Published:
Senesco Technologies Reports Third Quarter Fiscal 2008 Financial Results
NEW BRUNSWICK, N.J., May 16 /PRNewswire-FirstCall/ -- Senesco
Technologies, Inc. ("Senesco" or the "Company") (Amex: SNT) today reported
financial results for the three months ended March 31, 2008.
Net loss for the three month period ended March 31, 2008 was $2.0 million,
or $0.12 per share, compared with a net loss of $0.8 million, or $0.05 per
share, for the three month period ended March 31, 2007. This increase in net
loss was primarily the result of an increase of $0.8 million in expenses
associated with the outstanding convertible notes that were issued during the
current fiscal year, and an increase in operating expenses.
Quarterly and Recent Highlights
-- Senesco regained compliance with AMEX's continued listing requirements.
-- Preclinical pancreatic islet cell research that was funded by the
Company was presented at two important industry conferences, the
Keystone Islet and Beta Cell Symposium, and the Upper Midwest Islet
Club's Annual Meeting. Using a small interfering RNA (siRNA) against
Senesco's Factor 5A technology, the data showed what Senesco believes
to be a variety of promising results regarding delivery of the
technology, as well as islet protection and function.
-- The Company announced the results of preclinical animal studies focused
on multiple myeloma. In the studies, mice were injected subcutaneously
with human multiple myeloma cancer cells to form myeloma tumors in
their flanks. Treated mice were injected intratumorally with Factor 5A
therapy encapsulated in nanoparticles, while control mice received a
nanoparticle without the Factor 5A therapy. One of the dosing regimens
showed evidence of significant tumor regression relative to the
untreated control mice, while the other showed a diminished rate of
tumor growth along with some regression.
-- Initial field trials conducted with ArborGen, LLC over a three-year
period in certain species of trees have concluded and the trees have
been harvested for wood quality assessment. Preliminary data from the
field trials show significantly enhanced growth rates in some of the
trees relative to controls. The Company and ArborGen have selected
promising genetic lines which are now being prepared for additional
field trials.
Bruce Galton, President and Chief Executive Officer of the Company, said,
"We continue to progress our human health programs and believe we have
positive preclinical results in our multiple myeloma studies and pancreatic
islet cell research. Senesco is working closely with our contract research
organization in evaluating materials and planning the work ahead for our
multiple myeloma program. In addition, our agricultural licensees have
initiated research with our technology in crops such as corn, soy, rice,
canola and cotton. We continue banana field trials with our joint venture
partner, Rahan Meristem. Our technology provides a very broad platform of
applications for human health in oncology and inflammatory diseases and across
a variety of food and non-food agricultural crops."
Revenue of $79,167 for the three-month period ended March 31, 2008
consisted of milestone payments and the amortized portion of previous
milestone payments received in connection with certain license agreements.
During the three-month period ended March 31, 2007, revenue of $6,250
consisted of the amortized portion of previous milestone payments received in
connection with certain development and license agreements.
Research and development expenses during the three-month period ended
March 31, 2008 were $474,176, compared with $314,294 during the three-month
period ended March 31, 2007. This increase resulted from an expansion of
Senesco's human health programs, including the Company's cancer research
program, and an unfavorable exchange rate variance in connection with
Senesco's research agreement at the University of Waterloo. The Company
expects research and development expenses to continue to increase as it
expands its research activities, particularly in the area of human health.
General and administrative expenses were $876,966 for the three-month
period ended March 31, 2008, compared with $514,189 during the three-month
period ended March 31, 2007. This increase was primarily due to a $458,000
increase in stock-based compensation, which includes the Black-Scholes value
of $384,000 of warrants extended and repriced in connection with an amendment
to a financial advisory agreement entered into February 14, 2008, the
amortized portion of the compensation charge in connection with our short-term
stock incentive plan and the amortized portion of the Black-Scholes value of
options and warrants previously granted to directors, employees and
consultants. This was partially offset by a $79,000 decrease in depreciation
and amortization.
At March 31, 2008, Senesco had cash, cash equivalents and investments of
$4,549,233. With the remaining potential gross proceeds of $3 million of the
Company's previously announced $10 million financing, Senesco should be able
to operate according to the Company's current business plan for the next 18
months. The receipt of the remaining $3 million of proceeds is dependent upon
entering into certain supply agreements with third party manufacturers. If
Senesco does not meet all or some of the foregoing funding milestones, then
the current $4.5 million is sufficient for the next 12 months.
About Senesco Technologies, Inc.
Senesco Technologies, Inc. is a U.S. biotechnology company, headquartered
inNew Brunswick, NJ. Senesco has initiated preclinical research to trigger
or delay cell death in mammals (apoptosis) to determine if the technology is
applicable in human medicine. Accelerating apoptosis may have applications to
development of cancer treatments. Delaying apoptosis may have applications to
certain diseases inflammatory and ischemic diseases. Senesco takes its name
from the scientific term for the aging of plant cells: senescence. Delaying
cell breakdown in plants extends freshness after harvesting, while increasing
crop yields, plant size and resistance to environmental stress. The Company
believes that its technology can be used to develop superior strains of crops
without any modification other than delaying natural plant senescence.
Senesco has partnered with leading-edge companies engaged in agricultural
biotechnology and earns research and development fees for applying its
gene-regulating platform technology to enhance its partners' products.
Certain statements included in this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Actual results could differ materially from such statements
expressed or implied herein as a result of a variety of factors, including,
but not limited to: the development of the Company's gene technology; the
approval of the Company's patent applications; the successful implementation
of the Company's research and development programs and joint ventures; the
success of the Company's license agreements; the acceptance by the market of
the Company's products; success of the Company's preliminary studies and
preclinical research; competition and the timing of projects and trends in
future operating performance, the Company's ability to meet its funding
milestones under its financing transaction, the Company's ability to comply
with the continued listing standards of the AMEX, as well as other factors
expressed from time to time in the Company's periodic filings with the
Securities and Exchange Commission (the "SEC"). As a result, this press
release should be read in conjunction with the Company's periodic filings with
the SEC. The forward-looking statements contained herein are made only as of
the date of this press release, and the Company undertakes no obligation to
publicly update such forward-looking statements to reflect subsequent events
or circumstances.
Company Contact: Investor Relations Contact:
Senesco Technologies, Inc. FD
Joel Brooks Brian Ritchie
Chief Financial Officer brian.ritchie@fd.com
jbrooks@senesco.com 212-850-5600
(732) 296-8400
(tables to follow)
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the For the For the
Three Three Nine
Months Months Months
Ended Ended Ended
March 31, March 31, March 31,
2008 2007 2008
Revenue $79,167 $6,250 $456,667
Operating Expenses:
General and
administrative 876,966 514,189 1,851,876
Research and development 474,176 314,294 1,219,325
Total Operating Expenses 1,351,142 828,483 3,071,201
Loss From Operations (1,271,975) (822,233) (2,614,534)
Sale of state income
tax loss, net -- -- --
Other noncash -- -- --
income 43,907 20,916 76,013
Interest income, net (628,626) -- (927,054)
Amortization of debt
discount and financing
costs
Interest expense on
convertible notes (187,473) -- (255,309)
Net Loss $(2,044,167) $(801,317) $(3,720,884)
Basic and Diluted Net
Loss Per Common Share $(0.12) $(0.05) $(0.21)
Basic and Diluted
Weighted Average
Number of Common
Shares Outstanding 17,583,461 17,473,694 17,510,410
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
From
For the Inception
Nine on July 1,
Months 1998
Ended through
March 31, March 31,
2007 2008
Revenue $268,750 $1,175,000
Operating Expenses:
General and administrative 2,001,068 21,286,069
Research and development 863,037 9,412,494
Total Operating Expenses 2,864,105 30,698,563
Loss From Operations $(2,595,355) $(29,523,563)
Sale of state income tax loss, net -- 586,442
Other noncash -- 321,259
income 57,936 455,801
Interest income, net -- (927,054)
Amortization of debt discount
and financing costs
Interest expense on convertible
notes -- (255,309)
Net Loss $(2,537,419) $(29,342,424)
Basic and Diluted Net Loss Per
Common Share $(0.15)
Basic and Diluted Weighted
Average Number of Common
Shares Outstanding 16,732,003
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2008 2007
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $4,049,233 $408,061
Short-term investments 500,000 250,000
Prepaid expenses and other current assets 57,695 104,526
Total Current Assets 4,606,928 762,587
Property and equipment, net 6,880 7,526
Intangibles, net 3,032,449 2,544,447
Deferred financing costs 729,029 --
Security deposit 7,187 7,187
TOTAL ASSETS $8,382,473 $3,321,747
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $168,525 $109,258
Accrued expenses 509,619 377,359
Deferred revenue -- 16,667
Total Current Liabilities 678,144 503,284
Convertible note, net of discount 819,525 --
Grant payable 99,728 99,728
Other liability 24,595 29,196
TOTAL LIABILITIES 1,621,992 632,208
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; authorized
5,000,000 shares,
no shares issued -- --
Common stock, $0.01 par value; authorized
100,000,000 shares, 177,283 174,737
issued and outstanding 17,728,314 and
17,473,694, respectively
Capital in excess of par 35,925,622 28,136,342
Deficit accumulated during the development
stage (29,342,424) (25,621,540)
TOTAL STOCKHOLDERS' EQUITY 6,760,481 2,689,539
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,382,473 $3,321,747
SOURCE Senesco Technologies, Inc.
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