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It's really too bad how poorly run the company looks when they don't keep their web site current. If they want to be big, at least look big ... and be competent.
Go to "Where to Buy"
http://www.rheingoldbrewingcompany.com/where_buy.html
The list is so incomplete ... they're missing entire states. This "web basic" reflects badly on them ... and hinders sales in areas where people might be interested in buying Rheingold.
They should at least not leave distributors off the list after they "PR" they've been added to the network.
They should also be able to get the retail location list from the distributors.
Imagine how much better it would look for investors if hundreds and then thousands of retail stores were listed across the country and actually WERE carrying Rheingold.
And then imagine how much better it would be if they picked one market and advertised to support the retail sales and stock.
Reasonable assumptions are not unreasonable to make without precise data when you have some data to make guesstimates.
I agree with you, the Clinton Group didn't put down that big chunk of change without verifiable data, and that's further evidence of a big money player's confidence. If VKNG really does start selling these systems and becomes profitable, if the per share multiple is 5 - 15 times earnings, when they exercise their warrants, they stand to reap a tremendous profit windfall.
My assumpstions are from the data pulled directly from the last financial report (which follows).
I am assuming zero profit from distributor systems sold.
There were 19 systems sold & shipped that were not sold & shipped last year. That pushed sales up $1.2 million, given most everything else remained the same. That's what they said in the report.
10 to distributors (I assume no profit).
2 were given away. That helps to account for increased selling expenses.
7 were sold for profit.
So I am guesstimating these units are selling for between $60,000 - $100,000. Near the lower estimate to distributors and the higher estimate to end users.
I don't think that is radically far off, or a wishful pumpers dreams? To push revenue $1.2 million, it came from somewhere.
5 - 10 more end user sales is going to push the needle on profits if all else remains the same. That's assuming zero growth in any other part of the company. That also assumes no matter how many distributor units they sell, it means zero to the net bottom line.
After the distributors "commission" if it's 50% that leaves VKNG with about $20,000 net profit. Now that's guessing because I have no idea of the deals they've made. But it cannot be too far off.
However this is not a guess; they probably are not going to give away 2 systems at no charge every quarter. That's going to represent a big swing in the bottom line net.
Therefore, I am predicting VKNG swings to a profit this year. Nothing too wild. Not a huge swing of the needle. But maybe 2¢ - 5¢ is reasonable.
Investors will start to notice that news.
Here is the data from the report.
Financial Highlights for the Quarter
* Sales increased 63% to $3.1 million in the first quarter of 2011 from $1.9 million in the first quarter of 2010, with the increase attributed to increased sales of Vikings’ 3D vision systems.
* The Company sold 21 3D systems during the quarter compared with one 3D system in the first quarter of 2011.
* Due to the increase in sales, gross profit for the quarter was $0.7 million compared with $0.5 million in the same period in 2010. Gross profit as a percent of sales declined due to the
number of the 3DHD distributor demonstration systems sold at a discounted price.
* Operating expenses increased to $1.2 million during the quarter from $0.8 million in the first quarter of 2010 primarily due to increased sales and marketing expense and the promotional
costs related to the new 3DHD system.
* Net loss for the quarter was $0.4 million or $0.01 per share, compared with $0.3 million or $0.01 per share in the first quarter of 2010.
* Of the 19 shipped systems, 7 were sold to customers, 10 were sold to distributors as demonstration systems, and the 2 others were shipped at no charge—one for research and the other for market development.
My point was that the PR's are never making excuses or citing blue sky projections. They usually include follow-up on progress announced in prior PR's.
This stock rose on knowledge of what AEN was doing. It dropped on the sale of stock to the private investors.
Not to satisfy and accountant.
I started with the revenue rise from the last quarter, assuming the difference between a year earlier and current, assuming it was mostly effected by 3-D sales to distributors and end users.
Next I assumed little profit if any to the distributors. That just churning money in and out.
Then considered the few end user sales.
An uptick of 5 - 10 units sold to end users should make a significant difference if everything else remains consistent.
Moving the EPS shouldn't be THAT difficult if 3-D sales are really happening with a reasonable profit.
How many unit sales do you think it will take to move the needle a single penny?
To shift EPS from ($0.01) to about $0.05, unit sales volume only needs to increase by about 5 - 10 units per quarter.
That can be attained by any combination of the distributors maintaining their existing pace with a small uptick, or if a few more distributors can be added.
It seems very doable. I also believe both will happen.
As for volume being low, even though sales are occuring, there are still very few machines in operational use today.
12 - 18 months from now, there will be more than 100 units in operation on a regular basis.
If hospitals keep buying them, the EPS is going to bump up on the bottom line.
VKNG may turn into a big OTC surprise.
As 3-D sales continue to increase, I will continue to increase my position in VKNG.
When VKNG trends towards $.05 - $0.10 EPS, I would think a 10 - 20 times multiple will start to apply to the share price.
I think it may start to become obvious this calendar year.
Whenever this company releases news, it always compounds past good news. I really can't believe how some traders have ignored AEN, given they are going to bust out with widespread marketable products, and partners who can afford to promote them soon.
Viking's future is bright with the new investors taking on 1/3 of the outstanding shares and securing a board seat. It should mean good things for the future of VKNG.
It's a tremendous commitment, while at the same time eliminating a lousy financing deal. They stand to make a ton of money when they get to exercise their warrants.
http://www.sec.gov/Archives/edgar/data/1065754/000101968711001583/0001019687-11-001583-index.htm
Viking's future is bright with the new investors taking on 1/3 of the outstanding shares and securing a board seat. It should mean good things for the future of VKNG.
It's a tremendous commitment, while at the same time eliminating a lousy financing deal. They stand to make a ton of money when they get to exercise their warrants.
http://www.sec.gov/Archives/edgar/data/1065754/000101968711001583/0001019687-11-001583-index.htm
Viking's future is bright with the new investors taking on 1/3 of the outstanding shares and securing a board seat. It should mean good things for the future of VKNG.
It's a tremendous commitment, while at the same time eliminating a lousy financing deal. They stand to make a ton of money when they get to exercise their warrants.
http://www.sec.gov/Archives/edgar/data/1065754/000101968711001583/0001019687-11-001583-index.htm
Traders may move the stock up and down in a tiny range, some making money and some losing. Have a blast doing it.
But DKAM is never breaking out until they show some quarter over quarter positive sales performance, a lessening of losses, better financing arrangements, that they can afford to support the brand with some advertising at least SOMEWHERE, and dilution comes to an end.
After the last R/S and PK's statements in a PR about being aware of shareholder concerns over dilution and its impact on shareholder value, the action he took was to dilute the stock at a record pace, faster than he ever did it before. That was probably because he had to pay for the increased expenses resulting from selling more product, and to pay lawyers to follow up on all the lawsuits.
Having been a "long" since 2009 and waiting for the Rheingold roll-out to "bust-things-wide-open", the bright lights came on well after a year-and-a-half of reading negative tales of past performance and how it is being repeated.
It is ... again.
The most important thing PK can do to increase sales and prospective shareholder interest, which will push the stock much higher, is retail advertising. Product sales would go up even if the marginal profit was less than the cost of the advertising. Awareness would vastly increase. The stock would move up. Not fractions of a penny, but in chunks of pennies. Big chunks on the opening day of the campaign.
But it's not happening. They can't even afford to give out "tin signs" in retail locations.
So until I see PK's actions change for the better, the very best indicators we have are to look at how he behaves and the quarterly financial's.
So there's really nothing you can say to fool anyone who has been around for a while, and fooled before.
Traders may make money in DKAM, but no "long" is sitting on unrealized profits.
Buying more and averaging down turned into digging a "money pit".
So I am negative on DKAM until PK gives me a reason to be positive.
Long time "longs" from 2009 are still waiting for the promised e-cig.
If SFIO announced "next week", and it becomes available, THAT WILL BE NEWS.
It's not going to take too many more unit sales per quarter to move EPS profts from ($0.01) to $0.05 - $0.10.
Now that VKNG is selling the 3-D system, and very close to breaking even with low unit sales, adding only 5 - 10 units a quarter isn't "blue sky" pumping, because it's adding fewer than 1 sale per distributor per quarter. What sales manager wouldn't be asking their sales staff to do that?
The beauty of VKNG turning a profit based on retail sales will be the number of people attracted to a cheap OTC stock for a company that's actually making good on growth potential.
The next quarterly report should be very positive.
It's going to become FUN.
If dilution has slowed or ceased for the time being, for whatever reason, traders will push this puppy if for no other reason, DKAM has products available in retail stores, in big population centers with more than 25 million potential customers within a reasonably short drive to an outlet where they can see, touch, buy, and taste them.
If dilution has slowed or ceased for the time being, for whatever reason, perhaps the quarterly losses will also be lessened.
We'll learn that in a few months. In the mean time, I hope lots of traders have FUN with DKAM. It's way more interesting to watch 12,000,000 shares be traded than the paltry numbers of months past, when the only big trading days were when positive news was released, and massive dilution followed.
I had Rheingold last night and more is chilling for tonight.
I doubled my position in VKNG this morning.
I am thinking we're going to see a combination of improvements with better financing in place; a healthy, slow and steady increase in unit sales, and an ability to scale up manufacturing without needing to further dilute the stock.
As more distributors continue to present the 3-D product, the prospect pipeline will grow, while time will allow for medical facilities to go through their budget approval process.
My bet is that VKNG is going to do more than "talk" ... they're going to "put up" results.
What country are you from?
I agree ... but if they received cash from the arbitration, they won't announce a thing; dilution is only in a time-out.
If they rearranged financing, they would blast the news; probably not in the cards though.
It's interesting that during 2011 the big dips happened after AEN raised several million dollars subsequent to 3 private offerings, to people with vested interests in reaZin's positive results, because they saw it first hand in their mothers. All the new money was at 60¢ and $1.10¢ above where it is now.
I can see that some people saw this as panic dilution, and that's why the stock ran downward.
As for Fibromyalgia ... [Effirma (flupirtine)] ... my sister-in-law has it, and finds no drug to be effective. So I have a two pronged interest in seeing this come to market. Not only may she benefit; Adeona stands to earn some windfall profits when it does, and on an ongoing basis.
Adeona entered into a Sublicense Agreement with Sweden-based Meda AB, to develop flupirtine for fibromyalgia. Under the terms of the agreement, Meda will assume all future development costs for the commercialization of flupirtine for fibromyalgia. Adeona received an up-front payment of $2.5 million and is entitled to milestone payments of $5 million upon filing of a New Drug Application with the FDA for flupirtine for fibromyalgia and $10 million upon marketing approval. Adeona is also entitled to receive royalties of 7% of net sales of flupirtine approved for the treatment of fibromyalgia covered by issued patent claims in the Territory.
It looks like someone thinks DKAM is going to .004+ real soon.
Bought more today, BTW.
Really love the fact that there's virtually no dilution, and whatever there is has been at higher priced "present" share prices nearly 60¢ and $1.10 higher than the present price.
Every time it goes down a nickel, I will be buying more too.
It would be one thing if what they were working on equated to "witch-doctor" and pie in the sky status.
It's quite another when AEN is setting up commercial production with one new product, and two others are being funded by national research foundations to the tune of millions of dollars.
Something is amiss with the price being down here.
Adeona Reports 1st Quarter 2011 Financial Results
There just isn't a good reason for the share price decline. This bio-tech/drug company is doing all the right things: advancing products through trials, getting grant funding from the National Multiple Sclerosis Society and from the National Institutes of Health/National Institute of Neurological Disorders and Stroke,
and it is financially well capitalized with nearly $9,000,000 in the bank.
5:51p ET May 16, 2011 (PR NewsWire) Adeona Pharmaceuticals, Inc. (AMEX: AEN), a developer of innovative medicines for serious central nervous system diseases, today reported its first quarter 2011 financial results for the three month period ended March 31, 2011, as well as updates since the beginning of the 1st quarter.
Updates since the beginning of the 1st quarter include:
Clinical Programs
Zinc Deficiency Associated with Alzheimer's Disease
Clinical results: Top-line results from our clinical study evaluating reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease were presented at the 63rd Annual Meeting of the American Academy of Neurology in April 2011.
As prospectively hypothesized, patients administered reaZin demonstrated increased serum zinc levels and decreased serum free copper levels, resulting in statistical significance of the primary outcomes of the clinical study.
The cognitive function of the placebo group, on average, declined over 6 months in comparison to patients managed with reaZin. The cognitive function trends favoring the patients managed with reaZin were observed in all three standardized cognitive tests utilized in our study and suggest that reaZin may provide an important benefit to the dietary management of zinc deficiency associated with Alzheimer's disease.
Commercialization plans: Based on the top-line results from this clinical study, we intend to further the commercial development of reaZin as a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease.
In April 2011, we executed an agreement with TG United, Inc. of Brooksville, Florida, to provide commercial-scale manufacturing for reaZin.
We will also review the reaZin clinical study results with our scientific advisors to determine what further clinical studies might be warranted to support additional labeling claims.
Multiple Sclerosis
Grant funding: Our ongoing clinical trial of Trimesta (estriol) for relapsing-remitting multiple sclerosis (MS) in women has received grant awards from two organizations that should support the clinical trial to its completion.
$409,426 in grant funding from the National Multiple Sclerosis Society was received in March 2011.
$1,594,553 in grant funding from the National Institutes of Health/National Institute of Neurological Disorders and Stroke was received in May 2011.
Patient enrollment: 133 of 150 patients have been enrolled in the clinical trial evaluating Trimesta in women suffering from relapsing-remitting MS as of May 1, 2011. The randomized, double-blind, placebo-controlled clinical trial is currently underway at 15 centers in the United States.
Operations
The quarter ended March 31, 2011 represents the first quarter that Adeona Clinical Laboratory achieved profitability since its purchase in July 2009. This milestone resulted from the increase in total net revenues for the three months ended March 31, 2011 that reflects an approximate 438% increase in net laboratory revenues from the three months ended March 31, 2010.
Our cash position has been strengthened as a result of two financings, which should meet our planned operating needs for at least the next 12 months.
Completion of the sale of approximately 2.85 million shares of common stock at $1.40 per share to new institutional investors in a registered direct offering for gross proceeds of $4 million in February 2011. Investors also received warrants to purchase approximately 1.42 million shares of common stock at an exercise price of $2.00 per share and are exercisable for a period of 13 months from issuance.
Completion of the sale of approximately 1.69 million shares of common stock at $2.0725 per share to a new institutional investor in a registered direct offering for gross proceeds of $3.5 million in April 2011. Investors also received warrants to purchase approximately 844,000 shares of common stock at an exercise price of $2.0725 per share and are exercisable for a period of 13 months from issuance.
First Quarter Ended March 31, 2011 Results
Total net revenues for the three months ended March 31, 2011 were $323,138, compared to $60,039 the same period in 2010. This significant change resulted from an increase in the client base and the expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Total costs and expenses for the three months ended March 31, 2011 were $1,749,712, compared to $1,154,590 for the same period in 2010.
General and administrative expenses for the three months ended March 31, 2011 were $1,273,536, compared to $742,021 for the same period in 2010. For the three months ended March 31, 2011, general and administrative expenses include a non-cash charge relating to stock-based compensation expense of $758,710, compared to $151,148 for the same period in 2010. The stock-based compensation expense for the three months ended March 31, 2011 includes a one-time charge of $397,767 relating to the modification of certain stock options, prior to expiration, held by a member of the Board of Directors.
Research and development expenses for the three months ended March 31, 2011 were $232,318, compared to $307,150 for the same period in 2010. This decrease is primarily the result of decreased costs associated with our product candidates. For the three months ended March 31, 2011, research and development expenses include a non-cash charge relating to stock-based compensation expense of $8,858, compared to $34,479 for the same period in 2010.
Costs of laboratory services for the three months ended March 31, 2011 were $243,858, compared to $105,419 for the same period in 2010. This increase is primarily the result of increased costs associated with the increased client base and expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Other expense for the three months ended March 31, 2011 was $759,887, compared to $7,029 of other income for the same period in 2010. For the three months ended March 31, 2011, other expense included $809,857 relating to the estimated fair value of the warrants associated with the February 2011 financing, adjusted for the change in their fair value at March 31, 2011.
The net loss for the three months ended March 31, 2011 was $2,186,461 or $0.09 per share, compared to $1,087,522 or $0.05 per share for the same period in 2010. The increase in net loss is primarily attributable to the warrant liability and the one-time charge relating to the modification of certain stock options, and would have been negligible if these charges had not occurred.
As of March 31, 2011, Adeona had approximately $6.1 million in cash compared to approximately $2.6 million on December 31, 2010. As of April 30, 2011, we had approximately $8.9 million in cash, including net proceeds of approximately $3.25 million from the April 2011 financing. Our cash position should allow us to meet our currently planned operating needs for at least the next 12 months.
"I believe the operational and clinical milestones we achieved during the first quarter of 2011 should position us for future growth and increased shareholder value," stated James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer. "We are encouraged that Adeona Clinical Laboratory has expanded its operations into a profitable business subsidiary. With the top-line results from our Alzheimer's clinical study reported and a commercial-scale manufacturer of reaZin in place, we continue to advance our prescription medical food towards commercialization. We are anticipating the review of the reaZin clinical results with our scientific advisors and intend to identify a pathway that could provide for additional labeling claims. At the same time, we look forward to reporting the completion of patient enrollment in the Trimesta MS trial and to exploring new opportunities that could expand our MS clinical program."
Adeona 1st Quarter 2011 Investor Conference Call
Adeona will hold its 1st quarter 2011 investor conference call tomorrow, Tuesday, May 17, 2011, at 1:00pm (EDT). James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer, will host the call. The Company will be joined by special guest, Rhonda Voskuhl, M.D., Director, University of California, Los Angeles (UCLA) Multiple Sclerosis Program, UCLA Department of Neurology, and Lead Principal Investigator of the multi-center clinical trial evaluating Adeona's Trimesta (estriol) drug candidate for multiple sclerosis (MS) in women. Dr. Voskuhl is the investigator who discovered that the female sex hormone, estriol, could suppress MS-like symptoms in a mouse model of the disease. This preclinical research led to a 10-patient clinical study that showed an 82% decrease in brain lesions over a six month period. This clinical study was followed by a 150-patient, randomized, double-blind, placebo-controlled clinical trial of Trimesta that is currently underway at 15 centers in the United States. Dr. Voskuhl's preclinical and clinical work has been scientifically reviewed and awarded over $8 million in grant funding by organizations such as the National Institutes of Health, the National Multiple Sclerosis Society and other third party groups. In addition to providing an update of the Trimesta clinical trial, Dr. Voskuhl will share insights into her proposed new mechanism to treat MS patients and will take questions about her research.
Interested parties should call toll free 1-800-860-2442 (U.S.) or 1-866-605-3852 (Canada), or from outside North America +1 412-858-4600, fifteen minutes before the start of the call to register and identify themselves as registrants of the 'Adeona' Conference Call. Any registered caller on the toll free line may ask to be placed in the queue for the Question & Answer session. The call will be simulcast on the web at http://www.videonewswire.com/event.asp?id=79592. If you are unable to participate during the live conference call, the webcast will be available for replay at the same URL (http://www.videonewswire.com/event.asp?id=79592) for 30 days after the call.
About Adeona Pharmaceuticals, Inc.
Adeona is a pharmaceutical company developing innovative medicines for the treatment of serious central nervous system diseases. The Company's strategy is to license product candidates that have demonstrated a certain level of clinical efficacy and develop them to a stage that results in a significant commercial collaboration. Currently, Adeona is developing, or has partnered the development of, the following product candidates: a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease, and drugs to treat multiple sclerosis, fibromyalgia, age-related macular degeneration and rheumatoid arthritis. For more information, please visit Adeona's website at www.adeonapharma.com.
This release includes forward-looking statements on Adeona's current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "could," "potential," "positions," "continue," "expects," "anticipates," "intends," "plans," "believe," "estimates," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements regarding the use of reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, our intent to further commercialize development of reaZin as a prescription medical food, grant awards supporting the Trimesta clinical trial to its completion, the grant award further expanding the MS program, the milestones that were achieved positioning us for future growth and increased shareholder value, our cash position allowing us to meet our planned needs for the next 12 months, the identification of a pathway for additional labeling claims, the potential effects of slowing the progression of the disease , our ability to produce a new, effective oral therapy for multiple sclerosis and the anticipated enrollment. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in Adeona's forward-looking statements include, among others, our failure to successfully commercialize reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, the failure of reaZin to be accepted for the dietary management of zinc deficiency associated with Alzheimer's disease, failure of future clinical trials studying reaZin to have favorable results, a lack of funding for the Trimesta program despite the recent grants, our failure to successfully commercialize a new oral therapy for multiple sclerosis, a failure of our Trimesta clinical trial to complete enrollment in the anticipated time period or to achieve desired results, our inability to increase shareholder value despite achieving our milestones, our ability to initiate additional clinical programs for multiple sclerosis, the availability of additional financial and other resources and the allocation of resources among different potential uses, and other factors described in Adeona's report on Form 10-K for the year ended December 31, 2010 and any other filings with the SEC. The information in this release is provided only as of the date of this release, and Adeona undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
SOURCE Adeona Pharmaceuticals, Inc.
Adeona Reports 1st Quarter 2011 Financial Results
There just isn't a good reason for the share price decline. This bio-tech/drug company is doing all the right things: advancing products through trials, getting grant funding from the National Multiple Sclerosis Society and from the National Institutes of Health/National Institute of Neurological Disorders and Stroke,
and it is financially well capitalized with nearly $9,000,000 in the bank.
5:51p ET May 16, 2011 (PR NewsWire) Adeona Pharmaceuticals, Inc. (AMEX: AEN), a developer of innovative medicines for serious central nervous system diseases, today reported its first quarter 2011 financial results for the three month period ended March 31, 2011, as well as updates since the beginning of the 1st quarter.
Updates since the beginning of the 1st quarter include:
Clinical Programs
Zinc Deficiency Associated with Alzheimer's Disease
Clinical results: Top-line results from our clinical study evaluating reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease were presented at the 63rd Annual Meeting of the American Academy of Neurology in April 2011.
As prospectively hypothesized, patients administered reaZin demonstrated increased serum zinc levels and decreased serum free copper levels, resulting in statistical significance of the primary outcomes of the clinical study.
The cognitive function of the placebo group, on average, declined over 6 months in comparison to patients managed with reaZin. The cognitive function trends favoring the patients managed with reaZin were observed in all three standardized cognitive tests utilized in our study and suggest that reaZin may provide an important benefit to the dietary management of zinc deficiency associated with Alzheimer's disease.
Commercialization plans: Based on the top-line results from this clinical study, we intend to further the commercial development of reaZin as a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease.
In April 2011, we executed an agreement with TG United, Inc. of Brooksville, Florida, to provide commercial-scale manufacturing for reaZin.
We will also review the reaZin clinical study results with our scientific advisors to determine what further clinical studies might be warranted to support additional labeling claims.
Multiple Sclerosis
Grant funding: Our ongoing clinical trial of Trimesta (estriol) for relapsing-remitting multiple sclerosis (MS) in women has received grant awards from two organizations that should support the clinical trial to its completion.
$409,426 in grant funding from the National Multiple Sclerosis Society was received in March 2011.
$1,594,553 in grant funding from the National Institutes of Health/National Institute of Neurological Disorders and Stroke was received in May 2011.
Patient enrollment: 133 of 150 patients have been enrolled in the clinical trial evaluating Trimesta in women suffering from relapsing-remitting MS as of May 1, 2011. The randomized, double-blind, placebo-controlled clinical trial is currently underway at 15 centers in the United States.
Operations
The quarter ended March 31, 2011 represents the first quarter that Adeona Clinical Laboratory achieved profitability since its purchase in July 2009. This milestone resulted from the increase in total net revenues for the three months ended March 31, 2011 that reflects an approximate 438% increase in net laboratory revenues from the three months ended March 31, 2010.
Our cash position has been strengthened as a result of two financings, which should meet our planned operating needs for at least the next 12 months.
Completion of the sale of approximately 2.85 million shares of common stock at $1.40 per share to new institutional investors in a registered direct offering for gross proceeds of $4 million in February 2011. Investors also received warrants to purchase approximately 1.42 million shares of common stock at an exercise price of $2.00 per share and are exercisable for a period of 13 months from issuance.
Completion of the sale of approximately 1.69 million shares of common stock at $2.0725 per share to a new institutional investor in a registered direct offering for gross proceeds of $3.5 million in April 2011. Investors also received warrants to purchase approximately 844,000 shares of common stock at an exercise price of $2.0725 per share and are exercisable for a period of 13 months from issuance.
First Quarter Ended March 31, 2011 Results
Total net revenues for the three months ended March 31, 2011 were $323,138, compared to $60,039 the same period in 2010. This significant change resulted from an increase in the client base and the expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Total costs and expenses for the three months ended March 31, 2011 were $1,749,712, compared to $1,154,590 for the same period in 2010.
General and administrative expenses for the three months ended March 31, 2011 were $1,273,536, compared to $742,021 for the same period in 2010. For the three months ended March 31, 2011, general and administrative expenses include a non-cash charge relating to stock-based compensation expense of $758,710, compared to $151,148 for the same period in 2010. The stock-based compensation expense for the three months ended March 31, 2011 includes a one-time charge of $397,767 relating to the modification of certain stock options, prior to expiration, held by a member of the Board of Directors.
Research and development expenses for the three months ended March 31, 2011 were $232,318, compared to $307,150 for the same period in 2010. This decrease is primarily the result of decreased costs associated with our product candidates. For the three months ended March 31, 2011, research and development expenses include a non-cash charge relating to stock-based compensation expense of $8,858, compared to $34,479 for the same period in 2010.
Costs of laboratory services for the three months ended March 31, 2011 were $243,858, compared to $105,419 for the same period in 2010. This increase is primarily the result of increased costs associated with the increased client base and expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Other expense for the three months ended March 31, 2011 was $759,887, compared to $7,029 of other income for the same period in 2010. For the three months ended March 31, 2011, other expense included $809,857 relating to the estimated fair value of the warrants associated with the February 2011 financing, adjusted for the change in their fair value at March 31, 2011.
The net loss for the three months ended March 31, 2011 was $2,186,461 or $0.09 per share, compared to $1,087,522 or $0.05 per share for the same period in 2010. The increase in net loss is primarily attributable to the warrant liability and the one-time charge relating to the modification of certain stock options, and would have been negligible if these charges had not occurred.
As of March 31, 2011, Adeona had approximately $6.1 million in cash compared to approximately $2.6 million on December 31, 2010. As of April 30, 2011, we had approximately $8.9 million in cash, including net proceeds of approximately $3.25 million from the April 2011 financing. Our cash position should allow us to meet our currently planned operating needs for at least the next 12 months.
"I believe the operational and clinical milestones we achieved during the first quarter of 2011 should position us for future growth and increased shareholder value," stated James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer. "We are encouraged that Adeona Clinical Laboratory has expanded its operations into a profitable business subsidiary. With the top-line results from our Alzheimer's clinical study reported and a commercial-scale manufacturer of reaZin in place, we continue to advance our prescription medical food towards commercialization. We are anticipating the review of the reaZin clinical results with our scientific advisors and intend to identify a pathway that could provide for additional labeling claims. At the same time, we look forward to reporting the completion of patient enrollment in the Trimesta MS trial and to exploring new opportunities that could expand our MS clinical program."
Adeona 1st Quarter 2011 Investor Conference Call
Adeona will hold its 1st quarter 2011 investor conference call tomorrow, Tuesday, May 17, 2011, at 1:00pm (EDT). James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer, will host the call. The Company will be joined by special guest, Rhonda Voskuhl, M.D., Director, University of California, Los Angeles (UCLA) Multiple Sclerosis Program, UCLA Department of Neurology, and Lead Principal Investigator of the multi-center clinical trial evaluating Adeona's Trimesta (estriol) drug candidate for multiple sclerosis (MS) in women. Dr. Voskuhl is the investigator who discovered that the female sex hormone, estriol, could suppress MS-like symptoms in a mouse model of the disease. This preclinical research led to a 10-patient clinical study that showed an 82% decrease in brain lesions over a six month period. This clinical study was followed by a 150-patient, randomized, double-blind, placebo-controlled clinical trial of Trimesta that is currently underway at 15 centers in the United States. Dr. Voskuhl's preclinical and clinical work has been scientifically reviewed and awarded over $8 million in grant funding by organizations such as the National Institutes of Health, the National Multiple Sclerosis Society and other third party groups. In addition to providing an update of the Trimesta clinical trial, Dr. Voskuhl will share insights into her proposed new mechanism to treat MS patients and will take questions about her research.
Interested parties should call toll free 1-800-860-2442 (U.S.) or 1-866-605-3852 (Canada), or from outside North America +1 412-858-4600, fifteen minutes before the start of the call to register and identify themselves as registrants of the 'Adeona' Conference Call. Any registered caller on the toll free line may ask to be placed in the queue for the Question & Answer session. The call will be simulcast on the web at http://www.videonewswire.com/event.asp?id=79592. If you are unable to participate during the live conference call, the webcast will be available for replay at the same URL (http://www.videonewswire.com/event.asp?id=79592) for 30 days after the call.
About Adeona Pharmaceuticals, Inc.
Adeona is a pharmaceutical company developing innovative medicines for the treatment of serious central nervous system diseases. The Company's strategy is to license product candidates that have demonstrated a certain level of clinical efficacy and develop them to a stage that results in a significant commercial collaboration. Currently, Adeona is developing, or has partnered the development of, the following product candidates: a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease, and drugs to treat multiple sclerosis, fibromyalgia, age-related macular degeneration and rheumatoid arthritis. For more information, please visit Adeona's website at www.adeonapharma.com.
This release includes forward-looking statements on Adeona's current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "could," "potential," "positions," "continue," "expects," "anticipates," "intends," "plans," "believe," "estimates," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements regarding the use of reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, our intent to further commercialize development of reaZin as a prescription medical food, grant awards supporting the Trimesta clinical trial to its completion, the grant award further expanding the MS program, the milestones that were achieved positioning us for future growth and increased shareholder value, our cash position allowing us to meet our planned needs for the next 12 months, the identification of a pathway for additional labeling claims, the potential effects of slowing the progression of the disease , our ability to produce a new, effective oral therapy for multiple sclerosis and the anticipated enrollment. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in Adeona's forward-looking statements include, among others, our failure to successfully commercialize reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, the failure of reaZin to be accepted for the dietary management of zinc deficiency associated with Alzheimer's disease, failure of future clinical trials studying reaZin to have favorable results, a lack of funding for the Trimesta program despite the recent grants, our failure to successfully commercialize a new oral therapy for multiple sclerosis, a failure of our Trimesta clinical trial to complete enrollment in the anticipated time period or to achieve desired results, our inability to increase shareholder value despite achieving our milestones, our ability to initiate additional clinical programs for multiple sclerosis, the availability of additional financial and other resources and the allocation of resources among different potential uses, and other factors described in Adeona's report on Form 10-K for the year ended December 31, 2010 and any other filings with the SEC. The information in this release is provided only as of the date of this release, and Adeona undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
SOURCE Adeona Pharmaceuticals, Inc.
Adeona Reports 1st Quarter 2011 Financial Results
There just isn't a good reason for the share price decline. This bio-tech/drug company is doing all the right things: advancing products through trials, getting grant funding from the National Multiple Sclerosis Society and from the National Institutes of Health/National Institute of Neurological Disorders and Stroke,
and it is financially well capitalized with nearly $9,000,000 in the bank.
5:51p ET May 16, 2011 (PR NewsWire) Adeona Pharmaceuticals, Inc. (AMEX: AEN), a developer of innovative medicines for serious central nervous system diseases, today reported its first quarter 2011 financial results for the three month period ended March 31, 2011, as well as updates since the beginning of the 1st quarter.
Updates since the beginning of the 1st quarter include:
Clinical Programs
Zinc Deficiency Associated with Alzheimer's Disease
Clinical results: Top-line results from our clinical study evaluating reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease were presented at the 63rd Annual Meeting of the American Academy of Neurology in April 2011.
As prospectively hypothesized, patients administered reaZin demonstrated increased serum zinc levels and decreased serum free copper levels, resulting in statistical significance of the primary outcomes of the clinical study.
The cognitive function of the placebo group, on average, declined over 6 months in comparison to patients managed with reaZin. The cognitive function trends favoring the patients managed with reaZin were observed in all three standardized cognitive tests utilized in our study and suggest that reaZin may provide an important benefit to the dietary management of zinc deficiency associated with Alzheimer's disease.
Commercialization plans: Based on the top-line results from this clinical study, we intend to further the commercial development of reaZin as a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease.
In April 2011, we executed an agreement with TG United, Inc. of Brooksville, Florida, to provide commercial-scale manufacturing for reaZin.
We will also review the reaZin clinical study results with our scientific advisors to determine what further clinical studies might be warranted to support additional labeling claims.
Multiple Sclerosis
Grant funding: Our ongoing clinical trial of Trimesta (estriol) for relapsing-remitting multiple sclerosis (MS) in women has received grant awards from two organizations that should support the clinical trial to its completion.
$409,426 in grant funding from the National Multiple Sclerosis Society was received in March 2011.
$1,594,553 in grant funding from the National Institutes of Health/National Institute of Neurological Disorders and Stroke was received in May 2011.
Patient enrollment: 133 of 150 patients have been enrolled in the clinical trial evaluating Trimesta in women suffering from relapsing-remitting MS as of May 1, 2011. The randomized, double-blind, placebo-controlled clinical trial is currently underway at 15 centers in the United States.
Operations
The quarter ended March 31, 2011 represents the first quarter that Adeona Clinical Laboratory achieved profitability since its purchase in July 2009. This milestone resulted from the increase in total net revenues for the three months ended March 31, 2011 that reflects an approximate 438% increase in net laboratory revenues from the three months ended March 31, 2010.
Our cash position has been strengthened as a result of two financings, which should meet our planned operating needs for at least the next 12 months.
Completion of the sale of approximately 2.85 million shares of common stock at $1.40 per share to new institutional investors in a registered direct offering for gross proceeds of $4 million in February 2011. Investors also received warrants to purchase approximately 1.42 million shares of common stock at an exercise price of $2.00 per share and are exercisable for a period of 13 months from issuance.
Completion of the sale of approximately 1.69 million shares of common stock at $2.0725 per share to a new institutional investor in a registered direct offering for gross proceeds of $3.5 million in April 2011. Investors also received warrants to purchase approximately 844,000 shares of common stock at an exercise price of $2.0725 per share and are exercisable for a period of 13 months from issuance.
First Quarter Ended March 31, 2011 Results
Total net revenues for the three months ended March 31, 2011 were $323,138, compared to $60,039 the same period in 2010. This significant change resulted from an increase in the client base and the expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Total costs and expenses for the three months ended March 31, 2011 were $1,749,712, compared to $1,154,590 for the same period in 2010.
General and administrative expenses for the three months ended March 31, 2011 were $1,273,536, compared to $742,021 for the same period in 2010. For the three months ended March 31, 2011, general and administrative expenses include a non-cash charge relating to stock-based compensation expense of $758,710, compared to $151,148 for the same period in 2010. The stock-based compensation expense for the three months ended March 31, 2011 includes a one-time charge of $397,767 relating to the modification of certain stock options, prior to expiration, held by a member of the Board of Directors.
Research and development expenses for the three months ended March 31, 2011 were $232,318, compared to $307,150 for the same period in 2010. This decrease is primarily the result of decreased costs associated with our product candidates. For the three months ended March 31, 2011, research and development expenses include a non-cash charge relating to stock-based compensation expense of $8,858, compared to $34,479 for the same period in 2010.
Costs of laboratory services for the three months ended March 31, 2011 were $243,858, compared to $105,419 for the same period in 2010. This increase is primarily the result of increased costs associated with the increased client base and expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Other expense for the three months ended March 31, 2011 was $759,887, compared to $7,029 of other income for the same period in 2010. For the three months ended March 31, 2011, other expense included $809,857 relating to the estimated fair value of the warrants associated with the February 2011 financing, adjusted for the change in their fair value at March 31, 2011.
The net loss for the three months ended March 31, 2011 was $2,186,461 or $0.09 per share, compared to $1,087,522 or $0.05 per share for the same period in 2010. The increase in net loss is primarily attributable to the warrant liability and the one-time charge relating to the modification of certain stock options, and would have been negligible if these charges had not occurred.
As of March 31, 2011, Adeona had approximately $6.1 million in cash compared to approximately $2.6 million on December 31, 2010. As of April 30, 2011, we had approximately $8.9 million in cash, including net proceeds of approximately $3.25 million from the April 2011 financing. Our cash position should allow us to meet our currently planned operating needs for at least the next 12 months.
"I believe the operational and clinical milestones we achieved during the first quarter of 2011 should position us for future growth and increased shareholder value," stated James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer. "We are encouraged that Adeona Clinical Laboratory has expanded its operations into a profitable business subsidiary. With the top-line results from our Alzheimer's clinical study reported and a commercial-scale manufacturer of reaZin in place, we continue to advance our prescription medical food towards commercialization. We are anticipating the review of the reaZin clinical results with our scientific advisors and intend to identify a pathway that could provide for additional labeling claims. At the same time, we look forward to reporting the completion of patient enrollment in the Trimesta MS trial and to exploring new opportunities that could expand our MS clinical program."
Adeona 1st Quarter 2011 Investor Conference Call
Adeona will hold its 1st quarter 2011 investor conference call tomorrow, Tuesday, May 17, 2011, at 1:00pm (EDT). James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer, will host the call. The Company will be joined by special guest, Rhonda Voskuhl, M.D., Director, University of California, Los Angeles (UCLA) Multiple Sclerosis Program, UCLA Department of Neurology, and Lead Principal Investigator of the multi-center clinical trial evaluating Adeona's Trimesta (estriol) drug candidate for multiple sclerosis (MS) in women. Dr. Voskuhl is the investigator who discovered that the female sex hormone, estriol, could suppress MS-like symptoms in a mouse model of the disease. This preclinical research led to a 10-patient clinical study that showed an 82% decrease in brain lesions over a six month period. This clinical study was followed by a 150-patient, randomized, double-blind, placebo-controlled clinical trial of Trimesta that is currently underway at 15 centers in the United States. Dr. Voskuhl's preclinical and clinical work has been scientifically reviewed and awarded over $8 million in grant funding by organizations such as the National Institutes of Health, the National Multiple Sclerosis Society and other third party groups. In addition to providing an update of the Trimesta clinical trial, Dr. Voskuhl will share insights into her proposed new mechanism to treat MS patients and will take questions about her research.
Interested parties should call toll free 1-800-860-2442 (U.S.) or 1-866-605-3852 (Canada), or from outside North America +1 412-858-4600, fifteen minutes before the start of the call to register and identify themselves as registrants of the 'Adeona' Conference Call. Any registered caller on the toll free line may ask to be placed in the queue for the Question & Answer session. The call will be simulcast on the web at http://www.videonewswire.com/event.asp?id=79592. If you are unable to participate during the live conference call, the webcast will be available for replay at the same URL (http://www.videonewswire.com/event.asp?id=79592) for 30 days after the call.
About Adeona Pharmaceuticals, Inc.
Adeona is a pharmaceutical company developing innovative medicines for the treatment of serious central nervous system diseases. The Company's strategy is to license product candidates that have demonstrated a certain level of clinical efficacy and develop them to a stage that results in a significant commercial collaboration. Currently, Adeona is developing, or has partnered the development of, the following product candidates: a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease, and drugs to treat multiple sclerosis, fibromyalgia, age-related macular degeneration and rheumatoid arthritis. For more information, please visit Adeona's website at www.adeonapharma.com.
This release includes forward-looking statements on Adeona's current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "could," "potential," "positions," "continue," "expects," "anticipates," "intends," "plans," "believe," "estimates," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements regarding the use of reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, our intent to further commercialize development of reaZin as a prescription medical food, grant awards supporting the Trimesta clinical trial to its completion, the grant award further expanding the MS program, the milestones that were achieved positioning us for future growth and increased shareholder value, our cash position allowing us to meet our planned needs for the next 12 months, the identification of a pathway for additional labeling claims, the potential effects of slowing the progression of the disease , our ability to produce a new, effective oral therapy for multiple sclerosis and the anticipated enrollment. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in Adeona's forward-looking statements include, among others, our failure to successfully commercialize reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, the failure of reaZin to be accepted for the dietary management of zinc deficiency associated with Alzheimer's disease, failure of future clinical trials studying reaZin to have favorable results, a lack of funding for the Trimesta program despite the recent grants, our failure to successfully commercialize a new oral therapy for multiple sclerosis, a failure of our Trimesta clinical trial to complete enrollment in the anticipated time period or to achieve desired results, our inability to increase shareholder value despite achieving our milestones, our ability to initiate additional clinical programs for multiple sclerosis, the availability of additional financial and other resources and the allocation of resources among different potential uses, and other factors described in Adeona's report on Form 10-K for the year ended December 31, 2010 and any other filings with the SEC. The information in this release is provided only as of the date of this release, and Adeona undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
SOURCE Adeona Pharmaceuticals, Inc.
Adeona Reports 1st Quarter 2011 Financial Results
There just isn't a good reason for the share price decline. This bio-tech/drug company is doing all the right things: advancing products through trials, getting grant funding from the National Multiple Sclerosis Society and from the National Institutes of Health/National Institute of Neurological Disorders and Stroke,
and it is financially well capitalized with nearly $9,000,000 in the bank.
5:51p ET May 16, 2011 (PR NewsWire) Adeona Pharmaceuticals, Inc. (AMEX: AEN), a developer of innovative medicines for serious central nervous system diseases, today reported its first quarter 2011 financial results for the three month period ended March 31, 2011, as well as updates since the beginning of the 1st quarter.
Updates since the beginning of the 1st quarter include:
Clinical Programs
Zinc Deficiency Associated with Alzheimer's Disease
Clinical results: Top-line results from our clinical study evaluating reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease were presented at the 63rd Annual Meeting of the American Academy of Neurology in April 2011.
As prospectively hypothesized, patients administered reaZin demonstrated increased serum zinc levels and decreased serum free copper levels, resulting in statistical significance of the primary outcomes of the clinical study.
The cognitive function of the placebo group, on average, declined over 6 months in comparison to patients managed with reaZin. The cognitive function trends favoring the patients managed with reaZin were observed in all three standardized cognitive tests utilized in our study and suggest that reaZin may provide an important benefit to the dietary management of zinc deficiency associated with Alzheimer's disease.
Commercialization plans: Based on the top-line results from this clinical study, we intend to further the commercial development of reaZin as a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease.
In April 2011, we executed an agreement with TG United, Inc. of Brooksville, Florida, to provide commercial-scale manufacturing for reaZin.
We will also review the reaZin clinical study results with our scientific advisors to determine what further clinical studies might be warranted to support additional labeling claims.
Multiple Sclerosis
Grant funding: Our ongoing clinical trial of Trimesta (estriol) for relapsing-remitting multiple sclerosis (MS) in women has received grant awards from two organizations that should support the clinical trial to its completion.
$409,426 in grant funding from the National Multiple Sclerosis Society was received in March 2011.
$1,594,553 in grant funding from the National Institutes of Health/National Institute of Neurological Disorders and Stroke was received in May 2011.
Patient enrollment: 133 of 150 patients have been enrolled in the clinical trial evaluating Trimesta in women suffering from relapsing-remitting MS as of May 1, 2011. The randomized, double-blind, placebo-controlled clinical trial is currently underway at 15 centers in the United States.
Operations
The quarter ended March 31, 2011 represents the first quarter that Adeona Clinical Laboratory achieved profitability since its purchase in July 2009. This milestone resulted from the increase in total net revenues for the three months ended March 31, 2011 that reflects an approximate 438% increase in net laboratory revenues from the three months ended March 31, 2010.
Our cash position has been strengthened as a result of two financings, which should meet our planned operating needs for at least the next 12 months.
Completion of the sale of approximately 2.85 million shares of common stock at $1.40 per share to new institutional investors in a registered direct offering for gross proceeds of $4 million in February 2011. Investors also received warrants to purchase approximately 1.42 million shares of common stock at an exercise price of $2.00 per share and are exercisable for a period of 13 months from issuance.
Completion of the sale of approximately 1.69 million shares of common stock at $2.0725 per share to a new institutional investor in a registered direct offering for gross proceeds of $3.5 million in April 2011. Investors also received warrants to purchase approximately 844,000 shares of common stock at an exercise price of $2.0725 per share and are exercisable for a period of 13 months from issuance.
First Quarter Ended March 31, 2011 Results
Total net revenues for the three months ended March 31, 2011 were $323,138, compared to $60,039 the same period in 2010. This significant change resulted from an increase in the client base and the expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Total costs and expenses for the three months ended March 31, 2011 were $1,749,712, compared to $1,154,590 for the same period in 2010.
General and administrative expenses for the three months ended March 31, 2011 were $1,273,536, compared to $742,021 for the same period in 2010. For the three months ended March 31, 2011, general and administrative expenses include a non-cash charge relating to stock-based compensation expense of $758,710, compared to $151,148 for the same period in 2010. The stock-based compensation expense for the three months ended March 31, 2011 includes a one-time charge of $397,767 relating to the modification of certain stock options, prior to expiration, held by a member of the Board of Directors.
Research and development expenses for the three months ended March 31, 2011 were $232,318, compared to $307,150 for the same period in 2010. This decrease is primarily the result of decreased costs associated with our product candidates. For the three months ended March 31, 2011, research and development expenses include a non-cash charge relating to stock-based compensation expense of $8,858, compared to $34,479 for the same period in 2010.
Costs of laboratory services for the three months ended March 31, 2011 were $243,858, compared to $105,419 for the same period in 2010. This increase is primarily the result of increased costs associated with the increased client base and expansion of in-house diagnostic testing services to include a full array of microbiology testing at Adeona Clinical Laboratory.
Other expense for the three months ended March 31, 2011 was $759,887, compared to $7,029 of other income for the same period in 2010. For the three months ended March 31, 2011, other expense included $809,857 relating to the estimated fair value of the warrants associated with the February 2011 financing, adjusted for the change in their fair value at March 31, 2011.
The net loss for the three months ended March 31, 2011 was $2,186,461 or $0.09 per share, compared to $1,087,522 or $0.05 per share for the same period in 2010. The increase in net loss is primarily attributable to the warrant liability and the one-time charge relating to the modification of certain stock options, and would have been negligible if these charges had not occurred.
As of March 31, 2011, Adeona had approximately $6.1 million in cash compared to approximately $2.6 million on December 31, 2010. As of April 30, 2011, we had approximately $8.9 million in cash, including net proceeds of approximately $3.25 million from the April 2011 financing. Our cash position should allow us to meet our currently planned operating needs for at least the next 12 months.
"I believe the operational and clinical milestones we achieved during the first quarter of 2011 should position us for future growth and increased shareholder value," stated James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer. "We are encouraged that Adeona Clinical Laboratory has expanded its operations into a profitable business subsidiary. With the top-line results from our Alzheimer's clinical study reported and a commercial-scale manufacturer of reaZin in place, we continue to advance our prescription medical food towards commercialization. We are anticipating the review of the reaZin clinical results with our scientific advisors and intend to identify a pathway that could provide for additional labeling claims. At the same time, we look forward to reporting the completion of patient enrollment in the Trimesta MS trial and to exploring new opportunities that could expand our MS clinical program."
Adeona 1st Quarter 2011 Investor Conference Call
Adeona will hold its 1st quarter 2011 investor conference call tomorrow, Tuesday, May 17, 2011, at 1:00pm (EDT). James S. Kuo, M.D., M.B.A., Adeona's Chief Executive Officer, will host the call. The Company will be joined by special guest, Rhonda Voskuhl, M.D., Director, University of California, Los Angeles (UCLA) Multiple Sclerosis Program, UCLA Department of Neurology, and Lead Principal Investigator of the multi-center clinical trial evaluating Adeona's Trimesta (estriol) drug candidate for multiple sclerosis (MS) in women. Dr. Voskuhl is the investigator who discovered that the female sex hormone, estriol, could suppress MS-like symptoms in a mouse model of the disease. This preclinical research led to a 10-patient clinical study that showed an 82% decrease in brain lesions over a six month period. This clinical study was followed by a 150-patient, randomized, double-blind, placebo-controlled clinical trial of Trimesta that is currently underway at 15 centers in the United States. Dr. Voskuhl's preclinical and clinical work has been scientifically reviewed and awarded over $8 million in grant funding by organizations such as the National Institutes of Health, the National Multiple Sclerosis Society and other third party groups. In addition to providing an update of the Trimesta clinical trial, Dr. Voskuhl will share insights into her proposed new mechanism to treat MS patients and will take questions about her research.
Interested parties should call toll free 1-800-860-2442 (U.S.) or 1-866-605-3852 (Canada), or from outside North America +1 412-858-4600, fifteen minutes before the start of the call to register and identify themselves as registrants of the 'Adeona' Conference Call. Any registered caller on the toll free line may ask to be placed in the queue for the Question & Answer session. The call will be simulcast on the web at http://www.videonewswire.com/event.asp?id=79592. If you are unable to participate during the live conference call, the webcast will be available for replay at the same URL (http://www.videonewswire.com/event.asp?id=79592) for 30 days after the call.
About Adeona Pharmaceuticals, Inc.
Adeona is a pharmaceutical company developing innovative medicines for the treatment of serious central nervous system diseases. The Company's strategy is to license product candidates that have demonstrated a certain level of clinical efficacy and develop them to a stage that results in a significant commercial collaboration. Currently, Adeona is developing, or has partnered the development of, the following product candidates: a prescription medical food for the dietary management of zinc deficiency associated with Alzheimer's disease, and drugs to treat multiple sclerosis, fibromyalgia, age-related macular degeneration and rheumatoid arthritis. For more information, please visit Adeona's website at www.adeonapharma.com.
This release includes forward-looking statements on Adeona's current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "could," "potential," "positions," "continue," "expects," "anticipates," "intends," "plans," "believe," "estimates," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements regarding the use of reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, our intent to further commercialize development of reaZin as a prescription medical food, grant awards supporting the Trimesta clinical trial to its completion, the grant award further expanding the MS program, the milestones that were achieved positioning us for future growth and increased shareholder value, our cash position allowing us to meet our planned needs for the next 12 months, the identification of a pathway for additional labeling claims, the potential effects of slowing the progression of the disease , our ability to produce a new, effective oral therapy for multiple sclerosis and the anticipated enrollment. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in Adeona's forward-looking statements include, among others, our failure to successfully commercialize reaZin for the dietary management of zinc deficiency associated with Alzheimer's disease, the failure of reaZin to be accepted for the dietary management of zinc deficiency associated with Alzheimer's disease, failure of future clinical trials studying reaZin to have favorable results, a lack of funding for the Trimesta program despite the recent grants, our failure to successfully commercialize a new oral therapy for multiple sclerosis, a failure of our Trimesta clinical trial to complete enrollment in the anticipated time period or to achieve desired results, our inability to increase shareholder value despite achieving our milestones, our ability to initiate additional clinical programs for multiple sclerosis, the availability of additional financial and other resources and the allocation of resources among different potential uses, and other factors described in Adeona's report on Form 10-K for the year ended December 31, 2010 and any other filings with the SEC. The information in this release is provided only as of the date of this release, and Adeona undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
SOURCE Adeona Pharmaceuticals, Inc.
I am afraid NVLT is copying a trend of many "penny" companies that do a reverse split. They head back to pre R/S levels.
Not even a thousand dollars trading so far today.
No advertising, no gorrilla marketing; I am left to wonder if quarter over quarter sales per distributor can rise?
When I look at the 10Q it's easy to pick out a lot of negatives. I don't want to harp on them. The company generally seems to be moving in a very positive direction.
VKNG's unit sales keep rising quarter over quarter. The financials should do the same.
Sweetheart deal for Thomas Price getting 700,000 shares on 4-19-2011, for $0.01 ... that's a cool $100,000+ gain for this tiny company to be paying a director. I would like to know what wisdom he is contributing to the company in exchange for those hefty stock grants.
I bought more yesterday. CUGI is going to slip into sustained profitability, very much under the radar this year.
A revenue surprise would be nice, but not a lie like PK did last time when he over estimated the number by 20% and wasn't clear as to whether or not the number was estimated at the wholesale, or retail levels.
North Carolina was a surprise. I wonder if Florida is still in the cards.
The news is terrific. I bought more yesterday. Hardly anyone knows about this company with nearly $40,000,000 in revenues. Thank you.
CUI is rocking and rolling. - Consolidated revenues in the first quarter of 2011 increased 31% to $10.0 million from $7.7 million in the same year-ago quarter.
CUI Global Reports First Quarter 2011 Results Business Wire Posted 5:30 AM 05/09/11
CUI Global, Inc. (OTCBB:CUGI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, reported unaudited results for the three months ended March 31, 2011.
First Quarter 2011 Financial Results
Consolidated revenues in the first quarter of 2011 increased 31% to $10.0 million from $7.7 million in the same year-ago quarter.
Net loss decreased to $94,000 in first quarter of 2011 from $1.2 million in first quarter of 2010. The improvement in net loss was attributed to a number of factors, including the increase in revenues; the recently completed debt restructuring that saved nearly $700,000 in interest expense versus the prior year quarter; and a $476,000 gain on debt extinguishment in the first quarter of 2011.
EBIDTA increased 292% to $553,000 from $141,000 in the same year-ago quarter. (EBITDA is a non-GAAP term the company defines as earnings before interest, taxes, depreciation, and amortization. See discussion about the company’s use of this non-GAAP financial measure, below.)
First Quarter 2011 Operational Highlights
•Nomination of Novum Digital POL Modules and AMT 303 Capacitive Encoder as finalists for the EDN Innovation Award and the Design News Golden Mousetrap Award
•Initial European delivery of the company’s new GasPT2 devices
•Major AMT Encoder design wins
•Introduction of the company’s unique Solus Topology, representing a breakthrough in power control technology
Management Commentary
“In the first quarter, we continued to realize positive results from new product introductions and the expansion of our sales group, as well as the debt reductions we implemented over the last 18 months,” said William Clough, CUI Global’s president and CEO. “These results also demonstrated the effectiveness of our new technology licensing model that includes a strategic decision to acquire new, market-ready technologies, along with building out our infrastructure.”
“It’s also important to note that these results do not take into account any sales associated with our new Solus™ Topology built on the California Power Research (CPR) technology platform or our recently deployed GasPT2 device -- both of which are expected to be in the market later this year,” continued Clough. “We are confident the initiatives that we have implemented will continue to produce positive results in both revenue growth and increased shareholder value throughout 2011.”
About CUI Global, Inc.
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.’s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
For more information, please visit www.cuiglobal.com and www.cui.com.
Reconciliation of Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure and is reconciled in the table below. EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA excludes components that are significant in understanding and assessing the company’s results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. However, EBITDA is used by management to evaluate, assess and benchmark the company’s operational results and the company believes EBITDA is relevant and useful information which is often reported and widely used by analysts, investors and other interested parties in the company’s industry. Accordingly, the company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the company’s ability to meet future debt service, capital expenditure and working capital requirements.
CUI is rocking and rolling. - Consolidated revenues in the first quarter of 2011 increased 31% to $10.0 million from $7.7 million in the same year-ago quarter.
CUI Global Reports First Quarter 2011 Results Business Wire Posted 5:30 AM 05/09/11
CUI Global, Inc. (OTCBB:CUGI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, reported unaudited results for the three months ended March 31, 2011.
First Quarter 2011 Financial Results
Consolidated revenues in the first quarter of 2011 increased 31% to $10.0 million from $7.7 million in the same year-ago quarter.
Net loss decreased to $94,000 in first quarter of 2011 from $1.2 million in first quarter of 2010. The improvement in net loss was attributed to a number of factors, including the increase in revenues; the recently completed debt restructuring that saved nearly $700,000 in interest expense versus the prior year quarter; and a $476,000 gain on debt extinguishment in the first quarter of 2011.
EBIDTA increased 292% to $553,000 from $141,000 in the same year-ago quarter. (EBITDA is a non-GAAP term the company defines as earnings before interest, taxes, depreciation, and amortization. See discussion about the company’s use of this non-GAAP financial measure, below.)
First Quarter 2011 Operational Highlights
•Nomination of Novum Digital POL Modules and AMT 303 Capacitive Encoder as finalists for the EDN Innovation Award and the Design News Golden Mousetrap Award
•Initial European delivery of the company’s new GasPT2 devices
•Major AMT Encoder design wins
•Introduction of the company’s unique Solus Topology, representing a breakthrough in power control technology
Management Commentary
“In the first quarter, we continued to realize positive results from new product introductions and the expansion of our sales group, as well as the debt reductions we implemented over the last 18 months,” said William Clough, CUI Global’s president and CEO. “These results also demonstrated the effectiveness of our new technology licensing model that includes a strategic decision to acquire new, market-ready technologies, along with building out our infrastructure.”
“It’s also important to note that these results do not take into account any sales associated with our new Solus™ Topology built on the California Power Research (CPR) technology platform or our recently deployed GasPT2 device -- both of which are expected to be in the market later this year,” continued Clough. “We are confident the initiatives that we have implemented will continue to produce positive results in both revenue growth and increased shareholder value throughout 2011.”
About CUI Global, Inc.
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.’s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
For more information, please visit www.cuiglobal.com and www.cui.com.
Reconciliation of Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure and is reconciled in the table below. EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA excludes components that are significant in understanding and assessing the company’s results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. However, EBITDA is used by management to evaluate, assess and benchmark the company’s operational results and the company believes EBITDA is relevant and useful information which is often reported and widely used by analysts, investors and other interested parties in the company’s industry. Accordingly, the company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the company’s ability to meet future debt service, capital expenditure and working capital requirements.
Better financing became available when the company showed real progress. Nothing unusual there.
I've been saying that would happen since I bought in January. I just had no idea the progress we've recently seen was enough to make it happen.
Imagine what can happen if they sell 40 machines to end users in the next quarter. That's what 20 demonstration units can do for a company when they use sales multipliers and put them in distributors' hands.
Giving the new group a seat at the Board of Directors table makes perfect sense. Almost every legitimate investor group involved with "incubator-type" companies make their money contingent upon their being able to closely watch over it. Most don't have "industry backgrounds". Their backgrounds are "money" and that's fine with me. They invested in the people with the "industry backgrounds". So did I when I bought VKNG.
Guys like that are also very keen on not diluting shareholder value. These guys may or may not be investing for the long haul and the company's breakout, but they just may be the real deal who are ready to financially make happen for Viking just what they need to happen.
I for one am very pleased with today's news.
It seemed for a while that DKAM might have hit a floor, but the joists holding it up may give way under the weight of all those new shares PK has been printing.
Now I am wondering which will happen first ...
.001 or the reverse split?
I wonder what the next earnings report will show on 05/30/2011, or if it will be delayed? Will LIQR have paid? Will more new distributors be announced? Will the distributors that were on board prior to the last report show a decline, rise, or steady level of purchasing?
Today is filled with terrific news from Viking.
Viking Systems, Inc. Announces Oversubscribed $3 Million Common Equity Financing
Date : 05/06/2011 @ 7:05AM
Source : GlobeNewswire Inc.
Stock : Viking Systems, Inc. (VKNG)
Quote : 0.25 0.0 (0.00%) @ 6:42AM
Viking Systems, Inc. Announces Oversubscribed $3 Million Common Equity Financing
Viking Systems (OTCBB:VKNG)
Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced it has signed a definitive agreement for a private placement of 12,000,000 shares of the Company's common stock along with warrants to purchase up to 9,000,000 shares of its common stock for a total purchase price of $3.0 million. The purchase price for one share of common stock and a warrant to purchase 0.75 shares of common stock is $0.25. The warrants will have an exercise price of $0.25 per share, will expire five years from closing, and are exercisable in whole or in part, at any time prior to expiration. The transaction is anticipated to close on May 10, 2011 subject to customary closing conditions. The Company intends to use the proceeds from the offering for general corporate purposes and working capital, including the funding of increased demonstration systems for its 3DHD Vision System as well as for sales and marketing expansion. Clinton Group, Inc. has agreed to lead the private placement.
In connection with the private placement, Clinton Group, Inc. has reached an agreement with Midsummer Investment Ltd. to purchase all of Midsummer's holdings of Viking Systems common stock and warrants. At the time of this agreement, Midsummer owned 7,223,457, or approximately 12% of the total shares outstanding, and warrants to acquire an additional 5,551,034 shares of Viking Systems with an exercise price of $0.18 per share.
Prior to closing the financing, the Company will be terminating its current equity line of credit with Dutchess Opportunity Fund.
"We are excited to be leading this recapitalization of Viking Systems," said Joseph A. De Perio, a portfolio manager of Clinton Group, Inc. "We believe the market is ripe for broad acceptance of Viking's 3DHD Vision Systems, and this capital provides Viking with substantial resources to achieve its operational and financial goals for accelerated growth." As part of the transaction, Mr. De Perio has agreed to join Viking Systems' board of directors.
Jed Kennedy, President and CEO of Viking Systems said, "We intend to use this financing to execute an aggressive marketing campaign throughout the U.S. and in significant markets in Europe and Asia. This strategy will include the accelerated placement of demonstration systems, which are key ingredients in the sales process. It will also enable the development of "Centers of Excellence" that will not only serve as reference centers but will also build credibility and global awareness of the Viking product offering. We are now appropriately financed to execute our plan to move to profitability."
THIS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT OFFERED OR SOLD IN THE UNITED STATES OR ANY STATE THEREOF ABSENT REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
About Viking Systems, Inc.
Viking Systems, Inc. is a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery. It actively markets and sells the only stand alone, cost-effective 3D system for use in minimally invasive laparoscopic surgery. Viking partners with medical device companies and healthcare facilities to provide surgeons with proprietary visualization systems enabling minimally invasive surgical procedures, which reduce patient trauma and recovery time. Viking, through its OEM products business, also designs and manufactures surgical vision systems and components for several leading medical instrument companies worldwide. For more information, please visit our website at www.vikingsystems.com.
This press release contains forward-looking statements. These forward-looking statements are estimates reflecting the best judgment of our management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements should, therefore, be considered in light of various important factors as described in our annual report on Form 10-K under the heading "Risk Factors" as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. Statements concerning forecasts, revenue growth, profitability, production and shipment of units, future financial results, and statements using words such as "estimate", "project", "plan", "intend", "expect", "anticipate", "believe" and similar expressions are intended to identify forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
CONTACT: Viking Systems, Inc.
Robert Mathews, EVP & CFO
508-366-3668 Ext. 8392
Porter, LeVay & Rose, Inc.
Michael Porter, President - Investor Relations
212-564-4700
Viking Systems Reports First Quarter 2011 Results
GlobeNewswire
Posted 7:00 AM 05/06/11
Print Text Size A A A
Print this page|EmailShare on FacebookShare on TwitterShare on DiggShare on LifestreamSales Increase 63%
WESTBOROUGH, Mass., May 6, 2011 (GLOBE NEWSWIRE) -- Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced results for the first quarter ended March 31, 2011.
Jed Kennedy, President and CEO of Viking Systems, said, "We are very pleased with the progress we made this quarter, which represents the first full quarter of sales of our new 3DHD Vision System since its launch in October 2010. Not only did we experience 63% growth in sales in this quarter but we now also have twenty 3DHD demonstration systems deployed which we believe is essential to ramping up sales later in the year."
Financial Highlights for the Quarter
•Sales increased 63% to $3.1 million in the first quarter of 2011 from $1.9 million in the first quarter of 2010, with the increase attributed to increased sales of Vikings' 3D vision systems.
•The Company sold 21 3D systems during the quarter compared with one 3D system in the first quarter of 2011.
•Due to the increase in sales, gross profit for the quarter was $0.7 million compared with $0.5 million in the same period in 2010. Gross profit as a percent of sales declined due to the number of the 3DHD distributor demonstration systems sold at a discounted price.
•Operating expenses increased to $1.2 million during the quarter from $0.8 million in the first quarter of 2010 primarily due to increased sales and marketing expense and the promotional costs related to the new 3DHD system.
•Net loss for the quarter was $0.4 million or $0.01 per share, compared with $0.3 million or $0.01 per share in the first quarter of 2010.
Business Update
During the quarter, Viking processed orders for 22 of its recently-released 3DHD Vision Systems as well as for four of its previous generation 3Di systems. Of the 22 3DHD systems, the Company has shipped 19 of them, with the other 3 units being delayed due either to financing or regulatory delays in the receiving countries. Of the 19 shipped systems, 7 were sold to customers, 10 were sold to distributors as demonstration systems, and the 2 others were shipped at no charge -- one for research and the other for market development. The 4 previous-generation 3Di systems had been sold in an order that had been in process prior to the launch of Viking's new system.
The Company, along with its distributors, continues to actively present the 3DHD Vision System at various industry events around the world. These presentations are a critical part of developing the early interest in and ultimate adoption of the technology.
The Company plans to exhibit its 3DHD Vision System at the Annual Meeting of the American Urological Association (AUA) May 14-19 in Washington D.C, the largest gathering of urologists in the world.
The Company's 3DHD Vision System is scheduled to be used in the first human surgery utilizing Terumo's Kymerax Precision Drive Articulating Surgical System. The surgery is to be performed in Austria by Professor Günter Janetschek, Medical University Salzburg, Department of Urology, on May 10, 2011. The combination of these technologies, which was presented in Viking's booth at the recent European Association of Urology Congress in Vienna, demonstrated the enabling value 3D vision brings to surgeons using articulating instrumentation and drew a tremendous amount of attention from surgeons interested in alternatives to more expensive robotic solutions.
During the quarter, the Company reached agreement with Medychny Komplex-MK Ltd. to distribute the Company's 3DHD Vision Systems in Russia and the Ukraine and certain other countries that are part of the Commonwealth of Independent States.
The Company raised $160,473 from the sale of its common stock in the first quarter of 2011, and an additional $211,479 in April 2011.
Today is filled with terrific news from Viking.
Viking Systems, Inc. Announces Oversubscribed $3 Million Common Equity Financing
Date : 05/06/2011 @ 7:05AM
Source : GlobeNewswire Inc.
Stock : Viking Systems, Inc. (VKNG)
Quote : 0.25 0.0 (0.00%) @ 6:42AM
Viking Systems, Inc. Announces Oversubscribed $3 Million Common Equity Financing
Viking Systems (OTCBB:VKNG)
Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced it has signed a definitive agreement for a private placement of 12,000,000 shares of the Company's common stock along with warrants to purchase up to 9,000,000 shares of its common stock for a total purchase price of $3.0 million. The purchase price for one share of common stock and a warrant to purchase 0.75 shares of common stock is $0.25. The warrants will have an exercise price of $0.25 per share, will expire five years from closing, and are exercisable in whole or in part, at any time prior to expiration. The transaction is anticipated to close on May 10, 2011 subject to customary closing conditions. The Company intends to use the proceeds from the offering for general corporate purposes and working capital, including the funding of increased demonstration systems for its 3DHD Vision System as well as for sales and marketing expansion. Clinton Group, Inc. has agreed to lead the private placement.
In connection with the private placement, Clinton Group, Inc. has reached an agreement with Midsummer Investment Ltd. to purchase all of Midsummer's holdings of Viking Systems common stock and warrants. At the time of this agreement, Midsummer owned 7,223,457, or approximately 12% of the total shares outstanding, and warrants to acquire an additional 5,551,034 shares of Viking Systems with an exercise price of $0.18 per share.
Prior to closing the financing, the Company will be terminating its current equity line of credit with Dutchess Opportunity Fund.
"We are excited to be leading this recapitalization of Viking Systems," said Joseph A. De Perio, a portfolio manager of Clinton Group, Inc. "We believe the market is ripe for broad acceptance of Viking's 3DHD Vision Systems, and this capital provides Viking with substantial resources to achieve its operational and financial goals for accelerated growth." As part of the transaction, Mr. De Perio has agreed to join Viking Systems' board of directors.
Jed Kennedy, President and CEO of Viking Systems said, "We intend to use this financing to execute an aggressive marketing campaign throughout the U.S. and in significant markets in Europe and Asia. This strategy will include the accelerated placement of demonstration systems, which are key ingredients in the sales process. It will also enable the development of "Centers of Excellence" that will not only serve as reference centers but will also build credibility and global awareness of the Viking product offering. We are now appropriately financed to execute our plan to move to profitability."
THIS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT OFFERED OR SOLD IN THE UNITED STATES OR ANY STATE THEREOF ABSENT REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
About Viking Systems, Inc.
Viking Systems, Inc. is a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery. It actively markets and sells the only stand alone, cost-effective 3D system for use in minimally invasive laparoscopic surgery. Viking partners with medical device companies and healthcare facilities to provide surgeons with proprietary visualization systems enabling minimally invasive surgical procedures, which reduce patient trauma and recovery time. Viking, through its OEM products business, also designs and manufactures surgical vision systems and components for several leading medical instrument companies worldwide. For more information, please visit our website at www.vikingsystems.com.
This press release contains forward-looking statements. These forward-looking statements are estimates reflecting the best judgment of our management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements should, therefore, be considered in light of various important factors as described in our annual report on Form 10-K under the heading "Risk Factors" as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. Statements concerning forecasts, revenue growth, profitability, production and shipment of units, future financial results, and statements using words such as "estimate", "project", "plan", "intend", "expect", "anticipate", "believe" and similar expressions are intended to identify forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
CONTACT: Viking Systems, Inc.
Robert Mathews, EVP & CFO
508-366-3668 Ext. 8392
Porter, LeVay & Rose, Inc.
Michael Porter, President - Investor Relations
212-564-4700
Viking Systems Reports First Quarter 2011 Results
GlobeNewswire
Posted 7:00 AM 05/06/11
Print Text Size A A A
Print this page|EmailShare on FacebookShare on TwitterShare on DiggShare on LifestreamSales Increase 63%
WESTBOROUGH, Mass., May 6, 2011 (GLOBE NEWSWIRE) -- Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced results for the first quarter ended March 31, 2011.
Jed Kennedy, President and CEO of Viking Systems, said, "We are very pleased with the progress we made this quarter, which represents the first full quarter of sales of our new 3DHD Vision System since its launch in October 2010. Not only did we experience 63% growth in sales in this quarter but we now also have twenty 3DHD demonstration systems deployed which we believe is essential to ramping up sales later in the year."
Financial Highlights for the Quarter
•Sales increased 63% to $3.1 million in the first quarter of 2011 from $1.9 million in the first quarter of 2010, with the increase attributed to increased sales of Vikings' 3D vision systems.
•The Company sold 21 3D systems during the quarter compared with one 3D system in the first quarter of 2011.
•Due to the increase in sales, gross profit for the quarter was $0.7 million compared with $0.5 million in the same period in 2010. Gross profit as a percent of sales declined due to the number of the 3DHD distributor demonstration systems sold at a discounted price.
•Operating expenses increased to $1.2 million during the quarter from $0.8 million in the first quarter of 2010 primarily due to increased sales and marketing expense and the promotional costs related to the new 3DHD system.
•Net loss for the quarter was $0.4 million or $0.01 per share, compared with $0.3 million or $0.01 per share in the first quarter of 2010.
Business Update
During the quarter, Viking processed orders for 22 of its recently-released 3DHD Vision Systems as well as for four of its previous generation 3Di systems. Of the 22 3DHD systems, the Company has shipped 19 of them, with the other 3 units being delayed due either to financing or regulatory delays in the receiving countries. Of the 19 shipped systems, 7 were sold to customers, 10 were sold to distributors as demonstration systems, and the 2 others were shipped at no charge -- one for research and the other for market development. The 4 previous-generation 3Di systems had been sold in an order that had been in process prior to the launch of Viking's new system.
The Company, along with its distributors, continues to actively present the 3DHD Vision System at various industry events around the world. These presentations are a critical part of developing the early interest in and ultimate adoption of the technology.
The Company plans to exhibit its 3DHD Vision System at the Annual Meeting of the American Urological Association (AUA) May 14-19 in Washington D.C, the largest gathering of urologists in the world.
The Company's 3DHD Vision System is scheduled to be used in the first human surgery utilizing Terumo's Kymerax Precision Drive Articulating Surgical System. The surgery is to be performed in Austria by Professor Günter Janetschek, Medical University Salzburg, Department of Urology, on May 10, 2011. The combination of these technologies, which was presented in Viking's booth at the recent European Association of Urology Congress in Vienna, demonstrated the enabling value 3D vision brings to surgeons using articulating instrumentation and drew a tremendous amount of attention from surgeons interested in alternatives to more expensive robotic solutions.
During the quarter, the Company reached agreement with Medychny Komplex-MK Ltd. to distribute the Company's 3DHD Vision Systems in Russia and the Ukraine and certain other countries that are part of the Commonwealth of Independent States.
The Company raised $160,473 from the sale of its common stock in the first quarter of 2011, and an additional $211,479 in April 2011.
Today is filled with terrific news from Viking.
Viking Systems, Inc. Announces Oversubscribed $3 Million Common Equity Financing
Date : 05/06/2011 @ 7:05AM
Source : GlobeNewswire Inc.
Stock : Viking Systems, Inc. (VKNG)
Quote : 0.25 0.0 (0.00%) @ 6:42AM
Viking Systems, Inc. Announces Oversubscribed $3 Million Common Equity Financing
Viking Systems (OTCBB:VKNG)
Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced it has signed a definitive agreement for a private placement of 12,000,000 shares of the Company's common stock along with warrants to purchase up to 9,000,000 shares of its common stock for a total purchase price of $3.0 million. The purchase price for one share of common stock and a warrant to purchase 0.75 shares of common stock is $0.25. The warrants will have an exercise price of $0.25 per share, will expire five years from closing, and are exercisable in whole or in part, at any time prior to expiration. The transaction is anticipated to close on May 10, 2011 subject to customary closing conditions. The Company intends to use the proceeds from the offering for general corporate purposes and working capital, including the funding of increased demonstration systems for its 3DHD Vision System as well as for sales and marketing expansion. Clinton Group, Inc. has agreed to lead the private placement.
In connection with the private placement, Clinton Group, Inc. has reached an agreement with Midsummer Investment Ltd. to purchase all of Midsummer's holdings of Viking Systems common stock and warrants. At the time of this agreement, Midsummer owned 7,223,457, or approximately 12% of the total shares outstanding, and warrants to acquire an additional 5,551,034 shares of Viking Systems with an exercise price of $0.18 per share.
Prior to closing the financing, the Company will be terminating its current equity line of credit with Dutchess Opportunity Fund.
"We are excited to be leading this recapitalization of Viking Systems," said Joseph A. De Perio, a portfolio manager of Clinton Group, Inc. "We believe the market is ripe for broad acceptance of Viking's 3DHD Vision Systems, and this capital provides Viking with substantial resources to achieve its operational and financial goals for accelerated growth." As part of the transaction, Mr. De Perio has agreed to join Viking Systems' board of directors.
Jed Kennedy, President and CEO of Viking Systems said, "We intend to use this financing to execute an aggressive marketing campaign throughout the U.S. and in significant markets in Europe and Asia. This strategy will include the accelerated placement of demonstration systems, which are key ingredients in the sales process. It will also enable the development of "Centers of Excellence" that will not only serve as reference centers but will also build credibility and global awareness of the Viking product offering. We are now appropriately financed to execute our plan to move to profitability."
THIS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT OFFERED OR SOLD IN THE UNITED STATES OR ANY STATE THEREOF ABSENT REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
About Viking Systems, Inc.
Viking Systems, Inc. is a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery. It actively markets and sells the only stand alone, cost-effective 3D system for use in minimally invasive laparoscopic surgery. Viking partners with medical device companies and healthcare facilities to provide surgeons with proprietary visualization systems enabling minimally invasive surgical procedures, which reduce patient trauma and recovery time. Viking, through its OEM products business, also designs and manufactures surgical vision systems and components for several leading medical instrument companies worldwide. For more information, please visit our website at www.vikingsystems.com.
This press release contains forward-looking statements. These forward-looking statements are estimates reflecting the best judgment of our management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements should, therefore, be considered in light of various important factors as described in our annual report on Form 10-K under the heading "Risk Factors" as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. Statements concerning forecasts, revenue growth, profitability, production and shipment of units, future financial results, and statements using words such as "estimate", "project", "plan", "intend", "expect", "anticipate", "believe" and similar expressions are intended to identify forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
CONTACT: Viking Systems, Inc.
Robert Mathews, EVP & CFO
508-366-3668 Ext. 8392
Porter, LeVay & Rose, Inc.
Michael Porter, President - Investor Relations
212-564-4700
Viking Systems Reports First Quarter 2011 Results
GlobeNewswire
Posted 7:00 AM 05/06/11
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Print this page|EmailShare on FacebookShare on TwitterShare on DiggShare on LifestreamSales Increase 63%
WESTBOROUGH, Mass., May 6, 2011 (GLOBE NEWSWIRE) -- Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced results for the first quarter ended March 31, 2011.
Jed Kennedy, President and CEO of Viking Systems, said, "We are very pleased with the progress we made this quarter, which represents the first full quarter of sales of our new 3DHD Vision System since its launch in October 2010. Not only did we experience 63% growth in sales in this quarter but we now also have twenty 3DHD demonstration systems deployed which we believe is essential to ramping up sales later in the year."
Financial Highlights for the Quarter
•Sales increased 63% to $3.1 million in the first quarter of 2011 from $1.9 million in the first quarter of 2010, with the increase attributed to increased sales of Vikings' 3D vision systems.
•The Company sold 21 3D systems during the quarter compared with one 3D system in the first quarter of 2011.
•Due to the increase in sales, gross profit for the quarter was $0.7 million compared with $0.5 million in the same period in 2010. Gross profit as a percent of sales declined due to the number of the 3DHD distributor demonstration systems sold at a discounted price.
•Operating expenses increased to $1.2 million during the quarter from $0.8 million in the first quarter of 2010 primarily due to increased sales and marketing expense and the promotional costs related to the new 3DHD system.
•Net loss for the quarter was $0.4 million or $0.01 per share, compared with $0.3 million or $0.01 per share in the first quarter of 2010.
Business Update
During the quarter, Viking processed orders for 22 of its recently-released 3DHD Vision Systems as well as for four of its previous generation 3Di systems. Of the 22 3DHD systems, the Company has shipped 19 of them, with the other 3 units being delayed due either to financing or regulatory delays in the receiving countries. Of the 19 shipped systems, 7 were sold to customers, 10 were sold to distributors as demonstration systems, and the 2 others were shipped at no charge -- one for research and the other for market development. The 4 previous-generation 3Di systems had been sold in an order that had been in process prior to the launch of Viking's new system.
The Company, along with its distributors, continues to actively present the 3DHD Vision System at various industry events around the world. These presentations are a critical part of developing the early interest in and ultimate adoption of the technology.
The Company plans to exhibit its 3DHD Vision System at the Annual Meeting of the American Urological Association (AUA) May 14-19 in Washington D.C, the largest gathering of urologists in the world.
The Company's 3DHD Vision System is scheduled to be used in the first human surgery utilizing Terumo's Kymerax Precision Drive Articulating Surgical System. The surgery is to be performed in Austria by Professor Günter Janetschek, Medical University Salzburg, Department of Urology, on May 10, 2011. The combination of these technologies, which was presented in Viking's booth at the recent European Association of Urology Congress in Vienna, demonstrated the enabling value 3D vision brings to surgeons using articulating instrumentation and drew a tremendous amount of attention from surgeons interested in alternatives to more expensive robotic solutions.
During the quarter, the Company reached agreement with Medychny Komplex-MK Ltd. to distribute the Company's 3DHD Vision Systems in Russia and the Ukraine and certain other countries that are part of the Commonwealth of Independent States.
The Company raised $160,473 from the sale of its common stock in the first quarter of 2011, and an additional $211,479 in April 2011.
Today is filled with terrific news from Viking.
Viking Systems Reports First Quarter 2011 Results
GlobeNewswire
Posted 7:00 AM 05/06/11
Print Text Size A A A
Print this page|EmailShare on FacebookShare on TwitterShare on DiggShare on LifestreamSales Increase 63%
WESTBOROUGH, Mass., May 6, 2011 (GLOBE NEWSWIRE) -- Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced results for the first quarter ended March 31, 2011.
Jed Kennedy, President and CEO of Viking Systems, said, "We are very pleased with the progress we made this quarter, which represents the first full quarter of sales of our new 3DHD Vision System since its launch in October 2010. Not only did we experience 63% growth in sales in this quarter but we now also have twenty 3DHD demonstration systems deployed which we believe is essential to ramping up sales later in the year."
Financial Highlights for the Quarter
•Sales increased 63% to $3.1 million in the first quarter of 2011 from $1.9 million in the first quarter of 2010, with the increase attributed to increased sales of Vikings' 3D vision systems.
•The Company sold 21 3D systems during the quarter compared with one 3D system in the first quarter of 2011.
•Due to the increase in sales, gross profit for the quarter was $0.7 million compared with $0.5 million in the same period in 2010. Gross profit as a percent of sales declined due to the number of the 3DHD distributor demonstration systems sold at a discounted price.
•Operating expenses increased to $1.2 million during the quarter from $0.8 million in the first quarter of 2010 primarily due to increased sales and marketing expense and the promotional costs related to the new 3DHD system.
•Net loss for the quarter was $0.4 million or $0.01 per share, compared with $0.3 million or $0.01 per share in the first quarter of 2010.
Business Update
During the quarter, Viking processed orders for 22 of its recently-released 3DHD Vision Systems as well as for four of its previous generation 3Di systems. Of the 22 3DHD systems, the Company has shipped 19 of them, with the other 3 units being delayed due either to financing or regulatory delays in the receiving countries. Of the 19 shipped systems, 7 were sold to customers, 10 were sold to distributors as demonstration systems, and the 2 others were shipped at no charge -- one for research and the other for market development. The 4 previous-generation 3Di systems had been sold in an order that had been in process prior to the launch of Viking's new system.
The Company, along with its distributors, continues to actively present the 3DHD Vision System at various industry events around the world. These presentations are a critical part of developing the early interest in and ultimate adoption of the technology.
The Company plans to exhibit its 3DHD Vision System at the Annual Meeting of the American Urological Association (AUA) May 14-19 in Washington D.C, the largest gathering of urologists in the world.
The Company's 3DHD Vision System is scheduled to be used in the first human surgery utilizing Terumo's Kymerax Precision Drive Articulating Surgical System. The surgery is to be performed in Austria by Professor Günter Janetschek, Medical University Salzburg, Department of Urology, on May 10, 2011. The combination of these technologies, which was presented in Viking's booth at the recent European Association of Urology Congress in Vienna, demonstrated the enabling value 3D vision brings to surgeons using articulating instrumentation and drew a tremendous amount of attention from surgeons interested in alternatives to more expensive robotic solutions.
During the quarter, the Company reached agreement with Medychny Komplex-MK Ltd. to distribute the Company's 3DHD Vision Systems in Russia and the Ukraine and certain other countries that are part of the Commonwealth of Independent States.
The Company raised $160,473 from the sale of its common stock in the first quarter of 2011, and an additional $211,479 in April 2011.
I am rowing in the same boat as you ... only thing is it's funny how after years of watching and waiting for Rheingold to be reintroduced, I envisioned rocking sales and promotions to presell the product.
Without hype, product demand will remain a trickle. Without revenue surprises, the stock won't spike. With dilution, there is only one way the stock can go.
The real killer is to watch transactions on positive news release days and see for yourself the volume of shares hitting the market. It's disheartening.
I thought the boat we're in was a canoe, but the sound I hear are nails being hammered ... we're not in a canoe, we're in a coffin and it's being nailed shut on us. Soon enough we're going to be buried, and telling our story to newbie's with bright eyes and high hopes.
I have tens of thousands of shares, but it's not worth selling them, so I buy Rheingold every week, try to keep my local retailers carrying it, and lower my beer budget by two thirds, thereby rationalizing I'm getting back to even on the money I'm saving.