Gain Therapeutics, Inc. (Nasdaq: GANX) (“Gain”, or the “Company”), a biotechnology company focused on identifying and optimizing allosteric binding sites that have never been targeted in neurodegenerative diseases and lysosomal storage disorders, today announced its financial results as of and for the second quarter June 30, 2021 and highlighted recent corporate accomplishments.
Eric Richman, Chief Executive Officer of Gain, added, “We are pleased with the progress in advancing our preclinical compounds to the clinic and announced important and compelling data related to our GBA Parkinson’s program. Our SEE-Tx supercomputing platform technology designed to identify novel allosteric binding sites on misfolded proteins continues to meet objectives within our internal pipeline and our external pharmaceutical partnerships. We continue to advance our pipeline towards achieving our mission in redefining drug discovery and developing novel therapies for devastating conditions with significant unmet medical need.”
Business and Recent Developments
Upcoming 2021 & 2022 Milestones
Financial Results
For the second quarter ended June 30, 2021, as compared to the second quarter ended June 30, 2020:
Revenues were $89 thousand for the three-month period ended June 30, 2021 compared to $7 thousand for the same period of 2020. The increase was primarily attributable to program initiation fees and development services on the first target development program identified under the collaboration agreement with Zentalis Pharmaceuticals.
Research and development expenses of $1,794 thousand for the three-month period ended June 30, 2021 compared to $439 thousand for the same period of 2020, an increase of $1,355 thousand. The increase in research and development expenses was primarily driven by increased program development activities related to the advancement of the Company’s pre-clinical pipeline, as well as increased personnel-related costs resulting from an increase in employee headcount, which includes the impact of non-cash stock-based compensation.
General and administrative expenses were $1,810 thousand for the three-month period ended June 30, 2021 compared to $100 thousand for the same period of 2020, an increase of $1,710 thousand. This increase was primarily due to an increase in personnel-related costs resulting from an increase in employee headcount, which includes the impact of non-cash stock-based compensation, warrants, increase in expenses for legal fees relating to patent and corporate matters, professional fees for accounting and investor relations as we continue to expand our business and build management infrastructure.
As a result of the above, net loss was $3,557 thousand, or ($.30) per share basic and diluted, for the three-month period ended June 30, 2021, compared to $543 thousand or ($.27) per share basic and diluted, for the same period of 2020. The increase in net loss was due to increased research and development expenses, as well as an increase in general and administrative expenses primarily related to investments in the Company’s infrastructure as a publicly traded company.
Cash and cash equivalents were $43.16 million as of June 30, 2021 compared to $7.49 million at December 31, 2020. The increase was primarily the result of the completion of the Company’s initial public offering, from which the Company received aggregate net proceeds of $42.6 million offset by net cash used in operating, investing and payment of deferred offering cost for $6.93 thousand.
About Gain Therapeutics, Inc.
Gain Therapeutics, Inc. is positioned at the confluence of technology and healthcare and focused on redefining drug discovery with its SEE-Tx™ target identification platform. By identifying and optimizing allosteric binding sites that have never before been targeted, Gain is unlocking new treatment options for difficult-to-treat disorders characterized by protein misfolding. Gain was established in 2017 with the support of its founders and institutional investors. It has been awarded funding support from The Michael J. Fox Foundation for Parkinson’s Research (MJFF) and The Silverstein Foundation for Parkinson’s with GBA, as well as from the Eurostars-2 joint program with co-funding from the European Union Horizon 2020 research and Innosuisse. In July 2020, Gain Therapeutics, Inc. completed a share exchange with Gain Therapeutics, SA, a Swiss corporation, whereby GT Gain Therapeutics SA became a wholly owned subsidiary of Gain Therapeutics, Inc. For periods and at dates prior to the Corporate Reorganization, the consolidated financial statements were prepared based on the historical financial statements of GT Gain Therapeutics SA.
For more information, please visit https://www.gaintherapeutics.com
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements." In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology. These statements are not historical facts but instead represent the Company's belief regarding future results, many of which, by their nature, are inherently uncertain and outside the Company's control. It is possible that actual results, including with respect to any financial forecast or the possibility of any future regulatory approval or filing, may differ materially from those anticipated in these forward-looking statements due to a number of factors, including but not limited to, risks detailed in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission on May 5 2021, as well as other documents that may be filed by the Company from time to time.
New risks and uncertainties arise over time, and it is not possible for us to predict all such factors or how they may affect us. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We are under no duty to update any of these forward-looking statements after the date of this earnings release to conform these statements to actual results or revised expectations. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this earnings release.
| Gain Therapeutics, Inc. | ||||||||
| CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 43,162,583 | $ | 7,492,910 | ||||
| Restricted cash | 10,969 | 11,371 | ||||||
| Accounts receivable | 353,166 | 8,548 | ||||||
| Prepaid expenses and other current assets | 808,456 | 257,011 | ||||||
| Deferred offering costs | $ | - | $ | 1,217,988 | ||||
| Total current assets | $ | 44,335,174 | $ | 8,987,828 | ||||
| Non-current assets: | ||||||||
| Property and equipment, net | 75,063 | 29,633 | ||||||
| Internal-use software | 19,357 | - | ||||||
| Operating lease - right of use assets | 812,410 | 523,080 | ||||||
| Restricted cash | 31,100 | - | ||||||
| Long-term deposits and other non-current assets | 79,924 | 63,817 | ||||||
| Total non-current assets | $ | 1,017,854 | $ | 616,530 | ||||
| Total Assets | $ | 45,353,028 | $ | 9,604,358 | ||||
| Current liabilities: | ||||||||
| Accounts payable | 978,393 | 961,516 | ||||||
| Operating lease liability - current | 181,306 | 122,756 | ||||||
| Other current liabilities | 848,343 | 767,380 | ||||||
| Tax provision | 6,837 | 1,070 | ||||||
| Deferred income | 370,518 | 239,483 | ||||||
| Loans - short term | $ | 65,474 | $ | 22,626 | ||||
| Total current liabilities | $ | 2,450,871 | $ | 2,114,831 | ||||
| Non-current liabilities: | ||||||||
| Defined benefit pension plan | 235,690 | 171,558 | ||||||
| Operating lease liability - non-current | 630,902 | 400,324 | ||||||
| Loans - long term | $ | 646,661 | $ | 715,656 | ||||
| Total non-current liabilities | $ | 1,513,253 | $ | 1,287,538 | ||||
| Stockholders’ equity | ||||||||
| Series A Preferred Stock, $0.0001 par value: nil and 1,185,879 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | - | 118 | ||||||
| Series B Preferred Stock, $0.0001 par value: nil and 2,965,600 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | - | 297 | ||||||
| Common Stock, $0.0001 par value: 11,876,460 and 7,694,642 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 1,188 | 354 | ||||||
| Additional paid-in capital | 54,593,827 | 13,388,771 | ||||||
| Accumulated other comprehensive loss | (164,118 | ) | (152,698 | ) | ||||
| Accumulated deficit | (7,034,853 | ) | (3,457,171 | ) | ||||
| Loss of the period | (6,007,140 | ) | (3,577,682 | ) | ||||
| Total Stockholders’ equity | $ | 41,388,904 | $ | 6,201,989 | ||||
| Total Liabilities and Stockholders’ equity | $ | 45,353,028 | $ | 9,604,358 | ||||
| Gain Therapeutics, Inc | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues: | ||||||||||||||||
| Collaboration revenues | 81,617 | - | 81,617 | - | ||||||||||||
| Other income | 7,556 | 6,773 | 12,824 | 13,047 | ||||||||||||
| Total revenues | $ | 89,173 | $ | 6,773 | $ | 94,441 | $ | 13,047 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | (1,793,508 | ) | (438,868 | ) | (3,215,018 | ) | (856,127 | ) | ||||||||
| General and administrative | (1,810,228 | ) | (99,970 | ) | (2,860,903 | ) | (201,644 | ) | ||||||||
| Total operating expenses | (3,603,736 | ) | (538,838 | ) | (6,075,921 | ) | (1,057,771 | ) | ||||||||
| Loss from operations | $ | (3,514,563 | ) | $ | (532,465 | ) | $ | (5,981,480 | ) | $ | (1,044,724 | ) | ||||
| Other income (expense): | ||||||||||||||||
| Interest income/(expenses), net | 5.901 | (1,517 | ) | 7,310 | (3,265 | ) | ||||||||||
| Foreign exchange loss, net | (44,371 | ) | (4,857 | ) | (25,832 | ) | (73,771 | ) | ||||||||
| Loss before income tax | $ | (3,553,033 | ) | $ | (538,839 | ) | $ | (6,000,002 | ) | $ | (1,121,760 | ) | ||||
| Income tax | (3,660 | ) | (4,523 | ) | (7,138 | ) | (5,870 | ) | ||||||||
| Net Loss | $ | (3,556,693 | ) | $ | (543,362 | ) | $ | (6,007,140 | ) | $ | (1,127,630 | ) | ||||
| Net loss per shares: | ||||||||||||||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.30 | ) | $ | (0.27 | ) | $ | (0.71 | ) | $ | (0.57 | ) | ||||
| Weighted average common shares - basic and diluted | 11,876,460 | 1,981,765 | 8,431,410 | 1,981,765 | ||||||||||||
Investor & Media Contacts:
Gain Therapeutics Investor Contact:
Daniel Ferry
LifeSci Advisors
+1 (617) 430-7576
This email address is being protected from spambots. You need JavaScript enabled to view it.
Gain Therapeutics Media Contact:
Joleen Schultz
Joleen Schultz & Associates
+1 760-271-8150
This email address is being protected from spambots. You need JavaScript enabled to view it.
| Last Trade: | US$1.54 |
| Daily Change: | -0.14 -8.33 |
| Daily Volume: | 354,051 |
| Market Cap: | US$40.860M |
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