"As we experienced in the first quarter, and again this quarter, our significant stock price increase has resulted in non-cash charges due to the revaluation of our preferred stock conversion feature and warrant liability," Tuttle continued. "In the first quarter, this resulted in an expense of $2 million and, with further strengthening of our share price in second quarter; the expense reached an additional $4.2 million bringing the total expense for the first six months of 2011 to $6.3 million. While this non-cash expense appears significant, I want to emphasize that it does not affect our cash flow. I trust that shareholders are encouraged by the growth in our market capitalization since we secured this financing and acquired the FAMILION Business."
Modified EBITDA, which we are emphasizing as an appropriate and sound measure of our real business results, improved to $(369,000) in the second quarter of 2011 from $(939,000) in the second quarter of 2010.
Transgenomic anticipates growth in both our diagnostics and our laboratory services businesses as we commercialize new assa
|SOURCE Transgenomic, Inc.|
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