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Pharmos Corporation Reports 2011 Second Quarter Results
Date:8/8/2011

s related to conducting a non-human primate toxicology study needed for this trial. These increases were slightly offset by a reduction of various facility related expenses as the Company continued to reduce overall facility costs.

General and administrative expenses for the second quarter of 2011 decreased by $41,077, or 14%, from $300,492 in 2010 to $259,415 in 2011. The primary reductions were a $30,000 reduction in consultant and professional fees and an $11,000 reduction in salaries and benefits. Professional fees have decreased as there were business development fees in 2010 related to a possible reverse merger candidate which eventually was not pursued. The decrease in payroll costs in 2011 reflects lower stock compensation costs and the elimination of an administrative position in 2010.  

At June 30, 2011, the Company had approximately $2.1 million in cash and cash equivalents which is expected to be sufficient to fund current operations through at least March 31, 2012.  

Six-months Ended June 30, 2011For the six months ended June 30, 2011, Pharmos recorded a net loss of $1.1 million, or $0.02 per share compared to a net loss of $0.9 million, or $0.02 per share for the six months ended June 30, 2010.  

Research & development expenses for the first half of 2011 increased by $269,896 or 119% from $226,358 in 2010 to $496,254 in 2011. The primary areas include a $142,000 increase in clinical study fees and a $167,000 increase in consultant and professional fees which were offset by a $39,000 reduction in various other areas. Consulting and professional fees increased substantially as the Company conducted work in preparation for initiating a proof-of-concept trial in gout patients using Levotofisopam. Clinical study fees increased due to costs related to manufacturing capsules needed for this trial and costs related to conducting a non-human primate toxicology study. These increases were slightly offset by a red
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