Cassava Sciences Reports Third Quarter 2020 Financial Results

Rhea-AI Summary

Cassava Sciences, Inc. (SAVA) reported a net loss of $1.4 million for Q3 2020, or $0.06 per share, an increase from a loss of $0.7 million ($0.04 per share) in Q3 2019. Total cash and cash equivalents stand at $24.1 million, up from $23.1 million at the end of 2019, with no debt. Net cash used in operations for the first nine months of 2020 hit $4.2 million, and the company expects to end the year with approximately $5.0 million in cash usage. R&D expenses rose to $0.4 million due to decreased NIH grant reimbursements.

Positive

• Cash and cash equivalents increased to $24.1 million as of September 30, 2020, from $23.1 million at year-end 2019.
• No debt on the balance sheet, providing financial stability.

Negative

• Q3 2020 net loss widened to $1.4 million from $0.7 million in Q3 2019.
• R&D expenses increased to $0.4 million due to lower NIH grant reimbursements compared to $1.5 million in Q3 2019.
• General and administrative expenses rose to $1.0 million from $0.8 million in the prior year, driven by higher insurance costs.

AUSTIN, Texas, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Cassava Sciences, Inc. (Nasdaq: SAVA), a clinical-stage biotechnology company focused on Alzheimer’s disease, today reported financial results for the third quarter ended September 30, 2020.

For the third quarter ended September 30, 2020, net loss was $1.4 million, or $0.06 per share, compared to a net loss of $0.7 million, or $0.04 per share, for the same period in 2019. Net cash used in operations was $4.2 million during the first nine months of 2020. Net cash use in full-year 2020 is still expected to be approximately $5.0 million. The Company’s cash and cash equivalents were $24.1 million as of September 30, 2020, with no debt.

Financial Highlights for Third Quarter 2020

• At September 30, 2020, cash and cash equivalents were $24.1 million, compared to $23.1 million at December 31, 2019, with no debt.
  
  
• Cash balance included $4.6 million in proceeds from exercise of warrants in the first nine months of 2020. Approximately 0.8 million warrants remain outstanding, each with an exercise price of $1.25 per share. All warrants expire February 2021.
  
  
• Net cash used in operations during the nine months ended September 30, 2020 was $4.2 million, net of reimbursements received from National Institutes of Health (NIH) research grant awards.
  
  
• NIH research grant award reimbursements of $1.0 million were received and recorded as a reduction in research and development (R&D) expenses in the third quarter of 2020. This compared to $1.5 million of NIH research grant award reimbursements received for the same period in 2019.
  
  
• R&D expenses were $0.4 million compared to a negative $0.1 million for the same period in 2019. The increase was due primarily to lower NIH research grant award reimbursements compared to the prior year.
  
  
• General and administrative (G&A) expenses were $1.0 million compared to $0.8 million for the same period in 2019. The increase was due primarily to higher insurance expenses compared to the prior year.
  

About Cassava Sciences, Inc.
Cassava Sciences’ mission is to discover and develop innovations for chronic, neurodegenerative conditions. Over the past 10 years, Cassava Sciences has combined state-of-the-art technology with new insights in neurobiology to develop novel solutions for Alzheimer’s disease. For more information, please visit: https://www.CassavaSciences.com

For More Information Contact:
Eric Schoen, Chief Financial Officer
Cassava Sciences, Inc.
eschoen@CassavaSciences.com
(512) 501-2450

Cautionary Note Regarding Forward-Looking Statements: This press release contains “forward-looking statements” for purposes of the Private Securities Litigation Reform Act of 1995 (the Act). Cassava Sciences claims the protection of the Safe Harbor for forward-looking statements contained in the Act. All statements other than statements of historical fact contained in this press release including, but not limited to, expected cash use in future periods are forward-looking statements. Such statements are based largely on the Company’s current expectations and projections about future events. Such statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including, but not limited to, those risks relating to the ability to conduct or complete clinical studies on expected timelines, to demonstrate the specificity, safety, efficacy or potential health benefits of our product candidates, the severity and duration of health care precautions given the COVID-19 pandemic, any unanticipated impacts of the pandemic on our business operations, and including those described in the section entitled “Risk Factors” in Cassava Sciences’ Annual Report on Form 10-K for the year ended December 31, 2019 and future reports to be filed with the SEC. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this press release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Except as required by law, the Company disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release. For further information regarding these and other risks related to our business, investors should consult our filings with the SEC, which are available on the SEC's website at www.sec.gov.

– Financial Tables Follow –

CASSAVA SCIENCES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
	Three months ended September 30,								Nine months ended September 30,
	2020				2019				2020				2019
Operating expenses
Research and development, net of grant reimbursement	$	399			$	(52	)		$	1,534			$	830
General and administrative		1,038				831				2,634				2,553
Gain on sale of property and equipment		—				—				(346	)			—
Total operating expenses		1,437				779				3,822				3,383
Operating loss		(1,437	)			(779	)			(3,822	)			(3,383	)
Interest income		7				82				106				268
Net loss	$	(1,430	)		$	(697	)		$	(3,716	)		$	(3,115	)
Net loss per share, basic and diluted	$	(0.06	)		$	(0.04	)		$	(0.15	)		$	(0.18	)
Weighted-average shares used in computing net loss per share, basic and diluted		24,972				17,162				24,745				17,162
CONDENSED BALANCE SHEETS
(unaudited, in thousands)
									September 30, 2020				December 31, 2019
Assets
Current assets
Cash and cash equivalents									$	24,074			$	23,081
Other current assets										997				268
Total current assets										25,071				23,349
Property and equipment, net										12				47
Operating lease right-of-use assets										316				90
Total assets									$	25,399			$	23,486
Liabilities and stockholders' equity
Current liabilities
Accounts payable									$	465			$	453
Accrued development expense										558				777
Accrued compensation and benefits										80				58
Operating lease liabilities, current										58				90
Other current liabilities										7				9
Total current liabilities										1,168				1,387
Operating lease liabilities, non-current										258				—
Total liabilities										1,426				1,387
Stockholders' equity
Common Stock and additional paid-in-capital										196,276				190,686
Accumulated deficit										(172,303	)			(168,587	)
Total stockholders' equity										23,973				22,099
Total liabilities and stockholders' equity									$	25,399			$	23,486

 

FAQ

What were Cassava Sciences' Q3 2020 financial results?

In Q3 2020, Cassava Sciences reported a net loss of $1.4 million, or $0.06 per share.

How much cash does Cassava Sciences have as of September 30, 2020?

Cassava Sciences has $24.1 million in cash and cash equivalents as of September 30, 2020.

What were the R&D expenses for Cassava Sciences in Q3 2020?

R&D expenses for Q3 2020 were $0.4 million, compared to a negative $0.1 million in Q3 2019.

What is the expected cash usage for Cassava Sciences in full-year 2020?

Cassava Sciences expects to end the year with approximately $5.0 million in cash usage.