Sales, General and Administrative costs increased to $1,123,000 in the first quarter of 2011, from $801,000 in the first quarter of 2010. This increase is due to expensed financing fees related to the February 2011 financing, offset in part by the impact of decreased compensation expenses in the current year period resulting from 2010 workforce reductions. Research & Development expenses decreased to $73,000 in the first quarter of 2011, from $253,000 in the first quarter of 2010. This decrease reflects the impact of decreased compensation expenses in the current year period resulting from 2010 workforce reductions.
As a result of the February 2011 financing transaction, the first quarter of 2011 included interest expense of $46,000 from interest on the Convertible Notes and other expenses of $1,476,000 and $2,218,000 as a result of a fair value adjustment related to the Warrant Liabilities and Convertible Notes, respectively.
Income from discontinued operations related to TMR activities prior to the sale of the TMR business was $53,000 in the first quarter of 2011 and $658,000 in the first quarter of 2010. A gain on sale of discontinued operations of $1,179,000 was recorded as a result of the $1 million in cash received and the assumption of all the Company's obligations under service contracts as of the closing date totaling $614,000. The total carrying value of the assets sold was $385,000. In addition, PLC incurred transaction costs of $50,000.
About PLC Systems Inc.PLC Systems Inc., headquartered in Franklin, Mass., is a medical device company focused on innovative technologies for the cardiac and vascular markets. PLC's newest product, RenalGuard, has been developed to help prevent the onset of
|SOURCE PLC Systems Inc.|
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