Spectral announces third quarter 2009 results
"During the quarter, the Company's primary focus was on the U.S. regulatory strategy and commercialization of Toraymyxin(TM) as an effective treatment for severe sepsis. We completed the protocol design for a clinical trial and we are evaluating a number of strategic and financial options that would allow us to start the trial in the first half of 2010," said
Financial Review
For the third quarter ended
Operating expenses for the third quarter ended
For the third quarter ended
Cash and short term investments as at
About Spectral Diagnostics
Spectral is a leader in the battle against sepsis. Spectral's lead product is its Endotoxin Activity Assay (EAA(TM)), the only FDA cleared assay for the measurement of endotoxin. With the growing awareness for the role of endotoxemia in sepsis and the increasing number of therapies being developed to treat endotoxemia, Spectral is well-positioned to promote the adoption of the EAA(TM), which can be used to identify patients, enable therapeutics and monitor treatment. Spectral is listed on TSX under the symbol SDI.
Forward-looking statement
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral's senior management as well as information currently available to it. While these assumptions were considered reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this statement.
Spectral Diagnostics Inc.
Balance Sheets - unaudited
As at September 30, 2009 and December 31, 2008
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(in thousands of dollars)
2009 2008
$ $
Assets
Current assets
Cash and cash equivalents 3,122 297
Short-term investments - 4,000
Accounts receivable 688 860
Inventories 207 203
Prepaid expenses 68 42
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4,085 5,402
Property, plant and equipment 452 493
Commercial instruments 99 132
Purchased technology and trademarks 706 1,058
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5,342 7,085
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 305 540
Deferred revenue 193 322
Convertible notes payable 2,295 2,172
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2,793 3,034
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Shareholders' Equity
Common shares 2,524 2,524
Other equity 5,748 5,716
Deficit (5,723) (4,189)
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2,549 4,051
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5,342 7,085
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Spectral Diagnostics Inc.
Statements of Operations, Comprehensive Loss and Deficit - unaudited
For the nine months ended September 30, 2009 and 2008
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(in thousands of dollars, except share and per share data)
3 Months Ended 9 Months Ended
September 30 September 30
2009 2008 2009 2008
$ $ $ $
Sales 815 701 2,433 2,150
Cost of sales 232 171 582 560
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Gross margin 583 530 1,851 1,590
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Operating expenses
Selling, general and
administrative 748 729 2,566 2,295
Amortization 155 160 478 478
Foreign exchange loss (gain) 59 (28) 111 (26)
Stock-based compensation 32 22 32 65
Research and product
development, net of tax
credits 5 4 41 29
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999 887 3,228 2,841
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Loss before the following (416) (357) (1,377) (1,251)
Interest expense on
convertible notes payable (41) (41) (123) (123)
Other net investment (loss)
income 28 66 (34) 175
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Loss and comprehensive loss
for the period (429) (332) (1,534) (1,199)
Deficit - Beginning of
period (5,294) (3,554) (4,189) (2,687)
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Deficit - End of period (5,723) (3,886) (5,723) (3,886)
----------------------- ------------------------
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Basic and diluted loss per
common share (0.01) (0.01) (0.06) (0.05)
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Weighted average number
of common shares
outstanding 24,118,424 24,118,424 24,118,424 24,118,424
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Spectral Diagnostics Inc.
Statements of Cash Flows - unaudited
For the nine months ended September 30, 2009 and 2008
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(in thousands of dollars)
3 Months Ended 9 Months Ended
September 30 September 30
2009 2008 2009 2008
$ $ $ $
Cash provided by (used in)
Operating activities
Loss and comprehensive
loss for the period (429) (332) (1,534) (1,199)
Items not affecting cash
Amortization 155 160 478 478
Amortization of commercial
instruments included in
cost of sales 22 6 65 18
Stock-based compensation
expense 32 22 32 65
Interest on convertible
notes payable 41 41 123 123
Unrealized loss on
short-term investments - - 91 -
Changes in non-cash working
capital (54) 139 (93) (28)
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(233) 36 (838) (543)
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Financing activities
Bank indebtedness - (195) - -
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Investing activities
Purchase of property, plant
and equipment (31) (32) (85) (147)
Purchase of commercial
instruments (7) - (32) (22)
Decrease in short-term
investments 2,945 359 3,909 258
Decrease in deferred
revenue (43) (3) (129) (11)
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2,864 324 3,663 (78)
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Increase (decrease) in
cash and cash equivalents
during the period 2,631 165 2,825 (465)
----------------------- ------------------------
Cash and cash equivalents
- Beginning of period 491 8 297 638
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Cash and cash equivalents
- End of period 3,122 173 3,122 173
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%SEDAR: 00002006E
For further information: Dr. Paul Walker, President & CEO, (416) 626-3233 ex. 2100; Casey Gurfinkel, Investor Relations, (416) 815-0700 ext. 283, [email protected]
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