Oxygen Biotherapeutics Reports Financial Results for the Third Quarter FY2013

Before you go, we thought you'd like these...
Before you go close icon

Oxygen Biotherapeutics Reports Financial Results for the Third Quarter FY2013

MORRISVILLE, N.C.--(BUSINESS WIRE)-- Oxygen Biotherapeutics, Inc. (NAS: OXBT) , a development stage biomedical company focused on developing oxygen-carrying intravenous and topical products, today announced financial results for the three and nine month periods ending January 31, 2013.

Third Quarter 2013 Financial Snapshot

  • Cash and cash equivalents were $0.8 million at January 31, 2013.
  • Net product sales from Dermacyte® were $2,900 for the third quarter of 2013 compared to $4,700 for the three months ended January 31, 2012.
  • Revenue earned under our U.S. Army research grant increased to $221,051 for the third quarter of 2013 compared to $146,101 for the three months ended January 31, 2012.
  • Net loss from operations decreased 16% for the third quarter of 2013 to $1.6 million compared to $1.9 million for the three months ended January 31, 2012.
  • Net cash used for operating activities decreased to $700,000 for the third quarter of 2013 compared to $2.3 million for the three months ended January 31, 2012.

"Activities during our most recent quarter related to three primary and time consuming achievements needed to resume our Phase IIb traumatic brain injury studies abroad, to further our preclinical studies designed to elaborate the safety profile of Oxycyte, our leading drug candidate, and capital raising activities that resulted in securing enough cash to finance activities to help us achieve the next major milestones necessary to drive our company forward, " said Michael Jebsen, Interim Chief Executive Officer, Chief Financial Officer and President.

Oxygen Biotherapeutics reported net revenue of $222,388 and $1,009,356 for the three and nine months ended January 31, 2012, respectively compared to $148,262 and $268,294 for the same periods in the comparable periods in fiscal 2012. This increase is primarily due to government grant revenue earned under the U.S. Army-funded grant awarded to the company in June 2011 to conduct preclinical studies for Oxycyte® perfluorocarbon (PFC) emulsion.

These preclinical studies are designed to address safety concerns expressed by the U.S. Food and Drug Administration (FDA)and to develop a more robust and comprehensive safety profile for Oxycyte. The results will be used to respond to questions posed by the FDA which led to Oxycyte being placed on clinical hold in the United States in 2008. The Company expects to complete this two-year preclinical program in July with results being publicly reported soon thereafter.

Dermacyte cosmetic sales revenue declined as the company moved resources out of this non-core business. The decrease was primarily due to the elimination of our internal sales force and the suspension of our direct marketing and advertising programs. In addition, during the fourth quarter, the Company licensed Dermacyte products to Valor Cosmetics of Lausanne, Switzerland. Valor has exclusive worldwide rights to distribute, market and sell Dermacyte either under the Dermacyte brand or its own brand name and packaging.

Selling, general and administrative expenses were $1,441,500 for the quarter ended January 31, 2013 compared to $1,422,103 for the same period in the prior year. The slight increase for the period was due primarily to the accrual for litigation settlement costs offset by decreases in costs incurred for legal and professional fees, facilities, and other general and administrative expenses.

Research and Development expenses were $369,447 for the quarter ended January 31, 2013 compared to $599,935 for the same period in the prior year. The decrease for the period was due primarily to reductions in costs incurred for personnel, consultants, facilities and other general expenses.

Selling, general and administrative expenses were $3,127,133 for the nine months ended January 31, 2013, compared to $4,883,903 for the same period in the prior year. The decrease for the period was due primarily to the reversal of accrued 409A costs and reductions in the costs incurred for personnel, legal and professional fees, facilities, and other general and administrative expenses; partially offset by the accrual for litigation settlement costs.

Research and Development expenses were $1,611,293 for the nine months ended January 31, 2013, compared to $4,883,903 for the same period in the prior year. The decrease for the period was due primarily to reductions in costs incurred for personnel, consultants, facilities and other general expenses; partially offset by an increase in costs associated with clinical and preclinical development of Oxycyte.

As of January 31, 2013, the Company had cash and cash equivalents totaling $828,811 compared to $1,879,872 at April 30, 2012.

Conference Call

Management will host a conference call and webcast regarding the third quarter financial results for the three and nine months ending January 31, 2013, on Tuesday, March 19, 2013, at 11 a.m. ET. To access the live teleconference dial (866) 277-1184 (U.S. and Canada), or (617) 597-5360 (international.) The participant pass code is 10084976. Also, a live webcast will be available on our web site http://www.oxybiomed.com/investors.htm . A replay of the webcast will be available by phone or on the Oxygen website for a limited time. To access the replay by phone, call (888) 286-8010 (U.S. and Canada) or (617) 801-6888 (international). The pass code for the replay is 10065352.

About Oxygen Biotherapeutics, Inc.

Oxygen Biotherapeutics, Inc. is developing medical and cosmetic products that efficiently deliver oxygen to tissues in the body. The company has developed a proprietary perfluorocarbon (PFC) therapeutic oxygen carrier called Oxycyte® that is currently in clinical and preclinical studies for intravenous delivery for indications such as traumatic brain injury, decompression sickness and stroke. The company is also developing PFC-based oxygen-carrying creams and gels for topical delivery to the skin for dermatologic conditions and potentially wound care. In addition, the company has commercialized its Dermacyte® line of oxygen-rich skin care products for the anti-aging market.

Financial Tables Follow

The accompanying notes found in the company's Form 10-Q filed with the SEC
on March 18, 2013 are an integral part of these Financial Statements.

 
 

OXYGEN BIOTHERAPEUTICS, INC.

(a development stage enterprise)

BALANCE SHEETS

(unaudited)

     
January 31, 2013April 30, 2012
(Unaudited) 
 
ASSETS
Current assets
Cash and cash equivalents$828,811$1,879,872
Accounts receivable13,64213,385
Government grant receivable87,18535,650
Inventory107,93883,370
Prepaid expenses341,884455,946
Other current assets 272,713  162,809 
Total current assets1,652,1732,631,032
Property and equipment, net226,808293,606
Debt issuance costs, net182,197278,659
Intangible assets, net923,397872,971
Other assets 58,262  65,666 
Total assets$3,042,837 $4,141,934 
 
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable$807,679$542,809
Accrued liabilities1,085,3731,273,837
Convertible preferred stock-1,247,266
Current portion of notes payable, net 98,657  62,958 
Total current liabilities1,991,7093,126,870
Other liabilities65,592-
Long-term portion of notes payable, net 2,586,109  1,361,110 
Total liabilities4,643,4104,487,980
 
 
Commitments and contingencies; see Note 7.
Stockholders' deficit
Preferred stock, undesignated, authorized 9,992,500 shares; see Note 5.--

Common stock, par value $.0001 per share; authorized 400,000,000 shares; issued

and outstanding 33,650,499 and 29,417,718, respectively

3,3652,942
Additional paid-in capital113,581,120107,279,296
Deficit accumulated during the development stage (115,185,058) (107,628,284)
Total stockholders' deficit (1,600,573) (346,046)
Total liabilities and stockholders' deficit$3,042,837 $4,141,934 
 
 

OXYGEN BIOTHERAPEUTICS, INC.

(a development stage enterprise)

STATEMENTS OF OPERATIONS

(unaudited)

 
 
       
 

Period from May 26,

1967 (Inception) to

Three months ended January 31,Nine months ended January 31,

January 31, 2013

2013 20122013   2012
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Product revenue$499,153$2,871$4,673$28,899$91,565
Cost of sales 326,046  1,534  2,512  16,578  47,616 
Net product revenue173,1071,3372,16112,32143,949
Government grant revenue 1,311,550  221,051  146,101  997,035  224,345 
Total net revenue1,484,657222,388148,2621,009,356268,294
 
Operating expenses
Selling, general, and administrative50,036,2001,441,5001,422,1033,127,1334,883,903
Research and development23,686,605369,447599,9351,611,2931,740,473
Restructuring expense220,7152,941-220,715-
Loss on impairment of long-lived assets 363,691  -  -  -  - 
Total operating expenses74,307,2111,813,8882,022,0384,959,1416,624,376
 
Net operating loss72,822,5541,591,5001,873,7763,949,7856,356,082
 
Interest expense43,338,767821,7775,341,9883,615,2046,649,554
Loss on extinguishment of debt250,097----
Other (income) expense (1,226,360) (323) 82,850  (8,215) 91,970 
Net loss$115,185,058 $2,412,954 $7,298,614 $7,556,774 $13,097,606 
 
Net loss per share, basic$(0.07)$(0.26)$(0.24)$(0.53)
Weighted average number of common shares outstanding, basic33,177,89327,558,53231,828,75024,922,512
Net loss per share, diluted$(0.14)$(0.39)$(0.30)$(0.65)
Weighted average number of common shares outstanding, diluted35,352,78429,731,48134,003,64126,630,311
 

Caution Regarding Forward-Looking Statements

This news release contains certain forward-looking statements by the company that involve risks and uncertainties and reflect the company's judgment as of the date of this release. These statements include the expansion of development of the Oxycyte and Dermacyte product lines and the timing of the introduction of those new products. The forward-looking statements are subject to a number of risks and uncertainties including matters beyond the company's control that could lead to delays in new product introductions and customer acceptance of these new products, and other risks and uncertainties as described in Item 1A (Risk Factors) of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on July 15, 2011 and in our subsequent filings with the SEC. The company disclaims any intent or obligation to update these forward-looking statements beyond the date of this release, except as required by law. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.



Oxygen Biotherapeutics, Inc.
Ellen Corliss, 919-855-2112
Senior Vice President
Corporate Communications
& Investor Relations

KEYWORDS:   United States  North America  North Carolina

INDUSTRY KEYWORDS:

The article Oxygen Biotherapeutics Reports Financial Results for the Third Quarter FY2013 originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners