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EyeGate Pharmaceuticals Reports Full Year 2014 Financial Results

WALTHAM, Mass., March 31, 2015 (GLOBE NEWSWIRE) -- Eyegate Pharmaceuticals, Inc. (OTCBB:EYEG) ("EyeGate" or the "Company"), a specialty pharmaceutical company that focuses on developing and commercializing therapeutics and drug delivery systems for treating diseases of the eye, today announced its financial results for the year ended December 31, 2014.

Stephen From, President and CEO, stated, "With the proceeds of our initial public offering, we have the capital needed to advance our clinical development programs for EGP-437, a corticosteroid delivered to the ocular tissue via our proprietary iontophoresis platform, the EyeGate® II Delivery System. EGP-437 is being developed to treat non-infectious anterior uveitis and macular edema, two prevalent conditions affecting the front and back of the eye, respectively, and we believe that our technology provides substantive potential benefits to both patients and clinicians."

Mr. From continued, "The planned confirmatory Phase III trial of EGP-437 in anterior uveitis and Phase II trial in macular edema will each represent important milestones in our development path. More importantly, these trials are expected to provide significant validation for our iontophoresis technology platform and its ability to safely and effectively deliver drugs to the anterior and posterior segments of the eye. We look forward to further demonstrating the capabilities of this novel delivery technology, which we believe has paradigm shifting potential as it relates to improving the lives of patients with a variety of ophthalmic conditions."

2014 Full Year Financial Review

For the twelve month period ended December 31, 2014, net loss was approximately $1.6 million. This compares to a net loss of approximately $3.7 million in 2013.

Research and development expenses were approximately $0.5 million for the year ended December 31, 2014 compared to approximately $1.0 million for the year ended December 31, 2013. The reduction of approximately $0.5 million was mainly due to a reduction in clinical trial activity related to the Company's EGP-437 Combination Product following the completion of the Company's first Phase III trial in non-infectious anterior uveitis. The Company expects research and development costs to increase in 2015, as it initiates a Phase II proof-of-concept trial of the EGP-437 Combination Product in macular edema.

General and administrative expenses for the year were approximately $1.9 million, compared to approximately $2.1 million in 2013.

Net cash used in operating activities was approximately $1.0 million for the year ended December 31, 2014, compared to net cash used in operating activities of approximately $3.0 million for the year ended December 31, 2013.

As of December 31, 2014, the Company had cash and cash equivalents of approximately $167,000. The Company's cash position at the end of 2014 excludes net proceeds less transaction expenses of approximately $2.7 million from its initial public offering, which was completed in February 2015.

About EyeGate

EyeGate is a clinical-stage specialty pharmaceutical company that is focused on developing and commercializing therapeutics and drug delivery systems for treating diseases of the eye. EGP-437, the Company's first and only product in clinical trials, incorporates a reformulated topically active corticosteroid, dexamethasone phosphate, that is delivered into the ocular tissues through EyeGate's proprietary innovative drug delivery system, the EyeGate(R) II Delivery System. For more information, please visit www.EyeGatePharma.com.

Safe Harbor Statement

Some of the statements in this press release are "forward-looking" and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These "forward-looking" statements include statements relating to, among other things, the clinical trials, commercialization efforts and other regulatory or marketing approval efforts pertaining to EyeGate's products, including EGP-437, as well as the success thereof, with such approvals or success may not be obtained or achieved on a timely basis or at all. These statements involve risks and uncertainties that may cause results to differ materially from the statements set forth in this press release, including, among other things, certain risk factors described under the heading "Risk Factors" in the Company's Annual Report filed on Form 10-K with the Securities Exchange Commission on March 31, 2015, or described in the Company's other public filings. The Company's results may also be affected by factors of which the Company is not currently aware. The forward-looking statements in this press release speak only as of the date of this press release. EyeGate expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations with regard thereto or any changes in the events, conditions or circumstances on which any such statement is based.

EYEGATE PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEETS DATA
December 31,
2014 2013
ASSETS
Current assets:
Cash and cash equivalents $ 167,001 $ 501,172
Prepaid expenses and other current assets 26,443 22,351
Current portion of Refundable tax credit receivable 25,336 35,124
Total current assets 218,780 558,647
Property and equipment, net 1,257 2,981
Restricted cash 30,000
Deferred offering costs 1,148,994
Other assets 37,439 100,566
Total assets $ 1,406,470 $ 692,194
LIABILITIES, CONVERTIBLE PREFERRED STOCK, NON-CONTROLLING INTEREST AND STOCKHOLDERS' DEFICIT
Current liabilities:
Grants payable $ 36,401 $ 41,232
Accounts Payable 565,947 13,691
Accrued expenses 913,063 488,989
Convertible notes due to stockholders, net (aggregate principal outstanding of $3,376,573 and $2,027,240, at December 31, 2014 and 2013, respectively) 3,205,504 2,027,240
Warrant liability 303,102
Total current liabilities 5,024,017 2,571,152
Commitments and contingencies (Note 13)
Convertible preferred stock and non-controlling interests: (classified as temporary equity)
Series A convertible preferred stock, $0.01 par value, 2,483,692 shares authorized; 2,483,692 shares issued and outstanding at December 31, 2014 and 2013 (liquidation value of $5,960,863 at December 31, 2014) 254,525 254,525
Series B convertible preferred stock, $0.01 par value, 13,819,649 shares authorized; 8,073,508 shares issued and outstanding at December 31, 2014 and 2013 (liquidation value of $7,023,952 at December 31, 2014) 6,926,180 6,926,180
Series C convertible preferred stock, $0.01 par value, 5,161,241 shares authorized; 3,351,156 shares issued and outstanding at December 31, 2014 and 2013 (liquidation value of $5,857,140 at December 31, 2014) 5,745,127 5,745,127
Series D convertible preferred stock, $0.01 par value 29,020,544 shares authorized; 19,557,392 shares issued and outstanding at December 31, 2014 and 2013 (liquidation value of $23,762,876 at December 31, 2014) 23,482,834 23,482,834
Non-controlling interests 6,780,588 6,556,215
Total convertible preferred stock and non-controlling interests 43,189,254 42,964,881
Stockholders' deficit:
Common stock, $0.01 par value: 70,000,000 shares authorized;
201,787 shares issued and 184,474 shares issued at December 31, 2014 and 2013
2,018 1,844
Additional paid-in capital 10,055,613 10,384,554
Accumulated deficit (56,862,152) (55,088,160)
Shareholders' notes receivable (58,824) (195,000)
Accumulated other comprehensive income 56,544 52,923
Total stockholders' deficit (46,806,801) (44,843,839)
Total liabilities, convertible preferred stock, non-controlling interests and stockholders' deficit $ 1,406,470 $ 692,194
EYEGATE PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
Year Ended December 31,
2014 2013
Operating expenses:
Research and development $ 531,116 $ 1,010,268
General and administrative 1,930,967 2,087,637
Total operating expenses 2,462,083 3,097,905
Other income (expense), net:
Research & development tax credit 15,911 24,520
Interest income 1,102 2,186
Extinguishment of research liability 240,000
Change in warrant liability 1,095,282
Interest expense (441,720) (611,386)
Total other income (expense), net 910,575 (584,680)
Net loss (1,551,508) (3,682,585)
Net income attributable to non-controlling interests (222,484) (196,862)
Net (loss) attributable to EyeGate Pharmaceuticals, Inc. stockholders $ (1,773,992) $ (3,879,447)
Net loss per common share – basic and diluted $ (9.20) $ (21.03)
Weighted average shares outstanding – basic and diluted 192,873 184,431

CONTACT: Lee Roth / Joseph Green The Ruth Group for Eyegate Pharmaceuticals 646-536-7012 / 7013 lroth@theruthgroup.com / jgreen@theruthgroup.comSource:Eyegate Pharmaceuticals, Inc.