Implements New Corporate Strategy to Focus on Precision Therapeutics for the Treatment of Cancer Strengthens Pipeline by Acquiring a Proprietary Portfolio of Novel Adenosine Immuno-Modulator Compounds Increased Cash Runway by Securing $500,000 of Gross Proceeds From an Existing Institutional Investor in October 2020
- Implements New Corporate Strategy to Focus on Precision Therapeutics for the Treatment of Cancer
- Strengthens Pipeline by Acquiring a Proprietary Portfolio of Novel Adenosine Immuno-Modulator Compounds
- Increased Cash Runway by Securing $500,000 of Gross Proceeds From an Existing Institutional Investor in October 2020
WESTLAKE VILLAGE, CA / ACCESSWIRE / November 24, 2020 / Inspyr (Formerly Known As GenSpera) Therapeutics, Inc. (OTC PINK:NSPX), a pharmaceutical company focused on the research and development of novel targeted precision therapeutics for the treatment of cancer, today reported its financial results for the third quarter ended September 30, 2020.
Business Highlights
- During the third quarter, the company continued to execute on implementing a new corporate strategy by strengthening its portfolio and securing additional capital to pursue long-term strategic objectives and create value for stakeholders.
- In October 2020, we sold additional convertible debentures resulting in $500,000 from existing investors.
- In October 2020, we announced that the company would strengthen its strategic collaboration with Ridgeway Therapeutics by reacquiring its novel immune-oncology precision targeting platform for the treatment of cancer through the cancellation of our prior licensing agreement.
- Inspyr and Ridgeway will pursue the research and development of RT-AR001, a potential first-in-class adenosine receptor modulator. The novel delivery technology is differentiated by its microparticle formulation that allows for better tumor infiltration and enhanced outcomes when administered intra-tumorally and has demonstrated delayed tumor growth, reduced metastases and enhanced anti-tumor immune activities in pre-clinical studies.
The company is now in the process of commencing corporate operations including: pre-clinical research and development, manufacturing, regulatory and business development. The company is dedicated to continuing to execute its new corporate strategy and will provide timely updates to shareholders.
Financial Results for the Quarter Ended September 30, 2020
Cash Position and Liquidity: At September 30, 2020, cash was approximately $33,000 as compared to approximately $116,000 at June 30, 2020.
Operating Loss: Operating loss for the quarter ended September 30, 2020 and the comparable period in 2019 were both $137,000. For the nine-month period ended September 30, 2020, the operating loss was approximately $377,000 versus $499,000 for the nine months ended September 30, 2019. The decrease in operating loss for 2020 was primarily due to a decrease in professional fees.
INSPYR THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
| | September 30, | December 31, | ||||||
| | 2020 | 2019 | ||||||
| | (Unaudited) | |||||||
| ASSETS | ||||||||
| | ||||||||
| Current assets: | ||||||||
| Cash | $ | 4 | $ | 4 | ||||
| Restricted cash | 29 | 19 | ||||||
| Total current assets | 33 | 23 | ||||||
| | ||||||||
| Total assets | $ | 33 | $ | 23 | ||||
| | ||||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,330 | $ | 2,269 | ||||
| Accrued expenses | 1,940 | 1,866 | ||||||
| Convertible debentures | 2,143 | 2,826 | ||||||
| Derivative liability | 833 | 1,785 | ||||||
| Total current liabilities | 7,246 | 8,746 | ||||||
| Total liabilities | 7,246 | 8,746 | ||||||
| | ||||||||
| Commitments and contingencies (Note 7) | - | - | ||||||
| | ||||||||
| Stockholders’ deficit: | ||||||||
| Convertible preferred stock, undesignated, par value $.0001 per share; 29,986,846 shares authorized, no shares issued and outstanding, respectively | - | - | ||||||
| Convertible preferred stock Series A, par value $.0001 per share; 1,854 shares authorized, 134 shares issued and outstanding, respectively | - | - | ||||||
| Convertible preferred stock Series B, par value $.0001 per share; 1,000 shares authorized, 71 shares issued and outstanding, respectively | - | - | ||||||
| Convertible preferred stock Series C, par value $.0001 per share; 300 shares authorized, 290 shares issued and outstanding, respectively | - | - | ||||||
| Convertible preferred stock Series D, par value $.0001 per share; 5,000 shares authorized, 5,000 shares issued and outstanding, respectively | - | - | ||||||
| Convertible preferred stock Series E, par value $.0001 per share; 5,000 shares authorized, 5,000 shares issued and outstanding, respectively | - | |||||||
| Common stock, par value $.0001 per share; 150,000,000 | - | - | ||||||
| shares authorized, 40,490,657 and 623,382 shares issued and outstanding, respectively | 4 | - | ||||||
| Additional paid-in capital | 53,258 | 51,957 | ||||||
| Accumulated deficit | (60,475 | ) | (60,680 | ) | ||||
| | ||||||||
| Total stockholders’ deficit | (7,213 | ) | (8,723 | ) | ||||
| | ||||||||
| Total liabilities and stockholders’ deficit | $ | 33 | $ | 23 | ||||
INSPYR THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSSES
(unaudited)
(in thousands, except share and per share data)
| | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| | ||||||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 11 | $ | 11 | $ | 33 | $ | 33 | ||||||||
| General and administrative | 126 | 126 | 344 | 466 | ||||||||||||
| Total operating expenses | 137 | 137 | 377 | 499 | ||||||||||||
| | ||||||||||||||||
| Loss from operations | (137 | ) | (137 | ) | (377 | ) | (499 | ) | ||||||||
| | ||||||||||||||||
| Other income (expense): | ||||||||||||||||
| Gain on change in fair value of derivative liability | 2,024 | 959 | 353 | 640 | ||||||||||||
| Gain on conversion of debt | 240 | - | 398 | 50 | ||||||||||||
| Interest expense, net | (21 | ) | (401 | ) | (169 | ) | (683 | ) | ||||||||
| | ||||||||||||||||
| Income (loss) before provision for income taxes | 2,106 | 421 | 205 | (492 | ) | |||||||||||
| | ||||||||||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| | ||||||||||||||||
| Net income (loss) | $ | 2,106 | $ | 421 | $ | 205 | $ | (492 | ) | |||||||
| | ||||||||||||||||
| Net income (loss) per common share, basic | $ | 0.16 | $ | 1.75 | $ | 0.03 | $ | (2.08 | ) | |||||||
| Net income (loss) per common share, diluted | $ | (0.00 | ) | $ | (0.07 | ) | $ | (0.00 | ) | $ | (2.08 | ) | ||||
| | ||||||||||||||||
| Weighted average shares outstanding, basic | 13,344,461 | 240,000 | 6,818,722 | 237,070 | ||||||||||||
| Weighted average shares outstanding, diluted | 542,003,815 | 2,047,302 | 535,478,076 | 237,070 | ||||||||||||
About Inspyr Therapeutics, Inc.
Inspyr Therapeutics, Inc. is a pharmaceutical company focused on the research and development of novel targeted precision therapeutics for the treatment of cancer. Our approach utilizes our proprietary delivery technology to better enhance immuno-modulation for improved therapeutic outcomes. Our potential first-in-class immune-oncology lead asset, RT-AR001, an adenosine receptor antagonist, is differentiated by its novel microparticle formulation that allows for better tumor infiltration and enhanced outcomes when administered intra-tumorally. Our patented portfolio of adenosine receptor antagonists provides flexibility to optimize treatment based on the specific targets found in each type of cancer.
Cautionary Statement Regarding Forward-Looking Information:
This news release contains “forward-looking statements” made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Inspyr Therapeutic’s periodic reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Reports on Form 10-Q as well as and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.
CONTACT:
SOURCE: Inspyr Therapeutics, Inc.
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