CAMBRIDGE, Mass., April 3 /PRNewswire-FirstCall/ -- Javelin Pharmaceuticals, Inc. today reported its preliminary unaudited financial results for the year ended December 31, 2005. The Company also reported that it has filed for an extension to file its Form 10-K, pending completion of an independent counsel inquiry into the credibility of statements made by a former employee now being reviewed by the staff of the Securities and Exchange Commission (SEC) regarding certain accounting matters. The independent counsel expects to complete this inquiry within the next two weeks. The Company believes that its prior disclosures were accurate and there will not be any impact on its financial statements.
The former employee had also filed a complaint with the Department of Labor (DOL) alleging discriminatory employment practices by the Company with regard to his termination of employment. After reviewing the Company's answer, the DOL indicated that it would dismiss the complaint, at which time the employee requested withdrawal of the complaint. The documents sought for review by the SEC cover the factual matters alleged in the employee's complaint to the DOL.
-financials follow-
Forward Looking Statement
This news release contains forward-looking statements. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree of risk. Factors that might cause such a material difference include, among others, uncertainties related to the ability to attract and retain partners for our technologies, the identification of lead compounds, the successful preclinical development thereof, the completion of clinical trials, the FDA review process and other governmental regulation, our ability to obtain working capital, our ability to successfully develop and commercialize drug candidates, and competition from other pharmaceutical companies.
JAVELIN PHARMACEUTICALS, INC. PRELIMINARY UNAUDITED CONSOLIDATED FINANCIAL INFORMATION Consolidated Statements of Operations Year Ended December 31 2004 2005 Revenues: Government grants and contracts $836,841 $1,547,753 Operating expenses: Research and development 4,806,073 7,212,801 General and administrative 2,702,673 5,222,104 Depreciation and amortization 31,796 44,321 Total operating expenses 7,540,542 12,479,226 Operating loss (6,703,701) (10,931,473) Other income (expense): Interest expense (356,370) (65) Interest income 9,016 319,766 Other income 4,227 - Total other income (expense) (343,127) 319,701 Net loss attributable to common stockholders ($7,046,828) ($10,611,772) Net loss per share attributable to common stockholders Basic and diluted ($0.64) ($0.38) Weighted average shares 10,936,922 27,831,188 Consolidated Balance Sheets December 31, 2004 2005 Assets: Cash and cash equivalents $14,782,980 $33,307,449 Other current assets 203,160 917,459 Fixed assets, at cost, net of accumulated depreciation 137,651 161,866 Other assets 31,750 52,188 Total assets 15,155,541 34,438,962 Liabilities: Total current liabilities 2,813,573 1,237,019 Stockholders' equity: Common stock 25,626 40,404 Additional paid-in capital 64,294,992 95,355,368 Unearned compensation (950,349) (553,756) Deficit accumulated during the development stage (51,028,301) (61,640,073) Total stockholders' equity 12,341,968 33,201,943 Total liabilities and stockholders' equity $15,155,541 $34,438,962
Javelin Pharmaceuticals, Inc.CONTACT: June Gregg of Javelin Pharmaceuticals, Inc., +1-212-554-4550
Web site: http://www.javelinpharmaceuticals.com/
