DURHAM, N.C., Dec. 9, 2010 (GLOBE NEWSWIRE) -- Oxygen Biotherapeutics, Inc. (Nasdaq:OXBT) (SIX Swiss Exchange:OXBT), a development stage biomedical company focused on developing oxygen-rich intravenous and topical products, today announced results for the fiscal year (FY) second quarter ended October 31, 2010.
Highlights (activity through December 9, 2010)
- Received $245,000 grant under the Patient Protection and Affordable Care Program Act
- Secured listing on leading on-line beauty retail websites for DERMACYTE skin care products: Dermstore.com and Beautyriche.com
- Granted DSMB Approval to proceed to second cohort of STOP-TBI Phase II-b trials
- In November, the Company issued a promissory note under Note Purchase Agreement with Vatea Fund in the amount of $600,000
"While still moderate at this stage, DERMACYTE sales continued to rise slowly, yet steadily, during the quarter. In October we hired a top-notch sales director whose 15 years of experience in dermatological and skin care sales will elevate our sales effort to the next level," said Chris Stern, Chairman & Chief Executive Officer of Oxygen Biotherapeutics. "Our efforts next quarter will focus on DERMACYTE sales and R&D, while managing expenses."
Second Quarter Results
Oxygen Biotherapeutics reported net revenue of $27,126 for the second quarter of fiscal 2011, compared to $6,561 for the comparable quarter the previous year due to increased sales of DERMACYTE products.
Total operating expenses for the period ended October 31, 2010 were $2,083,863 compared to $2,593,051 for the same period in 2009. These expenses were driven primarily by an increase in R&D payroll and clinical trial costs, offset by a decrease in SG&A expenses due to a decrease in legal, accounting and consulting fees, as well as lower other income and interest expenses.
For the second quarter period ended October 31, 2010, the Company reported a net loss of approximately $2.0 million, or $0.09 per share, compared to a net loss of approximately $2.6 million, or $0.13 per share for the same period in the prior year. The decrease in net loss for the quarter was primarily due to a decrease in legal, accounting and consulting fees, compensation, and lower development and manufacturing costs for Oxycyte. The net loss was partially offset by an increase in sales and marketing expenses related to the marketing and sales efforts for DERMACYTE products and an increase in research and development costs that can be attributed to our traumatic brain injury Phase II-b trials and payroll.
Six Month Results
Net revenue for the six months ended October 31, 2010 was $32,236 compared to total revenue of $6,561 for the same period in fiscal year 2010. This was primarily due to DERMACYTE product sales.
For the six-month period ending October 31, 2010 the company had total operating expenses of $5,112,174 compared to $4,883,586 for the same period in 2009. The increase is primarily due to costs incurred for compensation, clinical trials, development and manufacture of Oxycyte, a reduction in costs incurred for stock-based compensation, and marketing and sales expenses for DERMACYTE products.
The Company reported a net loss of $5,054,236, or $0.22 per share for the six month period ended October 31, 2010, compared to a net loss of $4,985,890, or $0.28 per share for the same period in 2009.
As of October 31, 2010, the Company had cash and cash equivalents totaling $837,167, up from $632,706 at April 30, 2010.
Conference Call
Management will host a conference call on Friday, December 10, 2010 at 11 a.m. EST. To access the live teleconference dial (866) 825-3209 (U.S. and Canada) or (617) 213-8061 (international.) The participant passcode is 81091554. A live webcast will be available on our web site http://www.oxybiomed.com/investors.htm.
A replay of the webcast will be available on the Oxygen Biotherapeutics website, or by phone for a limited time. To access the replay by phone, call (888) 286-8010 (U.S. and Canada) or (617) 801-6888 (international) for a limited time. The passcode for the replay is 25705024.
| OXYGEN BIOTHERAPEUTICS, INC. | ||
| (a development stage enterprise) | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (unaudited) | ||
|
October 31, 2010 (Unaudited) |
April 30, 2010 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $ 837,167 | $ 632,706 |
| Accounts receivable | 22,144 | 72,055 |
| Inventory | 443,044 | 535,090 |
| Prepaid expenses | 228,118 | 249,780 |
| Other current assets | 81,247 | 695,195 |
| Total current assets | 1,611,720 | 2,184,826 |
| Property and equipment, net | 439,666 | 383,959 |
| Intangible assets, net | 918,567 | 907,710 |
| Other assets | 123,877 | 52,651 |
| Total assets | $ 3,093,830 | $ 3,529,146 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Accounts payable | $1,076,425 | $499,044 |
| Accrued liabilities | 381,928 | 843,903 |
| Notes payable | 7,195 | 56,394 |
| Total current liabilities | 1,465,548 | 1,399,341 |
| Long-term portion of convertible debt, net | -- | 2,767 |
| Total liabilities | 1,465,548 | 1,402,108 |
| Stockholders' equity | ||
|
Preferred stock, undesignated, authorized 10,000,000 shares; none issued or outstanding |
||
|
Common stock, par value $.0001 per share; authorized 400,000,000 shares; issued and outstanding 23,386,460 and 21,457,265, respectively |
2,339 | 2,146 |
| Stock subscription receivable | -- | 500,000 |
| Additional paid-in capital | 88,147,757 | 83,092,470 |
| Deficit accumulated during the development stage | (86,521,814) | (81,467,578) |
| Total stockholders' equity | 1,628,282 | 2,127,038 |
| Total liabilities and stockholders' equity | $ 3,093,830 | $ 3,529,146 |
| OXYGEN BIOTHERAPEUTICS, INC. | ||||
| (a development stage enterprise) | ||||
| STATEMENT OF OPERATIONS | ||||
| (unaudited) | ||||
| Three months ended October 31, | Six months ended October 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Revenue | $ 36,083 | $ 6,561 | $ 42,981 | $ 6,561 |
| Cost of sales | 8,957 | -- | 10,745 | -- |
| Net Revenue | 27,126 | 6,561 | 32,236 | 6,561 |
| Operating Expenses | ||||
| Selling, general, and administrative | 1,511,214 | 2,185,917 | 3,394,282 | 3,937,196 |
| Research and development | 572,649 | 407,134 | 1,717,892 | 946,390 |
| Loss on impairment of long-lived assets | -- | -- | -- | -- |
| Total operating expenses | 2,083,863 | 2,593,051 | 5,112,174 | 4,883,586 |
| Net operating loss | 2,056,737 | 2,586,490 | 5,079,938 | 4,877,025 |
| Interest expense | 5,383 | 23,274 | 6,589 | 150,699 |
| Loss on extinguishment of debt | -- | -- | -- | -- |
| Other income | (10,183) | (20,552) | (32,291) | (41,834) |
| Net loss | $ 2,051,937 | $ 2,589,212 | $ 5,054,236 | $ 4,985,890 |
| Net loss per share, basic and diluted | $ (0.09) | $ (0.13) | $ (0.22) | $ (0.28) |
|
Weighted average number of common shares outstanding, basic and diluted |
23,387,979 | 19,603,257 | 23,301,844 | 18,002,270 |
About Oxygen Biotherapeutics, Inc.
Headquartered in Durham, NC, Oxygen Biotherapeutics, Inc. is developing medical and cosmetic products that efficiently deliver oxygen to tissues in the body. The company has developed a proprietary perfluorocarbon (PFC) therapeutic oxygen carrier called Oxycyte that is being formulated for both intravenous and topical delivery. Potential indications include traumatic brain injury, decompression sickness, wounds and pruritis. This year, the company launched its DERMACYTE® line of oxygen-rich skin care products. More information is available at www.oxybiomed.com or www.buydermacyte.com.
The Oxygen Biotherapeutics, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7277
Caution Regarding Forward-Looking Statements
This news release contains certain forward-looking statements by the company that involve risks and uncertainties and reflect the company's judgment as of the date of this release. These statements include the expansion of development of the Oxycyte and DERMACYTE product lines and the timing of the introduction of those new products. The forward-looking statements are subject to a number of risks and uncertainties including matters beyond the company's control that could lead to delays in new product introductions and customer acceptance of these new products, and other risks and uncertainties as described in our filings with the Securities and Exchange Commission, including in the current reports on Form 10-Q and Form-10K. The company disclaims any intent or obligation to update these forward-looking statements beyond the date of this release. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.