Cardium Reports on Third Quarter 2008 Financial Results and Revised Business Strategies for Opera...(ch represents substantial completion ofo...)

Financial Report

Product revenue for third quarter 2008 was $585,000, an increase of 91 percent compared to $307,000 in the same period in 2007. Product revenue for the nine months ended September 30, 2008 totaled $1.5 million compared to $772,000 for the same period in 2007 representing a 92 percent increase. Total revenue for the third quarter of 2008 was $585,000, compared to $364,000 for the same quarter last year. For the nine months ended September 30, 2008, total revenue was $1.9 million compared to $903,000 for the same period in 2007. The increase in revenue was a result of an increase in InnerCool sales resulting from its expanded sales and marketing efforts. For the quarter ended September 30, 2008, the Company reported a net loss of $6.2 million, or $0.13 per share, compared to a net loss of $6.1 million, or $0.15 per share for third quarter 2007. Research and development costs totaled $2.9 million and selling, general and administrative expenses of $2.9 million, compared to $3.2 million and $2.9 million respectively for the same period last year. Non-cash charges relating to stock-based compensation, depreciation and amortization for the third quarter of fiscal 2008 totaled $1,079,000, compared to $943,000 for the same period in 2007. Cash and cash equivalents as of September 30, 2008 were $127,000, compared to cash and cash equivalents of $4.1 million as of September 30, 2007. In July 2008, the Company completed a registered direct investment resulting in gross proceeds of approximately $3.34 million, before placement agent fees and offering expenses and excluding any future proceeds from the exercise of the warrants issued in the offering. In November 2008, the Company completed a secured debt financing resulting in gross proceeds of approximately $6.0 million, before placement agent fees and offer
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