NEW BRUNSWICK, N.J., Feb. 15 /PRNewswire-FirstCall/ -- Senesco Technologies, Inc. ("Senesco" or the "Company") (AMEX:SNT) today reported financial results for the three months ended December 31, 2007.
Net loss for the three month period ended December 31, 2007 was $1.3 million, or $0.07 per share, compared with a net loss of $1.1 million, or $0.07 per share, for the three month period ended December 31, 2006. This increase in net loss was primarily the result of a decrease in revenue and an increase in expenses associated with the outstanding convertible notes that were issued during the current fiscal year, which was partially offset by a decrease in operating expenses.
Quarterly and Recent Highlights -- Senesco closed on an additional gross amount of $5.5 million of its
previously announced private placements with YA Global Investments, LP
("YA Global") and Stanford Venture Capital Holdings, Inc. ("Stanford"). Through January 31, 2008, Senesco has now closed on an aggregate of
$7 million of the $10 million private placements of secured convertible
debentures and warrants and has met the three triggering milestones
necessary in order to fix the conversion price of the convertible notes
issued to YA Global and Stanford at $0.90 per share of common stock.
-- Senesco selected Cato Research, a leading contract research
organization ("CRO"), to assist the Company with its goal of initiating
a clinical trial.
-- Senesco initiated and announced the results of certain preclinical
animal studies focused on multiple myeloma. In the studies, SCID
(severe combined immunodeficiency) 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. "As our recent accomplishments indicate, we continue to execute on our strategy," said Bruce Galton, President and CEO of Senesco. We believe we have advanced our human health preclinical research program via the selection of a CRO and the successful completion of certain in-vivo preclinical studies in multiple myeloma. Our objectives for the remainder of the year are to continue to evaluate dosing regimens and encapsulation vehicles in preclinical multiple myeloma cancer models, to identify contract manufacturing centers to produce cGMP materials, to plan and carry out the necessary toxicology studies, and to work with our CRO to begin preparation of an Investigational New Drug Application." -- Revenue of $6,250 for the three month period ended December 31, 2007
consisted of the amortized portion of previous milestone payments
received in connection with certain license agreements. During the
three-month period ended December 31, 2006, revenue of $181,250
consisted of initial fees, milestone payments and 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
December 31, 2007 were $392,254, compared with $239,395 during the
three month period ended December 31, 2006. This increase resulted
from an increase in the budget for the banana field trials, an
unfavorable exchange rate variance in connection with our research
agreement at the University of Waterloo and the initiation of certain
human health-related research projects that were not in progress during
the three month period ended December 31, 2006. 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 $586,000 for the three month
period ended December 31, 2007, compared with $1.1 million during the
three month period ended December 31, 2006. This decrease was
primarily due to lower stock-based compensation expense, which was
partially offset by an increase in depreciation and amortization.
-- At December 31, 2007, Senesco had cash, cash equivalents and
investments of $5,135,644. With the remaining potential gross proceeds
of our previously announced $10 million financing, Senesco should be
able to operate according to the Company's current business plan for
the next 21 months. As previously disclosed, the Company has closed on
$7 million of the $10 million financing. 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
$5.1 million is only sufficient for the next 13 months. About Senesco Technologies, Inc. Senesco Technologies, Inc. is a U.S. biotechnology company, headquartered in New 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.
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) For the For the
Three Months Ended Three Months Ended
December 31, December 31,
2007 2006 Revenue $6,250 $181,250 Operating Expenses:
General and administrative 585,851 1,103,594
Research and development 392,254 239,395
Total Operating Expenses 978,105 1,342,989 Loss From Operations (971,855) (1,161,739) Sale of state income tax loss, net -- --
Other noncash income -- --
Interest income, net 25,227 26,102
Amortization of debt discount
and financing costs (283,207) --
Interest expense on
convertible notes (64,836) --
Net Loss $(1,294,671) $(1,135,637) Basic and Diluted
Net Loss Per Common Share $(0.07) $(0.07) Basic and Diluted
Weighted Average Number
of Common Shares Outstanding 17,474,870 17,257,791 From
Inception on
For the For the July 1, 1998
Six Months Ended Six Months Ended through
December 31, December 31, December 31, 2007
2007 2006 Revenue $377,500 $262,500 $1,095,833 Operating Expenses:
General and
administrative 974,910 1,486,879 20,409,103
Research and
development 745,149 548,743 8,938,318
Total Operating
Expenses 1,720,059 2,035,622 29,347,421 Loss From
Operations (1,342,559) (1,773,122) (28,251,588) Sale of state
income tax loss, net -- -- 586,442
Other noncash income -- -- 321,259
Interest income, net 32,106 37,020 411,894
Amortization of debt
discount and
financing costs (298,428) -- (298,428)
Interest expense
on convertible notes (67,836) -- (67,836)
Net Loss $(1,676,717) $(1,736,102) $(27,298,257) Basic and Diluted
Net Loss Per
Common Share $(0.10) $(0.11) Basic and Diluted
Weighted Average
Number of Common
Shares Outstanding 17,474,282 16,369,220
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS December 31, June 30,
2007 2007
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $5,135,644 $408,061
Short-term investments 500,000 250,000
Prepaid expenses and other current assets 52,959 104,526
Total Current Assets 5,688,603 762,587 Property and equipment, net 5,444 7,526
Intangibles, net 2,896,958 2,544,447
Deferred financing costs 748,949 --
Security deposit 7,187 7,187
TOTAL ASSETS $9,347,141 $3,321,747 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:
Accounts payable $552,026 $109,258
Accrued expenses 368,570 377,359
Deferred revenue 4,167 16,667
Total Current Liabilities 924,763 503,284 Convertible note, net of discount 257,560 --
Grant payable 99,728 99,728
Other liability 26,129 29,196
TOTAL LIABILITIES 1,308,180 632,208 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,
issued and outstanding
17,581,852 and 17,473,694, respectively 175,819 174,737
Capital in excess of par 35,161,399 28,136,342
Deficit accumulated during
the development stage (27,298,257) (25,621,540) TOTAL STOCKHOLDERS' EQUITY 8,038,961 2,689,539 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $9,347,141 $3,321,747
Company Contact: Investor Relations Contact:
Senesco Technologies, Inc. FD
Joel Brooks Brian Ritchie
Chief Financial Officer (212) 850-5600
(732) 296-8400
DATASOURCE: Senesco Technologies, Inc.
CONTACT: Joel Brooks, Chief Financial Officer of Senesco Technologies, Inc., +1-732-296-8400, ; or Investor Relations - Brian Ritchie of FD, +1-212-850-5600, Web site: http://www.senesco.com/
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