NEW BRUNSWICK, N.J., May 16 /PRNewswire-FirstCall/ -- Senesco Technologies, Inc. ("Senesco" or the "Company") today reported financial results for the three months ended March 31, 2008.
Net loss for the three month period ended March 31, 2008 was $2.0 million, or $0.12 per share, compared with a net loss of $0.8 million, or $0.05 per share, for the three month period ended March 31, 2007. This increase in net loss was primarily the result of an increase of $0.8 million in expenses associated with the outstanding convertible notes that were issued during the current fiscal year, and an increase in operating expenses.
Bruce Galton, President and Chief Executive Officer of the Company, said, "We continue to progress our human health programs and believe we have positive preclinical results in our multiple myeloma studies and pancreatic islet cell research. Senesco is working closely with our contract research organization in evaluating materials and planning the work ahead for our multiple myeloma program. In addition, our agricultural licensees have initiated research with our technology in crops such as corn, soy, rice, canola and cotton. We continue banana field trials with our joint venture partner, Rahan Meristem. Our technology provides a very broad platform of applications for human health in oncology and inflammatory diseases and across a variety of food and non-food agricultural crops."
Revenue of $79,167 for the three-month period ended March 31, 2008 consisted of milestone payments and the amortized portion of previous milestone payments received in connection with certain license agreements. During the three-month period ended March 31, 2007, revenue of $6,250 consisted of the amortized portion of previous milestone payments received in connection with certain development and license agreements.
Research and development expenses during the three-month period ended March 31, 2008 were $474,176, compared with $314,294 during the three-month period ended March 31, 2007. This increase resulted from an expansion of Senesco's human health programs, including the Company's cancer research program, and an unfavorable exchange rate variance in connection with Senesco's research agreement at the University of Waterloo. The Company expects research and development expenses to continue to increase as it expands its research activities, particularly in the area of human health.
General and administrative expenses were $876,966 for the three-month period ended March 31, 2008, compared with $514,189 during the three-month period ended March 31, 2007. This increase was primarily due to a $458,000 increase in stock-based compensation, which includes the Black-Scholes value of $384,000 of warrants extended and repriced in connection with an amendment to a financial advisory agreement entered into February 14, 2008, the amortized portion of the compensation charge in connection with our short-term stock incentive plan and the amortized portion of the Black-Scholes value of options and warrants previously granted to directors, employees and consultants. This was partially offset by a $79,000 decrease in depreciation and amortization.
At March 31, 2008, Senesco had cash, cash equivalents and investments of $4,549,233. With the remaining potential gross proceeds of $3 million of the Company's previously announced $10 million financing, Senesco should be able to operate according to the Company's current business plan for the next 18 months. The receipt of the remaining $3 million of proceeds is dependent upon entering into certain supply agreements with third party manufacturers. If Senesco does not meet all or some of the foregoing funding milestones, then the current $4.5 million is sufficient for the next 12 months.
About Senesco Technologies, Inc.
Senesco Technologies, Inc. is a U.S. biotechnology company, headquartered in New Brunswick, NJ. Senesco has initiated preclinical research to trigger or delay cell death in mammals (apoptosis) to determine if the technology is applicable in human medicine. Accelerating apoptosis may have applications to development of cancer treatments. Delaying apoptosis may have applications to certain diseases inflammatory and ischemic diseases. Senesco takes its name from the scientific term for the aging of plant cells: senescence. Delaying cell breakdown in plants extends freshness after harvesting, while increasing crop yields, plant size and resistance to environmental stress. The Company believes that its technology can be used to develop superior strains of crops without any modification other than delaying natural plant senescence. Senesco has partnered with leading-edge companies engaged in agricultural biotechnology and earns research and development fees for applying its gene-regulating platform technology to enhance its partners' products.
Certain statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including, but not limited to: the development of the Company's gene technology; the approval of the Company's patent applications; the successful implementation of the Company's research and development programs and joint ventures; the success of the Company's license agreements; the acceptance by the market of the Company's products; success of the Company's preliminary studies and preclinical research; competition and the timing of projects and trends in future operating performance, the Company's ability to meet its funding milestones under its financing transaction, the Company's ability to comply with the continued listing standards of the AMEX, as well as other factors expressed from time to time in the Company's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
CONTACT: Joel Brooks, Chief Financial Officer, Senesco Technologies, Inc.,
+1-732-296-8400, jbrooks@senesco.com; Investor Relations, Brian Ritchie of
FD for Senesco Technologies, Inc., +1-212-850-5600, brian.ritchie@fd.com
Web site: http://www.senesco.com/
