Appili Therapeutics Reports Financial and Operational Results for First Quarter of Fiscal Year 2023

Appili Therapeutics Inc. (TSX:APLI; OTCQX: APLIF) (the “Company” or “Appili”), a biopharmaceutical company focused on drug development for infectious diseases and biodefense, today announced its financial and operational results for the first quarter of its fiscal year 2023, which ended on June 30, 2022.

“As threats from both known and emerging infectious diseases loom around the world, I’m proud that Appili is working to advance our pipeline of critical infectious disease and biodefense programs,” said Armand Balboni, M.D., Ph.D., Chief Executive Officer of Appili Therapeutics. “Following our recent presentation at WorldLeish7, we are even closer to making available ATI-1801, an urgently needed treatment for those suffering from cutaneous leishmaniasis, a disfiguring infection of the skin. We look forward to continuing this momentum and hope to announce reinforced support from the Defense Threat Reduction Agency for our biodefense tularemia vaccine candidate ATI-1701, and with the help of our partners, receive FDA Approval for ATI-1501, a liquid oral reformulation designed to help patients burdened by difficult-to-treat bacterial infections.”

First quarter and recent operational highlights include:

• Announcing commitment of over US$10 million in new funding from DTRA to advance for our biodefense tularemia vaccine candidate ATI-1701 to help combat the bacteria Francisella tularensis, the causative agent of tularemia and a top priority biothreat.
• Attending at the WorldLeish7 Conference in Cartagena, Colombia, and presenting update on new clinical program ATI-1801 for the treatment of cutaneous leishmaniasis that may be eligible for a valuable Priority Review Voucher
• Securing a non-convertible loan of US $3.6 million, and a licence and distribution agreement with Long Zone Holdings Inc.
• Completing equity financing of $4,500,000 in gross proceeds.

Financial Results

The Company prepares its financial statements in accordance with IFRS as issued by the International Accounting Standard Board and Part I of Chartered Professional Accountants of Canada Handbook–Accounting. All figures are stated in Canadian dollars unless otherwise stated.

The net loss and comprehensive loss of $2.32 million or $0.03 loss per share for the three months ended June 30, 2021, was $5.04 million lower than the net loss and comprehensive loss of $7.36 million or $0.12 loss per share during the three months ended June 30, 2021. This relates mainly to a decrease in research and development expenses by $5.09 million, a decrease in business development of $0.4 million, and a decrease in income tax expense of $0.01 million. These decreases were offset by an increase in general and administrative expense by $0.08 million, an increase in financing cost of $0.15 million, a decrease of government assistance of $0.22 million and a decrease in interest income by $0.01 million.

As of June 30, 2022, the Company had cash and short-term investments of $5.55 million, compared to $6.66 million on March 31, 2022. As of August 13, 2022, the Company had 121,226,120 issued and outstanding Common Shares, 8,656,905 stock options, and 49,817,879 warrants outstanding.

This press release should be read in conjunction with the Company’s unaudited interim condensed financial statements for the first quarter of the 2022 fiscal year and the related management discussion and analysis (MD&A), copies of which are available on SEDAR at www.sedar.com.

About Appili Therapeutics

Appili Therapeutics is an infectious disease biopharmaceutical company that is purposefully built, portfolio-driven, and people-focused to fulfill its mission of solving life-threatening infections. By systematically identifying urgent infections with unmet needs, Appili’s goal is to strategically develop a pipeline of novel therapies to prevent deaths and improve lives. The Company is currently advancing a diverse range of anti-infectives, including, a vaccine candidate to eliminate a serious biological weapon threat, a topical antiparasitic product for the treatment of a disfiguring disease, a broad-spectrum antifungal, and two novel antibiotic programs. Led by a proven management team, Appili is at the epicenter of the global fight against infection. For more information, visit www.AppiliTherapeutics.com.

Forward Looking Statements

This news release contains “forward-looking statements”, including with respect to the Company’s development of its products and expected funding arrangements. Wherever possible, words such as “may,” “would,” “could,” “should,” “will,” “anticipate,” “believe,” “plan,” “expect,” “intend,” “estimate,” “potential for” and similar expressions have been used to identify these forward-looking statements. These forward-looking statements reflect the current expectations of the Company’s management for future growth, results of operations, performance and business prospects and opportunities and involve significant known and unknown risks, uncertainties and assumptions, including, without limitation, those listed in the annual information form of the Company dated June 23, 2022 and the other filings made by the Company with the Canadian securities regulatory authorities (which may be viewed at www.sedar.com). Should one or more of these risks or uncertainties materialize or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this news release. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward-looking statements. The Company disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.

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