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Encorium Reports Third Quarter 2009 Financial Results; Announces Date of Annual Stockholder Meeting
Date:11/16/2009

ctors utilized on active clinical studies being conducted, net of severance and other costs.

Selling, general, and administrative expenses (SG&A) was $2.1 million, or 40.3% of net revenue, for the three months ended September 30, 2009, compared to $2.0 million, or 31.3% of net revenue, for the three months ended September 30, 2008.

Depreciation and amortization expense decreased 75.6% to $98,563 for the three months ended September 30, 2009 from $403,406 for the three months ended September 30, 2009 primarily as a result of certain intangible assets acquired as part of the Encorium Oy (formerly Remedium) acquisition being fully amortized. During the three months ended September 30, 2008, the Company took a non-cash impairment charge of $1.86 million in connection with its analysis of the carrying value of goodwill acquired in connection with the acquisition of Encorium Oy.

Loss from continuing operations decreased to $643,389 or $(0.04) per diluted share for the third quarter of 2009, from a net loss of $2.4 million, or $(0.12) per diluted share, in the third quarter of 2008.

Financial Position

Encorium's balance sheet at September 30, 2009 reflected cash and cash equivalents of $318,243 and stockholders' equity of $925,423. Our net cash used in operations for the nine months ended September 30, 2009 was $5.4 million. The Company's latest financials have been prepared on a going concern basis. As previously disclosed, Encorium's independent registered public accounting firm reported that the Company's audited consolidated financial statements for the fiscal year ended December 31, 2008, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 27, 2009, contains a paragraph that indicates that, while the Company's financial statements have been prepared on a going concern basis, there is substantial doubt about its ability to continue as a goin
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SOURCE Encorium Group, Inc.
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