PHILADELPHIA--(BUSINESS WIRE)--June 30, 2006--Hemispherx Biopharma, Inc. (AMEX: HEB - News) announced earnings for the three months ended March 31, 2006. The net loss for this period, including non-cash finance charges, was $5,920,000 or $0.10 per share compared to losses of $2,980,000 or $0.07 per share, as restated for previously reported accounting adjustments, for the same period in 2005. The increase in loss of $2,940,000 is primarily due to 1) a $2,066,000 increase in general and administrative expense primarily due to non-cash stock compensation expense of $1,953,000 pursuant to adopting FASB Statement 123 (Revised 2004), Accounting for Stock Based Compensation, 2) an increase of $1,162,000 in costs associated with studies for the Company's experimental immunostimulant, Ampligen®, in avian and seasonal influenza viruses and increased costs related to the preparation of the Ampligen® New Drug Application (NDA) for Chronic Fatigue Syndrome (CFS), including costs incurred with the Company's new contract manufacturer for NDA required manufacturing stability studies and 3) a reduction of $764,000 in non-cash financing costs.
