REDMOND, Wash., May 14, 2009 (GLOBE NEWSWIRE) -- ImaRx Therapeutics, Inc. (OTCBB:IMRX), a development-stage biopharmaceutical company focused on the development of new treatments for vascular disorders leveraging its proprietary microsphere and ultrasound technology, today reported financial results for the first quarter ended March 31, 2009.
Corporate Updates:
ImaRx continues to seek strategic alternatives that would enable the continued development of its SonoLysis program and other related assets. The company has taken the necessary steps to preserve its existing cash resources in order to accomplish this objective.
Financial Results
Revenue for the first quarter ended March 31, 2009 decreased to $26,000 from $1.9 million for the first quarter ended March 31, 2008. The decrease in revenues is attributable to an ongoing reduction in channel inventory since divesting the urokinase product to Microbix Biosystems in September 2008.
Net loss for the first quarter of 2009 was $0.3 million compared to a net loss of $2.5 million for the same period last year. This change was primarily a result of the restructuring activities from the second quarter of 2008 that significantly reduced both research and development and general and administrative expenses. Net loss per share attributable to common shareholders for the first quarter of 2009 was $0.03 based on weighted average shares of approximately 10.2 million, compared to net loss per share attributable to common shareholders in the same period last year of $0.25 based on weighted average shares of approximately 10.0 million.
Cost of product sales for the first quarter of 2009 totaled $13,000 compared to $0.8 million for the first quarter of 2008. The decrease is associated with the divestiture of the urokinase product in September 2008. The cost of product sales includes the price paid to acquire the urokinase inventory as well as labeling costs directly incurred in bringing the product to market.
Research and development expenses for the first quarter of 2009 decreased to $39,000 from $1.6 million in the prior year period. This decrease was principally a result of the reduction in salaries and clinical trial costs as a result of the restructuring activities initiated in the second quarter of 2008.
General and administrative expenses for the first quarter of 2009 decreased to $0.3 million from $2.0 million for the same period last year resulting from a decrease in salaries and a reduction in costs associated with maintaining a public company infrastructure as a result of the restructuring activities initiated in the second quarter of 2008.
On March 31, 2009, ImaRx had $0.4 million in cash and cash equivalents compared to $0.8 million in cash and cash equivalents on December 31, 2008. The decrease in the cash balance was primarily related to cash used in performing operating activities. Management believes that there will be sufficient cash resources to fund operations into the third quarter of 2009.
About ImaRx Therapeutics
ImaRx Therapeutics is a development-stage biopharmaceutical company with a research and development program focused on the development of new treatments for vascular disorders leveraging its proprietary microsphere and ultrasound or SonoLysis technology.
The ImaRx Therapeutics, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5321
Cautionary Statement For The Purpose Of The "Safe Harbor" Provisions Of The Private Securities Litigation Reform Act of 1995
Note: Statements made in this press release which are not historical in nature constitute forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Such statements include those related to the Company's search for strategic alternatives to enhance shareholder value and, management belief that there will be sufficient cash resources to fund operations into the third quarter 2009. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. A more complete description of these risks and the event that may cause such events not to occur can be found in the Company's filings with the Securities and Exchange Commission. All information in this press release is as of May 14, 2009, and the Company undertakes no duty to update this information.
ImaRx Therapeutics, Inc.
(A Development-Stage Company)
Consolidated Statements of Operations
(in thousands except share and per share data)
Three Months Ended
March 31
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2008 2009
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(unaudited)
Revenues:
Product sales, net $ 1,849 $ 26
Research and development 95 --
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Total operating revenue 1,944 26
Costs and expenses:
Cost of product sales 834 13
Research and development 1,567 39
General and administrative 1,994 336
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Total cost and expenses 4,395 388
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Operating loss (2,451) (362)
Interest and other income, net 94 14
Interest expense (173) --
Gain on settlement of accounts payable
and other current liabilities -- 79
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Net loss per share:
Basic and diluted $ (0.25) $ (0.03)
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Shares used in computing net loss
per share:
Basic and diluted 10,046,683 10,165,733
ImaRx Therapeutics, Inc.
(A Development-Stage Company)
Selected Balance Sheet Data (in thousands)
December 31, March 31,
2008 2009
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 757 $ 424
Inventory subject to return 12 --
Assets held for sale 108 108
Prepaid expenses and other 144 83
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Total current assets 1,021 615
Long-term assets:
Property and equipment, net 51 46
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Total assets $ 1,072 $ 661
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 117 $ 124
Accrued expenses 82 69
Deferred revenue 226 200
Other 154 --
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Total current liabilities 579 393
Total stockholders' equity 493 268
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Total liabilities and stockholders'
equity $ 1,072 $ 661
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