Aeolus Pharmaceuticals announced financial results for the three months and twelve months ended September 30, 2015.
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The company reported a net loss of $2,628,000 for the fiscal year ended September 30, 2015, versus net loss of $80,000 for the fiscal year ended September 30, 2014.[break]
Revenue for the fiscal year ended September 30, 2014 was approximately $3,111,000, compared to $9,631,000 revenue for the fiscal year ended September 30, 2013. The revenue is from the collaboration with BARDA announced on February 11, 2011.
Since being awarded the BARDA Contract, the company generates contract revenue from a cost-plus fee arrangement. Revenues on reimbursable contracts are recognized as costs are incurred, based on allowable costs incurred during the period, plus any recognizable earned fee.
Fixed fees under cost-plus fee contracts are considered earned in proportion to the allowable costs incurred in performance of the contract.
On June 26, 2015, the company received an exercised option under the BARDA Contract for $3,000,000 of additional research. The option exercise brings the total exercised value of the BARDA contract as of September 30th, 2015 to $30.3 million. The total value of the BARDA contract is $118.4 million.
The company may receive up to an additional $88.1 million in options exercisable over the remaining years of the contract.
Revenue was lower in 2015 versus 2014 primarily due to the timing of work related to the BARDA contract and the prior year Contract Modification.
Research and development expenses decreased by $3,457,000, or 50%, to approximately $3,509,000 for the fiscal year ended September 30, 2015 from approximately $6,966,000 for the fiscal year ended September 30, 2014.
R&D expenses were lower during the fiscal year ended September 30, 2015 versus September 30, 2014 due to the timing of work related to the BARDA Contract.
G&A expenses decreased approximately $517,000, or 19%, to approximately $2,228,000 for the fiscal year ended September 30, 2015 from about $2,745,000 for the fiscal year ended September 30, 2014.
Consulting stock expense decreased by about $444,000 as a result of decreased awards for the period. Legal expense decreased by about $34,000 as a result of lower SEC filing and financing costs.
For the fourth quarter of FY 2015, total revenues were $934,000 as compared to $2,417,000 in the fourth quarter of FY 2014.
Net loss for the fourth quarter in FY 2015 was $434,000 or ($0.00/share) as compared to $524,000 or ($0.00/share) in the fourth quarter of FY2014. ■