QUEBEC CITY, March 11, 2016 /PRNewswire/ - DiagnoCure, Inc. (TSX: CUR) (OTCQX: DGCRF) (the “Corporation”) today reported financial and operational results for the first quarter 2016 ended January 31, 2016. The Corporation announced a net loss of $429,655 or $0.01 per share for this quarter. At the end of the quarter, cash and temporary investments stood at $810,726. Operating expenses increased by $88,472, to $563,658 for the first three months of 2016 from $475,186 for the same period of 2015. This increase is attributable primarily to the transaction fees related to the sale of PCA3 to Hologic.
Special distribution to shareholders
As previously announced, the shareholders entitled to be paid the return of capital distribution owing on the “Due Bills” should expect to receive their payment by the Due Bill redemption date of March 16, 2016. Others should expect their payment on or about March 11, 2016.
Resignation of interim CFO
DiagnoCure announced today that Mr. Frédéric Boivin, Senior Director, Finance and Administration acting as interim Chief Financial Officer has resigned from his position, effective March 28, 2016, to join another corporation. The Corporation is looking into interim measures regarding financial matters. Dr. Yves Fradet, President and Chief Medical Officer, supported by Mr. Richard Bordeleau, Senior Advisor to the Board, will continue to maintain contacts with investors and the general public. Ms. Danielle Allard, Senior Director, Corporate Affairs, will continue to be responsible to all filings to regulatory agencies.
Financial results for the first quarter 2016
Total revenues for the first quarter of 2016 were $134,003 compared with $142,915 for the same period of 2015. Without taking into account the effect of the exchange rate variation, total revenues decreased by 12%, to US$98K for the first quarter of 2016 compared with US$112K for the same period of 2015. This decrease is mainly attributable to a decrease in PCA3 royalty revenues.
Operating expenses increased by $88,472, to $563,658 for the first three months of 2015 from $475,186 for the same period of 2015. This increase is mostly attributable to the transaction fees related to the sale of PCA3. Total operating expenses increased primarily as a result of the following:
- Research and development expenses, net of investment tax credits, decreased by $132,460, to $40,672 for the first three-month of 2016 from $173,132 for the same period of 2015. This decrease in research and development expenses is attributable to reduced intellectual property expenses.
- General and administrative expenses increased by $233,394, to $504,653 for the first three-month period of 2016 from $271,259 for the same period of 2015. This increase is attributable to the $136,087 transaction fees related to the sale of PCA3 and to leasehold improvement, following its reviewed useful life as reported in the 2015 annual report.
- Selling and business development expenses decreased by $24,024, to $34,184 for the first three-month period of 2016 from $58,208 for the same period of 2015. This decrease is attributable to reduction in operating expenses.
Financial data | ||
For the three-month periods ended January 31 | ||
2016 | 2015 | |
$ | $ | |
License and royalty revenues | 134,003 | 142,915 |
Total revenues | 134,003 | 142,915 |
Operating expenses (before transaction fees for the sale of PCA3, stock-based compensation, depreciation and amortization) | 319,760 | 386,206 |
Net loss (before transaction fees for the sale of PCA3, stock-based compensation, depreciation and amortization) | (185,757) | (243,291) |
Transaction fees for the sale of PCA3 | 136,087 | |
Stock-based compensation | 2,334 | 5,982 |
Depreciation of property, plant and equipment | 91,989 | 13,606 |
Amortization of intangible asset | 13,488 | 69,392 |
Net loss and comprehensive loss | (429,655) | (332,271) |
Basic and diluted net loss per share | (0.01) | (0.01) |
Weighted average number of common shares outstanding | 43,040,471 | 43,040,471 |
Consolidated Balance Sheets | ||
January 31, 2016 | October 31, 2015 | |
Cash and temporary investments | 810,726 | 1,108,937 |
Total assets | 1,424,206 | 1,789,391 |
Shareholders’ equity | 1,035,971 | 1,463,292 |
Number of commons shares outstanding | 43,040,471 | 43,040,471 |
About DiagnoCure
DiagnoCure (TSX:CUR; OTCQX:DGCRF) is a life sciences corporation that develops and provides molecular and genomic tests to support effective clinical decisions enabling personalized medicine in oncology. Previstage® GCC and the Corporation’s new multi-marker prostate cancer test (“PCP”) are currently available for licensing. For more information, please visit www.diagnocure.com.
Forwardlooking statements
This release may contain forwardlooking statements that involve known and unknown risks, uncertainties and assumptions that may cause actual results to differ materially from those expected. Forward-looking statements can be identified by the use of the conditional or forward-looking terminology such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “intend”, “may”, “plans”, “projects”, “should”, “will”, or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. All such forward-looking statements are made pursuant to the “safe-harbor” provisions of applicable Canadian securities laws. By their very nature, forwardlooking statements are based on expectations and hypotheses and also involve risks and uncertainties, known and unknown, many of which are beyond DiagnoCure’s control. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Corporation’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Corporation’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and that they should not place undue reliance on these forwardlooking statements. For instance, any forward-looking statements regarding Previstage® GCC and to PCP, are based on management expectations and such outcome may vary materially depending on global political and economic conditions, dependence on collaboration partners, uncertainty of healthcare reimbursement, and marketing and distribution challenges. In addition, the reader is referred to the applicable general risks and uncertainties described in DiagnoCure’s most recent Annual Information Form under the heading “Risk Factors”. DiagnoCure undertakes no obligation to publicly update or revise any forwardlooking statements contained herein unless required by the applicable securities laws and regulations.
SOURCE DiagnoCure inc.
