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Pharmos Corporation Reports Fourth Quarter and Full Year 2009 Results
Date:2/22/2010

isition agreement. Under the terms of the Vela acquisition agreement as amended, the 2 million shares were issued on November 2, 2009. The cash portion of $1,000,000 was also expensed in Q1 2009 but was reversed in Q4 2009 since it is not probable that the amended terms will be met in the foreseeable future, which includes receipt of at least a $10 million cash upfront payment. Since the trial results were not successful, no other milestones have been achieved.

General and administrative expenses decreased by $428,773 or 22%, from $1,965,243 in 2008 to $1,536,470 in 2009.  The decrease in general and administrative expenses is due to a reduction in expenses in almost every expense category.  Significant reductions were seen in employee compensation ($200,000), professional & consulting fees ($294,000), facility related expenses ($90,000) and offset by an increase to the miscellaneous expenses of $155,000 when comparing 2009 to 2008.  The overall decline in employee headcount from 14 employees at the beginning of 2008 to 4 employees at the end of 2009 accounts for the decline in the employee compensation.  Lower professional & consulting fees in 2009 are due to reductions in the utilization of outside counsel of $102,000, reduced audit fees of $71,000 and lower fees of $121,000 related to our Israel entity. Finally w
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