HORSHAM, Pa.--(BUSINESS WIRE)--Neose Technologies, Inc. (NasdaqGM:NTEC) today announced financial results for the first quarter ended March 31, 2007.
For the quarter ended March 31, 2007, the Company reported a net loss of $17.7 million, or $0.47 per basic and diluted share, compared to a net loss of $7.8 million, or $0.24 per basic and diluted share, for the same period in 2006. During the first quarter of 2007, the Company recorded a non-cash expense of $6.4 million from the increase in fair value of its warrant liability. In connection with the sale in March 2007 of common stock and warrants to purchase shares of common stock the Company recorded the warrants as a liability at their fair value. The warrants will continue to be revalued at the end of each quarter until the warrants are exercised or expire. Changes in the fair value of the warrants will continue to be reported as non-operating income or expense. Also during the first quarter of 2007, the Company recognized $0.6 million of employee severance costs related to its March 2007 restructuring.
