Name: SOLIGENIX, INC. Q2 2016 Earnings Call
Start: 2016-08-12T00:00:00.000Z

Executive Summary

Revenue surged to $3.16M, up 187% year over year and 20% quarter over quarter, driven entirely by government contract revenue (BARDA/NIAID) in Vaccines/BioDefense; net loss narrowed to $0.09M with diluted EPS at ($0.02) and basic EPS approx. ($0.00) .
Bold positive surprise: revenue strength plus non-cash warrant liability income produced near break-even results (other income $0.92M, including $0.53M change in warrant liability) .
Bold negative surprise: development timelines slipped—SGX301 Phase 3 data moved from 2H 2016 (prior) to 2H 2017; SGX942 pivotal Phase 2b/3 design timing shifted from 2H 2016 (prior) to 1H 2017 .
Additional non-dilutive funding highlighted: over $8M across RiVax/OrbeShield programs and $0.634M BARDA/NIAID incremental OrbeShield GI ARS funding; cash ended quarter at $3.18M .
Estimates comparison: Wall Street consensus via S&P Global was unavailable for this micro-cap period; results assessment anchored to company filings (no beats/misses stated due to data unavailability).

What Went Well and What Went Wrong

Government-backed revenue expansion: “Highlighted by Revenues of $3.2 Million” with quarter revenue at $3.16M vs $1.10M YoY; gross profit improved to $0.82M, margin 25.9% .
SGX942 clinical progress: CEO emphasized positive Phase 2 oral mucositis data and long-term safety readout expected 4Q16, reinforcing pivotal design planning .
Non-dilutive funding momentum: management “pleased with…additional non-dilutive funding of over $8 million” supporting biodefense programs; OrbeShield received $0.634M additional BARDA/NIAID funding .

Timeline slippage: SGX301 Phase 3 data pushed from 2H 2016 (prior messaging) to 2H 2017; SGX942 pivotal design moved from 2H 2016 to 1H 2017, extending catalysts and cash runway risk .
Heavy reliance on government contracts: all quarterly revenue came from Vaccines/BioDefense with zero BioTherapeutics revenue, concentrating execution/funding risk .
Cash decreased 35% YTD to $3.18M; working capital down 55%, underscoring financing dependence despite equity line access .

Metric	Q2 2015	Q1 2016	Q2 2016
Revenue ($USD)	$1,099,827	$2,630,986	$3,160,050
Gross Profit ($USD)	$283,125	$398,651	$817,511
Gross Margin (%)	25.7%	15.2%	25.9%
Net Loss ($USD)	$(3,977,694)	$(1,149,433)	$(92,775)
Basic EPS ($USD)	$(0.15)	$(0.04)	$(0.00)
Diluted EPS ($USD)	$(0.15)	$(0.06)	$(0.02)

Segment revenue breakdown:

Segment Revenue	Q2 2015	Q1 2016	Q2 2016
Vaccines/BioDefense ($USD)	$1,099,827	$2,630,986	$3,160,050
BioTherapeutics ($USD)	$0	$0	$0

KPIs and operating items:

KPI/OpEx	Q2 2015	Q1 2016	Q2 2016
R&D Expense ($USD)	$1,442,914	$1,428,499	$827,832
G&A Expense ($USD)	$874,962	$875,857	$999,637
Cost of Revenues ($USD)	$816,702	$2,232,335	$2,342,539
Other Income/(Expense) ($USD)	$(1,942,943)	$756,272	$917,183
Change in Warrant Liability ($USD)	$(1,943,494)	$760,157	$525,328
Cash & Equivalents (Quarter-end) ($USD)	—	$4,260,440	$3,183,289

Note: Press release stated cash “$3.2 million” as of June 30, 2016; 10-Q shows $3,183,289 .

Metric	Period	Previous Guidance	Current Guidance	Change
SGX301 Phase 3 data timing	CTCL	2H 2016	2H 2017	Lowered (delayed)
SGX942 pivotal Phase 2b/3 protocol agreement	Oral mucositis	2H 2016	1H 2017	Lowered (delayed)
SGX942 long-term safety readout	Oral mucositis	2H 2016 (ongoing collection)	4Q 2016 expected	Maintained/clarified
OrbeShield funding	GI ARS	Base contracts existing	+$0.634M incremental BARDA/NIAID (July 25, 2016)	Raised (funding)
RiVax funding options	Ricin vaccine	Ongoing NIH contract	Options exercised: +$3.2M (May 25) and +$4.3M (May 5)	Raised (funding)
Financial guidance (revenue/margins)	FY/Quarter	None issued	None issued	Maintained

No Q2 2016 earnings call transcript was filed; themes are drawn from the 8-K press release and Q1/Q2 10-Qs.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2016)	Trend
R&D execution (SGX301, SGX942)	SGX301 Phase 3 initiated; SGX942 positive Phase 2 prelim results; pivotal protocol targeted 2H16	SGX301 actively enrolling; data now 2H17; SGX942 pivotal design moved to 1H17; long-term safety readout 4Q16	Slower timelines
Government contract revenue (BARDA/NIAID)	Revenue $2.63M in Q1, all from Vaccines/BioDefense	Revenue $3.16M, all Vaccines/BioDefense; management fee milestones noted	Strengthening
Funding/non-dilutive support	Up to ~$40.3M active funding availability cited in Q1	~$37.1M active funding availability; +$8M additional biodefense funding highlighted	Stable to positive
Warrant liability impact	Q1 non-cash income $0.76M	Q2 non-cash income $0.53M; total other income $0.92M	Positive tailwind
Liquidity and working capital	Cash $4.26M; working capital $0.41M (excl. warrant liability)	Cash $3.18M; working capital $0.98M (excl. warrant liability)	Mixed (cash down, WC up vs Q1)

“We continue to be very encouraged with the positive results demonstrated in our Phase 2 oral mucositis trial with SGX942… anticipate having a pivotal Phase 2b/3 study design… during the first half of next year. We also continue to actively enroll patients in our pivotal Phase 3 study in cutaneous T-cell lymphoma with SGX301.” — Christopher J. Schaber, PhD, President & CEO .
“We continue to advance the development of RiVax™ and OrbeShield®… pleased with… additional non-dilutive funding of over $8 million…” .

No Q2 2016 earnings call transcript located in filings; clarifications gleaned from 10-Q include updated SGX301 data timing to 2H 2017 and SGX942 pivotal protocol to 1H 2017 .
Management noted other income reversal of a prior accrual ($0.39M) contributing to the quarter’s near break-even .

Wall Street consensus estimates via S&P Global for Q2 2016 EPS and revenue were unavailable for this period; therefore, no formal beat/miss assessment is provided. All comparisons are versus prior periods and year-over-year as disclosed in company filings.

Bold: Government contract revenue is the core driver; all revenue is Vaccines/BioDefense. Monitoring BARDA/NIAID milestone schedules is crucial for quarterly top-line variability .
Bold: Development timelines slipped—key CTCL and oral mucositis catalysts moved out by 6–12 months; this extends the path to value realization .
Near break-even driven by non-cash warrant liability income and accrual reversal; core operating loss persists, so recurring profitability without non-cash items is not yet evident .
Liquidity watch: cash fell to $3.18M; while equity lines and NJ NOL program exist, execution risk rises with timeline delays .
Funding momentum remains strong (Ebola vaccine collaboration, RiVax options, OrbeShield) and can catalyze revenue/milestones without dilution .
Short-term trading: revenue/milestone headlines and warrant liability revaluation can swing reported EPS; catalysts now centered on 4Q16 SGX942 safety readout and interim contract milestones .
Medium-term thesis: value tied to progression of SGX301 Phase 3 and SGX942 pivotal design/launch; sustained government backing mitigates cash burn but shifts thesis toward biodefense execution vs near-term BioTherapeutics revenues .