10-Q 1 pstv-10q_20190930.htm Q3 10-Q pstv-10q_20190930.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to                 

Commission file number 001-34375

 

PLUS THERAPEUTICS, INC.

(previously known as Cytori Therapeutics, Inc.)

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

 

33-0827593

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

4200 MARATHON BLVD., SUITE 200, AUSTIN, TX

 

78756

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (737) 255-7194

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

 

Accelerated Filer

Non-Accelerated Filer

 

Smaller reporting company

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financing accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of November 8, 2019, there were 3,770,588 shares of the registrant’s common stock outstanding.

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001

PSTV

Nasdaq Capital Market

Series S Warrant

PSTVZ

Nasdaq Capital Market

 


PLUS THERAPEUTICS, INC.

(previously known as Cytori Therapeutics, Inc.)

INDEX

 

 

 

 

 

Page

PART I

 

FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

Item 1.

 

Financial Statements (Unaudited)

 

3

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Balance Sheets

 

3

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Statements of Operations and Comprehensive Income (Loss)

 

4

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Statements of Stockholders’ Equity (Deficit)

 

5

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Statements of Cash Flows

 

6

 

 

 

 

 

 

 

 

 

 

 

Notes to Consolidated Condensed Financial Statements

 

7

 

 

 

 

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

19

 

 

 

 

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

 

26

 

 

 

 

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

26

 

 

 

 

 

 

 

PART II

 

OTHER INFORMATION

 

27

 

 

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

27

 

 

 

 

 

 

 

 

 

Item 1A.

 

Risk Factors

 

27

 

 

 

 

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

29

 

 

 

 

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

29

 

 

 

 

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

29

 

 

 

 

 

 

 

 

 

Item 5.

 

Other Information

 

29

 

 

 

 

 

 

 

 

 

Item 6.

 

Exhibits

 

30

 

2


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PLUS THERAPEUTICS, INC.

(previously known as Cytori Therapeutics, Inc.)

CONSOLIDATED CONDENSED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and par value data)

 

 

 

As of September 30,

2019

 

 

As of December 31,

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

16,834

 

 

$

5,261

 

Accounts receivable

 

 

4,781

 

 

 

178

 

Restricted cash

 

 

40

 

 

 

40

 

Inventories, net

 

 

107

 

 

 

107

 

Other current assets

 

 

502

 

 

 

785

 

Current assets held for sale

 

 

 

 

 

3,277

 

Total current assets

 

 

22,264

 

 

 

9,648

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

2,209

 

 

 

2,299

 

Operating lease right-of-use assets

 

 

818

 

 

 

 

Other assets

 

 

52

 

 

 

39

 

Noncurrent assets held for sale

 

 

 

 

 

11,633

 

Goodwill

 

 

372

 

 

 

372

 

Total assets

 

$

25,715

 

 

$

23,991

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

3,334

 

 

$

2,777

 

Operating lease liability

 

 

156

 

 

 

 

Term loan obligations, net of discount

 

 

10,937

 

 

 

14,202

 

Current liabilities held for sale

 

 

 

 

 

580

 

Total current liabilities

 

 

14,427

 

 

 

17,559

 

 

 

 

 

 

 

 

 

 

Other noncurrent liabilities

 

 

38

 

 

 

46

 

Noncurrent operating lease liability

 

 

684

 

 

 

 

Warrant liability

 

 

10,406

 

 

 

916

 

Noncurrent liabilities held for sale

 

 

 

 

 

245

 

Total liabilities

 

 

25,555

 

 

 

18,766

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Notes 8 and 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized; 1,959 and 4,606 shares

   issued and outstanding in 2019 and 2018, respectively

 

 

 

 

 

 

Common stock, $0.001 par value; 100,000,000 shares authorized; 2,841,588 and

   296,609 shares issued and outstanding in 2019 and 2018, respectively

 

 

3

 

 

 

 

Additional paid-in capital

 

 

426,311

 

 

 

418,390

 

Accumulated other comprehensive income

 

 

 

 

 

1,218

 

Accumulated deficit

 

 

(426,154

)

 

 

(414,383

)

Total stockholders’ equity

 

 

160

 

 

 

5,225

 

Total liabilities and stockholders’ equity

 

$

25,715

 

 

$

23,991

 

 

See Accompanying Notes to these Consolidated Condensed Financial Statements

3


PLUS THERAPEUTICS, INC.

(previously known as Cytori Therapeutics, Inc.)

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(in thousands, except share and per share data)

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Development revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government contracts and other

 

$

4,771

 

 

$

454

 

 

$

5,810

 

 

$

2,270

 

 

 

 

4,771

 

 

 

454

 

 

 

5,810

 

 

 

2,270

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

921

 

 

 

1,226

 

 

 

3,636

 

 

 

3,887

 

Sales and marketing

 

 

94

 

 

 

118

 

 

 

305

 

 

 

596

 

General and administrative

 

 

1,076

 

 

 

1,337

 

 

 

3,313

 

 

 

4,639

 

Total operating expenses

 

 

2,091

 

 

 

2,681

 

 

 

7,254

 

 

 

9,122

 

Operating income (loss)

 

 

2,680

 

 

 

(2,227

)

 

 

(1,444

)

 

 

(6,852

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

6

 

 

 

11

 

 

 

20

 

 

 

30

 

Interest expense

 

 

(366

)

 

 

(513

)

 

 

(1,477

)

 

 

(1,379

)

Change in fair value of warrants

 

 

(561

)

 

 

1,676

 

 

 

(69

)

 

 

1,676

 

Warrant issuance cost

 

 

(1,233

)

 

 

(343

)

 

 

(1,233

)

 

 

(343

)

Total other income (expense)

 

 

(2,154

)

 

 

831

 

 

 

(2,759

)

 

 

(16

)

Income (loss) from continuing operations

 

$

526

 

 

$

(1,396

)

 

$

(4,203

)

 

$

(6,868

)

Loss from discontinued operations

 

 

 

 

 

(934

)

 

 

(7,568

)

 

 

(3,530

)

Net Income (loss)

 

$

526

 

 

$

(2,330

)

 

$

(11,771

)

 

$

(10,398

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from continuing operations

 

$

526

 

 

$

(1,396

)

 

$

(4,203

)

 

$

(6,868

)

Beneficial conversion feature for convertible

   preferred stock

 

 

(554

)

 

 

(2,487

)

 

 

(554

)

 

 

(2,487

)

Net loss allocable to common stockholders -

   continuing operations

 

$

(28

)

 

$

(3,883

)

 

$

(4,757

)

 

$

(9,355

)

Net loss allocable to common stockholders -

   discontinued operations

 

$

 

 

$

(934

)

 

$

(7,568

)

 

$

(3,530

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share attributable

   to common stockholders from continuing

   operations

 

$

(0.03

)

 

$

(22.27

)

 

$

(8.78

)

 

$

(67.09

)

Basic and diluted net loss per share attributable

   to common stockholders from discontinued

   operations

 

$

 

 

$

(5.36

)

 

$

(13.97

)

 

$

(25.31

)

Net loss per share, basic and diluted

 

$

(0.03

)

 

$

(27.63

)

 

$

(22.75

)

 

 

(92.40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares used

   in calculating net loss per share attributable to

   common stockholders

 

 

826,548

 

 

 

174,324

 

 

 

541,777

 

 

 

139,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

526

 

 

$

(2,330

)

 

$

(11,771

)

 

$

(10,398

)

Other comprehensive loss – foreign currency

   translation adjustments

 

 

 

 

 

(55

)

 

 

 

 

 

(205

)

Comprehensive income (loss)

 

$

526

 

 

$

(2,385

)

 

$

(11,771

)

 

$

(10,603

)

 

See Accompanying Notes to these Consolidated Condensed Financial Statements

4


PLUS THERAPEUTICS, INC.

(previously known as Cytori Therapeutics, Inc.)

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(UNAUDITED)

(in thousands, except share and par value data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Total

 

 

 

Convertible

 

 

 

 

 

 

 

 

 

 

Additional

 

 

other

 

 

 

 

 

 

stockholders’

 

 

 

preferred stock

 

 

Common stock

 

 

paid-in

 

 

comprehensive

 

 

Accumulated

 

 

equity

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

income (loss)

 

 

deficit

 

 

(deficit)

 

Balance at December 31, 2017

 

 

2,431

 

 

$

 

 

 

115,652

 

 

$

 

 

$

413,362

 

 

$

1,387

 

 

$

(401,749

)

 

$

13,000

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

143

 

 

 

 

 

 

 

 

 

143

 

Sale of common stock, net

 

 

 

 

 

 

 

 

202

 

 

 

 

 

 

27

 

 

 

 

 

 

 

 

 

27

 

Conversion of Series B Convertible

   Preferred Stock into common stock

 

 

(1,228

)

 

 

 

 

 

7,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

   and accumulated other comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(281

)

 

 

 

 

 

(281

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,409

)

 

 

(4,409

)

Balance at March 31, 2018

 

 

1,203

 

 

$

 

 

 

123,229

 

 

$

 

 

$

413,532

 

 

$

1,106

 

 

$

(406,158

)

 

$

8,480

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

96

 

 

 

 

 

 

 

 

 

96

 

Sale of common stock, net

 

 

 

 

 

 

 

 

192

 

 

 

 

 

 

(297

)

 

 

 

 

 

 

 

 

(297

)

Conversion of Series B Convertible

   Preferred Stock into common stock

 

 

(17

)

 

 

 

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

   and accumulated other comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

131

 

 

 

 

 

 

 

131

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,659

)

 

 

(3,659

)

Balance at June 30, 2018

 

 

1,186

 

 

$

 

 

 

123,524

 

 

$

 

 

$

413,331

 

 

$

1,237

 

 

$

(409,817

)

 

$

4,751

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

86

 

 

 

 

 

 

 

 

 

86

 

Sale of common stock, net

 

 

6,723

 

 

 

 

 

 

29,407

 

 

 

 

 

 

3,686

 

 

 

 

 

 

 

 

 

3,686

 

Conversion of Series B and Series C

   Convertible Preferred Stock into

   common stock

 

 

(3,285

)

 

 

 

 

 

80,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

   adjustment and accumulated

   other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(55

)

 

 

 

 

 

(55

)

Beneficial conversion feature related to

   Series C Convertible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,487

 

 

 

 

 

 

 

 

 

2,487

 

Accretion of beneficial conversion feature

   related to Series C Convertible Preferred

   Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,487

)

 

 

 

 

 

 

 

 

(2,487

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,330

)

 

 

(2,330

)

Balance at September 30, 2018

 

 

4,624

 

 

$

 

 

 

233,826

 

 

$

 

 

$

417,103

 

 

$

1,182

 

 

$

(412,147

)

 

$

6,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

 

4,606

 

 

$

 

 

 

296,609

 

 

$

 

 

$

418,390

 

 

$

1,218

 

 

$

(414,383

)

 

$

5,225

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

49

 

 

 

 

 

 

 

 

 

49

 

Sale of common stock, net

 

 

 

 

 

 

 

 

139,855

 

 

 

 

 

 

1,873

 

 

 

 

 

 

 

 

 

1,873

 

Conversion of Series C Convertible

   Preferred Stock into common stock

 

 

(66

)

 

 

 

 

 

1,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

   and accumulated other comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(140

)

 

 

 

 

 

(140

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,150

)

 

 

(3,150

)

Balance at March 31, 2019

 

 

4,540

 

 

$

 

 

 

438,117

 

 

$

 

 

$

420,312

 

 

$

1,078

 

 

$

(417,533

)

 

$

3,857

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

 

 

 

 

 

 

28

 

Sale of common stock, net

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

64

 

Foreign currency translation adjustment

   and accumulated other comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,078

)

 

 

 

 

 

(1,078

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,147

)

 

 

(9,147

)

Balance at June 30, 2019

 

 

4,540

 

 

$

 

 

 

443,117

 

 

$

 

 

$

420,404

 

 

$

 

 

$

(426,680

)

 

$

(6,276

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

 

 

 

29

 

Sale of common stock, pre-funded

   warrants and warrants for common stock,

   net of offering costs of $0.6 million

 

 

 

 

 

 

 

 

2,000,510

 

 

 

3

 

 

 

4,594

 

 

 

 

 

 

 

 

 

4,597

 

Conversion of Series B and Series C

   Convertible Preferred Stock into

   common stock

 

 

(2,581

)

 

 

 

 

 

332,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of warrants

 

 

 

 

 

 

 

 

65,415

 

 

 

 

 

 

490

 

 

 

 

 

 

 

 

 

490

 

Warrant derivative liability reclasssified

   to equity due to exercise of warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

794

 

 

 

 

 

 

 

 

 

794

 

Beneficial conversion feature related to

   Series C Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

554