ONCOSEC MEDICAL Inc (ONCSQ)·Q1 2017 Earnings Summary

Executive Summary

• Q1 FY2017 delivered no revenue and a narrowed net loss of $5.6M ($0.29 per share) vs $7.0M ($0.47) in Q1 FY2016, driven by lower R&D, G&A, and stock-based compensation as programs and device prototypes completed .
• Cash and equivalents were $24.4M at October 31, 2016, down from $28.7M at July 31, 2016; management reiterated runway of at least 12 months to meet clinical and regulatory milestones into calendar 2018 .
• Operationally, focus remained on initiating a registration-directed Phase IIb in anti-PD-1 non-responder melanoma; prior quarter progress included enrollment of 20+ patients in the KEYTRUDA (pembrolizumab) combo study and plans to submit study design by end of 2016 .
• Wall Street consensus estimates via S&P Global were unavailable for ONCSQ this quarter; no formal financial guidance (revenue/margins/OpEx) was provided [GetEstimates error; S&P Global data unavailable].

What Went Well and What Went Wrong

What Went Well

• Reduced quarterly net loss and EPS: Net loss improved to $5.6M and EPS to $(0.29) vs $(7.0)M and $(0.47) in the prior year, reflecting lower trial, engineering, outside services, and stock-based comp costs .
• Clear strategic focus and timelines: “Our primary focus for the next year is to initiate a melanoma registration-directed clinical study...generate meaningful data in 2017 and 2018 to support discussions with the FDA and a future BLA” — Punit Dhillon, CEO .
• Cash runway supports milestones: Management expects funds to cover operations for at least 12 months, aligning with planned Phase IIb initiation and platform expansion .

What Went Wrong

• Continued zero revenue: The company reported no revenues in Q1 FY2017 and Q1 FY2016, consistent with its pre-commercial stage .
• Ongoing cash burn: Net cash used in operating activities was $4.4M in Q1 FY2017, underscoring the financing needs typical of clinical-stage biotech .
• Dilution and equity burn: Weighted average shares increased to 19.0M in Q1 FY2017 (from 14.8M in Q1 FY2016), with stockholders’ equity declining from $28.1M (July 31, 2016) to $23.6M (October 31, 2016) .

Financial Results

Income Statement and Operating Metrics (USD Millions, EPS in USD)

Periods ordered oldest → newest

Notes:

• Q4 2016 revenue not explicitly disclosed (company reported no revenues for FY2016) .
• Quarter-level weighted average shares for Q4 2016 not disclosed in the 8-K; annual WA shares provided .

Cash Position and Operating Cash Flow (USD Millions)

Actuals vs Estimates (Q1 FY2017)

*S&P Global consensus estimates for ONCSQ were unavailable due to missing mapping in CIQ; values could not be retrieved (Values retrieved from S&P Global).

Segment Breakdown

• Not applicable; company reports consolidated results with no revenue .

KPIs

Guidance Changes

Earnings Call Themes & Trends

Public transcript for Q1 FY2017 was not available in our document system; company announced a call on Dec 8, 2016, but full transcript access is unavailable within tools .

Management Commentary

• “We are delivering on our commitment to address an unmet medical need in melanoma with ImmunoPulse® IL-12...we are focused on advancing our lead program...Based on our current cash runway, we are positioned to meet our value-driving clinical and regulatory milestones into calendar 2018” — Punit Dhillon, CEO .
• “Our primary focus for the next year is to initiate a melanoma registration-directed clinical study. We believe we will generate meaningful data in 2017 and 2018 to support the discussions with the FDA and a future biologics license application (BLA) to attract a partner” — Punit Dhillon .
• Prior quarter context: “We have enrolled over 20 patients...and remain on track to announce interim data...later this quarter...expect to submit a registration directed study design by the end of 2016” — Punit Dhillon .

Q&A Highlights

• The Q1 FY2017 earnings call transcript was not available in the document system; while a call was scheduled on Dec 8, 2016, full Q&A content could not be retrieved within tools .

Estimates Context

• S&P Global Wall Street consensus estimates for ONCSQ were unavailable due to missing CIQ mapping; comparisons vs consensus could not be performed this quarter (Values retrieved from S&P Global).
• Given the absence of revenue and non-commercial status, near-term estimate dispersion would likely focus on OpEx and EPS; with R&D and G&A trending lower in Q1, estimates may require downward revisions to expense assumptions if sustained .

Key Takeaways for Investors

• Expense discipline is evident: R&D and G&A reductions narrowed the net loss and improved EPS vs prior year; monitor sustainability of lower engineering/outside services post prototype completion .
• Cash runway extends through key clinical milestones into 2018, reducing near-term financing risk but watch dilution as WA shares have been rising year over year .
• The melanoma registration-directed Phase IIb initiation is the primary catalyst; prior combo trial enrollment and planned interim data support near-term news flow .
• Regulatory momentum: Fast Track designation (Q2) strengthens the pathway; Q1 commentary emphasizes BLA discussions potential in 2017–2018 .
• No financial guidance and no revenue: investment case hinges on clinical execution, regulatory milestones, and partnership prospects rather than near-term financials .
• Watch for Q2 updates: operational objectives include drug supply agreements and Phase IIb initiation; expense trends and cash usage should be tracked closely .
• Absence of consensus estimates limits beat/miss framing; traders should anchor on clinical/regulatory event timing and any interim data disclosures (e.g., KEYTRUDA combo) .