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CryoCor Reports 2007 Results
Date:3/20/2008

ssfully commercialized, they anticipate that their cost of sales as a percentage of revenues will decline as they achieve higher future volumes of product sales. Included in cost of sales for the years ended December 31, 2007 and 2006 were non-cash stock-based compensation of $431,000 and $411,000, respectively.

Research and development expenses for the year ended December 31, 2007 increased $1.6 million to $7.4 million compared to $5.8 million for the same period in 2006. The increase from 2006 to 2007 was primarily related to the costs associated with its FDA Advisory Panel meeting for its PMA for the treatment of atrial flutter, or AFL, and related regulatory consulting of $276,000, costs related to the Company's third-party clinical research organization of $403,000, costs related to the research and development efforts under the BSC development and license agreement and the Quantum development project of $382,000, increased preclinical research of $225,000, increased non-cash share-based compensation of $185,000, as well as increased compensation expense for bonus expense related to the Company's FDA Advisory Panel meeting and subsequent approval of its Cardiac Cryoablation System for the treatment of AFL and the Company's employee retention program of $503,000. These increases were partially offset by lower clinical trial costs of $261,000 related to lower enrollment in the Company's ongoing AF clinical trial than enrollment in the year ended December 31, 2006. Included in research and development expenses for the years ended December 31, 2007 and 2006 were non-cash stock-based compensation of $682,000 and $497,000, respectively.

Selling, general and administrative expenses for the year ended December 31, 2007 decreased $1.3 million to $6.1 million compared to $7.4 million for the same period in 2006. The decrease from 2006 to 2007 was primarily due to lower personnel costs, including severance, as a result of the Company's staff restructuring in
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SOURCE CryoCor, Inc.
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