COSTA MESA, Calif., Aug. 15 /PRNewswire-FirstCall/ -- CNS Response, Inc. (OTC Bulletin Board: CNSO) today announced financial results for its fiscal third quarter ended June 30, 2007. CNSO is a life sciences company focused on the commercialization of its patented referenced-EEG ("rEEG(SM)"), system that guides psychiatrists and other physicians to determine proper treatments for patients with behavioral (mental or addictive) disorders. This technology allows CNSO to create and provide simple reports ("rEEG Reports") that specifically guide physicians to treatment strategies based on the patient's own physiology.
Net revenues for the three-month period ended June 30, 2007 were $69,800, an increase of 64% from net revenues of $42,500 during the same period last year. The Company delivered 179 rEEG Reports in the quarter ended June 30, 2007 as compared to 106 rEEG Reports for the comparable period in 2006 while the average price of a report remained constant at approximately $400 per report. The Company does not expect a material increase in revenues until 2008 when it anticipates having completed an ongoing multi-site clinical study to validate the efficacy of its rEEG technology.
"Consistent with the plan we have previously disclosed, we have dedicated our resources to pursuing a series of infrastructure goals prior to a more aggressive marketing of rEEG. Included in these events is a key ongoing clinical trial that is now being conducted in five sites," commented Len Brandt, Chief Executive Officer of CNS Response. "We will make our first progress report on this trial in the fall. This trial is based on one of our eight smaller trials that have shown that rEEG guided therapy, when used in conjunction with other standard clinical information, guided physicians to successful outcomes of these mostly treatment resistant patients. We are confident that our current multi-site study will show similar results and further validate our technology."
Net loss for the three-month period ended June 30, 2007 was $(502,700), or $(0.02) per diluted share, compared to a net loss of $(510,000), or $(0.25) per diluted share, during the same period last year. The net loss for the three month period ended June 30, 2007 consists of an operating loss of $(557,900) offset by other income of $55,200. The net loss for the three month period ended June 30, 2006 consists of an operating loss of $(363,900) and interest expense of $(146,100). The increase in operating loss is due primarily to the costs incurred in connection with the ongoing multi-site clinical study.
About CNS Response
CNS Response is a life sciences company focused on the commercialization of the first patented system that guides psychiatrists in pharmacotherapy for patients with certain behavioral disorders. The Company's system, "Referenced-EEG(SM)" or "rEEG(SM)", is the first objective, physiology-based system consistently shown to guide psychiatrists to appropriate treatment in the most challenging patients. It is the culmination of a 20-year effort combining Quantitative Medicine, Psychiatry and Pathology that allows a physician for the first time to determine objectively which CNS (central nervous systems) medications will be effective for a particular patient..
rEEG(SM) utilizes traditional electroencephalography (EEG) in conjunction with a normative database and a proprietary clinical (symptomatic) database to identify the following: (1) medication classes most likely to be needed; and (2) medications with the most probable treatment potential for each patient. Reports are provided to physicians in a relationship analogous to that of a reference laboratory. Prospective, retrospective and field studies of treatment-resistant patients have reported treatment success of 70% or greater in managed care, outpatient psychiatric and residential substance abuse clinical settings.
In addition to providing analytical support to physicians, CNS Response is also an aide to pharmaceutical developers, who can use rEEG(SM) to (1) stratify study populations to improve the success of FDA clinical trials; (2) provide insight on effective therapeutic dosing of investigational drugs; (3) identify additional indications for psychiatric medications; (4) provide insight into effective drug combinations; and (5) discover opportunities for decision analytics and support. In addition to these applications, CNS Response continues to investigate the use of rEEG analysis for development of proprietary pharmaceutical opportunities.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Except for the historical information contained herein, the matters discussed are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements involve risks and uncertainties as set forth in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made herein.
Janine McCargo / Jason Rando
(646) 536-7033 / 7025
|SOURCE CNS Response, Inc.|
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