May 20, 2016 11:05am
The clock is ticking … as the cash runs out
Neuralstem (CUR) announced a corporate reorganization to focus on advancing its NSI-189 neurogenic small molecule program, currently in a P2 clinical trial for the treatment of major depressive disorder, and to continue to pursue collaborations for the NSI-566 stem cell therapy program.
This reorganization is necessary to efficiently allocate esources on the company's refocused strategy thereby creating value for all stakeholders.
The Bottom Line: CUR’s financial situation is on life support. It is laying off staff and streamlining its activities because money is running out. Cash and short-term investments decreased $4.6 M in Q1/16. While net loss increased nearly 25% or $1.7 M during the same period. CUR’s G&A costs rose 121% in Q1/16 for expenses related to severance accrual and increased stock based compensation resulting from the accelerated vesting of options, both related to the termination of its former CEO.
Meanwhile R&D costs decreased approximately $117 K or 4% during from Q4/15 to Q1/16 due to decreased pre-clinical and clinical costs partially offset by increases in headcount and stock based compensation.
CUR closed flat Thursday at $0.33 and remains flat during Friday’s morning session.