OncoSec Announces Fourth Quarter and YTD Results for Fiscal Year End 2015

OncoSec Medical Incorporated

Balance Sheet and Consolidated Balance Sheet

July 31,
2015

July 31,
2014

Assets

Current assets

Cash and cash equivalents

$

32,035,264

$

37,852,694

Prepaid expenses

1,511,587

442,888

Other current assets

21,130

23,595

Total Current Assets

33,567,981

38,319,177

Property and equipment, net

1,807,982

581,054

Intangible assets, net

—

464,693

Other long-term assets

214,127

26,685

Total Assets

$

35,590,090

$

39,391,609

Liabilities and Stockholders' Equity

Liabilities

Current liabilities

Accounts payable and accrued liabilities

$

2,360,505

$

1,236,352

Accrued compensation related

501,446

42,654

Accrued income taxes

—

800

Accrued other

32,518

43,745

Total Liabilities

2,894,469

1,323,551

Commitments and Contingencies

Stockholders' Equity

Common stock authorized - 160,000,000 common shares with a par value of $0.0001, common stock issued and outstanding - 14,820,854 and 12,233,203 common shares as of July 31, 2015 and July 31, 2014, respectively (1)

24,947

24,463

Additional paid-in capital

71,572,714

56,081,475

Warrants issued and outstanding — 1,895,102 and 1,882,399 warrants as of July 31, 2015 and July 31, 2014, respectively (1)

7,704,103

7,325,152

Accumulated deficit

(46,606,143)

(25,363,032)

Total Stockholders' Equity

32,695,621

38,068,058

Total Liabilities and Stockholders' Equity

$

35,590,090

$

39,391,609

(1) Effective May 18, 2015, the Company implemented a reverse stock split pursuant to which each 20 shares of issued and outstanding common stock held by each stockholder were combined into and became one share of common stock, with such resulting shares rounded up to the next whole share. No fractional shares were issued. All options, warrants and other convertible securities outstanding immediately prior to the reverse split were adjusted by dividing the number of shares of common stock into which the options, warrants and other convertible securities are exercisable or convertible by 20 and multiplying the exercise or conversion price by 20, all in accordance with the terms of the agreements governing such options, warrants and other convertible securities. The accompanying financial statement data for the annual prior periods presented have been retroactively adjusted to reflect the effects of the reverse stock split.

OncoSec Medical Incorporated

Statement of Operations and Consolidated Statements of Operations

Year Ended

Year Ended

Year Ended

July 31, 2015

July 31, 2014

July 31, 2013

Revenue

$

—

$

—

$

—

Expenses:

Research and development

13,132,898

5,796,347

3,159,209

General and administrative

8,108,244

6,153,313

3,905,763

Loss from operations

(21,241,142)

(11,949,660)

(7,064,972)

Other income (expense):

Non-cash interest expense

—

(20,684)

(83,215)

Net loss before income taxes

(21,241,142)

(11,970,344)

(7,148,187)

Provision for income taxes

1,969

41,773

2,000

Net loss, net of tax

$

(21,243,111)

$

(12,012,117)

$

(7,150,187)

Basic and diluted net loss per common share (1)

$

(1.67)

$

(1.26)

$

(1.34)

Weighted average shares used in computing basic and diluted net loss per common share (1)

12,708,974

9,527,182

5,327,917

(1) Effective May 18, 2015, the Company implemented a reverse stock split pursuant to which each 20 shares of issued and outstanding common stock held by each stockholder were combined into and became one share of common stock, with such resulting shares rounded up to the next whole share. No fractional shares were issued. All options, warrants and other convertible securities outstanding immediately prior to the reverse split were adjusted by dividing the number of shares of common stock into which the options, warrants and other convertible securities are exercisable or convertible by 20 and multiplying the exercise or conversion price by 20, all in accordance with the terms of the agreements governing such options, warrants and other convertible securities. The accompanying financial statement data for the annual prior periods presented have been retroactively adjusted to reflect the effects of the reverse stock split.

OncoSec Medical Incorporated

Statement of Cash Flows and Consolidated Statements of Cash Flows

Year Ended

Year Ended

Year Ended

July 31, 2015

July 31, 2014

July 31, 2013

Operating activities

Net loss

$

(21,243,111)

$

(12,012,117)

$

(7,150,187)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

664,596

780,110

736,875

Non-cash interest expense

—

20,684

83,215

Stock-based compensation

2,547,729

1,815,559

452,128

Stock-based compensation related to stock issuance liability in connection with a contractual agreement

55,500

—

—

Common stock issued for services

57,750

150,000

34,500

    Loss on sale of fixed assets

4,325

—

—

Changes in operating assets and liabilities:

(Increase) decrease in prepaid expenses

(1,068,699)

(405,904)

156,194

(Increase) decrease in other current

2,465

(11,067)

(30,845)

(Increase) decrease in other long-term assets

(187,442)

—

—

(Decrease) increase in accounts payable and accrued liabilities

1,068,652

657,266

344,764

(Decrease) increase in accrued compensation

459,592

42,654

(218,849)

(Decrease) increase in accrued other

(12,027)

(16,858)

60,603

(Decrease) Increase in accrued income taxes

(800)

(800)

(1,600)

Net cash used in operating activities

(17,651,470)

(8,980,473)

(5,533,202)

Investing activities

Purchases of property and equipment

(1,412,217)

(512,500)

(114,550)

Leasehold improvements

(18,938)

—

—

Net cash used in investing activities

(1,431,155)

(512,500)

(114,550)

Financing activities

Proceeds from issuance of common stock and warrants

13,580,001

27,948,001

7,200,000

Payment of financing and offering costs

(1,091,794)

(1,981,360)

(504,000)

Payment of amounts due under acquisition obligation

—

(1,000,000)

(1,500,000)

Proceeds from exercise of warrants and stock options

776,988

17,408,851

280,418

Net cash provided by financing activities

13,265,195

42,375,492

5,476,418

Net increase (decrease) in cash

(5,817,430)

32,882,519

(171,334)

Cash and cash equivalents, at beginning of period

37,852,694

4,970,175

5,141,509

Cash and cash equivalents, at end of period

$

32,035,264

$

37,852,694

$

4,970,175

Supplemental disclosure for cash flow information:

Cash paid during the period for:

Interest

$

—

$

—

$

—

Income taxes

$

1,969

$

1,600

$

2,800

Noncash investing and financing transaction:

Fair value of placement agent warrants issued in the public offerings

$

571,868

$

1,042,242

$

228,240