PHILADELPHIA--(BUSINESS WIRE)--Hemispherx Biopharma, Inc. (AMEX: HEB) announced its financial results for the fiscal year ended December 31, 2006. The net loss for the year was approximately $19,399,000 or $(0.31) per share compared to a loss of $12,446,000 or $(0.24) per share for 2005. The $6,953,000 increase in loss was primarily due to: 1) higher General and Administrative expense of $2,836,000 related primarily to the adoption of FAS 123R amounting to higher stock compensation expense of $2,092,000 and higher accounting fees mainly related to the restatement of our financial statements of $747,000, 2) higher research and development costs of $4,909,000 due to an increase in direct costs associated with developing Ampligen® and Alferon N Injection® for new and existing indications and costs associated with stability studies for Ampligen® and Alferon N Injection® related to manufacturing at our new contract manufacturer’s sites, Hollister-Stier and Hyaluron, and 3) higher production costs of approximately $884,000, primarily due to excess manufacturing capacity. Offsetting these increased expenditures, was a net decrease in our interest expense and financing costs of approximately $1,862,000 as the amortization of the discounts on our convertible Debentures has been decreasing as they near maturity.
