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ElectroOptical Sciences Inc Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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ElectroOptical Sciences Inc (MELA) filed Quarterly Report for the period ended 2010-06-30.

Electrooptical Sciences Inc has a market cap of $155.9 million; its shares were traded at around $6.77 .

Highlight of Business Operations:

On June 26, 2008, the Company filed a Form S-3 shelf registration statement for an indeterminate number of shares of common stock, warrants to purchase shares of common stock and units consisting of a combination thereof having an aggregate initial offering price not to exceed $40 million. Management utilized this shelf registration statement in August 2008 by completing a registered direct offering of 2,088,451 shares of the Companys common stock for aggregate gross proceeds of approximately $11.9 million ($11 million approximate net proceeds to the Company), and in July 2009 by completing a registered direct offering of 2,400,000 shares of the Companys common stock for aggregate gross proceeds of $15 million ($13.75 million approximate net proceeds to the Company). Approximately $13.1 million remains available under the Companys shelf registration statement as of June 30, 2010.

Under the CEFF, during 2009, the Company sold 1,824,941 shares of common stock to Kingsbridge Capital Limited, at an average per share price of approximately $9.24, for gross proceeds of approximately $16.9 million. Under the CEFF, during the three month period ended June 30, 2010, the Company sold 406,744 shares of common stock to Kingsbridge Capital Limited, at an average per share price of approximately $9.22, for gross proceeds of approximately $3.75 million. A proportionate share of the CEFF originating expenses was allocated to these sales from deferred offering costs. Net of expenses, proceeds from these sales were approximately $16.8 million and $3.727 million for 2009 and 2010, respectively.

For the six months ended June 30, 2010, net cash provided by financing activities was $5,331, representing net proceeds of $3,743 from the Committed Equity Financing Facility and $1,718 from the exercise of warrants and options less $130 of expenses relating to the July public offering (See Note 12). For the six months ended June 30, 2009, net cash used in financing activities was $68, representing cash received from the exercise of options and warrants of $131 offset by $199 of deferred offering costs related to the May 7, 2009 CEFF transaction.

General and Administrative (G&A) expenses experienced an overall increase of $476 or 30% for the three months ended June 30, 2010 above the comparable period a year earlier. Information Technology increased $180 with the expansion of the information processing capabilities of the Company, Corporate expenditures on professional and legal fees increased $93, Marketing services increased $93, and Finance department costs increased $73.

General and Administrative (G&A) expenses experienced an overall increase of $1,221 or 39% for the six months ended June 30, 2010 above the comparable period a year earlier. Within G&A, marketing costs represented $413 of the total increase. Significant to the increase in marketing costs was the addition of sales management and administrative personnel of $185, contracting of marketing consulting expertise of $116, and production of a physician educational seminar of $88.

Other year-to-year increases in general and administrative costs for the six months ended June 30, 2010 include depreciation/amortization of $90 associated with the new location build out and computer infrastructure acquisitions, professional fees of $127, office supplies of $62, Board of Directors fees of $29, taxes and stock fees of $42, and share based compensation of $90.

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