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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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93-1301885
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(State or other jurisdiction of
incorporation or organization)
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(IRS Employer
Identification No.)
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23622 Calabasas Road, Suite 300
Calabasas, California
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91302
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(Address of principal executive offices)
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(Zip code)
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Large accelerated filer
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¨
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Accelerated Filer
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¨
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Non-accelerated filer (Do not check if a smaller reporting company)
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¨
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Smaller reporting company
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ý
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Page
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March 31, 2016
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December 31, 2015
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(unaudited)
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Assets
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Current assets:
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Cash and cash equivalents
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$
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17,514,213
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$
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22,604,481
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Supplies for clinical trials
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1,321,604
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1,158,632
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Other assets
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612,373
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797,425
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Total current assets
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19,448,190
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24,560,538
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Property and equipment, net
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164,567
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180,922
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Supplies for clinical trials
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1,308,867
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1,115,657
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Deposits
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3,762,878
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4,176,280
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Deferred financing costs
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8,593
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48,977
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Total assets
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$
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24,693,095
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$
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30,082,374
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Liabilities and Shareholders’ Equity
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Current liabilities:
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Accounts payable
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$
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920,030
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$
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1,161,258
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Accrued compensation and benefits
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215,408
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790,487
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Accrued liabilities
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1,136,448
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317,653
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Total current liabilities
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2,271,886
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2,269,398
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CIRM liability
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4,398,732
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4,133,905
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Warrant liability
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1,492,400
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1,958,775
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Total liabilities
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8,163,018
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8,362,078
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Commitments and contingencies (Note 5)
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Shareholders’ equity:
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Common stock, $0.0001 par value; 249,000,000 shares authorized;
91,727,797 and 90,310,149 shares issued and outstanding as of
March 31, 2016 and December 31, 2015, respectively
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9,173
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9,031
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Additional paid-in capital
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96,291,989
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95,849,005
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Accumulated deficit
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(79,771,085
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)
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(74,137,740
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)
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Total shareholders’ equity
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16,530,077
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21,720,296
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Total liabilities and shareholders’ equity
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$
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24,693,095
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$
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30,082,374
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For the Three Months Ended
March 31, 2016 |
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For the Three Months Ended
March 31, 2015 |
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Revenues
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$
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—
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$
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—
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Expenses:
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Research and development
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4,737,575
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2,065,225
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General and administrative
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1,099,832
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1,035,895
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Total expenses
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5,837,407
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3,101,120
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Loss before other income (expense)
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and taxes
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(5,837,407
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)
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(3,101,120
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)
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Interest income
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2,514
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3,257
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Interest expense
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(264,827
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)
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—
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Financing expense
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(14,636
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)
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(88,939
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)
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Change in fair value of
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|
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warrant liability
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481,011
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1,761,956
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Loss before taxes
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(5,633,345
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)
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(1,424,846
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)
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Taxes
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—
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—
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Net loss
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$
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(5,633,345
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)
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$
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(1,424,846
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)
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Net loss per share
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$
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(0.06
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)
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$
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(0.02
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)
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Weighted average number of
shares outstanding basic and diluted:
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91,272,582
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77,818,157
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Common Stock
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|||||||||||
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Shares
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Amount
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Additional Paid-in Capital
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Accumulated Deficit
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Total
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|||||||||
Balance at December 31, 2015
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90,310,149
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$
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9,031
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$
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95,849,005
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$
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(74,137,740
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)
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$
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21,720,296
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Common stock issued through controlled equity offering at an average of $0.23 per share
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1,417,648
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142
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215,549
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—
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215,691
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Stock based compensation
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—
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—
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227,435
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—
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227,435
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Net loss
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—
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—
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—
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(5,633,345
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)
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(5,633,345
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)
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Balance at March 31, 2016
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91,727,797
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$
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9,173
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$
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96,291,989
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$
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(79,771,085
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)
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$
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16,530,077
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For the Three Months Ended
March 31, 2016 |
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For the Three Months Ended
March 31, 2015 |
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Cash flows from operating activities:
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Net loss
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$
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(5,633,345
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)
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$
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(1,424,846
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)
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Adjustments to reconcile net loss to net cash used in
operating activities:
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Depreciation
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20,370
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6,693
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Change in fair value of warrant liability
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(481,011
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)
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(1,761,956
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)
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Financing expense
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14,636
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88,939
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Stock-based compensation
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227,435
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205,829
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Accrued interest on CIRM award
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264,827
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—
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Changes in assets and liabilities:
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Other assets
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185,052
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(360,859
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)
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Supplies for clinical trials
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(356,182
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)
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—
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Deposits
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413,402
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—
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Accounts payable
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(249,821
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)
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170,613
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Accrued compensation and benefits
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(575,079
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)
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(186,951
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)
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Accrued liabilities
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818,795
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213,552
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Net cash used in operating activities
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(5,350,921
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)
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(3,048,986
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)
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Cash flows from investing activities:
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Purchase of property and equipment
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(4,015
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)
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(1,758
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)
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Net cash used in investing activities
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(4,015
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)
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(1,758
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)
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Cash flows from financing activities:
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Proceeds from the issuance of common stock
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264,668
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—
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Proceeds from issuance of common stock and warrants net of
offering costs
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—
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14,599,627
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Net cash provided by financing activities
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264,668
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14,599,627
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Decrease in cash and cash equivalents
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(5,090,268
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)
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11,548,883
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Cash and cash equivalents, beginning of period
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22,604,481
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|
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23,222,296
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Cash and cash equivalents, end of period
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$
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17,514,213
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$
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34,771,179
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Supplemental cash flows disclosures:
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Interest expense paid
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—
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—
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|
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Income taxes paid
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—
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|
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—
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|
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Supplemental non-cash financing disclosures:
|
|
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Deferred offering costs included in accounts payable
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$
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8,593
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$
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—
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Three Months Ended
March 31, 2016 |
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Three Months Ended
March 31, 2015 |
||
Risk-free interest rate
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1.3
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%
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1.9
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%
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Expected dividend yield
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None
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None
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Expected life
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6.0 years
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7.1 years
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Expected volatility
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82.7
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%
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96.3
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%
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Expected forfeitures
|
—
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%
|
|
—
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%
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Computers
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$
|
70,961
|
|
|
$
|
66,945
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|
Research equipment
|
305,066
|
|
|
305,066
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|
||
|
376,027
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|
|
372,011
|
|
||
Accumulated depreciation
|
(211,460
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)
|
|
(191,089
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)
|
||
|
$
|
164,567
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|
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$
|
180,922
|
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Years ending December 31,
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Amount
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||
2016
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|
$
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76,986
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2017
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|
68,432
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Total
|
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$
|
145,418
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|
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Options
|
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Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
||||||
Outstanding December 31, 2015
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10,719,904
|
|
|
$
|
1.18
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|
|
—
|
|
|
—
|
|
|
Granted
|
1,082,000
|
|
|
$
|
0.33
|
|
|
—
|
|
|
—
|
|
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Exercised
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
Forfeited or expired
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
Outstanding March 31, 2016
|
11,801,904
|
|
|
$
|
1.11
|
|
|
3.58
|
|
|
$
|
—
|
|
Vested at March 31, 2016
|
8,518,159
|
|
|
$
|
1.23
|
|
|
1.66
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
March 31, 2015
|
||||
Balance – January 1
|
$
|
1,958,775
|
|
|
$
|
597,719
|
|
Issuance of warrants and effect of repricing
|
14,636
|
|
|
4,286,314
|
|
||
Exercise of warrants
|
—
|
|
|
—
|
|
||
(Gain) or loss included in earnings
|
(481,011
|
)
|
|
(1,761,956
|
)
|
||
Transfers in and out/or out of Level 3
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—
|
|
|
—
|
|
||
Balance – March 31
|
$
|
1,492,400
|
|
|
$
|
3,122,077
|
|
|
March 31, 2016
|
|
March 31, 2015
|
||
Income tax benefit at the federal statutory rate
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(34
|
)%
|
|
(34
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)%
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State income tax benefit, net of federal tax benefit
|
(6
|
)%
|
|
(6
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)%
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Change in fair value of warrant liability
|
3
|
%
|
|
(2
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)%
|
Change in valuation allowance for deferred tax assets
|
37
|
%
|
|
42
|
%
|
Total
|
—
|
%
|
|
—
|
%
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Net operating loss carryforwards
|
$
|
22,439,204
|
|
|
$
|
16,302,000
|
|
Stock-based compensation
|
2,690,282
|
|
|
2,191,000
|
|
||
Less valuation allowance
|
(25,129,486
|
)
|
|
(18,493,000
|
)
|
||
Net deferred tax asset
|
$
|
—
|
|
|
$
|
—
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|
Dated: May 13, 2016
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IMMUNOCELLULAR THERAPEUTICS, LTD.
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By:
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/s/ Andrew Gengos
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Name:
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Andrew Gengos
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Title:
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President and Chief Executive Officer
(Principal Executive Officer)
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By:
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/s/ David Fractor
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Name:
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David Fractor
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Title:
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Principal Accounting Officer
(Principal Financial and Accounting Officer)
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Exhibit
No.
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|
Description
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10.1*
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Amended and Restated Independent Contractor Services Agreement dated February 1, 2016 between John Yu and ImmunoCellular Therapeutics, Ltd.*
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31.1
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Certification of the Registrant’s Principal Executive Officer under Exchange Act Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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31.2
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Certification of the Registrant’s Principal Financial Officer under Exchange Act Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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32.1
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Certification of the Registrant’s Principal Executive Officer under 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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32.2
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Certification of the Registrant’s Principal Financial Officer under 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101.INS
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|
XBRL Instance Document
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101.SCH
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|
XBRL Taxonomy Extension Schema Document
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101.CAL
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|
XBRL Taxonomy Extension Calculation Linkbase Document
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101.LAB
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|
XBRL Taxonomy Extension Labels Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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101.DEF
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|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
*
|
|
Indicates a management contract or compensatory arrangement.
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(a)
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Contractor will not, in the course of performing the Services, infringe or misappropriate, and neither the Work Product nor any element thereof will infringe or misappropriate, any Intellectual Property Right of any other person;
|
(b)
|
neither the Work Product nor any element thereof will be subject to any restriction, mortgage, lien, claim, pledge, security interest, or encumbrance when delivered by Contractor to Company;
|
(c)
|
Contractor will not grant, directly or indirectly, any right or interest in the Work Product to any other person;
|
(d)
|
Contractor has full right, power, and authority to enter into and perform this Agreement without the consent of any third party, including the right to grant all licenses granted by Contractor in this Agreement;
|
(e)
|
Contractor will
maintain high standards of professionalism, and will
comply with all laws, regulations, and ordinances applicable to Contractor’s performance of the Services and Contractor’s other obligations under this Agreement, including export control laws, and has obtained (or before performing the Services will obtain) all governmental permits and licenses required for Contractor to perform the Services and Contractor’s other obligations under this Agreement; and
|
(f)
|
Should Company permit Contractor to use any of Company’s equipment, or facilities during the term of this Agreement, such permission will be gratuitous and Contractor
(i)
will take all necessary or reasonable precautions to prevent injury to any person (including Company employees) or damage to any property (including Company property) during the term of this Agreement, (ii) will
perform all services during Company’s normal business hours, unless Company otherwise specifically requests, and (iii) will comply with Company’s then-current access policies and procedures, including those pertaining to safety, security, anti-harassment, and confidentiality.
|
COMPANY
Signed:
/s/ Andrew Gengos
Name:
Andrew Gengos
Title:
President & CEO
Address:
23622 Calabasas Road,
Suite 300, Calabasas CA 91302
|
CONTRACTOR
Signed:
/s/ John S. Yu
Name:
John S. Yu
Title:
Contractor
Address:
269 Ashdale Pl.
Los Angeles, CA 90049
|
a.
|
Support the execution of the ICT-107 phase 3 trial
|
b.
|
Support the evaluation and acquisition of outside technology
|
1.
|
I have reviewed this Form 10-Q of ImmunoCellular Therapeutics, Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 13, 2016
|
By:
|
/s/ Andrew Gengos
|
|
|
|
Name:
|
Andrew Gengos
|
|
|
Title:
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Form 10-Q of ImmunoCellular Therapeutics, Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: May 13, 2016
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By:
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/s/ David Fractor
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Name:
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David Fractor
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Title:
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Principal Financial and Accounting Officer
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1.
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The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2016 (“Periodic Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and
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2.
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The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: May 13, 2016
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By:
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/s/ Andrew Gengos
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Name:
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Andrew Gengos
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Title:
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President and Chief Executive Officer
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1.
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The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2016 (“Periodic Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and
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2.
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The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: May 13, 2016
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By:
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/s/ David Fractor
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Name:
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David Fractor
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Title:
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Principal Financial and Accounting Officer
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