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Akela Pharma reports results for the second quarter of fiscal 2010

^{Published on 2010-08-12 15:00:46 - Market Wire}
 

 - During the second quarter of 2010 our PharmaForm subsidiary benefited from the cost reductions initiated during 2009 and continued through 2010. PharmaForm's streamlined operations and effective project management initiatives have resulted in increased operating margins and efficiencies during the first and second quarters of 2010. In the second quarter of 2010 direct costs were reduced by 30% with SG&A costs seeing a reduction of 14% over the same period in 2009. PharmaForm ended the quarter with positive EBITDA. - On June 30, 2010 Akela held its Annual General Meeting ("AGM") in Vancouver, British Columbia. At the AGM shareholders ratified in person and by proxy all amendments brought before the Board as contemplated on the Form of Proxy including the election of Robert W. Rieder, Gordon Busenbark and Gregory McKee to continue as directors of the Company. Further, amendments to the Company's 2007 Stock Incentive Plan, the changing of the registered office of the Company from the Province of Quebec to the Province of British Columbia were also approved. All amendments, including those referenced above, may be viewed in the Information Circular and Form of Proxy of the Company available on SEDAR at [ www.sedar.com ]. - On June 30, 2010 Akela announced that the Company had obtained from the securities regulatory authorities of Québec, Ontario, British Columbia, Saskatchewan, Manitoba Nova Scotia and Alberta full revocation of the management cease trade order that was prohibiting certain directors, officers and insiders of Akela Pharma from trading in securities of Akela Pharma for as long as the annual financial statements, CEO and CFO certifications and related management discussion and analysis ("MD&A") and annual information form ("AIF") were not filed. On May 31, 2010, Akela Pharma filed its audited annual financial statements, CEO and CFO certifications, MD&A and AIF for the year ended December 31, 2009, and on June 18, 2010, Akela Pharma filed its interim financial statements for the quarter ended March 31, 2010, which documents are available on SEDAR at [ www.sedar.com ]. 

 AKELA PHARMA INC. Consolidated Balance Sheets (Unaudited) June 30, 2010 and December 31, 2009 (in thousands of US dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- June 30, December 31, 2010 2009 ------------------------------------------------------------------------- Assets Current assets: Cash $ 304 $ 107 Restricted cash - 938 Accounts receivable 1,212 1,679 Prepaid expenses and other current assets 302 417 ----------------------------------------------------------------------- 1,818 3,141 Property and equipment 3,505 4,217 Other assets 580 598 ------------------------------------------------------------------------- $ 5,903 $ 7,956 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Deficiency Current liabilities: Accounts payable and accrued liabilities $ 7,664 $ 7,801 Deferred revenue 2,848 2,795 Current portion of long-term debt 1,775 1,015 ----------------------------------------------------------------------- 12,287 11,611 Deferred revenue 13,339 14,630 Long-term debt 5,496 6,615 Income taxes 827 799 Shareholders' deficiency: Common shares (unlimited authorized, 32,140,338 and 30,890,338 common shares issued and outstanding with no par value at June 30, 2010 and December 31, 2009, respectively) 67,704 67,544 Warrants 2,288 2,954 Additional paid-in capital 9,032 8,511 Accumulated other comprehensive income 3,110 3,110 Deficit (108,180) (107,818) ----------------------------------------------------------------------- (26,046) (25,699) ------------------------------------------------------------------------- $ 5,903 $ 7,956 ------------------------------------------------------------------------- ------------------------------------------------------------------------- AKELA PHARMA INC. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) Periods ended June 30, 2010 and 2009 (in thousands of US dollars, except share and per share data) ----------------------------------------------- ----------------------------------------------- Three months ended Six months ended June 30, June 30, ----------------------------------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- Revenues $ 3,050 $ 4,022 $ 5,651 $ 7,792 Expenses: Direct costs 1,387 1,979 2,831 4,047 Selling, general and administrative 1,658 1,813 3,061 3,247 Research and development 129 892 258 2,281 Restructuring costs - (327) - 349 Stock-based compensation 8 80 15 157 Depreciation of property and equipment 376 356 733 728 Amortization of intangible assets - 423 - 846 Interest on long-term debt 117 78 180 115 Unrealized loss (gain) on securities held for trading 47 (141) 76 (54) Foreign exchange gain (749) (40) (1,141) (80) ----------------------------------------------------------------------- 2,973 5,113 6,013 11,636 Income (loss) before under noted items 77 (1,091) (362) (3,844) Other income (expense): Settlement with LRI - - - 1,664 Provision for repayment of government grants - - - (1,544) ----------------------------------------------------------------------- - - - 120 ------------------------------------------------------------------------- Net income (loss) and comprehensive income (loss) $ 77 $ (1,091) $ (362) $ (3,724) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) per common share - basic $ 0.00 $ (0.04) $ (0.01) $ (0.16) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) per common share - diluted $ 0.00 $ (0.04) $ (0.01) $ (0.16) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic weighted average common shares outstanding 31,015,338 25,737,693 30,952,838 23,676,635 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Diluted weighted average common shares outstanding 31,015,338 25,737,693 30,952,838 23,676,635 ------------------------------------------------------------------------- ------------------------------------------------------------------------- AKELA PHARMA INC. Consolidated Statements of Cash Flows (Unaudited) Periods ended June 30, 2010 and 2009 (in thousands of US dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, ---------------------- ----------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- Cash flows from operating activities: Net income (loss) $ 77 $ (1,091) $ (362) $ (3,724) Adjustments for: Depreciation of property and equipment 376 356 733 728 Amortization of intangible assets - 423 - 846 Provision for repayment of government grants - - - 1,544 Resctructuring charges - (528) - 43 Stock-based compensation 8 80 15 157 Unrealized foreign exchange gain (749) (91) (1,141) (134) Unrealized loss (gain) on securities held for trading 47 (141) 76 (54) Net changes in operating assets and liabilities (411) 100 (540) 1,400 ------------------------------------------------------------------------- (652) (892) (1,219) 806 Cash flows from financing activities: Repayments of long-term debt (175) (164) (269) (326) Proceeds from issuance of long-term debt 250 - 750 - ------------------------------------------------------------------------- 75 (164) 481 (326) Cash flows from investing activities: Acquisition of property and equipment 16 (458) (3) (1,250) Restricted cash 705 - 938 - Acquisition of Nventa - 1,157 - 1,157 ------------------------------------------------------------------------- 721 699 935 (93) Net increase (decrease) in cash 144 (357) 197 387 Cash, beginning of period 160 3,089 107 2,345 ------------------------------------------------------------------------- Cash, end of period $ 304 $ 2,732 $ 304 $ 2,732 ------------------------------------------------------------------------- -------------------------------------------------------------------------