DURHAM, N.C., Aug. 12 /PRNewswire-FirstCall/ -- Oxygen Biotherapeutics, Inc. (OTC Bulletin Board: OXBO) today announced that the company has filed its annual report on Form 10-K for the fiscal year ended April 30, 2009. In addition to being available from the Securities And Exchange Commission website at www.SEC.gov, the 10-K can be downloaded from the company website at www.oxybiomed.com via the SEC Filings link on the Investors page.
For the year ended April 30, 2009, the company incurred a loss of $33,218,840 compared to a loss of $6,721,168 for the previous fiscal year. The increase in net loss is attributable primarily to an increase of approximately $5 million in general and administrative expenses and a one-time, non-cash charge of $24,856,041 for interest expense. The Form 10-K should be read for full details of these expenses.
"During the fiscal year we converted most of the five-year convertible debentures, reflected as long term debt on our balance sheet, to equity. In doing so, we eliminated all of the related interest obligation and the related discounts on this debt. When we eliminated our obligation we had to take a non-cash charge against income in the amount of the interest we would have had to pay had this conversion not occurred," said Chris Stern, company chairman and CEO. "Most of that finance charge comes from financings from before 2008 that had drastic warrant clauses. Now, with these obligations eliminated, our balance sheet is much stronger. Combined with the recent financing agreement with Vatea Fund, we are in a financial position where we believe we have the working capital necessary to fund our operations and development pipeline and sustain the company until we generate revenue."
For additional comments by Chris Stern, please see his latest blog entry which will be posted today on the company website at www.oxybiomed.com.
About Oxygen Biotherapeutics, Inc.
Oxygen Biotherapeutics, Inc. is dedicated to commercializing innovative pharmaceuticals and medical devices in the field of oxygen therapeutics and Defense Medicine(TM). The company has under development a perfluorocarbon (PFC) therapeutic oxygen carrier and liquid ventilation product (Oxycyte(R)) and has out-licensed an implantable glucose sensor. These products are based upon core technologies that include biomedical applications for PFCs as well as medical and industrial applications for biosensors. Each of the product candidates is designed with advantages over currently marketed products in major markets including traumatic brain injury, sickle cell crisis, trauma, wound care, decompression sickness, acute respiratory distress syndrome, stroke, myocardial infarction, surgery, diabetes wounds and ulcers, and cosmetic applications. More information is available at www.oxybiomed.com.
Caution Regarding Forward-Looking Statements
This news release and the Blog referenced in this news release, which is posted on the company website, contain forward-looking statements by Oxygen Biotherapeutics, Inc. that involve risks and uncertainties and reflect the company's judgment as of the date of this release. These statements include those referring to sufficiency of the company's working capital and related matters. Actual events or results may differ from Oxygen Biotherapeutics' expectations. There can be no assurance that the company's working capital will be sufficient to fund operations in fiscal year 2009-2010, nor that positive cash flow or income will result from an Oxycyte licensing agreement, product sales or royalties. Additional information concerning these and other risk factors affecting Oxygen Biotherapeutics' business can be found in the company's public report filings with the Securities and Exchange Commission, which are available on the SEC website at www.sec.gov and through our website at www.oxybiomed.com. Oxygen Biotherapeutics disclaims any intent or obligation to update these forward-looking statements beyond the date of this release. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
|SOURCE Oxygen Biotherapeutics, Inc.|
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