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Adeona Reports Second Quarter 2011 Financial Results
Date:8/15/2011

stock-based compensation expense for the six months ended June 30, 2011 includes a one-time charge of $397,767 relating to the modification of certain stock options, prior to expiration, held by a member of the Board of Directors.

Research and development expenses for the three and six months ended June 30, 2011, were $279,641 and $511,959, respectively, compared to $426,572 and $733,722 for the same periods in 2010. These decreases are primarily the result of decreased costs associated with our drug product candidates. For the three and six months ended June 30, 2011, research and development expenses include a non-cash charge relating to stock-based compensation expense of $5,751 and $14,609, respectively, compared to $18,487 and $52,967, for the same periods in 2010.

Costs of laboratory services for the three and six months ended June 30, 2011, were $301,142 and $545,000, respectively, compared to $132,406 and $237,825, for the same periods in 2010. These increases are primarily the result of increased costs associated with the increased client base and expansion of in-house diagnostic testing services to include a full array of microbiology testing, including salary and supply costs.

Other expenses for the three and six months ended June 30, 2011, were $760,393 and $1,520,280, respectively, compared to $6,499 and $7,336 of other income, for the same periods in 2010. For the three and six months ended June 30, 2011, other expense included $759,610 and $1,569,467, respectively, relating to the estimated fair value of the warrants associated with the January 2011 and April 2011 financings, adjusted for the change in their fair value at June 30, 2011. Other income for the six months ended June 30, 2011 included $62,996 relating to the settlement of accounts payable previously accrued in prior periods.

The net loss for the three months ended June 30, 2011, was $1,679,895 or $0.06 per share compared to net income of $979,782 or $0.05 for th
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SOURCE Adeona Pharmaceuticals, Inc.
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