EDMONTON, Alberta, March 13, 2012 (GLOBE NEWSWIRE) -- Isotechnika Pharma Inc. (TSX:ISA) has released its financial results for the year and quarter ended December 31, 2011.
Financial results
Revenue decreased to $110,000 for the fourth quarter of 2011, compared to $199,000 for the same period in 2010. The Company recorded revenue of $947,000 for the year ended December 31, 2011, as compared to $3.42 million for the same period in 2010. The decrease in revenue for the year ended December 31, 2011 reflected reduced research and development revenue amortized from the payments received by the Company in the previous two years from Paladin which were initially recorded as deferred revenue.
Net research and development expenses increased slightly to $917,000 for the fourth quarter of 2011 compared to $886,000 in the same period in 2010. Net research and development expenses were $3.55 million for the year ended December 31, 2011, compared to $4.01 million for the year ended December 31, 2010. The decrease reflected a reduction in study contracts, consulting and other outside services work incurred in 2011 compared to the previous year.
Corporate, administration and marketing expenses decreased to $755,000 for the fourth quarter of 2011, compared to $1.08 million for the same period in 2010. Corporate, administration and marketing expenses decreased to $2.80 million for the year ended December 31, 2011, compared to $3.27 million for the year ended December 31, 2010. The decrease was primarily due to a reduction in wage and benefit costs due to reduced staff numbers and lower executive employee and director compensation.
For the fourth quarter ended December 31, 2011, the Company reported a consolidated net loss of $6.53 million or $0.04 per common share, as compared to a consolidated net loss of $659,000 or $0.004 per common share for the same period in 2010. The net loss for the three months ended December 31, 2011 included an unrealized non-cash loss of $4.65 million on derivative financial instruments compared to a gain of $1.93 million on derivative financial instruments for the three months ended December 31, 2010. The unrealized gains (losses) resulted from the required accounting treatment for derivatives in financial instruments under International Financial Reporting Standards ("IFRS").
For the year ended December 31, 2011, the Company recorded a net consolidated loss of $2.46 million or $0.01 per common share, as compared to a consolidated net loss of $3.82 million or $0.03 per common share in 2010. The reduction in the loss for the year ended December 31, 2011 when compared to 2010 reflected the following: a non-cash gain on derivative financial asset related to the ILJIN agreement in 2011 of $4.18 million; lower research and development and corporate and administration expenses; offset by lower research and development revenue in 2011 compared to 2010 and no earnings from discontinued operation in 2011 compared to $1.9 million in 2010.
The Company, as at December 31, 2011, had $6.05 million in cash and cash equivalents. The Company will need to raise additional cash and/or enter into a partnership in the near future.
The audited financial statements and the Management's Discussion and Analysis for the year ended December 31, 2011, are accessible on Isotechnika's Web site at www.isotechnika.com or on SEDAR at www.sedar.com.
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| Isotechnika Pharma Inc. | ||||
| Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||
| (expressed in thousands of Canadian dollars, except per share amounts) | ||||
|
Three Months Ended December 31 (Unaudited) |
Year Ended December 31 |
|||
| 2011 | 2010 | 2011 | 2010 | |
| $ | $ | $ | $ | |
| Revenue | ||||
| Licensing revenue | 70 | 59 | 309 | 955 |
| Research and development revenue | 27 | 132 | 131 | 2,321 |
| Contract services | 13 | 8 | 61 | 145 |
| Other | -- | -- | 446 | -- |
| 110 | 199 | 947 | 3,421 | |
| Expenses | ||||
| Research and development, net | 917 | 886 | 3,549 | 4,005 |
| Corporate and administration | 755 | 1,083 | 2,802 | 3,269 |
| Amortization of property and equipment | 171 | 199 | 710 | 824 |
| Amortization and write-down of intellectual property | 89 | 35 | 271 | 323 |
| Contract services and other | 13 | 8 | 52 | 51 |
| Other expense (income) | 4,695 | (1,454) | (3,979) | 571 |
| 6,640 | 757 | 3,405 | 9,043 | |
| Net loss before income taxes | (6,530) | (558) | (2,458) | (5,622) |
| Current income and capital taxes | -- | (101) | -- | (101) |
| Net loss from continuing operations | (6,530) | (659) | (2,458) | (5,723) |
| Net income from discontinued operation | -- | -- | -- | 1,900 |
| Net loss and comprehensive loss for the period | (6,530) | (659) | (2,458) | (3,823) |
| Earnings (loss) per share data | ||||
| Basic and diluted net loss per common share – continuing operations | (0.04) | (0.004) | (0.01) | (0.04) |
| Basic and diluted net income per common share – discontinued operation | -- | -- | -- | 0.01 |
| Basic and diluted loss per common share | (0.04) | (0.004) | (0.01) | (0.03) |