No tax provision or benefits, to reduce losses, are provided for the quarter ended March 31, 2008 and 2007, since the Company is in a net operating loss carry-forward position for which a valuation has been established.
On February 29, 2008, The Quigley Corporation completed the sale of its wholly owned subsidiary, Darius International Inc. ("Darius"), which constituted the Health and Wellness segment, to InnerLight Holdings, Inc. The terms of the agreement include a purchase price of $1 million in cash without guarantees, warranties or indemnifications for the stock of Darius and its subsidiaries. The unaudited net book value of Darius at February 29, 2008 was approximately $259,000. Net loss for the Company for the first quarter ended March 31, 2008 reflects results from discontinued operations associated with the sale of Darius that includes a gain on disposal of $737,000 and income from discontinued operations of $139,000, totaling $876,000 as compared to a loss from discontinued operations of $287,000 for the same period in 2007.
As the Company continues to review its current structure, ownership of Darius was no longer a benefit since previous losses by this segment have been a drain for the ongoing research and development costs associated with the ethical pharmaceutical segment. Also, separating this segment will help streamline the structure of the Company, which will focus on continuing operations in OTC product marketing and continuing investment in pharmaceutical research.
The research by the Company is part of its strategic initiatives to
generate future growth. These initiatives include capitalizing on the
growth potential of Quigley Pharma, a wholly owned Ethical Pharmaceutical
subsidiary, by developing natural-source potential prescription products
particularly for Diabetic Peripheral Neuropathy, Avian Flu, disease states
associated with inflammation, and protection again
|SOURCE The Quigley Corporation|
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