are as follows:

    Toll Free:        888-395-3237

    Israel Investors:                                              1 80 924 5905

    International:    719-325-2349

    Conference ID:                                                       4131959

    Webcast:          http://public.viavid.com/index.php?id=126580

    Replays, available through October 31, 2017

    Toll Free:                                   844-512-2921

    International:                              412-317-6671

    Conference ID:                                            4131959

About BrainStorm Cell Therapeutics Inc.
BrainStorm Cell Therapeutics Inc. is a biotechnology company engaged in the development of first-of-its-kind adult stem cell therapies derived from autologous bone marrow cells for the treatment of neurodegenerative diseases. The Company holds the rights to develop and commercialize its NurOwn^® technology through an exclusive, worldwide licensing agreement with Ramot, the technology transfer company of Tel Aviv University. NurOwn has been administered to approximately 75 patients with ALS in clinical trials conducted in the United States and Israel. In a randomized, double-blind, placebo-controlled clinical trial conducted in the U. S., a clinically meaningful benefit was demonstrated by higher response to NurOwn^® compared with placebo. For more information, visit the company's website at www.brainstorm-cell.com.

Safe-Harbor Statement
Statements in this announcement other than historical data and information constitute "forward-looking statements" and involve risks and uncertainties that could cause BrainStorm Cell Therapeutics Inc.'s actual results to differ materially from those stated or implied by such forward-looking statements. Terms and phrases such as "may", "should", "would", "could", "will", "expect", "likely", "believe", "plan", "estimate", "predict", "potential", and similar terms and phrases are intended to identify these forward-looking statements. The potential risks and uncertainties include, without limitation, risks associated with BrainStorm's limited operating history, history of losses; minimal working capital, dependence on its license to Ramot's technology; ability to adequately protect the technology; dependence on key executives and on its scientific consultants; ability to obtain required regulatory approvals; and other factors detailed in BrainStorm's annual report on Form 10-K and quarterly reports on Form 10-Q available at http://www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on BrainStorm's forward-looking statements. The forward-looking statements contained in this press release are based on the beliefs, expectations and opinions of management as of the date of this press release. We do not assume any obligation to update forward-looking statements to reflect actual results or assumptions if circumstances or management's beliefs, expectations or opinions should change, unless otherwise required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

CONTACTS
Media:
Uri Yablonka
Chief Business Officer
BrainStorm Cell Therapeutics Inc.
Phone: 646-666-3188
uri@brainstorm-cell.com

Investors:
Michael Rice
LifeSci Advisors, LLC
Phone: 646-597-6979
mrice@lifesciadvisors.com

                                                                         BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES
                                                                         --------------------------------------------------


                                                                           INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                     U.S. dollars in thousands
                                                                                        (Except share data)
                                                                                         ------------------


                                                                                                                               September 30,             December 31,
                                                                                                                               -------------             ------------

                                                                                                                                                    2017                   2016
                                                                                                                                                    ----                   ----

                                                                                                                            U.S. $ in thousands
                                                                                                                            -------------------

    ASSETS                                                                                                                       Unaudited                 Audited
    ------                                                                                                                       ---------                 -------


    Current Assets:

    Cash and cash equivalents                                                                                                                     $2,464                   $547

    Short-term deposit (Note 4)                                                                                                                    8,083                  9,443

    Account receivable                                                                                                                               318                    306

    Prepaid expenses and other current assets                                                                                                         86                    148
                                                                                                                                                     ---                    ---

    Total current assets                                                                                                                          10,951                 10,444


    Long-Term Assets:

    Prepaid expenses and other long-term assets                                                                                                       26                     25

    Property and Equipment, Net                                                                                                                      358                    297

    Total Long-Term Assets                                                                                                                           384                    322
                                                                                                                                                     ---                    ---



    Total assets                                                                                                                                 $11,335                $10,766
                                                                                                                                                 =======                =======


    LIABILITIES AND STOCKHOLDERS' EQUITY
    ------------------------------------


    Current Liabilities:

    Accounts payables                                                                                                                               $275                   $345

    Accrued expenses                                                                                                                                 204                    152

    Deferred grant income (Note 5)                                                                                                                 5,250                      -

    Other accounts payable                                                                                                                           411                    367
                                                                                                                                                     ---                    ---

    Total current liabilities                                                                                                                      6,140                    864



    Stockholders' Equity:

    Stock capital: (Note 6)                                                                                                                           11                     11

    Common stock of $0.00005 par value - Authorized: 100,000,000 shares
    at September 30, 2017 and December 31, 2016 respectively; Issued and
    outstanding: 18,842,726 and 18,687,987 shares at September 30, 2017
    and December 31, 2016 respectively.

    Additional paid-in-capital                                                                                                                    85,535                 85,014

    Accumulated deficit                                                                                                                         (80,351)              (75,123)
                                                                                                                                                 -------                -------

    Total stockholders' equity                                                                                                                     5,195                  9,902
                                                                                                                                                   -----                  -----



    Total liabilities and stockholders' equity                                                                                                   $11,335                $10,766
                                                                                                                                                 =======                =======

                                                      BRAINSTORM CELL THERAPEUTICS INC. AND SUBSIDIARIES
                                                      --------------------------------------------------


                                              INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                                                   U.S. dollars in thousands
                                                                      (Except share data)
                                                                      ------------------


                                                                                                     Nine months ended            Three months ended
                                                                                                     -----------------            ------------------

                                                                                                       September 30,                September 30,
                                                                                                       -------------                -------------

                                                                                                           2017              2016                       2017        2016
                                                                                                           ----              ----                       ----        ----

                                                                                                         Unaudited                    Unaudited
                                                                                                         ---------                    ---------


    Operating expenses:


    Research and development, net                                                                        $2,544            $1,927                     $1,168        $790

    General and administrative                                                                            2,693             2,506                      1,224         848
                                                                                                          -----             -----                      -----         ---


    Operating loss                                                                                      (5,237)          (4,433)                   (2,392)    (1,638)


    Financial expense (income), net                                                                         (9)             (75)                        11        (32)
                                                                                                            ---               ---                        ---         ---


    Net loss                                                                                           $(5,228)         $(4,358)                  $(2,403)   $(1,606)
                                                                                                        =======           =======                    =======     =======


                                                  Basic and diluted net profit (loss) per share         $(0.28)          $(0.23)                   $(0.13)    $(0.09)
                                                                                                         ======            ======                     ======      ======


    Weighted average number of shares
         outstanding used in computing
         basic and diluted net loss per share                                                        18,737,307        18,654,826                 18,783,997  18,656,615
                                                                                                     ==========        ==========                 ==========  ==========

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SOURCE BrainStorm Cell Therapeutics Inc.

Company Codes: NASDAQ-SMALL:BCLI

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