VANCOUVER, Canadaâ€” iCo Therapeutics Inc. (TSX-V: ICO) today reported financial results for the quarter ended June 30, 2009. Amounts, unless specified otherwise, are expressed in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP).
Summary Q2 2009 Results
We incurred a net and comprehensive loss of $556,886 for the three months ended June 30, 2009 compared to a net and comprehensive loss of $671,290 for the three months ended June 30 2008, representing a decrease of approximately $114,404. The decrease in our net and comprehensive loss was principally caused by a decrease in both research and development expenses and general and administrative expenses.
Interest income for the three months ended June 30, 2009 was $621, compared to $4,646 for the three month period ending June 30, 2008, resulting in a decrease of $4,025. The lower interest income earned in the three month period ending June 30, 2009, as compared to the same period in 2008 was a result of smaller cash and short term investments balances held in our treasury in 2009 combined with lower interest rates.
Research and development expenses were $280,116 for the three months ended June 30, 2009 compared to $365,276 for the three months ended June 30, 2008, representing a decrease of $85,160, primarily due to a reduction in personnel salaries and consultantsâ€™ fees.
For the three months ended June 30, 2009 general and administrative expenses were $201,940 compared to $243,742 for the three months ending June 30, 2008, representing a decrease of $41,802. This decrease in the three months ending June 30, 2009 compared to the three months ending June 30, 2008 were attributable to decreases in personnel salaries and professional fees.
Amortization for the three months ended June 30, 2009 was $28,825 compared to amortization of $28,792 for the three months ended June 30, 2008, an increase of $33. Amortization for the six months ended June 30, 209 was $57,764 compared to amortization of $57,957 for the six months ended June 30, 2008, an increase of $193.
Foreign exchange loss for the three months ended June 30, 2009 was $8,918 compared to foreign exchange gain of $7,673 for the same period in 2008, representing a decrease of $16,591. Foreign exchange loss for the six months ended June 30, 2009 was $27,070 compared to foreign exchange gain of $8,632 for the same period in 2008, representing a decrease of $35,702.
Stock based compensation for the three months ended June 30, 2009 was $37,708 compared to $45,799 for the three months ended June 30, 2008, a decrease of $8,091. Stock based compensation for the six months ended June 30, 2009 was $72,294 compared to $91,771 for the six months ended June 30, 2008, a decrease of $19,477.
Liquidity and Outstanding Share Capital
As at June 30, 2009, we had cash and cash equivalents of $781,488 compared to $620,276 as at December 31, 2008. Surplus cash is invested in redeemable, short-term money market investments. As at June 30, 2009, the Company had working capital of $464,390 compared to $234,196 as at December 31, 2008. We anticipate that the combination of our current cash on hand, plus our July 16, 2009 private placement financing whereby we raised an additional $475,000 in gross proceeds, will be sufficient to fund operations into the first quarter of 2010, at which time we will need to obtain additional cash resources through equity or debt financing or by selling or licensing our technology. As mentioned previously, we are also exploring near term strategies to facilitate the exercise of 3,143,750 outstanding warrants which would provide approximately $943,125 in gross proceeds to the Company. However our working capital position may not be sufficient enough to meet our business objectives in the event of unforeseen circumstances or a change in our strategic direction.
As at August 21, 2009, we had an unlimited number of authorized common shares with 29,512,093 common shares issued and outstanding.
For complete financial results, please see our filings at www.sedar.com.
About iCo Therapeutics
iCo Therapeutics Inc. is a Vancouver-based reprofiling company focused on redosing or reformulating drugs with clinical history for new or expanded indications. iCo has exclusive worldwide rights to three products. iCo-007 is a second generation antisense candidate licensed from Isis Pharmaceuticals. iCo-007 is currently in a Phase I trial in Diabetic Macular Edema patients with compelling early data. iCo-008 is a human monoclonal antibody against eotaxin-1 with Phase II clinical history, licensed from AstraZeneca/MedImmune. iCo-009 is an oral reformulation of a generic anti-fungal and anti-parasitic intravenous drug licensed from the University of British Columbia. To date, iCo has reported positive preclinical results for iCo-009. iCo Therapeutics trades on the TSX-Venture exchange under the symbol â€œICOâ€�. For more information, visit the company website at: www.icotherapeutics.com
No regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on iCo Therapeuticsâ€™ current beliefs as well as assumptions made by and information currently available to iCo Therapeutics and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by iCo Therapeutics in its public securities filings; actual events may differ materially from current expectations. iCo Therapeutics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.