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SemBioSys announces second quarter results

^{Published on 2010-08-13 04:11:36 - Market Wire}
 

 - Received positive final results from an in vivo animal study of plant-derived Apo AI(Milano), conducted by an independent third party, demonstrating a statistically significant increase in reverse cholesterol transport in treated animals versus control. - Achieved inventory threshold of Apo AI(Milano) expressing seed to meet planned Active Pharmaceutical Ingredient ("API") requirements for the completion of preclinical and toxicology studies to support the filing of an investigational new drug application (IND) to the U.S. Food and Drug Administration (FDA). - Planted approximately 40 acres of Apo AI(Milano) expressing seed in North America. - Completed the first outdoor planting of our second generation, humanized insulin expressing seed line. - Advanced partnering discussions for our insulin and Apo AI(Milano) programs. - Appointed Rick Pierce as President of U.S. and International Operations and Karen Boodram as Vice President of Business Development, to lead the Company's partnering process, and promoted Dr. Joe Boothe to Vice President of Research and Development and Dr. Harm Deckers to Vice President of Operations and Legal Affairs. 

 - $2,891,999 or $0.06 per share from continuing operations compared to $2,615,412 or $0.09 per share; - $nil from discontinued operations compared to $1,270,700 or $0.04 per share; and - $2,891,999 or $0.06 per share in total net loss compared to $3,886,112 or $0.13 per share. 

 - $4,955,750 or $0.10 per share from continuing operations compared to $5,073,087 or $0.18 per share; - $nil from discontinued operations compared to $2,641,478 or $0.09 per share; and - $4,955,750 or $0.10 per share in total net loss compared to $7,714,565 or $0.27 per share. 

 - $111,039 in revenue from continuing operations compared to $290,199; - $nil in revenue from discontinued operations compared to $199,331; and - $111,039 in total revenue compared to $489,530. 

 - $467,504 in revenue from continuing operations compared to $1,451,694; - $nil in revenue from discontinued operations compared to $337,300; and - $467,504 in total revenue compared to $1,788,994. 

 - $2,931,651 in expenditures from continuing operations compared to $2,905,538; - $nil in expenditures from discontinued operations compared to $1,267,980; and - $2,931,651 in total expenses net of cost recoveries compared to $4,173,518. 

 - $5,247,543 in expenditures from continuing operations compared to $6,494,788; - $nil in expenditures from discontinued operations compared to $2,610,677; and - $5,247,543 in total expenses net of cost recoveries compared to $9,105,465. 

 SemBioSys Genetics Inc. CONSOLIDATED BALANCE SHEETS (unaudited) (expressed in Canadian dollars) ------------------------------------------------------------------------- June 30, December 31, 2010 2009 $ $ ------------ ------------ ASSETS Current assets Cash and cash equivalents 1,635,926 3,687,548 Investment 207,974 380,601 Accounts receivable 215,404 124,083 GST receivable 111,246 52,649 Prepaid expenses, deposits and other 282,566 175,894 ------------ ------------ 2,453,116 4,420,775 Property and equipment 2,984,902 3,683,462 ------------ ------------ 5,438,018 8,104,237 ------------ ------------ ------------ ------------ LIABILITIES Current liabilities Accounts payable and accrued liabilities 917,040 1,291,023 Short-term portion of long-term debt 1,698,251 1,534,535 Short-term portion of convertible debenture 105,470 - ------------ ------------ 2,720,761 2,825,558 Long-term portion of convertible debenture 522,326 - ------------ ------------ 3,243,087 2,825,558 ------------ ------------ ------------ ------------ SHAREHOLDERS' EQUITY Capital stock 75,444,408 73,726,414 Warrants 3,527,425 3,527,425 Contributed surplus 14,033,943 13,764,398 Accumulated other comprehensive loss (169,909) (54,372) Deficit (90,640,936) (85,685,186) ------------ ------------ 2,194,931 5,278,679 ------------ ------------ 5,438,018 8,104,237 ------------ ------------ ------------ ------------ SemBioSys Genetics Inc. CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT (unaudited) (expressed in Canadian dollars, except shares) ------------------------------------------------------------------------- Three month period ended Six month period ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 $ $ $ $ ------------ ------------ ------------ ------------ REVENUE Contract research 111,039 38,151 151,715 38,151 Licensing fees - 252,048 315,789 252,048 Licensing option fees - - - 1,161,495 ------------ ------------ ------------ ------------ 111,039 290,199 467,504 1,451,694 EXPENSES Research and development 1,104,589 1,691,554 2,202,654 3,714,462 General and administration 327,127 328,602 700,450 890,000 Intellectual property costs 903,196 281,508 1,134,869 546,739 Business development 174,917 123,419 314,379 279,193 Stock-based compensation 91,050 126,054 214,548 356,699 Amortization 344,522 366,901 698,560 740,500 Cost recoveries (13,750) (12,500) (17,917) (32,805) ------------ ------------ ------------ ------------ 2,931,651 2,905,538 5,247,543 6,494,788 ------------ ------------ ------------ ------------ Loss before the undernoted (2,820,612) (2,615,339) (4,780,039) (5,043,094) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Interest income 1,985 2,084 2,007 7,500 Interest expense (53,706) (28,183) (151,112) (48,311) Foreign exchange gain (loss) 723 26,026 (6,217) 10,818 Realized loss on disposal of investment (20,389) - (20,389) - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (71,387) (73) (175,711) (29,993) ------------ ------------ ------------ ------------ Net loss from continuing operations (2,891,999) (2,615,412) (4,955,750) (5,073,087) Discontinued operations - (1,270,700) - (2,641,478) ------------ ------------ ------------ ------------ Net loss (2,891,999) (3,886,112) (4,955,750) (7,714,565) Deficit - Beginning of the period (87,748,937) (82,924,757) (85,685,186) (79,096,304) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Deficit - End of the period (90,640,936) (86,810,869) (90,640,936) (86,810,869) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Loss per share Basic and diluted from continuing operations (0.06) (0.09) (0.10) (0.18) Basic and diluted from discontinued operations - (0.04) - (0.09) Basic and diluted (0.06) (0.13) (0.10) (0.27) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Weighted average shares outstanding 51,259,536 28,788,251 47,607,001 28,545,450 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ SemBioSys Genetics Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) (expressed in Canadian dollars) ------------------------------------------------------------------------- Three month period ended Six month period ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 $ $ $ $ ------------ ------------ ------------ ------------ Net loss for the period (2,891,999) (3,886,112) (4,955,750) (7,714,565) Other comprehensive loss Foreign currency translation adjustment - (19,063) - 13,557 Foreign currency translation adjustment transferred to net income from discontinued operations during the year - 19,063 - (13,557) Unrealized loss on investment (81,554) - (135,926) - Realized loss on investment 20,389 - 20,389 - ------------ ------------ ------------ ------------ Comprehensive loss (2,953,164) (3,886,112) (5,071,287) (7,714,565) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS (unaudited) (expressed in Canadian dollars) ------------------------------------------------------------------------- Three month period ended Six month period ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 $ $ $ $ ------------ ------------ ------------ ------------ Accumulated other comprehensive loss - beginning of the period (108,744) - (54,372) - Foreign currency translation adjustments Change in accounting policy - - - 26,534 Adjustments during the year - - - (12,977) Transferred to net income from discontinued operations during the year - - - (13,557) ------------ ------------ ------------ ------------ (108,744) - (54,372) - Unrealized loss on Investment (81,554) - (135,926) - Realized loss on investment 20,389 - 20,389 - ------------ ------------ ------------ ------------ Accumulated other comprehensive loss - end of the period (169,909) - (169,909) - ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ SemBioSys Genetics Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS Three month period ended Six month period ended (unaudited) June 30, June 30, June 30, June 30, (expressed in 2010 2009 2010 2009 Canadian dollars) $ $ $ $ ------------------------------- ------------ ------------ ------------ Cash provided by (used in) Operating activities Net loss for the period from continuing operations (2,891,999) (2,615,412) (4,955,750) (5,073,087) Add items not affecting cash: Amortization 344,522 366,901 698,560 740,500 Stock-based compensation 91,050 126,054 214,548 356,699 Shares issued for services - - 92,935 152,985 Deferred stock units issued 54,997 - 54,997 - Unrealized foreign exchange loss (6,672) (18,057) 14,828 (14,678) Non-cash interest expense 50,910 15,473 148,082 15,473 Loss on disposal of shares 20,389 - 20,389 - Non-cash interest on convertible debentures 2,796 - 2,796 - Non-cash license fees expensed 625,000 - 625,000 - ------------ ------------ ------------ ------------ (1,709,007) (2,125,041) (3,083,615) (3,822,108) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Change in non-cash working capital and other balances related to operations 312,555 131,899 (404,922) (237,516) ------------ ------------ ------------ ------------ Cash used in operating activities (1,396,452) (1,993,142) (3,488,537) (4,059,624) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Financing activities Issuance of capital stock - - 1,778,595 1,752,000 Share issue costs (11,247) (26,411) (158,290) (69,724) Issuance of warrants - - - 81,600 Warrant issue costs - - (6,340) (2,017) Costs related to the corporate reorganization - - (182,794) - Proceeds from long-term debt - 950,000 - 950,000 Repayment of long-term debt (4,659) (134,190) (30,957) (269,653) ------------ ------------ ------------ ------------ Cash provided by (used in) financing activities (15,906) 789,399 1,400,214 2,442,206 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Investing activities Proceeds on disposition of shares 36,701 - 36,701 - Acquisition of property and equipment - - - (17,311) ------------ ------------ ------------ ------------ Cash provided by (used in) investing activities 36,701 - 36,701 (17,311) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net change in cash from continuing operations (1,375,657) (1,203,743) (2,051,622) (1,634,729) Cash flow from discontinued operations Operating activities - (906,035) - (1,726,554) Financing activities - 12,046 - 507,833 Investing activities - (53,609) - (115,566) ------------ ------------ ------------ ------------ Net change in cash from discontinued operations - (947,598) - (1,334,287) ------------ ------------ ------------ ------------ Decrease in cash and cash equivalents (1,375,657) (2,151,341) (2,051,622) (2,969,016) Cash and cash equivalents - Beginning of period 3,011,583 3,002,121 3,687,548 3,819,796 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Cash and cash equivalents - End of period 1,635,926 850,780 1,635,926 850,780 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Cash and cash equivalents - discontinued operations - 358,542 - 358,542 Cash and cash equivalents - from continuing operations 1,635,926 492,238 1,635,926 492,238 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Supplemental Information (continuing operations) Cash interest received 1,985 4,827 2,118 11,806 Cash interest paid - 12,309 234 32,342 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------