On March 10, 2016 Cellectar Biosciences, Inc. (NASDAQ:CLRB), an oncology-focused biotechnology company, reported financial results for the year ending December 31, 2015 (Filing, Annual, Cellectar Biosciences, 2015, MAR 17, 2016, View Source [SID:1234509612]).
Summary of Recent Key Accomplishments:

· Positive initial data in phase 1 study of CLR 131 in multiple myeloma

· Research collaboration with Pierre Fabre involving PDC Delivery Platform

· $2.3 million NCI Fast Track SBIR Grant for study of CLR 125

· New IP protection for PDC Delivery Platform with CTX patent application

Summary of Financial Results:

Research and development expenses for 2015 were $5.2 million, a reduction of $0.8 million from the prior year. This reflects the company’s continued focus on research and development efforts and implementation of operating improvements that have resulted in reductions to its cost structure. General and administrative expenses for the year totaled $3.4 million, which is an improvement from 2014 of $0.3 million. The company also incurred $0.2 million of restructuring charges in fiscal 2015, which is consistent with 2014.

Operating loss was $8.8 million for 2015, compared to $9.9 million in 2014. Other income was $3.3 million for fiscal 2015, as compared to $1.8 million in 2014. These amounts are almost exclusively non-cash in nature, and are due to changes in the valuation of certain warrants that are classified as liabilities on Cellectar’s balance sheet. As a result, the company’s net loss for the year ended December 31, 2015 was $5.5 million, or ($7.03) per share, compared to a 2014 net loss of $8.1 million, or ($17.53) per share.

As of December 31, 2015, the company had $3.9 million in cash and cash equivalents on hand, compared to $9.4 million in cash and cash equivalents at December 31, 2014. While Cellectar anticipates its available cash and cash equivalents should fund its planned operations into the second quarter of 2016, management believes capital will be required to complete its planned clinical and preclinical development.

"The last two quarters of 2015 through the first quarter of 2016 continue to represent a significant shift in corporate objectives, culture and branding for Cellectar Biosciences," said Jim Caruso, president and CEO of Cellectar Biosciences. "Significant progress has been achieved and we remain confident in our corporate strategy, operating plan execution and our PDC Delivery Platform technology. We are pleased with the resulting program advancements and look forward to providing further details about our objectives for continued success on today’s call."

CELLECTAR BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

December 31,
2015 December 31,
2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,857,791 $ 9,422,627
Restricted cash 55,000 55,000
Prepaid expenses and other current assets 267,783 220,611
Total current assets 4,180,574 9,698,238
FIXED ASSETS, NET 1,728,471 2,033,944
GOODWILL 1,675,462 1,675,462
OTHER ASSETS 11,872 11,872
TOTAL ASSETS $ 7,596,379 $ 13,419,516

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of notes payable $ 243,590 $ 119,923
Accounts payable and accrued liabilities 675,924 933,988
Derivative liability 4,781,082 5,176,915
Capital lease obligations, current portion 2,449 2,180
Total current liabilities 5,703,045 6,233,006
LONG-TERM LIABILITIES:
Notes payable, less current maturities 86,632 330,077
Deferred rent 148,924 147,774
Capital lease obligations, less current portion 7,975 11,126
Total long-term liabilities 243,531 488,977
Total liabilities 5,946,576 6,721,983
TOTAL STOCKHOLDERS’ EQUITY: 1,649,803 6,697,533
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 7,596,379 $ 13,419,516

CELLECTAR BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Year Ended December 31,
2015 2014

COSTS AND EXPENSES:
Research and development $ 5,158,874 $ 5,964,453
General and administrative 3,395,360 3,704,676
Restructuring costs 203,631 221,816
Total costs and expenses 8,757,865 9,890,945

LOSS FROM OPERATIONS (8,757,865 ) (9,890,945 )

OTHER INCOME (EXPENSE):
Gain on revaluation of derivative warrants 3,667,826 2,285,157
Loss on issuance of derivative warrants (404,150 ) —
Interest expense, net (841 ) (446,314 )
Total other income, net 3,262,835 1,838,843
NET LOSS $ (5,495,030 ) $ (8,052,102 )
BASIC AND DILUTED NET LOSS PER COMMON SHARE $ (7.03 ) $ (17.53 )
SHARES USED IN COMPUTING BASIC AND DILUTED NET LOSS
PER COMMON SHARE 781,975 459,266

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