NEW BRUNSWICK, N.J., Feb. 18 /PRNewswire-FirstCall/ -- Senesco Technologies, Inc. ("Senesco" or the "Company") (NYSE Alternext US: SNT) today reported financial results for the three months ended December 31, 2008.
Net loss for the three month period ended December 31, 2008 was $1,624,341, or $0.09 per share, compared with a net loss of $1,049,838 or $0.06 per share, for the three month period ended December 31, 2007. This increase in net loss was primarily the result of an increase in non-cash expenses associated with the outstanding convertible notes that were issued during the year ended June 30, 2008, and an increase in operating expenses.
Quarterly and Recent Highlights
"We remain focused on our goal of filing an Investigational New Drug Application for SNS-01 before the end of calendar year 2009," said Bruce Galton, President and CEO of Senesco. "The recently announced results of the maximum tolerated dose, preclinical toxicology, and efficacy / dose range finding studies for SNS-01 was an important step toward accomplishing this goal."
The Company did not record any revenue for the three month period ended December 31, 2008. Total revenues of $6,250 for the three month period ended December 31, 2007 consisted of the amortized portion of previous milestone payments received in connection with certain agricultural license agreements.
Research and development expenses during the three month period ended December 31, 2008 were $579,286, compared with $392,254 during the three month period ended December 31, 2007, an increase of 47.7%. This increase was primarily a result of an expansion of Senesco's human health programs, specifically the Company's multiple myeloma research program, which was partially offset by a decrease in agricultural research expenses as a result of a decrease in the allocation of resources from agriculture to human health at the
General and administrative expenses were $649,056 for the three month period ended December 31, 2008, compared with $585,851 during the three month period ended December 31, 2007, an increase of 10.8%. This increase was primarily due to a $64,000 increase in stock based compensation, an approximately $21,000 increase in professional fees, which were the result of an increase in legal fees, and an approximately $16,000 increase in director fees, which were due to the Company implementing a cash compensation plan for non-employee directors beginning July 1, 2008.
At December 31, 2008, Senesco had cash, cash equivalents and investments of $3,615,788, and working capital of $3,562,743, which the Company estimates will fund its operations for approximately the next seven months, as of December 31, 2008.
About Senesco Technologies, Inc.
Senesco Technologies, Inc. is a U.S. biotechnology company, headquartered in New Brunswick, NJ. Senesco has initiated preclinical research to trigger or delay cell death in mammals (apoptosis) to determine if the technology is applicable in human medicine. Accelerating apoptosis may have applications to development of cancer treatments. Delaying apoptosis may have applications to certain diseases such as glaucoma, ischemia and arthritis, among others. Senesco takes its name from the scientific term for the aging of plant cells: senescence. Delaying cell breakdown in plants extends freshness after harvesting, while increasing crop yields, plant size and resistance to environmental stress. The Company believes that its technology can be used to develop superior strains of crops without any modification other than delaying natural plant senescence. Senesco has partnered with leading-edge companies engaged in agricultural biotechnology and earns research and development fees for applying its gene-regulating platform technology to enhance its partners' products.
Certain statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including, but not limited to: the development of the Company's gene technology; the approval of the Company's patent applications; the successful implementation of the Company's research and development programs and joint ventures; the success of the Company's license agreements; the acceptance by the market of the Company's products; success of the Company's preliminary studies and preclinical research; competition and the timing of projects and trends in future operating performance, the Company's ability to meet its funding milestones under its financing transaction, the Company's ability to comply with the continued listing standards of the AMEX, as well as other factors expressed from time to time in the Company's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Company Contact: Investor Relations Contact: Senesco Technologies, Inc. FD Joel Brooks Brian Ritchie Chief Financial Officer firstname.lastname@example.org email@example.com 212-850-5600
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY (A DEVELOPMENT STAGE COMPANY) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the Three For the Three Months Ended Months Ended December 31, December 31, 2008 2007 Revenue $-- $6,250 Operating Expenses: General and administrative 649,056 585,851 Research and development 579,286 392,254 Total Operating Expenses 1,228,342 978,105 Loss From Operations (1,228,342) (971,855) Sale of state income tax loss, net -- -- Other noncash income -- -- Interest income, net 17,994 25,227 Amortization of debt discount and financing costs (106,342) (38,374) Interest expense on convertible notes (307,651) (64,836) Net Loss $(1,624,341) $(1,049,838) Basic and Diluted Net Loss Per Common Share $(0.09) $(0.06) Basic and Diluted Weighted Average Number of Common Shares Outstanding 18,629,575 17,474,870
From Inception For the Six For the Six on July 1, Months Ended Months Ended 1998 through December 31, December 31, December 31, 2008 2007 2008 Revenue $200,000 $377,500 $1,375,000 Operating Expenses: General and administrative 1,178,921 974,910 22,904,377 Research and development 1,083,672 745,149 11,041,267 Total Operating Expenses 2,262,593 1,720,059 33,945,644 Loss From Operations (2,062,593) (1,342,559) (32,570,644) Sale of state income tax loss, net -- -- 586,442 Other noncash income -- -- 321,259 Interest income, net 41,051 32,106 521,288 Amortization of debt discount and financing costs (212,397) (53,595) (881,160) Interest expense on convertible notes (571,808) (67,836) (1,005,962) Net Loss $(2,805,747) $(1,431,884) $(33,028,777) Basic and Diluted Net Loss Per Common Share $(0.15) $(0.08) Basic and Diluted Weighted Average Number of Common Shares Outstanding 18,504,477 17,474,282
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY (A DEVELOPMENT STAGE COMPANY) CONDENSED CONSOLIDATED BALANCE SHEETS December 31, June 30, 2008 2008 (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $1,115,788 $5,676,985 Short-term investments 2,500,000 500,000 Prepaid expenses and other current assets 828,919 180,556 Total Current Assets 4,444,707 6,357,541 Property and equipment, net 3,893 5,459 Intangibles, net 3,515,565 3,213,543 Deferred financing costs 847,385 1,059,230 Security deposit 7,187 7,187 TOTAL ASSETS $8,818,737 $10,642,960 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $468,280 $370,167 Accrued expenses 413,684 314,267 Total Current Liabilities 881,964 684,434 Convertible note, net of discount 609 57 Grant payable 99,728 99,728 Other liability 19,539 23,062 TOTAL LIABILITIES 1,001,840 807,281 STOCKHOLDERS' EQUITY: Preferred stock, $0.01 par value; authorized 5,000,000 shares, no shares issued -- -- Common stock, $0.01 par value; authorized 100,000,000 shares, issued and outstanding 19,027,719 and 18,375,117, respectively 190,277 183,751 Capital in excess of par 40,655,397 39,874,958 Deficit accumulated during the development stage (33,028,777) (30,223,030) TOTAL STOCKHOLDERS' EQUITY 7,816,897 9,835,679 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,818,737 $10,642,960
|SOURCE Senesco Technologies, Inc.|
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