Executive Summary

Q3 2015 delivered positive net income of $1.46M driven primarily by a $2.49M non-cash gain from the change in fair value of price-adjustable warrants; operating loss narrowed YoY on lower OpEx and modest licensing revenue of $0.08M .
Management emphasized a near-term partnering transaction “by year-end,” positioning licensing momentum as the key catalyst alongside a $0.20M milestone payment from MiNA Therapeutics announced on Nov 17 .
Operating expenses declined to $1.11M (vs. $1.61M in Q3 2014), with R&D at $0.09M and G&A at $1.02M; balance sheet showed cash of $1.31M and stockholders’ deficit improving to $(0.40)M at quarter-end .
Wall Street consensus estimates via S&P Global were unavailable for ATRX for Q3 2015, limiting explicit “beat/miss” comparisons; results were nonetheless supported by ongoing licensing activity and warrant liability mark-to-market [SpgiEstimatesError].

What Went Well and What Went Wrong

What Went Well

Licensing activity continued: Q3 reported $0.08M in license/milestone revenue and a subsequent $0.20M milestone from MiNA, evidencing traction in SMARTICLES licensing and partner progress .
Expense discipline and lower fair value liabilities improved profitability; operating expenses fell to $1.11M and the warrant liability decreased to $3.67M, contributing to net income and improved stockholders’ deficit to $(0.40)M .
Management signaled confidence in closing a partnering transaction by year-end: “We are focused on closing a partnering transaction by year-end,” with emphasis on rare disease-focused nucleic acid therapeutics and a differentiated delivery platform .

What Went Wrong

Revenue remains de minimis and concentrated in one-off milestones/licensing rather than recurring product sales; Q3 revenue was $0.08M and Q3 2014 had no revenue, highlighting a limited top-line base .
Diluted EPS remained negative in Q3 despite positive net income applicable to common shareholders; diluted EPS was $(0.06), reflecting convertible and warrant effects on the share count .
Cash is constrained for clinical advancement; Q3-end cash was $1.31M, with an operating loss of $1.03M and ongoing need to raise capital via preferred stock and partnerships (e.g., August Series D financing of $1.1M) .

Financial Results

Quarterly Trend (Q1–Q3 2015)

Metric	Q1 2015	Q2 2015	Q3 2015
Revenue ($USD Millions)	$0.00	$0.40	$0.08
Basic EPS ($USD)	$0.02	$0.03	$0.03
Diluted EPS ($USD)	$(0.04)	$(0.03)	$(0.06)
Loss from Operations ($USD Millions)	$(1.32)	$(1.02)	$(1.03)
R&D Expense ($USD Millions)	$0.25	$0.23	$0.09
G&A Expense ($USD Millions)	$1.06	$1.19	$1.02
Other Income (Expense), net ($USD Millions)	$1.73	$1.93	$2.49
Net Income (Loss) Applicable to Common ($USD Millions)	$0.41	$0.90	$0.77

YoY Comparison (Q3 2014 vs Q3 2015)

Metric	Q3 2014	Q3 2015
Revenue ($USD Millions)	$0.00	$0.08
Basic EPS ($USD)	$(0.28)	$0.03
Diluted EPS ($USD)	$(0.28)	$(0.06)
Operating Expenses ($USD Millions)	$1.61	$1.11
Net Income (Loss) ($USD Millions)	$(7.12)	$1.46

KPIs and Balance Sheet

KPI	Q1 2015	Q2 2015	Q3 2015
Cash and Equivalents ($USD Millions)	$1.16	$0.73	$1.31
Total Assets ($USD Millions)	$8.05	$7.55	$8.12
Total Current Liabilities ($USD Millions)	$1.86	$2.12	$2.49
Fair Value Liability (Price-Adjustable Warrants) ($USD Millions)	$7.50	$5.58	$3.67
Stockholders’ Deficit ($USD Millions)	$(3.65)	$(2.50)	$(0.40)

Segment Breakdown

Not applicable; the company reports consolidated results and licensing/milestone revenue only .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2015	Not provided	Not provided	Maintained (no formal guidance)
Operating Expenses	FY/Q4 2015	Not provided	Not provided	Maintained (no formal guidance)
Partnering/Licensing Milestones	FY/Q4 2015	Ongoing discussions	“Focused on closing a partnering transaction by year-end”	Raised qualitative confidence
R&D Program (CEQ508)	FY/Q4 2015	Fast Track designation received	Fast Track designation reiterated; advancement dependent on capital/partners	Maintained

Note: The company did not issue numerical financial guidance ranges in the period; management commentary emphasized partnering milestones rather than quantified guidance .

Earnings Call Themes & Trends

No Q3 2015 earnings call transcript was available; themes below track narrative across Q1–Q3 press releases.

Topic	Previous Mentions (Q1 & Q2 2015)	Current Period (Q3 2015)	Trend
Licensing/Partnering	Focus on closing licensing/partnering transactions to bring capital; Mirna $0.4M milestone prepayment in Q1; $1.1M Series D financing in August	“Focused on closing a partnering transaction by year-end”; $0.20M milestone from MiNA (Nov 17)	Intensifying licensing/partnering momentum
Regulatory (CEQ508 Fast Track)	FDA Fast Track for CEQ508 announced in Q2	Fast Track status referenced in corporate accomplishments	Stable regulatory positioning
R&D Execution	Resumption of FAP product development in Q1; preclinical programs highlighted	Pipeline includes FAP clinical and myotonic dystrophy preclinical programs	Continued advancement subject to funding
IP/Technology	Multiple patent grants/allowances; SMARTICLES and DILA2 delivery tech expansion	Further worldwide patent expansions across tkRNAi, SMARTICLES, DILA2	Ongoing IP strengthening
Financing & Balance Sheet	Cash $1.16M (Q1); warrant liability $7.50M	Cash $1.31M; warrant liability reduced to $3.67M; stockholders’ deficit improved	Liability reduction supports optics; cash remains tight

Management Commentary

“We are focused on closing a partnering transaction by year-end… I continue to be encouraged by the level of interest in our capabilities and programs and I look forward to leveraging the value in our platform and pipeline.” — J. Michael French, President & CEO .
“Marina Biotech continues to build momentum in 2015… our near term focus is on closing licensing and partnering transactions… With our recent financing, I believe we have enough runway to close those licensing and partnering transactions…” — J. Michael French .
“With the milestone payment we recently received from Mirna, we have improved our cash position allowing us to continue to move our corporate initiatives forward.” — J. Michael French .
On MiNA milestone: “We are extremely pleased with MiNA’s progress… the versatility of SMARTICLES… We look forward to the continued progress of the MiNA team…” — J. Michael French .

Q&A Highlights

No Q3 2015 earnings call transcript or Q&A was available for ATRX in the period searched [List: none for earnings-call-transcript in H2 2015].

Estimates Context

S&P Global Wall Street consensus for Q3 2015 was unavailable for ATRX (missing CIQ mapping). As a result, explicit beat/miss versus Street for revenue/EPS cannot be determined this quarter [SpgiEstimatesError].

Key Takeaways for Investors

Licensing-driven P&L: Profitability is primarily a function of fair value changes in warrant liabilities and milestone/license revenue; recurring top-line remains minimal, so trading sensitivity will hinge on partnering/milestone news flow .
Expense control: OpEx fell YoY (Q3 G&A $1.02M, R&D $0.09M), contributing to narrower operating losses; sustained cost discipline is supportive but dependent on funding and program prioritization .
Balance sheet optics improved: Stockholders’ deficit narrowed to $(0.40)M as the warrant liability fell to $3.67M; cash of $1.31M remains modest, underscoring reliance on licensing and financings .
Near-term catalyst: Management’s year-end partnering objective and the $0.20M MiNA milestone suggest potential additional license economics and validation events that could move the stock; monitor for 8-Ks and press releases .
Program momentum: CEQ508 Fast Track design enhances optionality for partnering/licensing; preclinical work (e.g., myotonic dystrophy) continues but is funding-constrained .
Dilution/structure watch: Diluted EPS remained negative due to capital structure effects; any future financings or warrant exercises will affect share count and headline EPS optics .
Estimates: With Street consensus unavailable, internal modeling should anchor on licensing pipeline timing and warrant liability sensitivity rather than point estimates until S&P coverage is established [SpgiEstimatesError].

Adhera Therapeutics, Inc. (ATRX)·Q3 2015 Earnings Summary