BOTHELL, Wash., Nov. 6 /PRNewswire-FirstCall/ -- SCOLR Pharma, Inc. (Amex:
DDD) today reported financial results for the three and nine months ended
September 30, 2009.
Stephen J. Turner, SCOLR Pharma's President and CEO, said, "We continue to
advance discussions related to licensing our 12-hour ibuprofen formulation.
Several potential partners have committed significant resources in time,
personnel and external resources as they evaluate the potential commercial
and/or licensing opportunity. In the nutraceutical area, we have increased
our sales and marketing efforts and are optimistic we will be able to expand
our existing revenue streams from extended release supplements. Royalties
received from Perrigo continue to improve on a quarterly basis, and we expect
to see further increases as we expand the reach of our products to new
customers. In addition, we have made significant strides in support of our
recent marketing efforts on new product offerings outside of the Perrigo
relationship both within the US and abroad. We expect to be able to introduce
newly formulated products in 2010 based on our meetings with numerous
international, national and regional retailers and potential partners.
We continue to make progress in reducing our operating expenses including
reductions in salary and rent expenses. We renegotiated the lease for our
corporate facility to reduce the amount of leased space to 15,615 square feet
from 20,468 square feet and reduce our rental payments. In addition, effective
November 1, 2009, the Company will be allowed to pay up to $18,000 of its
monthly rent for twelve months through draw downs on the letter of credit
which secures the lease. In addition, we eliminated one executive position and
reduced base salaries for two executive officers. These additional savings
will provide us the opportunity to preserve our capital and improve our
position for the future."
Total revenues, which consist of royalty revenue from our collaboration
agreements, increased 11%, or $25,343 to $261,651 for the three months ended
September 30, 2009, compared to $236,308 for the same period in 2008. Total
revenues decreased 15%, or $117,223 to $664,212 for the nine months ended
September 30, 2009, compared to $781,435 for the same period in 2008. Royalty
revenues result from our relationship with Perrigo and reflect changes in the
level of sales by Perrigo.
Marketing and selling expenses decreased 53%, or $62,489 to $54,351 for the
three months ended September 30, 2009, compared to $116,840 for the same
period in 2008 and decreased 63%, or $345,177 to $200,402 for the nine months
ended September 30, 2009, compared to $545,579 for the same period in 2008.
These decreases are due to a reduction in personnel related expenses due to
reduction in personnel and lower advertising and tradeshow expenses.
Research and development expenses decreased 75%, or $1.7 million to $572,189
for the three months ended September 30, 2009, compared to $2.3 million for
the same period in 2008 and decreased 50%, or $2.2 million to $2.2 million for
the nine months ended September 30, 2009, compared to $4.4 million for the
same period in 2008. These decreases were primarily due to our decision to
defer development activities on certain projects pending additional funding
and a reduction in personnel related expenses due to personnel reductions.
General and administrative expenses increased 29%, or $273,061 to $1.2 million
for the three months ended September 30, 2009, compared to $947,684 for the
same period in 2008, and increased 3%, or $104,665, to $3.3 million for the
nine months ended September 30, 2009, compared to $3.2 million for the same
period in 2008. These increases were primarily due to severance costs
associated with the resignation of our former CEO, and increased investment
banker activities. These increases were offset by decreases in non-cash share
based compensation expense director's and shareholder relations expenses and
insurance premiums.
In May 2008, we entered an agreement to terminate the lease for our former
corporate facility for consideration of $4.1 million which was recognized as a
reduction to operating expense in September 2008. Under the terms of the
agreement, we received $1.0 million upon execution of the agreement and the
remaining $3.1 million in September 2008, at the time we vacated the premises.
We incurred costs of $116,867 related to relocation to our new facility and
the lease buyout which were recognized in operating expense in September 2008.
Other income decreased 98%, or $41,608 to $948 for the three months ended
September 30, 2009, compared to $42,556 for the comparable period in 2008, and
decreased 96%, or $186,746 to $8,548 for the nine months ended September 30,
2009, compared to $195,294 of net income for the same period in 2008. These
decreases were due to a decrease in interest income due to lower cash
balances.
Net loss increased $2.5 million to $1.6 million for the three months ended
September 30, 2009, compared to $890,371 of net income for the same period in
2008, and the net loss for the nine months ended September 30, 2009, increased
57%, or $1.8 million to $5.1 million, compared with a net loss of $3.2 million
for the same period in 2008. The increased net loss reflects the net impact of
the non-recurring $4.0 million income recognized in the prior year for the
facility lease buyout.
We had approximately $1.9 million in cash and cash equivalents, and $473,711
in restricted cash as of September 30, 2009. Based on our current operating
plan, we anticipate that our existing cash and cash equivalents, together with
expected royalties from third parties, will be sufficient to fund our
operations through February 2010, unless unforeseen events arise that
negatively impact our liquidity. In the event we are unsuccessful generating
additional revenues or raising additional funds, we will have to substantially
reduce our operations to preserve capital or seek bankruptcy protection or
otherwise wind up our business.
In addition to our efforts to enter into alliances and licensing agreements,
we plan to continue to seek access to the capital markets to fund our
operations. We filed a shelf registration statement in the amount of $40
million which was declared effective by the Securities and Exchange Commission
on November 25, 2008 under which we may offer from time-to-time, one or more
offerings of securities up to an aggregate public offering price of $40
million. However, the financial markets have been very difficult for companies
at our development stage and financial condition and financing may not be
available on favorable terms or at all. Additionally, we received notice from
the NYSE Amex that we are not in compliance with continued listing
requirements. Our inability to maintain listing of our common stock on the
NYSE Amex may further limit our ability to access the capital markets. Any
issuance of additional securities could be dilutive to our existing
stockholders.
About SCOLR Pharma:
Based in Bothell, Washington, SCOLR Pharma, Inc. is a specialty pharmaceutical
company. SCOLR Pharma's corporate objective is to combine its formulation
expertise and its patented CDT platform to develop novel pharmaceutical,
over-the-counter (OTC), and nutritional products. Our CDT drug delivery
platforms are based on multiple issued and pending patents and other
intellectual property for the programmed release or enhanced performance of
active pharmaceutical ingredients and nutritional products. For more
information on SCOLR Pharma, please call 425.368.1050 or visit
http://www.scolr.com/.
This press release contains forward-looking statements (statements which are
not historical facts) within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve risks and
uncertainties, including activities, events or developments that we expect,
believe or anticipate will or may occur in the future. A number of factors
could cause actual results to differ from those indicated in the
forward-looking statements, including our ability to raise additional funds or
enter strategic alliances, advance development of our potential products and
complete research and development, including pre-clinical and clinical
studies, the continuation of arrangements with our product development
partners and customers, competition, government regulation and approvals, and
general economic conditions. For example, we may not obtain regulatory
approval for our products, which would materially impair our ability to
generate revenue. Additional assumptions, risks and uncertainties are
described in detail in our registration statements, reports and other filings
with the Securities and Exchange Commission. Such filings are available on our
website or at www.sec.gov. You are cautioned that such statements are not
guarantees of future performance and that actual results or developments may
differ materially from those set forth in the forward-looking statements. We
undertake no obligation to publicly update or revise forward-looking
statements to reflect subsequent events or circumstances.
Contacts:
Investor Relations
info@scolr.com
SCOLR Pharma, Inc.
425-368-1050 ext 1080
SCOLR Pharma, Inc.
CONDENSED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2008 2009
---- ----
ASSETS
Current Assets
Cash and cash equivalents $1,946,908 $6,363,243
Accounts receivable 240,363 177,253
Interest and other receivables 6,282 1,157
Prepaid expenses and other
assets 285,807 286,539
----------- -----------
Total current assets 2,479,360 6,828,192
Property and Equipment - net
of accumulated depreciation
of $1,245,400 and $1,289,844,
respectively 555,364 790,947
Intangible assets - net of
accumulated amortization of
$493,671 and $465,724, respectively 564,359 557,639
Restricted cash 473,711 473,711
----------- -----------
$4,072,794 $8,650,489
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $26,102 $238,701
Accrued liabilities 633,277 668,694
Current portion of term loan - 87,850
----------- -----------
Total current liabilities 659,379 995,245
Deferred rent 271,790 310,010
Long-term portion of term loan - 23,269
----------- -----------
Total liabilities 931,169 1,328,524
Commitments and Contingencies
Stockholders' Equity
Preferred stock, authorized
5,000,000 shares, $.01 par
value, none issued or outstanding - -
Common stock, authorized
100,000,000 shares, $.001 par
value 41,098,270 and
41,130,270 issued and
outstanding as of
September 30, 2009, and
December 31, 2008,
Respectively 41,098 41,130
Additional paid-in capital 72,138,140 71,255,901
Accumulated deficit (69,037,613) (63,975,066)
----------- -----------
Total stockholders' equity 3,141,625 7,321,965
----------- -----------
$4,072,794 $8,650,489
=========== ===========
SCOLR Pharma, Inc.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenues
Royalty income $261,651 $236,308 $664,212 $781,435
--------- ------- --------- ---------
Total revenues 261,651 236,308 664,212 781,435
Operating expenses
Marketing and selling 54,351 116,840 200,402 545,579
Research and development 572,189 2,307,103 2,187,626 4,387,636
General and
administrative 1,220,745 947,684 3,347,279 3,242,614
--------- ------- --------- ---------
1,847,285 3,371,627 5,735,307 8,175,829
Facility lease
termination
Gain from lease buyout - (4,100,000) - (4,100,000)
Expenses related to
relocation and lease
buyout - 116,867 - 116,867
--------- ------- --------- ---------
Total facility lease
buyout - (3,983,133) - (3,983,133)
--------- ------- --------- ---------
Total operating
(revenue)
expenses 1,847,285 (611,506) 5,735,307 4,192,696
--------- ------- --------- ---------
Income (loss)
from
operations (1,585,634) 847,814 (5,071,095) (3,411,261)
Other income (expense)
Interest income 948 45,858 12,060 205,530
Interest expense - (3,393) (3,512) (11,565)
Other - 91 - 1,329
--------- ------- --------- ---------
Total other income 948 42,556 8,548 195,294
--------- ------- --------- ---------
Net income (loss) $(1,584,686) $890,370 $(5,062,547)$(3,215,967)
========= ======== ========= =========
Net income (loss)
per share, basic
and diluted $(0.04) $.02 $(0.12) $(0.08)
========= ======== ========= =========
Shares used in
computing basic net
income (loss) per
share 41,098,270 41,130,270 41,098,270 41,110,684
Shares used in
computing diluted
net income (loss)
per share 41,098,270 41,561,623 41,098,270 41,110,684
SOURCE SCOLR Pharma, Inc.
Investor Relations, SCOLR Pharma, Inc., +1-425-368-1050 ext 1080,
info@scolr.com
