EOM Pharmaceutical Holdings, Inc. (IMUC)·Q1 2018 Earnings Summary

Executive Summary

• Q1 2018 was a stabilization quarter: net loss narrowed to $1.0M with diluted EPS of $(0.02), reflecting drastic OpEx reductions after suspending the ICT‑107 Phase 3 in June 2017 .
• Revenue remained $0; management highlighted scientific progress in the Stem‑to‑T‑Cell program, verifying TCR gene transfer into human hematopoietic stem cells and paving the way for preclinical testing .
• Liquidity actions continued: cash used in operations fell to $1.6M vs $6.1M in Q1 2017; current liabilities were reduced by ~$900k; quarter‑end cash was ~$5.0M; ~$930k of July 2018 warrants remained (exercise price $0.35) .
• Strategic alternatives remain an active catalyst (potential sale/merger) under Ladenburg Thalmann; the company did not hold a Q1 call, limiting real‑time guidance commentary and potentially heightening focus on transaction updates for stock reaction .

What Went Well and What Went Wrong

What Went Well

• Verified a key Stem‑to‑T‑Cell milestone: “successful transfer of the selected T cell receptor genetic material into human hematopoietic stem cells…a key component of the proof‑of‑concept work…laying the groundwork for preclinical testing” (Anthony J. Gringeri, PhD, CEO) .
• Operating discipline: net loss improved to $1.0M vs $5.9M YoY; cash used in operations fell to $1.6M vs $6.1M; current liabilities cut by ~$900k .
• Continued strategic review: “working with Ladenburg Thalmann & Co. Inc.…exploration of strategic opportunities…including the potential sale or merger of the Company” .

What Went Wrong

• No revenue and limited near‑term catalysts from operations; no earnings call held for Q1, constraining granularity on outlook and investor Q&A .
• Cash declined to ~$5.0M vs $6.6M at year‑end, underscoring finite runway absent financing or partnering progress .
• Persistent listing/compliance overhang reiterated in prior updates; strategic path remains uncertain (“cannot guarantee that this process will culminate in a transaction”) .

Financial Results

Notes: Q4 2017 press release disclosed net loss and EPS but did not provide quarterly revenue; company had no revenue historically in these periods .

Operating expense detail (where disclosed):

KPIs and Balance Sheet

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “In the first quarter, we continued to make progress in advancing our Stem‑to‑T‑Cell program…verify successful transfer of the selected T cell receptor genetic material into human hematopoietic stem cells…lays the groundwork for undertaking planning for preclinical testing.” — Anthony J. Gringeri, PhD, CEO .
• “We are continuing to work with Ladenburg Thalmann & Co. Inc.…exploration of strategic opportunities for enhancing stockholder value, including the potential sale or merger of the Company.” — Anthony J. Gringeri, PhD, CEO .
• “We ended 2017 in a strong financial condition with approximately $6.6 million in cash and $4.6 million in both working capital and stockholders’ equity…we…may successfully be able to regain compliance with the NYSE American listing standards regarding stockholders’ equity.” — Anthony J. Gringeri, PhD, CEO .
• Scientific context: “Dr. Baltimore’s approach…transfer the gene for the TCR into hematopoietic stem cells…produce killer T cells…potentially long‑lasting…steady rate…immune surveillance against tumor recurrence.” — Steven Swanson, SVP Research .
• CFO perspective: “Net loss for the quarter ended December 31, 2017 was $430,000 or $0.01…The decrease…is attributable to reductions in research and development expenses…as well as certain discounts negotiated with key vendors…As of December 31, 2017, we had $6.6 million in cash…41.9 million shares outstanding.” — David Fractor, CFO .

Q&A Highlights

• Q1 2018: No conference call held; company intends to provide updates at an appropriate time .
• Prior quarter focus (Q4 call): Prepared remarks emphasized stem cell technical milestones, expense reductions, warrant exercises and strategic alternatives; operator opened Q&A, but specific exchanges are not captured in the transcript segments available .

Estimates Context

• Wall Street consensus estimates via S&P Global for Q1 2018 were unavailable for IMUC at the time of this analysis. Given lack of coverage and zero revenue, investors should benchmark actuals against prior periods and internal burn‑rate expectations rather than external estimates .
• With no revenue and materially lower R&D, sell‑side models (where they exist) would likely need to reflect sustained low OpEx post‑ICT‑107 suspension; monitor July 2018 warrant expirations for any financing updates that could alter near‑term cash runway assumptions .

Key Takeaways for Investors

• Expense discipline is the primary driver of EPS improvement; R&D fell to $0.29M and G&A to $0.73M, compressing net loss to $1.0M and EPS to $(0.02) .
• Scientific validation steps continue in the Stem‑to‑T‑Cell program; verified human HSC TCR transfer is a gating milestone toward preclinical in vivo work — watch for preclinical timing and early readouts as potential stock catalysts .
• Liquidity is adequate near‑term but finite: cash ~$5.0M; cash used in ops $1.6M; current liabilities reduced $0.9M. July 2018 warrants ($0.93M remaining; $0.35 strike) represent a near‑term event; outcomes could affect runway sentiment .
• Strategic alternatives (potential sale/merger) remain front‑and‑center; any announced transaction or partner could materially re‑rate the equity .
• Absence of a Q1 call limits guidance clarity; expect communications via press releases as milestones or corporate actions occur .
• Prior quarter trajectory shows strengthening balance sheet (cash $6.6M at YE17; positive equity/working capital) and substantially lower quarterly losses — trend supports a “survival through milestone” setup .
• For trading: news‑driven setup with binary catalysts around strategic process and program milestones; for medium‑term thesis, the stem cell platform’s differentiation and ability to secure partners/funding are critical de‑risking levers .