Cytogenix (fka CYGX)

[Houndish]

10-Q Analysis by Houndish

http://biz.yahoo.com/e/060814/cygx.ob10-q.html

First and foremost it was filed on time. (add a Tommy point)

Revenues. Revenue increased to $37,180 for the six months ended June 30, 2006 as compared to no revenue during the same period in 2005. The increase is a result of our commencement of sales of synthetic DNA. (that's another Tommy point...)

Research and Development Expenses. Research and development expenses increased to $1,141,077 for the six months ended June 30, 2006 as compared to $673,661 during the same period in 2005 due to the increase in R&D payroll and employment costs and increased DNA production research activity. Approximately $259,000 of the increase is a result of the payroll and employment costs and the remaining difference of $209,000 results from the increased activity cost of antibacterial and DNA vaccine research.
This is where I actually like to see money spent R & D budget should be higher than all other budgets combined, except perhaps Marketing)
"Outsource everything except innovation and marketing." - some business guru... Welch maybe.


Allocated resources for the plant facilities have decreased (?) to $1M down from $2M I believe... interesting...

The Company expects its sources of revenue for the next several years to consist primarily of the sale of synthetic DNA (Deoxynbonucleic acid), payments under future product development joint ventures and of licensing agreements as well as possible royalties. The process of developing the Company's future products will require significant additional research and development, preclinical testing and clinical trials, as well as regulatory approvals. These activities, together with the Company's general and administrative expenses, are expected to result in operating losses for at least two more years. The Company will not receive product revenue from therapeutic products unless it completes clinical trials and successfully commercializes or arranges for the commercialization of one or more products, the accomplishment of which no assurance can be given.

Well then quit screwing around and start commercializing.

Operating capital will be obtained through equity financing. Does this mean an end to stock dilution? That'd be nice. Oh wait... There can be no assurance that the necessary financing will be available to the Company or, if available, that the same will be on terms satisfactory or favorable to it. It is possible that additional equity financing will be highly dilutive to existing shareholders. Crap...

All in all... not bad. Not bad. However this doesn't change anything. We need to sell some more synDNA or get some vaccines through trials... that's it. I'll hold on a little longer =P