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Yeah...I'd like to see SNBP give '10 guidance in a PR soon!!
Liking SNBP at .265 HOD here...great in the longer term imho, and I took a gain on Chinese HTHT today...could have gotten more as it just hit a new HOD...tuna
Thx on ENCO...my favorite long play is SNBP here....tuna
Yeah and HTHT 13.55 new HOD...in at 13.10 yesterday...tuna
Yeah wick LLEN shot up, SNBP .265 +.015 doing well today too on the heals of that strong earnings report...really like the prospects for this stock!! tuna
Thanks wick....have to leave for a bit here...tuna
You may get it on KERX zone072! Nice....tuna
Thanks Tarantula...NPSP is one I've traded a number of times also in the past...tuna
Chinese CHGI now 2.12 after falling to 2.05 LOD...this stock is overdue for a run up imho...tuna
You're most welcome Stock-Hunterr!! I'll be in this Chinese growth stock for months...not a trading situation for me...all the best! tuna
SNBP Q report shows accelerating revs from 145% for the Q vs 100% for the 9mos, net income for this Q of over $900k vs a loss of over $700k for the same Q last year, and gross income of 79% vs 67%....pretty impressive numbers imho...tuna
I also follow KERX and have traded it in the past along with NPSP another biotech that has done well lately too...tuna
You're welcome wick...tuna
Yes Stock-Hunterr...love SNBP's report and accelerating revs, net income, and gross margins!!!
Like SNBP .28 gross margins shot up to 79% vs 67% in this latest Q too bb...tuna
Agree 100% on SNBP startingboy!!! This is a longterm multibagger imho...tuna
Yes indeed Tarantula!! For this Q revs up 145% and earnings at .941mil vs a loss of .725mil is a heck of a huge improvement too...tuna
SNBP .28 +.031 HOD w/earnings of .941mil vs loss of .725mil and sales up 145% in latest quarter:
Results of Operations
The Company realized a net income of $941,223 for the three months ended February 28, 2010, as compared to a net loss of $725,316 for the three months ended February 28, 2009, and a net income of $2,251,940 for the nine months ended February 28, 2010, as compared to a net loss of $1,622,692 for the nine months ended February 28, 2009.
Sales and cost of goods sold
Sales increased 145% to $1,993,412 for the three months ended February 28, 2010, from $813,326 for the three months ended February 28, 2009. Gross margin increased 172% to $1,612,613 (81% of sales) for the three months ended February 28, 2010, from $592,311 (73% of sales) for the three months ended February 28, 2009.
Sales increased 100% to $5,424,647 for the nine months ended February 28, 2010, from $2,715,702 for the nine months ended February 28, 2009. Gross margin increased 137% to $4,295,844 (79% of sales) for the nine months ended February 28, 2010, from $1,815,491 (67% of sales) for the nine months ended February 28, 2009.
Taken from report in AH yesterday...tuna
Chinese SNBP .27 x .28 HOD on strong earnings!! tuna
Me too Tarantula...SNBP .265 +.016 early on good volume so far! tuna
Okay Wiseman...tuna
And CRXX $1.33 close w/news:
CombinatoRx Discovers Novel Multi-Target Mechanism for the Treatment of Hematologic Malignancies
-- New Findings Published In BLOOD Demonstrate Synergy Between A2A Agonist/PDE Inhibitors for the Treatment of Multiple Myeloma and Other B-Cell Malignancies --
-- Novel Synergy Discovered Through Systematic and Effective Combination High Throughput Screening Platform --
Press Release Source: CombinatoRx, Incorporated On Wednesday April 14, 2010, 7:30 am EDT
CAMBRIDGE, Mass.--(BUSINESS WIRE)--CombinatoRx, Incorporated (NASDAQ: CRXX - News) today announced the publication of new preclinical data in BLOOD, The Journal of the American Society of Hematology. In the article entitled, “Adenosine A2A receptor agonists and PDE inhibitors: a synergistic multi-target mechanism discovered through systematic combination screening in B-cell malignancies,” Rickles, et.al., Blood First Edition Paper, prepublished online April 9, 2010; DOI 10.1182/blood-2009-11-252668, CombinatoRx researchers, in collaboration with the Jerome Lipper Multiple Myeloma Center, Dana-Farber Cancer Institute, Harvard Medical School, demonstrate the powerful and unexpected synergistic interactions of A2A Agonist and PDE Inhibitors as potential adjunctive therapy to glucocorticoid (GC) containing regimens in the treatment of multiple myeloma (MM) and other B-cell malignancies.
“Glucocorticoids are a key component of combination therapy regimens in multiple myeloma and other hematological cancers. However, glucocorticoid use comes with substantial dose limiting toxicities. The ability to enhance glucocorticoid dependent effects while sparing associated toxicities may have important implications for the treatment of multiple myeloma and other B-cell malignancies,” said Paul G. Richardson, MD, Clinical Director, Jerome Lipper Center for Multiple Myeloma at Dana-Farber Cancer Institute and Associate Professor of Medicine, Harvard Medical School.
By deploying the CombinatoRx combination high throughput screening (cHTS) technology to identify compounds that synergize with GCs to inhibit the proliferation of the MM cells, researchers were able to identify two classes of targeted agents that synergize with GCs and quite strongly with each other. This synergy was observed broadly across a large panel of MM and diffuse large B-cell lymphoma (DLBCL) cell lines. Exposure of these cells to A2A agonists and specific PDE inhibitors results in rapid synergistic inhibition of proliferation and induction of apoptosis.
“These findings demonstrate the power of the CombinatoRx combination high-throughput screening (cHTS) technology to rapidly and systematically screen through thousands of single agents and combinations to discover novel and unexpected synergy with potential utility in a variety of proliferative diseases such as multiple myeloma and other B-Cell malignancies,” said Mark H.N. Corrigan, MD, President and CEO of CombinatoRx. “CombinatoRx is continuing to leverage the power of its proprietary platform through research collaborations with biopharmaceutical companies such as our ongoing oncology research collaboration with Novartis.”
About CombinatoRx
CombinatoRx, Incorporated (CRXX) develops novel drug candidates with a focus on the treatment of pain and inflammation. The company applies its combination drug discovery capabilities and its selective ion-channel modulation platform to generate innovative therapeutics. To learn more about CombinatoRx, please visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.combinatorx.com&esheet=6248370&lan=en_US&anchor=www.combinatorx.com&index=1&md5=2d277c65044199074cfaf025e1ea74f5.
Forward-Looking Statement:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning CombinatoRx, the CombinatoRx cHTS drug discovery technology, and the business plans of CombinatoRx. These forward-looking statements about future expectations, plans, objectives and prospects of CombinatoRx may be identified by words like "believe," "expect," "may," "will," "should," "seek," or “could” and similar expressions and involve significant risks, uncertainties and assumptions, including risks related to the unproven nature of the CombinatoRx cHTS drug discovery technology, the Company's ability to obtain additional financing or funding for its research and development and those other risks that can be found in the "Risk Factors" section of the Company’s annual report on Form 10-K on file with the Securities and Exchange Commission and the other reports that CombinatoRx periodically files with the Securities and Exchange Commission. Actual results may differ materially from those CombinatoRx contemplated by these forward-looking statements. These forward looking statements reflect management’s current views and CombinatoRx does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
(c) 2010 CombinatoRx, Incorporated. All rights reserved.
Contact:
CombinatoRx, IncorporatedJustin Renz, 617-301-7575Senior Vice President and CFOjrenz@combinatorx.comorGina Nugent, 857-753-6562gnugent@combinatorx.com
tuna
CRXX $1.33 close w/news:
CombinatoRx Discovers Novel Multi-Target Mechanism for the Treatment of Hematologic Malignancies
-- New Findings Published In BLOOD Demonstrate Synergy Between A2A Agonist/PDE Inhibitors for the Treatment of Multiple Myeloma and Other B-Cell Malignancies --
-- Novel Synergy Discovered Through Systematic and Effective Combination High Throughput Screening Platform --
Press Release Source: CombinatoRx, Incorporated On Wednesday April 14, 2010, 7:30 am EDT
CAMBRIDGE, Mass.--(BUSINESS WIRE)--CombinatoRx, Incorporated (NASDAQ: CRXX - News) today announced the publication of new preclinical data in BLOOD, The Journal of the American Society of Hematology. In the article entitled, “Adenosine A2A receptor agonists and PDE inhibitors: a synergistic multi-target mechanism discovered through systematic combination screening in B-cell malignancies,” Rickles, et.al., Blood First Edition Paper, prepublished online April 9, 2010; DOI 10.1182/blood-2009-11-252668, CombinatoRx researchers, in collaboration with the Jerome Lipper Multiple Myeloma Center, Dana-Farber Cancer Institute, Harvard Medical School, demonstrate the powerful and unexpected synergistic interactions of A2A Agonist and PDE Inhibitors as potential adjunctive therapy to glucocorticoid (GC) containing regimens in the treatment of multiple myeloma (MM) and other B-cell malignancies.
“Glucocorticoids are a key component of combination therapy regimens in multiple myeloma and other hematological cancers. However, glucocorticoid use comes with substantial dose limiting toxicities. The ability to enhance glucocorticoid dependent effects while sparing associated toxicities may have important implications for the treatment of multiple myeloma and other B-cell malignancies,” said Paul G. Richardson, MD, Clinical Director, Jerome Lipper Center for Multiple Myeloma at Dana-Farber Cancer Institute and Associate Professor of Medicine, Harvard Medical School.
By deploying the CombinatoRx combination high throughput screening (cHTS) technology to identify compounds that synergize with GCs to inhibit the proliferation of the MM cells, researchers were able to identify two classes of targeted agents that synergize with GCs and quite strongly with each other. This synergy was observed broadly across a large panel of MM and diffuse large B-cell lymphoma (DLBCL) cell lines. Exposure of these cells to A2A agonists and specific PDE inhibitors results in rapid synergistic inhibition of proliferation and induction of apoptosis.
“These findings demonstrate the power of the CombinatoRx combination high-throughput screening (cHTS) technology to rapidly and systematically screen through thousands of single agents and combinations to discover novel and unexpected synergy with potential utility in a variety of proliferative diseases such as multiple myeloma and other B-Cell malignancies,” said Mark H.N. Corrigan, MD, President and CEO of CombinatoRx. “CombinatoRx is continuing to leverage the power of its proprietary platform through research collaborations with biopharmaceutical companies such as our ongoing oncology research collaboration with Novartis.”
About CombinatoRx
CombinatoRx, Incorporated (CRXX) develops novel drug candidates with a focus on the treatment of pain and inflammation. The company applies its combination drug discovery capabilities and its selective ion-channel modulation platform to generate innovative therapeutics. To learn more about CombinatoRx, please visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.combinatorx.com&esheet=6248370&lan=en_US&anchor=www.combinatorx.com&index=1&md5=2d277c65044199074cfaf025e1ea74f5.
Forward-Looking Statement:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning CombinatoRx, the CombinatoRx cHTS drug discovery technology, and the business plans of CombinatoRx. These forward-looking statements about future expectations, plans, objectives and prospects of CombinatoRx may be identified by words like "believe," "expect," "may," "will," "should," "seek," or “could” and similar expressions and involve significant risks, uncertainties and assumptions, including risks related to the unproven nature of the CombinatoRx cHTS drug discovery technology, the Company's ability to obtain additional financing or funding for its research and development and those other risks that can be found in the "Risk Factors" section of the Company’s annual report on Form 10-K on file with the Securities and Exchange Commission and the other reports that CombinatoRx periodically files with the Securities and Exchange Commission. Actual results may differ materially from those CombinatoRx contemplated by these forward-looking statements. These forward looking statements reflect management’s current views and CombinatoRx does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
(c) 2010 CombinatoRx, Incorporated. All rights reserved.
Contact:
CombinatoRx, IncorporatedJustin Renz, 617-301-7575Senior Vice President and CFOjrenz@combinatorx.comorGina Nugent, 857-753-6562gnugent@combinatorx.com
tuna
CRXX $1.33 close w/news:
CombinatoRx Discovers Novel Multi-Target Mechanism for the Treatment of Hematologic Malignancies
-- New Findings Published In BLOOD Demonstrate Synergy Between A2A Agonist/PDE Inhibitors for the Treatment of Multiple Myeloma and Other B-Cell Malignancies --
-- Novel Synergy Discovered Through Systematic and Effective Combination High Throughput Screening Platform --
Press Release Source: CombinatoRx, Incorporated On Wednesday April 14, 2010, 7:30 am EDT
CAMBRIDGE, Mass.--(BUSINESS WIRE)--CombinatoRx, Incorporated (NASDAQ: CRXX - News) today announced the publication of new preclinical data in BLOOD, The Journal of the American Society of Hematology. In the article entitled, “Adenosine A2A receptor agonists and PDE inhibitors: a synergistic multi-target mechanism discovered through systematic combination screening in B-cell malignancies,” Rickles, et.al., Blood First Edition Paper, prepublished online April 9, 2010; DOI 10.1182/blood-2009-11-252668, CombinatoRx researchers, in collaboration with the Jerome Lipper Multiple Myeloma Center, Dana-Farber Cancer Institute, Harvard Medical School, demonstrate the powerful and unexpected synergistic interactions of A2A Agonist and PDE Inhibitors as potential adjunctive therapy to glucocorticoid (GC) containing regimens in the treatment of multiple myeloma (MM) and other B-cell malignancies.
“Glucocorticoids are a key component of combination therapy regimens in multiple myeloma and other hematological cancers. However, glucocorticoid use comes with substantial dose limiting toxicities. The ability to enhance glucocorticoid dependent effects while sparing associated toxicities may have important implications for the treatment of multiple myeloma and other B-cell malignancies,” said Paul G. Richardson, MD, Clinical Director, Jerome Lipper Center for Multiple Myeloma at Dana-Farber Cancer Institute and Associate Professor of Medicine, Harvard Medical School.
By deploying the CombinatoRx combination high throughput screening (cHTS) technology to identify compounds that synergize with GCs to inhibit the proliferation of the MM cells, researchers were able to identify two classes of targeted agents that synergize with GCs and quite strongly with each other. This synergy was observed broadly across a large panel of MM and diffuse large B-cell lymphoma (DLBCL) cell lines. Exposure of these cells to A2A agonists and specific PDE inhibitors results in rapid synergistic inhibition of proliferation and induction of apoptosis.
“These findings demonstrate the power of the CombinatoRx combination high-throughput screening (cHTS) technology to rapidly and systematically screen through thousands of single agents and combinations to discover novel and unexpected synergy with potential utility in a variety of proliferative diseases such as multiple myeloma and other B-Cell malignancies,” said Mark H.N. Corrigan, MD, President and CEO of CombinatoRx. “CombinatoRx is continuing to leverage the power of its proprietary platform through research collaborations with biopharmaceutical companies such as our ongoing oncology research collaboration with Novartis.”
About CombinatoRx
CombinatoRx, Incorporated (CRXX) develops novel drug candidates with a focus on the treatment of pain and inflammation. The company applies its combination drug discovery capabilities and its selective ion-channel modulation platform to generate innovative therapeutics. To learn more about CombinatoRx, please visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.combinatorx.com&esheet=6248370&lan=en_US&anchor=www.combinatorx.com&index=1&md5=2d277c65044199074cfaf025e1ea74f5.
Forward-Looking Statement:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning CombinatoRx, the CombinatoRx cHTS drug discovery technology, and the business plans of CombinatoRx. These forward-looking statements about future expectations, plans, objectives and prospects of CombinatoRx may be identified by words like "believe," "expect," "may," "will," "should," "seek," or “could” and similar expressions and involve significant risks, uncertainties and assumptions, including risks related to the unproven nature of the CombinatoRx cHTS drug discovery technology, the Company's ability to obtain additional financing or funding for its research and development and those other risks that can be found in the "Risk Factors" section of the Company’s annual report on Form 10-K on file with the Securities and Exchange Commission and the other reports that CombinatoRx periodically files with the Securities and Exchange Commission. Actual results may differ materially from those CombinatoRx contemplated by these forward-looking statements. These forward looking statements reflect management’s current views and CombinatoRx does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
(c) 2010 CombinatoRx, Incorporated. All rights reserved.
Contact:
CombinatoRx, IncorporatedJustin Renz, 617-301-7575Senior Vice President and CFOjrenz@combinatorx.comorGina Nugent, 857-753-6562gnugent@combinatorx.com
tuna
Watch CRXX $1.33 w/news:
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.8:56AM ClickSoftware files Form F-3 shelf statement providing for sale of up to 15.0 mln common shares (CKSW) 7.24 :
8:52AM BioMed Realty prices public offering of 11.5 mln shares of common stock at $17.25/share (BMR) 18.08 :
8:47AM MVC Capital renews credit facility for three years (MVC) 14.17 : Co announced that Guggenheim Corporate Funding, LLC has renewed its secured term credit facility for three years. The Fund's prior $100 million credit facility with Guggenheim, consisting of $50 million in term debt and $50 million in revolving credit, was due to expire in April 2010. The new $50 million facility, which will expire in April 2013, has an interest rate of LIBOR plus 450 basis points with a 1.25% LIBOR floor. It is anticipated that the Facility will be used for new investment opportunities, to support the existing portfolio, and for general corporate purposes.
8:45AM Checkpoint Systems division OATSystems announces three-year contract extension with Airbus (CKP) 22.69 : Co announced here at RFID Journal Live that Airbus has extended its contract for OATSystems' expert Auto-ID & RFID software services for an additional three years. In what was noted at the time to be the manufacturing industry's single largest RFID software transaction to date, Airbus selected OATSystems and partners in early 2008 to provide a multi-million dollar, multi-year Auto-ID software platform In parallel, Airbus also entered into an initial two-year service contract with OATSystems to deploy its software platform, which is part of the Airbus Auto-ID standard corporate architecture. During this time, OATSystems has delivered variety of solutions to help Airbus streamline operations across supply chain, manufacturing and assembly domains.
8:36AM IntercontinentalExchange says ICE Futures Europe sets daily volume and WTI crude futures records (ICE) 108.92 : Co announces that ICE Futures Europe set an exchange-wide daily volume record of 1,399,536 contracts on April 13. The new record was established on the exchange's fifth consecutive million-plus volume day and surpassed by 4% the previous daily record of 1,340,588 contracts, which was set on February 5, 2010.
8:31AM Dialysis Corp. of America to be aquired by U.S. Renal Care for $11.25/share (DCAI) 6.52 : Co and U.S. Renal Care announced that they have entered into a definitive merger agreement for USRC to acquire DCA. Under the terms of the agreement, USRC, through a subsidiary, will commence a tender offer for all of the outstanding common shares of DCA for $11.25 per share in cash, followed by a merger to acquire all remaining outstanding DCA shares at the same cash price paid in the tender offer. The offer price represents a premium of ~72% over yesterday's closing stock price. The transaction is valued at ~$112 mln....(Stock is Halted)
8:31AM Genzyme reports "significant" percentage of MS patients receiving alemtuzumab in Genzyme's Phase 2 trial remain free of clinically-active disease (GENZ) 52.43 : The co reports four-year follow-up data from its completed Phase 2 multiple sclerosis (MS) trial showing an estimated 71 percent of alemtuzumab treated patients remain free of clinically-active disease as much as three years after most patients received their last course of the investigational compound. The data were presented at the American Academy of Neurology annual meeting. The CAMMS223 Phase 2 trial, first reported in the New England Journal of Medicine in 2008, compared alemtuzumab to the approved MS therapy Rebif(R) (interferon beta-1a) in early, active, relapsing-remitting multiple sclerosis (RRMS) patients who had received no prior therapy. In the trial, alemtuzumab was given to patients in two or three annual cycles of not more than five days per cycle, while Rebif was given to patients three times per week, every week for three years.
8:31AM E~mini index futures uptick to new YTD & 52 week highs following key Mar. econ. data (SPY) :
S&P 500 (ES) +6.75
NDX 100 (NQ) +13.75
INDU 30 (YM) +52
8:30AM Apple says iPad demand is far higher than co predicted and will likely continue to exceed its supply over the next several weeks (AAPL) 242.43 : The co says "Although we have delivered more than 500,000 iPads during its first week, demand is far higher than we predicted and will likely continue to exceed our supply over the next several weeks as more people see and touch an iPad. We have also taken a large number of pre-orders for iPad 3G models for delivery by the end of April. Faced with this surprisingly strong US demand, we have made the difficult decision to postpone the international launch of iPad by one month, until the end of May. We will announce international pricing and begin taking online pre-orders on Monday, May 10. We know that many international customers waiting to buy an iPad will be disappointed by this news, but we hope they will be pleased to learn the reason--the iPad is a runaway success in the US thus far."
8:30AM Corrections Corp wins two new management contracts and maintains management of one existing contract in Florida (CXW) 20.52 : Co announced that pursuant to a re-bid of the management contracts at four Florida facilities, two of which are currently managed by CCA, the Florida Department of Management Services has indicated its intent to award CCA the continued management of the 985-bed Bay Correctional Facility, in Panama City, Florida. Additionally, the Florida DMS has indicated its intent to award CCA management of the 985-bed Moore Haven Correctional Facility in Moore Haven, Florida and the 1,884-bed Graceville Correctional Facility in Graceville, Florida. However, CCA was not selected for the continued management of the 1,520-bed Gadsden Correctional Facility in Quincy, Florida.
8:29AM Dialysis Corp. of America trading halted - news pending (DCAI) 6.52 :
8:28AM Progressive beats by $0.05, beats on revs (PGR) 19.47 : Reports Q1 (Mar) earnings of $0.44 per share, $0.05 better than the Thomson Reuters consensus of $0.39; revenues rose 7.2% year/year to $3.78 bln vs the $3.69 bln consensus.
8:16AM On The Wires : Gasco (GSX) announced it has commenced its up-hole recompletion program in early February 2010. Since that time, it has successfully completed the initial stages on one Upper Mancos well and recompleted four wells. Gasco has dramatically reduced its completion costs. Completion costs were an estimated $125,000 to $150,000 per stage. Current per-stage fracture stimulation costs are now under $50,000... 3PAR (PAR) announced that it has launched its first sales office in China and named David Lu as country manager, based in Beijing... Aerojet, a GenCorp (GY) company, announced that NASA Glenn Research Center has awarded the co a five-year Indefinite-Delivery, Indefinite-Quantity contract to provide NASA with its space propulsion system technologies, including cryogenic and electric propulsion for spacecraft. Aerojet is one of five companies to be awarded a contract potentially worth up to $50 mln to support NASA's research and technology activities... BIOLASE (BLTI) announced that it was awarded a new patent, based on a patent application that was filed in 2007, for technology that is utilized in the ezlase and iLase diode lasers... North American Palladium (PAL) announced that it has restarted palladium production at its flagship Lac des Iles mine in northwestern Ontario. On an annualized basis, NAP expects to produce 140,000 ounces of palladium per year... Harris Corporation (HRS) announced it has successfully completed site acceptance testing with North Atlantic Treaty Organization forces to deliver critical, air traffic control communications for a new tower here Afghanistan... Agilysys (AGYS) announced it has signed an agreement to become an authorized AegisUSA Reseller Partner. As an AegisUSA partner, Agilysys will now be able to provide customers with AegisUSA's Identity and Access Management products and services.
8:11AM Reminder: CPI and Retail Sales data due out in about 19 min at 8:30ET (ECONX) :
8:10AM Gilat Satellite to supply a multinational broadband satellite network for lottery in Africa (GILT) 5.71 : Co announced that it is providing a multi-million dollar broadband satellite communications network for a large gaming and lottery project in Africa. The new network is being deployed to provide gaming and lottery services to an initial 2,500 sites in several countries in West Africa, including, the Ivory Coast, DRC and Senegal. Subsequent phases will potentially increase the scope of the project to up to 10,000 sites and will include additional countries in the region.
8:02AM Genesis Energy raises qtrly distribution 8.9% YoY to $0.3675 (GEL) 20.16 :
8:02AM Incredimail approved a final cash dividend for 2009 of $0.43 a share in addition to the interim dividend of $0.40 per share already distributed (MAIL) 6.36 :
8:01AM China Hydroelectric executes definitive agreement to acquire additional hydroelectric power project in Yunnan Province and provides update on pending acquisitions (CHC) 8.87 : Co announced it has signed a definitive agreement to acquire an additional 19 MW hydroelectric power project in Yunnan province of the PRC. In addition, the coannounced it has entered into two memoranda of understanding regarding the acquisition by the coof an additional 18 0 MW of operating hydroelectric assets, 125 MW of projects currently under construction and 341 MW of development rights for new projects. Along with the definitive agreements, these memoranda present the cowith the opportunity to acquire 709 MW of hydroelectric power projects and development rights. The new definitive agreement provides for the coto acquire 100% of the 19 MW Husahe Project, located in Yunnan province in the People's Republic of China, for a purchase price of $15.5 mln (RMB 106 mln). This acquisition, for which the cohad a MOU and which is expected to be consummated shortly, will be financed through cash on hand and a note from the seller which may be refinanced with non-recourse bank debt from a local institution. Previously the cohad announced that it had executed a definitive agreement for the coto acquire 100% of the 44 MW Xiaopengzu Project, also located in Yunnan province, for a purchase price of $57 mln (RMB 390 mln). This acquisition, which the coanticipates consummating within the next 45 days, is expected to be financed through cash on hand and bank financing expected to be provided under the terms of the co's previously announced Loan Framework Agreement with the Bank of China's Fujian Branch.
8:01AM EXACT Sciences prices its 4.2 mln share common stock offering at $4.50/share (EXAS) 4.69 :
8:01AM PerkinElmer enters into agreement to acquire Signature Genomic Laboratories (PKI) 23.74 : The co announces that it has entered into a definitive agreement to acquire Signature Genomic Laboratories, a diagnostic genetic testing company based in Spokane, Washington. The acquisition is expected to enable PerkinElmer to strengthen its existing genetic testing service business, expand its position in early detection of disease, specifically in the molecular diagnostics market, and provide the company with additional strengths in cancer diagnostics... The transaction is expected to close sometime in May 2010 and is subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
8:01AM Westport Innovations exercise generates $8.4 million in cash for Westport (WPRT) 18.67 : The co announces that 790,614 warrants previously issued to Industry Canada, a department of the Government of Canada, have been exercised at a price of $10.65 per warrant generating $8.4 million in cash for the company. Each warrant entitled the holder to one common share of Westport. As a result of the exercise of warrants, the total outstanding number of Westport common shares has increased to 39,325,853 from 38,535,239. The warrants were issued to Industry Canada under its former Technology Partnerships Canada (TPC) Program. Under the TPC program, Westport received $18.9 million to support the development of high-performance low-emissions engines for vehicles. Much of that development is now being commercialized through the Westport HD system. TPC funding supported approximately 80 jobs during the work phase of the project, which was successfully concluded on March 31, 2008. Under the terms of the TPC agreement, Westport is also obligated to pay the greater of $1.35 million or 0.33% of annual gross revenues until March 31, 2018. Westport made its first annual payment of $1.35 million in 2009.
8:00AM InterOil releases full resources evaluation and well flow test information in an updated presentation at the IPAA investor conference (IOC) 72.58 : The co announces that the full report of the independent engineering evaluation prepared by GLJ Petroleum Consultants, who evaluated the contingent resources of the Elk and Antelope fields in Papua New Guinea effective as at December 31, 2009, as well as the presentation that is to be delivered by Mr. Phil Mulacek, Chief Executive Officer, and Mr. Wayne Andrews, V.P. Capital Markets at the Independent Petroleum Association of America's 2010 Oil & Gas Investment Symposium on April 14, 2010, have been posted on InterOil's website. The GLJ Report was prepared in accordance with the definitions and guidelines in the COGE Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (NI 51-101) adopted by Canadian Securities Administrators. InterOil has included in its presentation technical information on the flow tests from both the Antelope-1 and Antelope-2 wells conducted on March 2 and December 1, 2009 respectively. The presentation also includes a summary of the results, in addition to total gas volumes recovered during the tests, total production time over the entire test periods, and the flowing pressures and rates at each choke size.
8:00AM POZEN enters into settlement agreement with Teva regarding Paragraph IV patent litigation (POZN) 10.26 : The co announces that it has entered into a Settlement Agreement with TEVA to resolve a U.S. patent infringement suit related to Teva's filing of an Abbreviated New Drug Application (ANDA) with the FDA to market a generic version of Treximet (sumatriptan/naproxen sodium) marketed by POZEN's exclusive U.S. licensee, GlaxoSmithKline. Under the terms of the Settlement Agreement, Teva will be dismissed without prejudice from the consolidated litigation currently pending in the United States District Court for the Eastern District of Texas against Teva, Par Pharmaceutical, Alphapharm Pty, and Dr. Reddy's Laboratories, but will agree to be bound by the outcome of such litigation or any resulting settlements with third parties. The parties have also agreed to file a stipulation of dismissal and order with the United States District Court for the Eastern District of Texas which will conclude this litigation with respect to Teva. The settlement does not end the ongoing litigation against the other three defendants. Discovery in the litigation is in process and the case is currently scheduled for trial in the fourth quarter of 2010.
7:51AM Citigroup enters agreement to sell its fund of hedge funds, hedge fund seeding and hedge fund advisory businesses to SkyBridge Capital (C) 4.62 : Co entered into a definitive agreement to sell the fund of hedge funds, hedge fund seeding and hedge fund advisory businesses to SkyBridge Capital, with total investments under management and advisory of $4.2 bln. These businesses are part of Citi Holdings, the segment which contains Citi's non-core assets and businesses.
7:47AM On The Wires : Denny's (DENN) issues a letter to shareholders recommending they vote against three dissident nominees proposed by hedge funds... Itron (ITRI) announced that Azerigas Production Union, dealing with transmission, distribution and sale of natural gas in the territory of Azerbaijan Republic will implement Itron's integrated smart payment solution in the capital city, Baku. Itron will deliver smart payment meters and smart cards, along with Itron's Eclipse Enterprise Edition, the prepayment management software. Deliveries will take place during the coming year, starting in March 2010... Saflex, a business unit of Solutia (SOA), is launching a solar encapsulant that helps increase the efficiency of the solar module while reducing material usage. The new product, called Saflex Radiant White PA27, represents a new class of value-added encapsulants and is based on collaboration between Oerlikon Solar and Saflex to rapidly drive thin film PV technology towards grid parity.
7:45AM Geo Group announces results of State of Florida rebids with no impact to GEO's financial guidance (GEO) 19.08 : Co announces the results of the rebids of two of its managed-only contracts in the State of Florida. The State of Florida has issued a Notice of Intent to Award contracts for the GEO-managed 1,884-bed Graceville Correctional Facility and 985-bed Moore Haven Correctional Facility to another operator effective August 1, 2010. These two managed-only Facilities generated approximately $39.0 million in annual operating revenues in 2009. The transition of these two managed-only contracts will not have a material impact on GEO's financial performance or its previously issued financial guidance for 2010 (on 2/22, co issued FY10 EPS guidance of $1.36-$1.46 on revs of $1.11-$1.13 bln).
7:32AM Oncolytics Biotech announces reovirus research to be presented at AACR annual meeting (ONCY) 3.11 : Co announced that abstracts covering both clinical and preclinical research with reovirus are available on the American Association for Cancer Research (AACR) website at www.aacr.org, and on the Oncolytics website at www.oncolyticsbiotech.com. The first abstract, entitled covers correlative results from a Phase 1/2 study with reovirus, sponsored by the National Cancer Institute under its Clinical Trials Agreement with Oncolytics, in patients with ovarian, primary peritoneal and fallopian tube carcinoma. The results provide evidence of viral targeting and replication in peritoneal and ovarian cancer cells after intravenous administration of reovirus to patients. The second abstract, covers work done to better understand the mechanisms associated with the cytotoxic synergies in this combined approach. The investigators concluded that the top three canonical pathways significantly affected by the combination treatment were interferon signaling, antigen presentation and the protein ubiquitination pathways. The third abstract, covers research done in vitro into a novel therapeutic approach for treating patients with colorectal cancer tumors that harbor a mutation in the Kras oncogene that have failed first line therapy. The investigators found that when REOLYSIN was combined with irinotecan, there was evidence of synergistic cytotoxicity in seven of eight tested cell lines and concluded that the combination of REOLYSIN and irinotecan is synergistic in colorectal cancer cell lines, including those with Kras mutation, and is worthy of exploration in human patients. The fourth abstract, covers the utility of reovirus in treating hematological malignancies. The investigators concluded that the sensitivity of reovirus towards multiple myeloma and its lack of effect on human stem cells highlight the potential of reovirus as an ex vivo purging agent during autologous hematopoietic stem cell transplants for multiple myeloma.
7:31AM TeleComm Sys issued U.S. Patent on remote access to intelligent communication network status (TSYS) 7.35 : Co announced the issuance by the U.S. Patent and Trademark Office of patent number 7,693,981 entitled, "System and Method to Publish Information from Servers to Remote Monitor Devices."
7:31AM Enterprise Products announces sale of additional 1.8 mln common units at $35.55/share (EPD) 35.69 : Co announced that the underwriters of its recent common unit offering have exercised their full over-allotment option to purchase 1.8 mln additional common units as part of EPD's common unit offering that was priced on April 13, 2010 at a public offering price of $35.55 per common unit.
7:30AM Combinatorx discovers novel multi-target mechanism for the treatment of hematologic malignancies (CRXX) 1.33 : Co announced the publication of new preclinical data in BLOOD, The Journal of the American Society of Hematology. In the article, CombinatoRx researchers, in collaboration with the Jerome Lipper Multiple Myeloma Center, Dana-Farber Cancer Institute, Harvard Medical School, demonstrate the powerful and unexpected synergistic interactions of A2A Agonist and PDE Inhibitors as potential adjunctive therapy to glucocorticoid (GC) containing regimens in the treatment of multiple myeloma (MM) and other B-cell malignancies. By deploying the CombinatoRx combination high throughput screening (cHTS) technology to identify compounds that synergize with GCs to inhibit the proliferation of the MM cells, researchers were able to identify two classes of targeted agents that synergize with GCs and quite strongly with each other. This synergy was observed broadly across a large panel of MM and diffuse large B-cell lymphoma (DLBCL) cell lines. Exposure of these cells to A2A agonists and specific PDE inhibitors results in rapid synergistic inhibition of proliferation and induction of apoptosis.
tuna
YW MOMO and big news out on CRXX too!! tuna
Thanks for that Wiseman...will do! tuna
Cool...also SNBP and CRXX are both movers today imho...tuna
Here's SNBP news:
Form 10-Q for SINOBIOPHARMA, INC.
--------------------------------------------------------------------------------
13-Apr-2010
Quarterly Report
Item 2. Management's Discussion and Analysis or Plan of Operation
Cautionary Notice Regarding Forward-Looking Statements
In this quarterly report, references to "Sinobiopharma," "SNBP," "the Company," "we," "our," "us," and the Company's wholly-owned subsidiary, "Dong Ying China," refer to Sinobiopharma, Inc.
We make certain forward-looking statements in this report. Statements concerning our future operations, prospects, strategies, financial condition, future economic performance (including growth and earnings), demand for our services, and other statements of our plans, beliefs, or expectations, including the statements contained under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," as well as captions elsewhere in this document, are forward-looking statements. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can", "could," "may," "should," "will," "would," and similar expressions. We intend such forward-looking statements to be covered by the safe harbor provisions contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and in Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The forward-looking statements we make are not guarantees of future performance and are subject to various assumptions, risks, and other factors that could cause actual results to differ materially from those suggested by these forward-looking statements. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. Indeed, it is likely that some of our assumptions will prove to be incorrect. Our actual results and financial position will vary from those projected or implied in the forward-looking statements and the variances may be material. You are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties, together with the other risks described from time to time in reports and documents that we file with the SEC should be considered in evaluating forward-looking statements.
The nature of our business makes predicting the future trends of our revenue, expenses, and net income difficult. Thus, our ability to predict results or the actual effect of our future plans or strategies is inherently uncertain. The risks and uncertainties involved in our business could affect the matters referred to in any forward-looking statements and it is possible that our actual results may differ materially from the anticipated results indicated in these forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include, without limitation, the following:
? the effect of political, economic, and market conditions and geopolitical events;
? legislative and regulatory changes that affect our business; ? the availability of funds and working capital; ? the actions and initiatives of current and potential competitors; ? investor sentiment; and
? our reputation.
We do not undertake any responsibility to publicly release any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report. Additionally, we do not undertake any responsibility to update you on the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by any forward-looking statements.
The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes thereto as filed with the SEC and other financial information contained elsewhere in this Report.
Overview
The Company, through its operating subsidiary Dong Ying China, is involved in the Chinese biopharmaceutical industry. We are engaged in the research, development, manufacture and marketing of biopharmaceutical products in China. The company has developed new methods for synthesis of active pharmaceutical ingredient ("API") and innovative drug delivery (new formulation) that dramatically reduces the time and cost of drug development. Our current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs. Our R&D focus is new, innovative methods of synthesizing compounds more rapidly at lower cost, and/or improved drug formulation with enhanced usability.
--------------------------------------------------------------------------------
Results of Operations
The Company realized a net income of $941,223 for the three months ended February 28, 2010, as compared to a net loss of $725,316 for the three months ended February 28, 2009, and a net income of $2,251,940 for the nine months ended February 28, 2010, as compared to a net loss of $1,622,692 for the nine months ended February 28, 2009.
Sales and cost of goods sold
Sales increased 145% to $1,993,412 for the three months ended February 28, 2010, from $813,326 for the three months ended February 28, 2009. Gross margin increased 172% to $1,612,613 (81% of sales) for the three months ended February 28, 2010, from $592,311 (73% of sales) for the three months ended February 28, 2009.
Sales increased 100% to $5,424,647 for the nine months ended February 28, 2010, from $2,715,702 for the nine months ended February 28, 2009. Gross margin increased 137% to $4,295,844 (79% of sales) for the nine months ended February 28, 2010, from $1,815,491 (67% of sales) for the nine months ended February 28, 2009.
The increase in sales was due to the continuing growth in sales of Cisatracurium Besylate. Sales of this product increased to $5,261,860 for the nine months ended February 28, 2010, from $2,529,517 for the nine months ended February 28, 2009, representing 96% of sales and 93% of sales for the nine months ended February 28, 2010, and February 28, 2009, respectively. The improvement in gross margin is attributable to that, as volume increased, the unit production cost of Cisatracurium Besylate decreased. The improvement in gross margin is also attributable to an increase in the price of Cisatracurium Bestylate for the sales to certain distributors, because these distributors only provide potential customer contact information to us, while all the marketing effort, quantity and delivery term negotiation were conducted by ourselves. Since this distributor is GSP-licensed, the sales have to go through it first to get to the final customer.
Operating Expenses
The operating expenses for the three months ended February 28, 2010 were $593,045 representing a 57% decrease as compared to $1,365,359 for the three months ended February 28, 2009. Operating expenses for the nine months ended February 28, 2010 were $1,859,986, a decrease of 45% as compared to $3,354,149 for the nine months ended February 28, 2009.
The decrease is primarily attributable to the decrease of $1,620,625 in the stock-based compensation of $324,125 for the nine months ended February 28, 2010, compared to $1,944,750 for the nine months ended February 28, 2009. The stock options have been fully vested and expensed as of August 31, 2009. There was no stock-based compensation expense for the three months ended February 28, 2010, as compared to $972,375 for the three months ended February 28, 2009.
Other income decreased $28,981 from $47,732 for the three months ended February 28, 2009 to $18,751 for the three months ended February 28, 2010, and other expenses increased $2,788 from $84,034 for the nine months ended February 28, 2009 to $86,822 for the nine months ended February 28, 2010. The change was due to the change in the balance of the shareholder loan and government loan which resulted in the change in imputed interest expenses and imputed income.
Net income increased $1,666,539 from net loss of $725,316 for the three months ended February 28, 2009 to net income of $941,223 for the three months ended February 28, 2010. Net income increased $3,874,632 from net loss of $1,622,692 for the nine months ended February 28, 2009 to net income of $2,251,940 for the nine months ended February 28, 2010. The increase in net income was due to the increase in sales and decrease of the stock-based compensation expense.
Liquidity and Capital Resources
On January 15, 2010, the Company raised $1,500,000 capital through a private placement by selling to the investors an aggregate of 15,000,000 shares of common stock, par value $0.0001 of the Company, for an aggregate purchase price of $1,500,000. As of February 28, 2010, the Company has paid partial of the bank loan using the fund from the placement and reduced the bank loan balance to $220,050.
--------------------------------------------------------------------------------
The operations of Dong Ying China have generated profits for the nine months ended February 28, 2010. The Company had $790,142 in cash and the working capital became positive as of February 28, 2010. The profit generated from operation is sufficient to enable Dong Ying China to pay current debt due for repayment. However, the Company plans to raise more capital through equity finance to provide cash to expand the business development, fund further drug product development and to launch new products. The Company is also working in developing markets to increase sales and positive cash flow of the existing products.
Net cash provided by the operating activities for the nine months ended February 28, 2010 was $986,716 compared to the net cash provided in the operating activities of $30,769 for the nine months ended February 28, 2009, an increase of $955,947. The increase is primarily attributable to the increase in net income of $3,874,632 which was offset by decrease in stock based compensation of $1,620,625, an increase in change in notes receivables and accounts receivables for the amount of $779,741 due to the increase in sales for the nine months ended February 28, 2010 compared to the nine months ended February 28, 2009, and a increase of $277,835 in the change of inventories due to our increased inventory storage to support our sales growth.
Net cash used in the investment activities for the nine months ended February 28, 2010 and 2009 was $1,054,789 and $138,320, respectively. The increase is primarily attributable to the deposit for the purchase of new technologies in the amount of $731,317. The Company has purchased $185,152 more fixed assets in the nine months period ended February 28, 2010 than in the same period of last year.
Net cash used in the financing activities for the nine months ended February 28, 2010 was $20,467 and net cash provided by the financing activities for the nine months ended February 28, 2009 was $342,606. During the nine months ended February 28, 2010, the Company borrowed $2,194,608 from banks compared to the borrowing of $731,000 in the nine months ended February 28, 2009. The company has also reduced the bank loans outstanding by $3,148,381 during the nine months ended February 28, 2010 compared to the payment of $576,800 during the nine months period ended February 28, 2009. The Company has raised $1,500,000 through a private placement and borrowed $100,000 from Xinjie Mu, the CFO of the Company, during the nine months period ended February 28, 2010.
Short Term Loans
The RMB1,500,000 ($220,050) short term bank loan as of February 28, 2010 represents the loan from the Agricultural Bank of China. On June 10, 2009 the Company received a loan in the amount of RMB 10,000,000 (approximately $1,462,000) from the Agricultural Bank of China. The loan bears interest at the rate of 5.31% per annum paid monthly. The loan is due for repayment in half May 12, 2010 and June 9, 2010. The Company paid RMB5,000,000 (approximately $733,500) on November 13, 2009. On December 3, 2009, the Company borrowed an additional RMB5,000,000 (approximately $733,500) from the Agricultural Bank of China. The loan bears interest at the rate of 5.31% per annum paid monthly. The loan is due for repayment on November 25, 2010. On January 29, 2010, the Company has paid RMB8,500,000 (approximately $1,246,950) to the Agricultural Bank of China for the loan balance, with RMB1,500,000 ($220,050) remaining outstanding. The Company's land use right, road and grounds and buildings with carrying value of $1,980,330 are pledged as collateral for this loan as of February 28, 2010.
On May 31, 2009, the balance RMB5,000,000($732,000) was loaned from Bank of Communications and it has been repaid in full as of June 8, 2009. The loan bore interest at the rate of 6.37% per annum paid monthly.
The interest expense from bank loan for the three months ended February 28, 2010 and 2009 was $20,467and $2,566; and for the nine months ended February 28, 2010 and 2009 was $ 64,206 and $17,401.
Long-Term Loan
The Company has a loan from the Nantong Economic and Technology Development Zone Administration. The loan bears no interest. The original principal amount of the loan was RMB20 million ($2,932,000 at the exchange rate applicable at February 28, 2010) and was due for repayment in full in March 2007. During 2007 the Company repaid RMB3,000,000 ($439,800 at the exchange rate applicable at February 28, 2010). In December 2007 the Company was granted an extension of the due date to December 31, 2008. During the year ended December 31, 2008 the Company repaid RMB2,000,000 ($293,200 at the exchange rate applicable at February 28, 2010). On February 1, 2009 the Company repaid another RMB2,000,000 ($293,200 at the exchange rate applicable at February 28, 2010) and the Company was granted an extension to December 31, 2009 over the remainder of the loan RMB13,000,000 ($1,905,800 at the exchange rate applicable at February 28, 2010). The Company repaid RMB3,000,000 ($439,800 at the exchange rate applicable at February 28, 2010) in December 2009, and was granted an extension to December 31, 2010 over the remaining of the loan RMB10,000,000 ($1,466,000 at the exchange rate applicable at February 28, 2010).
--------------------------------------------------------------------------------
Since the loan bears no interest, the obligation is carried at its net present value using interest rates equal to the prevailing Bank of China one-year rate at the time the loan was received (5.6% in 2004, applied in respect of the 2006 year) or the date the extension was effective (6.4% in March 2007, applied in respect of the 2007 and 2008 years, 5.6% in February, 2009, applied in respect of the 2009 year and 5.31% in February 2010, applied in respect of the 2010 year). Imputed loan interest expense included in the accounts for the three months ended as of February 28, 2010 and 2009 was $17,726 and $32,840; and for the nine months ended February 28, 2010 and 2009 was in the amount of $68,235 and $105,311which is determined as the amortization on the interest method basis of the discount over the remaining period to maturity of the loan. Gain from discount of no-interest loans was $55,694 and $101,132 for the three months ended as of February 28, 2010 and 2009 respectively; and $55,694 and $96,364 for the nine months ended February 28, 2010 and 2009.
The present value of the total government loan was $1,420,569 as of February 28, 2010 and $1,844,193 as of May 31, 2009.
Shareholder Loans
Shareholder loans carry the value of $256,725 and $1,169,032 at February 28, 2010 and May 31, 2009. The February 28, 2010 balance represents the amount owned to Meisu Jining Science and Technology (Nanjing) Limited Company for a technology the Company purchased in October 2007. Meisu Jining Science and Technology (Nanjing) Limited Company has become the shareholder of the company through the transaction of the intellectual property transfer at December 18, 2009 (also see Note 16).
On January 11, 2010, the Company converted outstanding debt owed to its chief executive and financial officers into an aggregate of 5,067,608 shares of common stock of the Company. The shareholder loans had the balance of $608,113 as of January 11, 2010. This amount includes $508,113 owned to Mr. Lequn Huang from prior borrowing and $100,000 owed to the chief financial officer, Xinjie Mu. Mr.Mu has transferred in $50,000 on December 14, 2009 and $50,000 on December 24, 2009 to the Company for the Company's needs to pay off the expense in US currency. The Company's chief executive officer, Lequn Huang, was issued 4,234,275 shares of common stock for the outstanding $508,113 in loans owed to Mr. Huang, while the Company's chief financial officer, Xinjie Mu, was issued 833,333 shares of common stock for the outstanding $100,000 in loans due to Mr. Mu. Both conversions of debt to equity were converted at a price of $0.12 per share.
The loan of $102,521 at May 31, 2009 is due to Peter Chen, a shareholder of the company, and the loan of $1,066,511 at May 31, 2009 is due to Mr. Lequan Huang, the majority shareholder of the Company. The loans do not bear interest and have no stated repayment terms.
Off-Balance Sheet Arrangements
None.
tuna
Chinese SNBP .24 came out w/strong earnings AH:
Form 10-Q for SINOBIOPHARMA, INC.
--------------------------------------------------------------------------------
13-Apr-2010
Quarterly Report
Item 2. Management's Discussion and Analysis or Plan of Operation
Cautionary Notice Regarding Forward-Looking Statements
In this quarterly report, references to "Sinobiopharma," "SNBP," "the Company," "we," "our," "us," and the Company's wholly-owned subsidiary, "Dong Ying China," refer to Sinobiopharma, Inc.
We make certain forward-looking statements in this report. Statements concerning our future operations, prospects, strategies, financial condition, future economic performance (including growth and earnings), demand for our services, and other statements of our plans, beliefs, or expectations, including the statements contained under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," as well as captions elsewhere in this document, are forward-looking statements. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can", "could," "may," "should," "will," "would," and similar expressions. We intend such forward-looking statements to be covered by the safe harbor provisions contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and in Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The forward-looking statements we make are not guarantees of future performance and are subject to various assumptions, risks, and other factors that could cause actual results to differ materially from those suggested by these forward-looking statements. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. Indeed, it is likely that some of our assumptions will prove to be incorrect. Our actual results and financial position will vary from those projected or implied in the forward-looking statements and the variances may be material. You are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties, together with the other risks described from time to time in reports and documents that we file with the SEC should be considered in evaluating forward-looking statements.
The nature of our business makes predicting the future trends of our revenue, expenses, and net income difficult. Thus, our ability to predict results or the actual effect of our future plans or strategies is inherently uncertain. The risks and uncertainties involved in our business could affect the matters referred to in any forward-looking statements and it is possible that our actual results may differ materially from the anticipated results indicated in these forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include, without limitation, the following:
? the effect of political, economic, and market conditions and geopolitical events;
? legislative and regulatory changes that affect our business; ? the availability of funds and working capital; ? the actions and initiatives of current and potential competitors; ? investor sentiment; and
? our reputation.
We do not undertake any responsibility to publicly release any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report. Additionally, we do not undertake any responsibility to update you on the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by any forward-looking statements.
The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes thereto as filed with the SEC and other financial information contained elsewhere in this Report.
Overview
The Company, through its operating subsidiary Dong Ying China, is involved in the Chinese biopharmaceutical industry. We are engaged in the research, development, manufacture and marketing of biopharmaceutical products in China. The company has developed new methods for synthesis of active pharmaceutical ingredient ("API") and innovative drug delivery (new formulation) that dramatically reduces the time and cost of drug development. Our current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs. Our R&D focus is new, innovative methods of synthesizing compounds more rapidly at lower cost, and/or improved drug formulation with enhanced usability.
--------------------------------------------------------------------------------
Results of Operations
The Company realized a net income of $941,223 for the three months ended February 28, 2010, as compared to a net loss of $725,316 for the three months ended February 28, 2009, and a net income of $2,251,940 for the nine months ended February 28, 2010, as compared to a net loss of $1,622,692 for the nine months ended February 28, 2009.
Sales and cost of goods sold
Sales increased 145% to $1,993,412 for the three months ended February 28, 2010, from $813,326 for the three months ended February 28, 2009. Gross margin increased 172% to $1,612,613 (81% of sales) for the three months ended February 28, 2010, from $592,311 (73% of sales) for the three months ended February 28, 2009.
Sales increased 100% to $5,424,647 for the nine months ended February 28, 2010, from $2,715,702 for the nine months ended February 28, 2009. Gross margin increased 137% to $4,295,844 (79% of sales) for the nine months ended February 28, 2010, from $1,815,491 (67% of sales) for the nine months ended February 28, 2009.
The increase in sales was due to the continuing growth in sales of Cisatracurium Besylate. Sales of this product increased to $5,261,860 for the nine months ended February 28, 2010, from $2,529,517 for the nine months ended February 28, 2009, representing 96% of sales and 93% of sales for the nine months ended February 28, 2010, and February 28, 2009, respectively. The improvement in gross margin is attributable to that, as volume increased, the unit production cost of Cisatracurium Besylate decreased. The improvement in gross margin is also attributable to an increase in the price of Cisatracurium Bestylate for the sales to certain distributors, because these distributors only provide potential customer contact information to us, while all the marketing effort, quantity and delivery term negotiation were conducted by ourselves. Since this distributor is GSP-licensed, the sales have to go through it first to get to the final customer.
Operating Expenses
The operating expenses for the three months ended February 28, 2010 were $593,045 representing a 57% decrease as compared to $1,365,359 for the three months ended February 28, 2009. Operating expenses for the nine months ended February 28, 2010 were $1,859,986, a decrease of 45% as compared to $3,354,149 for the nine months ended February 28, 2009.
The decrease is primarily attributable to the decrease of $1,620,625 in the stock-based compensation of $324,125 for the nine months ended February 28, 2010, compared to $1,944,750 for the nine months ended February 28, 2009. The stock options have been fully vested and expensed as of August 31, 2009. There was no stock-based compensation expense for the three months ended February 28, 2010, as compared to $972,375 for the three months ended February 28, 2009.
Other income decreased $28,981 from $47,732 for the three months ended February 28, 2009 to $18,751 for the three months ended February 28, 2010, and other expenses increased $2,788 from $84,034 for the nine months ended February 28, 2009 to $86,822 for the nine months ended February 28, 2010. The change was due to the change in the balance of the shareholder loan and government loan which resulted in the change in imputed interest expenses and imputed income.
Net income increased $1,666,539 from net loss of $725,316 for the three months ended February 28, 2009 to net income of $941,223 for the three months ended February 28, 2010. Net income increased $3,874,632 from net loss of $1,622,692 for the nine months ended February 28, 2009 to net income of $2,251,940 for the nine months ended February 28, 2010. The increase in net income was due to the increase in sales and decrease of the stock-based compensation expense.
Liquidity and Capital Resources
On January 15, 2010, the Company raised $1,500,000 capital through a private placement by selling to the investors an aggregate of 15,000,000 shares of common stock, par value $0.0001 of the Company, for an aggregate purchase price of $1,500,000. As of February 28, 2010, the Company has paid partial of the bank loan using the fund from the placement and reduced the bank loan balance to $220,050.
--------------------------------------------------------------------------------
The operations of Dong Ying China have generated profits for the nine months ended February 28, 2010. The Company had $790,142 in cash and the working capital became positive as of February 28, 2010. The profit generated from operation is sufficient to enable Dong Ying China to pay current debt due for repayment. However, the Company plans to raise more capital through equity finance to provide cash to expand the business development, fund further drug product development and to launch new products. The Company is also working in developing markets to increase sales and positive cash flow of the existing products.
Net cash provided by the operating activities for the nine months ended February 28, 2010 was $986,716 compared to the net cash provided in the operating activities of $30,769 for the nine months ended February 28, 2009, an increase of $955,947. The increase is primarily attributable to the increase in net income of $3,874,632 which was offset by decrease in stock based compensation of $1,620,625, an increase in change in notes receivables and accounts receivables for the amount of $779,741 due to the increase in sales for the nine months ended February 28, 2010 compared to the nine months ended February 28, 2009, and a increase of $277,835 in the change of inventories due to our increased inventory storage to support our sales growth.
Net cash used in the investment activities for the nine months ended February 28, 2010 and 2009 was $1,054,789 and $138,320, respectively. The increase is primarily attributable to the deposit for the purchase of new technologies in the amount of $731,317. The Company has purchased $185,152 more fixed assets in the nine months period ended February 28, 2010 than in the same period of last year.
Net cash used in the financing activities for the nine months ended February 28, 2010 was $20,467 and net cash provided by the financing activities for the nine months ended February 28, 2009 was $342,606. During the nine months ended February 28, 2010, the Company borrowed $2,194,608 from banks compared to the borrowing of $731,000 in the nine months ended February 28, 2009. The company has also reduced the bank loans outstanding by $3,148,381 during the nine months ended February 28, 2010 compared to the payment of $576,800 during the nine months period ended February 28, 2009. The Company has raised $1,500,000 through a private placement and borrowed $100,000 from Xinjie Mu, the CFO of the Company, during the nine months period ended February 28, 2010.
Short Term Loans
The RMB1,500,000 ($220,050) short term bank loan as of February 28, 2010 represents the loan from the Agricultural Bank of China. On June 10, 2009 the Company received a loan in the amount of RMB 10,000,000 (approximately $1,462,000) from the Agricultural Bank of China. The loan bears interest at the rate of 5.31% per annum paid monthly. The loan is due for repayment in half May 12, 2010 and June 9, 2010. The Company paid RMB5,000,000 (approximately $733,500) on November 13, 2009. On December 3, 2009, the Company borrowed an additional RMB5,000,000 (approximately $733,500) from the Agricultural Bank of China. The loan bears interest at the rate of 5.31% per annum paid monthly. The loan is due for repayment on November 25, 2010. On January 29, 2010, the Company has paid RMB8,500,000 (approximately $1,246,950) to the Agricultural Bank of China for the loan balance, with RMB1,500,000 ($220,050) remaining outstanding. The Company's land use right, road and grounds and buildings with carrying value of $1,980,330 are pledged as collateral for this loan as of February 28, 2010.
On May 31, 2009, the balance RMB5,000,000($732,000) was loaned from Bank of Communications and it has been repaid in full as of June 8, 2009. The loan bore interest at the rate of 6.37% per annum paid monthly.
The interest expense from bank loan for the three months ended February 28, 2010 and 2009 was $20,467and $2,566; and for the nine months ended February 28, 2010 and 2009 was $ 64,206 and $17,401.
Long-Term Loan
The Company has a loan from the Nantong Economic and Technology Development Zone Administration. The loan bears no interest. The original principal amount of the loan was RMB20 million ($2,932,000 at the exchange rate applicable at February 28, 2010) and was due for repayment in full in March 2007. During 2007 the Company repaid RMB3,000,000 ($439,800 at the exchange rate applicable at February 28, 2010). In December 2007 the Company was granted an extension of the due date to December 31, 2008. During the year ended December 31, 2008 the Company repaid RMB2,000,000 ($293,200 at the exchange rate applicable at February 28, 2010). On February 1, 2009 the Company repaid another RMB2,000,000 ($293,200 at the exchange rate applicable at February 28, 2010) and the Company was granted an extension to December 31, 2009 over the remainder of the loan RMB13,000,000 ($1,905,800 at the exchange rate applicable at February 28, 2010). The Company repaid RMB3,000,000 ($439,800 at the exchange rate applicable at February 28, 2010) in December 2009, and was granted an extension to December 31, 2010 over the remaining of the loan RMB10,000,000 ($1,466,000 at the exchange rate applicable at February 28, 2010).
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Since the loan bears no interest, the obligation is carried at its net present value using interest rates equal to the prevailing Bank of China one-year rate at the time the loan was received (5.6% in 2004, applied in respect of the 2006 year) or the date the extension was effective (6.4% in March 2007, applied in respect of the 2007 and 2008 years, 5.6% in February, 2009, applied in respect of the 2009 year and 5.31% in February 2010, applied in respect of the 2010 year). Imputed loan interest expense included in the accounts for the three months ended as of February 28, 2010 and 2009 was $17,726 and $32,840; and for the nine months ended February 28, 2010 and 2009 was in the amount of $68,235 and $105,311which is determined as the amortization on the interest method basis of the discount over the remaining period to maturity of the loan. Gain from discount of no-interest loans was $55,694 and $101,132 for the three months ended as of February 28, 2010 and 2009 respectively; and $55,694 and $96,364 for the nine months ended February 28, 2010 and 2009.
The present value of the total government loan was $1,420,569 as of February 28, 2010 and $1,844,193 as of May 31, 2009.
Shareholder Loans
Shareholder loans carry the value of $256,725 and $1,169,032 at February 28, 2010 and May 31, 2009. The February 28, 2010 balance represents the amount owned to Meisu Jining Science and Technology (Nanjing) Limited Company for a technology the Company purchased in October 2007. Meisu Jining Science and Technology (Nanjing) Limited Company has become the shareholder of the company through the transaction of the intellectual property transfer at December 18, 2009 (also see Note 16).
On January 11, 2010, the Company converted outstanding debt owed to its chief executive and financial officers into an aggregate of 5,067,608 shares of common stock of the Company. The shareholder loans had the balance of $608,113 as of January 11, 2010. This amount includes $508,113 owned to Mr. Lequn Huang from prior borrowing and $100,000 owed to the chief financial officer, Xinjie Mu. Mr.Mu has transferred in $50,000 on December 14, 2009 and $50,000 on December 24, 2009 to the Company for the Company's needs to pay off the expense in US currency. The Company's chief executive officer, Lequn Huang, was issued 4,234,275 shares of common stock for the outstanding $508,113 in loans owed to Mr. Huang, while the Company's chief financial officer, Xinjie Mu, was issued 833,333 shares of common stock for the outstanding $100,000 in loans due to Mr. Mu. Both conversions of debt to equity were converted at a price of $0.12 per share.
The loan of $102,521 at May 31, 2009 is due to Peter Chen, a shareholder of the company, and the loan of $1,066,511 at May 31, 2009 is due to Mr. Lequan Huang, the majority shareholder of the Company. The loans do not bear interest and have no stated repayment terms.
Off-Balance Sheet Arrangements
None.
tuna
Watch Chinese SNBP w/strong earnings out:
Form 10-Q for SINOBIOPHARMA, INC.
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13-Apr-2010
Quarterly Report
Item 2. Management's Discussion and Analysis or Plan of Operation
Cautionary Notice Regarding Forward-Looking Statements
In this quarterly report, references to "Sinobiopharma," "SNBP," "the Company," "we," "our," "us," and the Company's wholly-owned subsidiary, "Dong Ying China," refer to Sinobiopharma, Inc.
We make certain forward-looking statements in this report. Statements concerning our future operations, prospects, strategies, financial condition, future economic performance (including growth and earnings), demand for our services, and other statements of our plans, beliefs, or expectations, including the statements contained under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," as well as captions elsewhere in this document, are forward-looking statements. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can", "could," "may," "should," "will," "would," and similar expressions. We intend such forward-looking statements to be covered by the safe harbor provisions contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and in Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The forward-looking statements we make are not guarantees of future performance and are subject to various assumptions, risks, and other factors that could cause actual results to differ materially from those suggested by these forward-looking statements. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. Indeed, it is likely that some of our assumptions will prove to be incorrect. Our actual results and financial position will vary from those projected or implied in the forward-looking statements and the variances may be material. You are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties, together with the other risks described from time to time in reports and documents that we file with the SEC should be considered in evaluating forward-looking statements.
The nature of our business makes predicting the future trends of our revenue, expenses, and net income difficult. Thus, our ability to predict results or the actual effect of our future plans or strategies is inherently uncertain. The risks and uncertainties involved in our business could affect the matters referred to in any forward-looking statements and it is possible that our actual results may differ materially from the anticipated results indicated in these forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include, without limitation, the following:
? the effect of political, economic, and market conditions and geopolitical events;
? legislative and regulatory changes that affect our business; ? the availability of funds and working capital; ? the actions and initiatives of current and potential competitors; ? investor sentiment; and
? our reputation.
We do not undertake any responsibility to publicly release any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report. Additionally, we do not undertake any responsibility to update you on the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by any forward-looking statements.
The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes thereto as filed with the SEC and other financial information contained elsewhere in this Report.
Overview
The Company, through its operating subsidiary Dong Ying China, is involved in the Chinese biopharmaceutical industry. We are engaged in the research, development, manufacture and marketing of biopharmaceutical products in China. The company has developed new methods for synthesis of active pharmaceutical ingredient ("API") and innovative drug delivery (new formulation) that dramatically reduces the time and cost of drug development. Our current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs. Our R&D focus is new, innovative methods of synthesizing compounds more rapidly at lower cost, and/or improved drug formulation with enhanced usability.
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Results of Operations
The Company realized a net income of $941,223 for the three months ended February 28, 2010, as compared to a net loss of $725,316 for the three months ended February 28, 2009, and a net income of $2,251,940 for the nine months ended February 28, 2010, as compared to a net loss of $1,622,692 for the nine months ended February 28, 2009.
Sales and cost of goods sold
Sales increased 145% to $1,993,412 for the three months ended February 28, 2010, from $813,326 for the three months ended February 28, 2009. Gross margin increased 172% to $1,612,613 (81% of sales) for the three months ended February 28, 2010, from $592,311 (73% of sales) for the three months ended February 28, 2009.
Sales increased 100% to $5,424,647 for the nine months ended February 28, 2010, from $2,715,702 for the nine months ended February 28, 2009. Gross margin increased 137% to $4,295,844 (79% of sales) for the nine months ended February 28, 2010, from $1,815,491 (67% of sales) for the nine months ended February 28, 2009.
The increase in sales was due to the continuing growth in sales of Cisatracurium Besylate. Sales of this product increased to $5,261,860 for the nine months ended February 28, 2010, from $2,529,517 for the nine months ended February 28, 2009, representing 96% of sales and 93% of sales for the nine months ended February 28, 2010, and February 28, 2009, respectively. The improvement in gross margin is attributable to that, as volume increased, the unit production cost of Cisatracurium Besylate decreased. The improvement in gross margin is also attributable to an increase in the price of Cisatracurium Bestylate for the sales to certain distributors, because these distributors only provide potential customer contact information to us, while all the marketing effort, quantity and delivery term negotiation were conducted by ourselves. Since this distributor is GSP-licensed, the sales have to go through it first to get to the final customer.
Operating Expenses
The operating expenses for the three months ended February 28, 2010 were $593,045 representing a 57% decrease as compared to $1,365,359 for the three months ended February 28, 2009. Operating expenses for the nine months ended February 28, 2010 were $1,859,986, a decrease of 45% as compared to $3,354,149 for the nine months ended February 28, 2009.
The decrease is primarily attributable to the decrease of $1,620,625 in the stock-based compensation of $324,125 for the nine months ended February 28, 2010, compared to $1,944,750 for the nine months ended February 28, 2009. The stock options have been fully vested and expensed as of August 31, 2009. There was no stock-based compensation expense for the three months ended February 28, 2010, as compared to $972,375 for the three months ended February 28, 2009.
Other income decreased $28,981 from $47,732 for the three months ended February 28, 2009 to $18,751 for the three months ended February 28, 2010, and other expenses increased $2,788 from $84,034 for the nine months ended February 28, 2009 to $86,822 for the nine months ended February 28, 2010. The change was due to the change in the balance of the shareholder loan and government loan which resulted in the change in imputed interest expenses and imputed income.
Net income increased $1,666,539 from net loss of $725,316 for the three months ended February 28, 2009 to net income of $941,223 for the three months ended February 28, 2010. Net income increased $3,874,632 from net loss of $1,622,692 for the nine months ended February 28, 2009 to net income of $2,251,940 for the nine months ended February 28, 2010. The increase in net income was due to the increase in sales and decrease of the stock-based compensation expense.
Liquidity and Capital Resources
On January 15, 2010, the Company raised $1,500,000 capital through a private placement by selling to the investors an aggregate of 15,000,000 shares of common stock, par value $0.0001 of the Company, for an aggregate purchase price of $1,500,000. As of February 28, 2010, the Company has paid partial of the bank loan using the fund from the placement and reduced the bank loan balance to $220,050.
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The operations of Dong Ying China have generated profits for the nine months ended February 28, 2010. The Company had $790,142 in cash and the working capital became positive as of February 28, 2010. The profit generated from operation is sufficient to enable Dong Ying China to pay current debt due for repayment. However, the Company plans to raise more capital through equity finance to provide cash to expand the business development, fund further drug product development and to launch new products. The Company is also working in developing markets to increase sales and positive cash flow of the existing products.
Net cash provided by the operating activities for the nine months ended February 28, 2010 was $986,716 compared to the net cash provided in the operating activities of $30,769 for the nine months ended February 28, 2009, an increase of $955,947. The increase is primarily attributable to the increase in net income of $3,874,632 which was offset by decrease in stock based compensation of $1,620,625, an increase in change in notes receivables and accounts receivables for the amount of $779,741 due to the increase in sales for the nine months ended February 28, 2010 compared to the nine months ended February 28, 2009, and a increase of $277,835 in the change of inventories due to our increased inventory storage to support our sales growth.
Net cash used in the investment activities for the nine months ended February 28, 2010 and 2009 was $1,054,789 and $138,320, respectively. The increase is primarily attributable to the deposit for the purchase of new technologies in the amount of $731,317. The Company has purchased $185,152 more fixed assets in the nine months period ended February 28, 2010 than in the same period of last year.
Net cash used in the financing activities for the nine months ended February 28, 2010 was $20,467 and net cash provided by the financing activities for the nine months ended February 28, 2009 was $342,606. During the nine months ended February 28, 2010, the Company borrowed $2,194,608 from banks compared to the borrowing of $731,000 in the nine months ended February 28, 2009. The company has also reduced the bank loans outstanding by $3,148,381 during the nine months ended February 28, 2010 compared to the payment of $576,800 during the nine months period ended February 28, 2009. The Company has raised $1,500,000 through a private placement and borrowed $100,000 from Xinjie Mu, the CFO of the Company, during the nine months period ended February 28, 2010.
Short Term Loans
The RMB1,500,000 ($220,050) short term bank loan as of February 28, 2010 represents the loan from the Agricultural Bank of China. On June 10, 2009 the Company received a loan in the amount of RMB 10,000,000 (approximately $1,462,000) from the Agricultural Bank of China. The loan bears interest at the rate of 5.31% per annum paid monthly. The loan is due for repayment in half May 12, 2010 and June 9, 2010. The Company paid RMB5,000,000 (approximately $733,500) on November 13, 2009. On December 3, 2009, the Company borrowed an additional RMB5,000,000 (approximately $733,500) from the Agricultural Bank of China. The loan bears interest at the rate of 5.31% per annum paid monthly. The loan is due for repayment on November 25, 2010. On January 29, 2010, the Company has paid RMB8,500,000 (approximately $1,246,950) to the Agricultural Bank of China for the loan balance, with RMB1,500,000 ($220,050) remaining outstanding. The Company's land use right, road and grounds and buildings with carrying value of $1,980,330 are pledged as collateral for this loan as of February 28, 2010.
On May 31, 2009, the balance RMB5,000,000($732,000) was loaned from Bank of Communications and it has been repaid in full as of June 8, 2009. The loan bore interest at the rate of 6.37% per annum paid monthly.
The interest expense from bank loan for the three months ended February 28, 2010 and 2009 was $20,467and $2,566; and for the nine months ended February 28, 2010 and 2009 was $ 64,206 and $17,401.
Long-Term Loan
The Company has a loan from the Nantong Economic and Technology Development Zone Administration. The loan bears no interest. The original principal amount of the loan was RMB20 million ($2,932,000 at the exchange rate applicable at February 28, 2010) and was due for repayment in full in March 2007. During 2007 the Company repaid RMB3,000,000 ($439,800 at the exchange rate applicable at February 28, 2010). In December 2007 the Company was granted an extension of the due date to December 31, 2008. During the year ended December 31, 2008 the Company repaid RMB2,000,000 ($293,200 at the exchange rate applicable at February 28, 2010). On February 1, 2009 the Company repaid another RMB2,000,000 ($293,200 at the exchange rate applicable at February 28, 2010) and the Company was granted an extension to December 31, 2009 over the remainder of the loan RMB13,000,000 ($1,905,800 at the exchange rate applicable at February 28, 2010). The Company repaid RMB3,000,000 ($439,800 at the exchange rate applicable at February 28, 2010) in December 2009, and was granted an extension to December 31, 2010 over the remaining of the loan RMB10,000,000 ($1,466,000 at the exchange rate applicable at February 28, 2010).
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Since the loan bears no interest, the obligation is carried at its net present value using interest rates equal to the prevailing Bank of China one-year rate at the time the loan was received (5.6% in 2004, applied in respect of the 2006 year) or the date the extension was effective (6.4% in March 2007, applied in respect of the 2007 and 2008 years, 5.6% in February, 2009, applied in respect of the 2009 year and 5.31% in February 2010, applied in respect of the 2010 year). Imputed loan interest expense included in the accounts for the three months ended as of February 28, 2010 and 2009 was $17,726 and $32,840; and for the nine months ended February 28, 2010 and 2009 was in the amount of $68,235 and $105,311which is determined as the amortization on the interest method basis of the discount over the remaining period to maturity of the loan. Gain from discount of no-interest loans was $55,694 and $101,132 for the three months ended as of February 28, 2010 and 2009 respectively; and $55,694 and $96,364 for the nine months ended February 28, 2010 and 2009.
The present value of the total government loan was $1,420,569 as of February 28, 2010 and $1,844,193 as of May 31, 2009.
Shareholder Loans
Shareholder loans carry the value of $256,725 and $1,169,032 at February 28, 2010 and May 31, 2009. The February 28, 2010 balance represents the amount owned to Meisu Jining Science and Technology (Nanjing) Limited Company for a technology the Company purchased in October 2007. Meisu Jining Science and Technology (Nanjing) Limited Company has become the shareholder of the company through the transaction of the intellectual property transfer at December 18, 2009 (also see Note 16).
On January 11, 2010, the Company converted outstanding debt owed to its chief executive and financial officers into an aggregate of 5,067,608 shares of common stock of the Company. The shareholder loans had the balance of $608,113 as of January 11, 2010. This amount includes $508,113 owned to Mr. Lequn Huang from prior borrowing and $100,000 owed to the chief financial officer, Xinjie Mu. Mr.Mu has transferred in $50,000 on December 14, 2009 and $50,000 on December 24, 2009 to the Company for the Company's needs to pay off the expense in US currency. The Company's chief executive officer, Lequn Huang, was issued 4,234,275 shares of common stock for the outstanding $508,113 in loans owed to Mr. Huang, while the Company's chief financial officer, Xinjie Mu, was issued 833,333 shares of common stock for the outstanding $100,000 in loans due to Mr. Mu. Both conversions of debt to equity were converted at a price of $0.12 per share.
The loan of $102,521 at May 31, 2009 is due to Peter Chen, a shareholder of the company, and the loan of $1,066,511 at May 31, 2009 is due to Mr. Lequan Huang, the majority shareholder of the Company. The loans do not bear interest and have no stated repayment terms.
Off-Balance Sheet Arrangements
None.
tuna
Bio CRXX 1.38 +.19 popping HOD on strong volume....tuna
Doing fine Wiseman...my CRXX 1.38 +.19 HOD helping a lot today....in it pretty big. Hope you're doing well also!! tuna
Chinese CHGI 2.16 +.09 first "up" day after 6 "red" days consecutively!!!
Bio CRXX 1.31 +.12 popped off 200dma and broke 50dma at 1.26 on strong volume today...tuna
Chinese CHGI 2.17 +.10 and CRXX 1.29 +.10 here both having decent days...in both! tuna
Good job...taking some gains!
Thanks for the info on MTLK wick! tuna
Yeah, I'm ready for an uplisting on SNBP anytime MDM2!! And that would pop the stock nicely when it comes imho...tuna
Nice MDM2....thanks for the ideas!! tuna