Auris Medical Holding AG (NASDAQ:EARS) Q2 2020 Earnings Conference Call - Final Transcript
Sep 17, 2020 • 08:30 am ET
2019. We therefore continued to reduce operating expenditures and the cash burn rate. The main factors contributing to the decrease in 2020 were a reduction in research and development expenses from CHF1.3 million in the first half of 2019 to CHF0.9 million in the first half of 2020, primarily due to lower startup costs for clinical trials and lower headcount, sorry, and the reduction in general and administrative expenses from CHF2.8 million in the first half of 2019 to CHF1.5 million in the first half of 2020.
Administration expenditures in 2019 had included substantial external costs related to the company's redomestication to Bermuda. Please note that in the first half of 2020, we capitalized direct costs related to our AM-125 program in accordance with International Accounting Standard 38 for a total amount of CHF0.7 million compared to CHF1.6 million for the six months ended June 30, 2019.
Now on to Slide 14. Cash and cash equivalent at June 30, 2020 were substantially lower than usual due to the reduction in the par value per common share from CHF0.4 to CHF0.016. Also the reduction itself was cash neutral. It prevented us temporarily from raising equity and was completed only on June 30, 2020. Since then we have raised about $2.1 million in gross proceeds from the issuance of stock under the equity line with LPC and through our at-the-market program. In addition, we obtained CHF1.5 million through the convertible loan to Altamira Medica.
We expect our total cash needs in 2020, including project AM-301 to be in the range of CHF7.0 million to CHF8.5 million for expected total operating expenses or CHF4.5 million to CHF5.5 million and expected capitalized research and development expenses of CHF2.5 million to CHF3.0 million. These cash needs are below our earlier guidance. So far we have used about 11% of the maximum amounts available under each ATM program and equity line of $25 and $10 million, respectively.
With that, I would like to turn the call back to Thomas.
Thank you, Elmar. Concluding on Slide 16. We have had a very productive 2020 so far with key data readouts and the establishment of a new development program. We have several key project milestones in the upcoming quarters that I'd like to highlight. The start of Part B of our Phase 2 trial was AM-125; the receipt of additional in vitro data with AM-301; following this in vitro data, the generation of clinical data with AM-301; the filing of an IND for intranasal betahistine; the completion of recruitment in Part B of our AM-125 Phase 2 trial.
In addition, we will obviously have a key focus on the strategic review. I'm proud of the immense amount of work our team has put into our exciting development programs, especially in light of the COVID-19 related challenges. I believe what we are doing will be life changing for very important patient populations. I look forward to sharing intermittent updates as we continue to make progress.
With that, I would