Aptorum Group Limited Reports 2023 Fiscal Year End Financial Results and Provides Business Update
Aptorum Group (Nasdaq: APM) reported a net loss of $4.3 million in 2023, down from $11.5 million in 2022. The company focused on lead projects, reducing net loss by $7.2 million. The proposed merger with YOOV Group Holding, if approved, will result in YOOV becoming a wholly-owned subsidiary of the combined company. Fiscal year end financial results showed a decrease in research and development, general and administrative, and legal expenses. Cash on hand was $2.0 million as of December 31, 2023. Aptorum Group is a clinical stage biopharmaceutical company focused on oncology, autoimmune diseases, and infectious diseases.
Reduced net loss by $7.2 million through strategic focus on lead projects.
Proposed merger with YOOV Group Holding can enhance corporate value and shareholder interests.
Decreased research and development, general and administrative, and legal expenses in 2023.
Net loss of $4.3 million reported in 2023.
Uncertainty regarding the completion of the merger with YOOV Group Holding.
Cash on hand decreased to $2.0 million as of December 31, 2023.
Insights
The reported net loss reduction from $11.5 million in 2022 to $4.3 million in 2023 for Aptorum Group indicates a substantial improvement in cost management. This includes a significant decrease in research and development expenses, mainly due to a tighter focus on prioritized projects and reduced reliance on external consultants, alongside a strategic personnel realignment. Such measures could improve operational efficiency and create a leaner structure, which can be attractive to investors looking for potential cost-saving initiatives in biopharmaceutical companies.
However, the liquidity position with cash reserves dropping from $5.0 million to $2.0 million underscores potential concerns about the company's ability to sustain operations without further financing. This is further compounded by the reliance on at-the-market offerings and loans for capital, which signals a need for careful monitoring of the company's capital structure and future financing requirements.
The proposed reverse merger with YOOV Group Holding has significant implications for the company's structure and shareholder distribution. Such a corporate action can be seen as an attempt to enhance value and could introduce efficiencies or open new markets. The fact that Aptorum shareholders will hold roughly 10% of the combined company points towards a substantial shift in ownership dynamics. Investors should analyze the strategic fit of YOOV within Aptorum's core business and contemplate the potential synergies or diversification benefits against the dilution of their holdings.
Aptorum Group's R&D focus on oncology and infectious diseases, which includes areas of high unmet medical need, could be promising from an investor's perspective, as successful developments in these areas often result in significant market opportunities. The mention of the PathsDx Test, a rapid pathogen identification technology, is particularly noteworthy, given the current global emphasis on healthcare readiness and rapid diagnostics. This co-development aligns with industry trends towards precision medicine and rapid diagnostics capabilities.
Mr. Ian Huen, Chief Executive Officer and Executive Director of Aptorum Group, commented, “Throughout 2023, we have maintained a strategic focus on the progression of our lead projects to effectively utilize our resources. Additionally, the previously announced proposed reverse merger with YOOV Group Holding demonstrates our commitment to shareholder interests and our continuous pursuit of opportunities that enhance our corporate value.”
Corporate Highlights
On March 1, 2024, the Group entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among Company, and YOOV Group Holding Limited, a company organized under the laws of
Fiscal Year End Financial Results
Aptorum Group reported a net loss of
Research and development expenses were
General and administrative fees were
Legal and professional fees were
Aptorum Group reported
About Aptorum Group
Aptorum Group Limited (Nasdaq: APM) is a clinical stage biopharmaceutical company dedicated to the discovery, development and commercialization of therapeutic assets to treat diseases with unmet medical needs, particularly in oncology (including orphan oncology indications) and infectious diseases. The pipeline of Aptorum is also enriched through the co-development of PathsDx Test, a novel molecular-based rapid pathogen identification and detection diagnostics technology, with Accelerate Technologies Pte Ltd, commercialization arm of the Singapore’s Agency for Science, Technology and Research.
For more information about the Company, please visit www.aptorumgroup.com.
Disclaimer and Forward-Looking Statements
This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of Aptorum Group.
This press release includes statements concerning Aptorum Group Limited and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these terms or other similar expressions. Aptorum Group has based these forward-looking statements, which include statements regarding projected timelines for application submissions and trials, largely on its current expectations and projections about future events and trends that it believes may affect its business, financial condition and results of operations.
These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks related to its announced management and organizational changes, the continued service and availability of key personnel, its ability to expand its product assortments by offering additional products for additional consumer segments, development results, the company’s anticipated growth strategies, anticipated trends and challenges in its business, and its expectations regarding, and the stability of, its supply chain, and the risks more fully described in Aptorum Group’s Form 20-F and other filings that Aptorum Group may make with the SEC in the future. As a result, the projections included in such forward-looking statements are subject to change and actual results may differ materially from those described herein.
Aptorum Group assumes no obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
This press release is provided “as is” without any representation or warranty of any kind.
APTORUM GROUP LIMITED |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
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For Years Ended December 31, 2023 and 2022 |
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(Stated in |
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Year Ended
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Year Ended
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Revenue |
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Healthcare services income |
|
$ |
431,378 |
|
|
$ |
1,295,889 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Cost of healthcare services |
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|
(420,812 |
) |
|
|
(1,215,824 |
) |
Research and development expenses |
|
|
(5,198,329 |
) |
|
|
(9,219,595 |
) |
General and administrative fees |
|
|
(1,930,637 |
) |
|
|
(5,220,405 |
) |
Legal and professional fees |
|
|
(2,538,161 |
) |
|
|
(2,888,140 |
) |
Other operating expenses |
|
|
(1,067,690 |
) |
|
|
(261,038 |
) |
Total operating expenses |
|
|
(11,155,629 |
) |
|
|
(18,805,002 |
) |
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|
|
|
|
|
|
|
|
Other income, net |
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|
|
|
|
|
|
|
Loss on investments in marketable securities, net |
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|
(9,266 |
) |
|
|
(134,134 |
) |
Gain on long-term investments |
|
|
6,353,888 |
|
|
|
5,588,051 |
|
Interest (expense) income, net |
|
|
(121,145 |
) |
|
|
146,588 |
|
Sundry income |
|
|
159,799 |
|
|
|
383,506 |
|
Total other income, net |
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6,383,276 |
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|
|
5,984,011 |
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|
|
|
|
|
|
|
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Net loss |
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|
(4,340,975 |
) |
|
|
(11,525,102 |
) |
Net loss attributable to non-controlling interests |
|
|
1,516,328 |
|
|
|
1,725,542 |
|
|
|
|
|
|
|
|
|
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Net loss attributable to Aptorum Group Limited |
|
$ |
(2,824,647 |
) |
|
$ |
(9,799,560 |
) |
|
|
|
|
|
|
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Net loss per share attributable to Aptorum Group Limited |
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|
|
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|
|
|
|
- Basic(1) |
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$ |
(0.62 |
) |
|
$ |
(2.75 |
) |
- Diluted(1) |
|
$ |
(0.62 |
) |
|
$ |
(2.75 |
) |
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
- Basic(1) |
|
|
4,521,133 |
|
|
|
3,569,484 |
|
- Diluted(1) |
|
|
4,521,133 |
|
|
|
3,569,484 |
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|
|
|
|
|
|
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Net loss |
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$ |
(4,340,975 |
) |
|
$ |
(11,525,102 |
) |
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|
|
|
|
|
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Other comprehensive (loss) income |
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|
|
|
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|
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Exchange differences on translation of foreign operations |
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|
(44,430 |
) |
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|
35,826 |
|
Other comprehensive (loss) income |
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|
(44,430 |
) |
|
|
35,826 |
|
|
|
|
|
|
|
|
|
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Comprehensive loss |
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|
(4,385,405 |
) |
|
|
(11,489,276 |
) |
Comprehensive loss attributable to non-controlling interests |
|
|
1,516,328 |
|
|
|
1,725,542 |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to the shareholders of Aptorum Group Limited |
|
|
(2,869,077 |
) |
|
|
(9,763,734 |
) |
(1) |
All per share amounts and shares outstanding for all periods have been retroactively restated to reflect APTORUM GROUP LIMITED’s 1 for 10 reverse stock split, which was effective on January 23, 2023. |
APTORUM GROUP LIMITED |
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CONSOLIDATED BALANCE SHEETS |
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December 31, 2023 and 2022 |
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(Stated in |
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December 31,
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December 31,
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ASSETS |
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Current assets: |
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Cash |
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$ |
2,005,351 |
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$ |
1,882,545 |
|
Restricted cash |
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|
- |
|
|
|
3,130,335 |
|
Accounts receivable |
|
|
47,709 |
|
|
|
174,426 |
|
Inventories |
|
|
- |
|
|
|
27,722 |
|
Marketable securities, at fair value |
|
|
- |
|
|
|
102,481 |
|
Amounts due from related parties, net |
|
|
961 |
|
|
|
129,677 |
|
Due from brokers |
|
|
- |
|
|
|
652 |
|
Loan receivable from related parties, net |
|
|
- |
|
|
|
875,956 |
|
Other receivables and prepayments |
|
|
422,071 |
|
|
|
744,008 |
|
Total current assets |
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|
2,476,092 |
|
|
|
7,067,802 |
|
Property and equipment, net |
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|
1,663,926 |
|
|
|
2,825,059 |
|
Operating lease right-of-use assets |
|
|
182,057 |
|
|
|
347,000 |
|
Long-term investments |
|
|
16,098,846 |
|
|
|
9,744,958 |
|
Intangible assets, net |
|
|
147,347 |
|
|
|
752,705 |
|
Long-term deposits |
|
|
71,823 |
|
|
|
129,847 |
|
Total Assets |
|
$ |
20,640,091 |
|
|
$ |
20,867,371 |
|
|
|
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LIABILITIES AND EQUITY |
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LIABILITIES |
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Current liabilities: |
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Amounts due to related parties |
|
$ |
79,180 |
|
|
$ |
12,693 |
|
Accounts payable and accrued expenses |
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|
1,894,341 |
|
|
|
6,166,807 |
|
Operating lease liabilities, current |
|
|
125,232 |
|
|
|
310,548 |
|
Bank loan |
|
|
- |
|
|
|
3,000,000 |
|
Convertible notes |
|
|
- |
|
|
|
3,013,234 |
|
Total current liabilities |
|
|
2,098,753 |
|
|
|
12,503,282 |
|
Operating lease liabilities, non-current |
|
|
99,485 |
|
|
|
30,784 |
|
Convertible notes to a related party |
|
|
3,058,500 |
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|
- |
|
Loan payables to related parties |
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|
- |
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|
|
500,000 |
|
Total Liabilities |
|
$ |
5,256,738 |
|
|
$ |
13,034,066 |
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Commitments and contingencies |
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|
- |
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|
- |
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EQUITY |
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Class A Ordinary Shares ( |
|
$ |
31 |
|
|
$ |
13,269,528 |
|
Class B Ordinary Shares ( |
|
|
22 |
|
|
|
22,437,754 |
|
Additional paid-in capital |
|
|
93,018,528 |
|
|
|
45,308,080 |
|
Accumulated other comprehensive (loss) income |
|
|
(10,623 |
) |
|
|
33,807 |
|
Accumulated deficit |
|
|
(68,161,722 |
) |
|
|
(65,337,075 |
) |
Total equity attributable to the shareholders of Aptorum Group Limited |
|
|
24,846,236 |
|
|
|
15,712,094 |
|
Non-controlling interests |
|
|
(9,462,883 |
) |
|
|
(7,878,789 |
) |
Total equity |
|
|
15,383,353 |
|
|
|
7,833,305 |
|
Total Liabilities and Equity |
|
$ |
20,640,091 |
|
|
$ |
20,867,371 |
|
(1) |
All per share amounts and shares outstanding for all periods have been retroactively restated to reflect APTORUM GROUP LIMITED’s 1 for 10 reverse stock split, which was effective on January 23, 2023. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424559376/en/
Aptorum Group Limited
Investor Relations Department
investor.relations@aptorumgroup.com
+44 20 80929299
Source: Aptorum Group Limited
FAQ
What was Aptorum Group's net loss in 2023?
Aptorum Group reported a net loss of $4.3 million in 2023.
What is the proposed merger involving Aptorum Group?
Aptorum Group entered into a Merger Agreement with YOOV Group Holding for a potential reverse merger.
What is Aptorum Group's stock symbol?
Aptorum Group's stock symbol is APM.
What are Aptorum Group's primary focus areas?
Aptorum Group is focused on oncology, autoimmune diseases, and infectious diseases.
How much cash did Aptorum Group have on hand as of December 31, 2023?
Aptorum Group had $2.0 million in cash as of December 31, 2023.
