Cytrx Corp. has a market cap of $96.15 million; its shares were traded at around $0.881 with and P/S ratio of 10.12. CYTR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:At June 30, 2010, we had cash and cash equivalents of approximately $12.5 million, marketable securities of approximately $21.0 million, held approximately 3.1 million restricted shares of common stock of RXi with a market value of approximately $8.0 million based upon the closing price of the RXi common stock on that date. On March 26, 2010, we raised approximately $3.8 million from the sale of 675,000 RXi shares and on June 30, 2010, we sold 2.0 million shares of the RXi common stock for $5.0 million, net of costs. Management believes that our current cash on hand, together with our marketable securities and proceeds from possible future sales of RXi common stock, will be sufficient to fund our operations for the foreseeable future. The estimate is based, in part, upon our currently projected expenditures for the remainder of 2010 and the first six months of 2011 of approximately $17.5 million, which includes approximately $3.1 million for our clinical programs for INNO-206, approximately $4.9 million for our clinical programs for bafetinib, approximately $0.3 million for our clinical program for tamibarotene, approximately $0.2 million for our activities for arimoclomol, approximately $2.0 million for general operation of our clinical programs, and approximately $7.0 million for other general and administrative expenses. These projected expenditures are also based upon numerous other assumptions and subject to many uncertainties, and actual expenditures may be significantly different from these projections.
We realized a net income in the quarter ended June 30, 2010 of $1.3 million as compared to a $2.2 million net loss in the quarter ended June 30, 2009, or a difference of $3.5 million. We recognized no service revenues in the quarter ended June 30, 2010 as compared to $1.0 million in the comparative quarter because all of the related ALSCRT revenue was completely recognized in 2009 as a result of the amendment of the ALSCRT arrangement discussed previously. Our research and development expenditures were approximately $1.7 million higher in the current quarter as compared to the quarter ended June 30, 2009, due to increased spending related to the ramp up of our oncology clinical trials. In the quarter ended June 30, 2010, we recognized a gain of approximately $5.0 million resulting from the sale of 2 million RXi shares. We also recognized an unrealized gain recorded in other comprehensive income on our remaining 3.1 million RXi shares. We had no similar items in the 2009 comparative period.
In the six-month period ended June 30, 2010, we received $10.4 million of cash from investing activities, compared to a usage of $11.1 million in the comparable 2009 period. In the current six-month period, we received proceeds from the sale of 2.675 million RXi shares for a total of $8.9 million. We purchased net marketable securities of $1.7 million and $11.0 million, respectively, in the six-month periods ended June 30, 2010 and 2009. We utilized $0.3 million for capital expenditures in the three-month period ended June 30, 2010 as compared to $0.1 million in the comparative 2009 period. We do not expect any significant capital spending during the next 12 months.
We recorded a net income of approximately $1.3 million and $0.7 million for the three-month and six-month periods ended June 30, 2010, respectively, as compared to a net loss of $2.2 million and $6.2 million, respectively, for the same periods in 2009. Our net income during the three-month and six-month periods of 2010 resulted solely from gains on the sale of RXi of $5.0 million and $8.9 million, respectively.
As compensation to our consultants, and in connection with the acquisition of technology, we sometimes issue shares of common stock, stock options and warrants to purchase shares of common stock. For financial statement purposes, we value these shares of common stock, stock options, and warrants at the fair value of the common stock, stock options or warrants granted, or the services received, whichever is more reliably measurable. The value of the non-employee option grants are marked to market using the Black-Scholes option-pricing model and most of the compensation expense recognized or recovered during the period is adjusted accordingly. We recorded $45,000 and $88,000 of employee stock option expense both during the three-month and six-month periods ended June 30, 2010, respectively, and $0.2 million and $0.4 million, respectively, for the same periods in 2009.
Employee stock option expense relates to options granted to recruit and retain directors, officers and other employees. We recorded approximately $0.3 million and $0.5 million of employee stock option expense in the three-month and six-month periods ended June 30, 2010, as compared to $0.3 million and $0.6 million, respectively, for the same periods in 2009. We recorded $0 and $0.5 million of non-employee stock option expense in the three-month and six-month periods ended June 30, 2010, as compared to $0.1 million and $0.2 million, respectively in the prior comparative periods.
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