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SemBioSys announces first quarter 2010 financial and operational results

^{Published on 2010-05-13 04:10:44 - Market Wire}
 

 Corporate - SemBioSys' GLA Program licensing partner, Arcadia Biosciences Inc., completed U.S. Food and Drug Administration (FDA) registration for a GLA-rich safflower oil and successfully completed the manufacturing of its first commercial batch. Pursuant to our partnership agreement with Arcadia, SemBioSys is due to receive royalty payments on future GLA product sales. - Completed a non-brokered private placement for gross proceeds to the Company of $1,778,595 Apo AI(Milano) - SemBioSys/Cedars-Sinai Heart Institute Research collaboration: Dr. Prediman K. Shah, presented a poster illustrating the results of a highly successful preclinical study involving SemBioSys' Apo AI(Milano). (being developed for acute treatment of arterial plaque build up) at the American College of Cardiology's (ACC) 59th Scientific Sessions in Atlanta. Biosimilar Insulin - CTV National News and Canada AM ran a "prime time" story on SemBioSys' game changing plant-based Biosimilars production platform. Story documented SemBioSys' Biosimilar Insulin (SBS-1000), which can be made in plants, in high volumes at potentially lower cost than current production methods. 

 - $2,063,751 or $0.05 per share from continuing operations compared to $2,457,677 or $0.09 per share; - $nil from discontinued operations compared to $1,370,776 or $0.05 per share; and - $2,063,751 or $0.05 per share in total net loss compared to $3,828,453 or $0.14 per share. 

 - $356,465 in revenue from continuing operations compared to $1,161,495; - $nil in revenue from discontinued operations compared to $137,969; and - $356,465 in total revenue compared to $1,299,464. 

 - $2,315,892 in expenditures from continuing operations compared to $3,589,252; - $nil in expenditures from discontinued operations compared to $1,342,694; and - $2,315,892 in total expenses net of cost recoveries compared to $4,931,946. 

 SemBioSys Genetics Inc. CONSOLIDATED BALANCE SHEETS (unaudited) (expressed in Canadian dollars) ------------------------------------------------------------------------- March 31, December 31, 2010 2009 $ $ ------------- ------------- ASSETS Current assets Cash and cash equivalents 3,011,583 3,687,548 Investment 326,229 380,601 Accounts receivable 458,979 124,083 GST receivable 82,380 52,649 Prepaid expenses, deposits and other 292,125 175,894 ------------- ------------- 4,171,296 4,420,775 Property and equipment 3,329,424 3,683,462 ------------- ------------- 7,500,720 8,104,237 ------------- ------------- ------------- ------------- LIABILITIES Current liabilities Accounts payable and accrued liabilities 893,263 1,291,023 Short-term portion of long-term debt 1,605,409 1,534,535 ------------- ------------- 2,498,672 2,825,558 ------------- ------------- ------------- ------------- SHAREHOLDERS' EQUITY Capital stock 75,444,408 73,726,414 Warrants 3,527,425 3,527,425 Contributed surplus 13,887,896 13,764,398 Accumulated other comprehensive loss (108,744) (54,372) Deficit (87,748,937) (85,685,186) ------------- ------------- 5,002,048 5,278,679 ------------- ------------- 7,500,720 8,104,237 ------------- ------------- ------------- ------------- SemBioSys Genetics Inc. CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT (unaudited) (expressed in Canadian dollars, except shares) ------------------------------------------------------------------------- Three month period ended March 31, March 31, 2010 2009 $ $ ------------- ------------- REVENUE Licensing option fees - 1,161,495 Licensing fees 315,789 - Contract research 40,676 - ------------- ------------- 356,465 1,161,495 EXPENSES Research and development 1,098,065 2,022,908 General and administration 373,323 561,399 Intellectual property costs 231,673 265,231 Business development 139,462 155,774 Stock-based compensation 123,498 230,646 Amortization 354,038 373,599 Cost recoveries (4,167) (20,305) ------------- ------------- 2,315,892 3,589,252 ------------- ------------- Loss before the undernoted (1,959,427) (2,427,757) ------------- ------------- ------------- ------------- Interest income 22 5,416 Interest expense (97,406) (20,128) Foreign exchange loss (6,940) (15,208) ------------- ------------- ------------- ------------- (104,324) (29,920) ------------- ------------- Net loss from continuing operations (2,063,751) (2,457,677) Discontinued operations - (1,370,776) ------------- ------------- Net loss (2,063,751) (3,828,453) Deficit - Beginning of the period (85,685,186) (79,096,304) ------------- ------------- Deficit - End of the period (87,748,937) (82,924,757) ------------- ------------- ------------- ------------- Loss per share Basic and diluted from continuing operations (0.05) (0.09) Basic and diluted from discontinued operations - (0.05) Basic and diluted (0.05) (0.14) ------------- ------------- ------------- ------------- Weighted average shares outstanding 43,913,882 28,299,952 ------------- ------------- ------------- ------------- SemBioSys Genetics Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) (expressed in Canadian dollars) ------------------------------------------------------------------------- Three month period ended March 31, March 31, 2010 2009 $ $ ------------- ------------- Net loss for the period (2,063,751) (3,828,453) Other comprehensive loss Foreign currency translation adjustment - 32,620 Foreign currency translation adjustment transferred to net income from discontinued operations during the year - (32,620) Unrealized loss on investment (54,372) - ------------- ------------- Comprehensive loss (2,118,123) (3,828,453) ------------- ------------- ------------- ------------- CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Unaudited) (expressed in Canadian dollars) ------------------------------------------------------------------------- Three month period ended March 31, March 31, 2010 2009 $ $ ------------- ------------- Accumulated other comprehensive loss - beginning of the period (54,372) - Foreign currency translation adjustments Change in accounting policy - 26,534 Adjustments during the year - 6,086 Transferred to net income from discontinued operations during the year - (32,620) ------------- ------------- (54,372) - Unrealized loss on Investment (54,372) - ------------- ------------- Accumulated other comprehensive loss - end of the period (108,744) - ------------- ------------- ------------- ------------- SemBioSys Genetics Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS Three month period ended March 31, March 31, (unaudited) 2010 2009 (expressed in Canadian dollars) $ $ ------------------------------------------------------------------------- Cash provided by (used in) Operating activities Net loss for the year from continuing operations (2,063,751) (2,457,677) Add items not affecting cash: Amortization 354,038 373,599 Stock-based compensation 123,498 230,646 Shares issued for services 92,935 152,985 Unrealized foreign exchange loss 21,500 3,379 Non-cash interest expense 97,172 - ------------- ------------- (1,374,608) (1,697,068) ------------- ------------- ------------- ------------- Change in non-cash working capital and other balances related to operations (717,477) (269,415) ------------- ------------- Cash used in operating activities (2,092,085) (1,966,483) ------------- ------------- ------------- ------------- Financing activities Issuance of capital stock 1,778,595 1,752,000 Share issue costs (147,043) (43,312) Issuance of warrants - 81,600 Warrant issue costs (6,340) (2,017) Costs related to the corporate reorganization (182,794) - Repayment of long-term debt (26,298) (135,463) ------------- ------------- Cash provided by financing activities 1,416,120 1,652,808 ------------- ------------- ------------- ------------- Investing activities Acquisition of property and equipment - (17,311) ------------- ------------- Cash used in investing activities - (17,311) ------------- ------------- ------------- ------------- Net change in cash from continuing operations (675,965) (330,986) Cash flow from discontinued operations Operating activities - (920,520) Financing activities - 495,788 Investing activities - (61,957) ------------- ------------- Net change in cash from discontinued operations - (486,689) ------------- ------------- Decrease in cash and cash equivalents (675,965) (817,675) Cash and cash equivalents - Beginning of period 3,687,548 3,819,796 ------------- ------------- ------------- ------------- Cash and cash equivalents - End of period 3,011,583 3,002,121 ------------- ------------- ------------- ------------- Cash and cash equivalents - discontinued operations - 1,406,139 Cash and cash equivalents - from continuing operations 3,011,583 1,595,982 ------------- ------------- ------------- ------------- Supplemental Information (continuing operations) Cash interest received 133 6,979 Cash interest paid 234 20,033 Non-cash transactions Capital items included in accounts payable - - Share issue costs included in accounts payable 11,247 11,892 ------------- ------------- ------------- -------------