EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1


Edge Therapeutics Reports Third Quarter 2018 Financial Results

BERKELEY HEIGHTS, N.J., November 1, 2018 — Edge Therapeutics, Inc. (Nasdaq: EDGE) today announced financial results for the quarter ended September 30, 2018.

Third Quarter Financial Results

Cash Position: Cash, cash equivalents and marketable securities as of September 30, 2018 were $36.8 million, compared with $88.1 million as of December 31, 2017.

Operating Expenses:  Research and development (R&D) expenses decreased to $0.3 million in the third quarter of 2018 from $6.9 million in the third quarter of 2017. The decrease in R&D expense was primarily due to a decrease in expenses related to the previously announced discontinuance of the NEWTON 2 clinical study and reduction in workforce. General and administrative (G&A) expenses decreased to $3.3 million for the three months ended September 30, 2018 from $4.0 million in the comparable period in 2017. The decrease in G&A expense was largely due to decreases in departmental operating expenses, professional fees and marketing costs. In the third quarter of 2018, Edge recorded a restructuring charge of $0.8 million related to the previously announced discontinuance of the NEWTON 2 study.

Net Loss: Net loss for the third quarter ended September 30, 2018 was $4.3 million, including the $0.8 million restructuring charge. Net loss in the third quarter of 2017 was $11.3 million.

Review of Strategic Alternatives

Edge continues to be actively engaged in its review of strategic alternatives to maximize stockholder value, a review that was announced in April 2018. At that time, Edge retained Piper Jaffray & Co. to act as its financial advisor to assist with this review process. Potential strategic alternatives that may be explored or evaluated as part of this review include, but are not limited to, an acquisition, merger, business combination or other strategic transaction involving Edge. Edge has reduced the scope of its operations, including the size of its workforce, in order to preserve its cash resources during the strategic alternatives review process.

There is no defined timeline for completion of the review process. There is no assurance that this review will result in Edge pursuing any transaction or that a transaction, if pursued, will be completed. Edge does not intend to discuss or disclose further developments regarding the strategic review process unless and until its Board of Directors has approved a specific action or otherwise determined that further disclosure is appropriate or required by law.

About Edge Therapeutics, Inc.
Edge Therapeutics, Inc. is a clinical-stage biotechnology company that seeks to discover, develop and commercialize novel therapies capable of transforming treatment paradigms for the management of serious medical conditions. For additional information about Edge, please visit www.edgetherapeutics.com.

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Forward-Looking Statements

This press release and any statements of representatives of Edge Therapeutics, Inc. related thereto that are not historical in nature contain, or may contain, among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, without limitation, statements with respect to Edge’s plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," “seeks,” "intends," "plans," "potential" or similar expressions. These statements are based upon the current beliefs and expectations of Edge’s management and are subject to significant risks and uncertainties. Actual results may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various risk factors (many of which are beyond Edge's control) as described under the heading "Risk Factors" in Edge’s filings with the United States Securities and Exchange Commission.

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Investor and Media Contact:
Gregory Gin
Edge Therapeutics, Inc.
Tel: 1-800-208-EDGE (3343)
Email: ir@edgetherapeutics.com

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EDGE THERAPEUTICS, INC.
Statements of Operations and Comprehensive Loss
(Unaudited)

   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2018
    
2017
    
2018
    
2017
  
Operating expenses:
                        
Research and development expenses
 
$
317,684
    
$
6,913,171
    
$
15,583,565
    
$
23,477,971
  
General and administrative expenses
   
3,286,891
      
3,990,283
      
11,303,446
      
12,365,509
  
Restructuring expenses
   
847,852
      
–
      
7,494,094
      
–
  
Impairment charges
   
–
      
–
      
2,672,581
      
–
  
Total operating expenses
   
4,452,427
      
10,903,454
      
37,053,686
      
35,843,480
  
Loss from operations
   
(4,452,427
)
    
(10,903,454
)
    
(37,053,686
)
    
(35,843,480
)
Other income (expense):
                               
Interest income
   
187,256
      
214,064
      
696,035
      
479,297
  
Interest expense
   
–
      
(592,089
)
    
(1,425,255
)
    
(1,591,998
)
Net loss and comprehensive loss
   
(4,265,171
)
    
(11,281,479
)
    
(37,782,906
)
    
(36,956,181
)
Loss per share basic and diluted
 
$
(0.14
)
  
$
(0.37
)
  
$
(1.21
)
  
$
(1.23
)
Weighted average common shares outstanding basic and diluted
   
31,328,128
      
30,852,514
      
31,198,804
      
30,091,640
  

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EDGE THERAPEUTICS, INC.
Balance Sheets
   
September 30, 2018
    
December 31, 2017
  
ASSETS
  
(unaudited)
        
Current assets:
            
Cash and cash equivalents
  
$
36,814,899
    
$
88,067,647
  
Prepaid expenses and other current assets
    
247,182
      
986,680
  
Total current assets
    
37,062,081
      
89,054,327
  
Property and equipment, net
    
468,170
      
3,423,880
  
Other assets
    
142,870
      
142,870
  
Total assets
  
$
37,673,121
    
$
92,621,077
  
LIABILITIES AND STOCKHOLDERS' EQUITY
                
LIABILITIES
                
Current liabilities:
                
Accounts payable
  
$
590,694
    
$
4,369,133
  
Accrued expenses
    
917,871
      
5,422,205
  
Restructuring reserve
    
5,179,722
      
–
  
Short term debt
    
–
      
3,075,421
  
Total current liabilities
    
6,688,287
      
12,866,759
  
Noncurrent liability:
                
Long term debt
    
–
      
17,382,907
  
STOCKHOLDERS' EQUITY
                
Preferred stock, 5,000,000  shares authorized at September 30, 2018 and December 31, 2017, 0 outstanding
    
–
      
–
  
Common stock, $0.00033 par value, 75,000,000 shares authorized at September 30, 2018 and December 31, 2017, 31,328,128 shares and 30,869,205 shares issued and outstanding at September 30, 2018 and  December 31, 2017, respectively
    
10,551
      
10,400
  
Additional paid-in capital
    
220,705,548
      
214,309,370
  
Accumulated deficit
    
(189,731,265
)
    
(151,948,359
)
Total stockholders' equity
    
30,984,834
      
62,371,411
  
Total liabilities and stockholders' equity
  
$
37,673,121
    
$
92,621,077
  


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