World Heart Corp. (WHRT, Financial) filed Quarterly Report for the period ended 2010-06-30.
World Heart Corp. has a market cap of $43.8 million; its shares were traded at around $2.97 with and P/S ratio of 8750.2.
Selling expenses for the three months ended June 30, 2010 decreased by $108,000, or 45%, compared with the three months ended June 30, 2009. The decrease is due to lower personnel costs ($60,000) including related payroll benefits cost, and lower consulting expenses ($15,000). For the three months ended June 30, 2010 and June 30, 2009, we recorded $21,000 and $27,000, respectively, in stock-based compensation expense. For the six months ended June 30, 2010, selling expenses decreased by $67,000, or 17%, compared with the six months ended June 30, 2009. The decrease is due to lower personnel costs ($75,000) including payroll and benefit costs and lower consulting expenses ($15,000), offset by an increase in marketing development expenses due to increased marketing initiatives ($17,000) and stock based compensation expense ($22,000). For the six months ended June 30, 2010 and June 30, 2009, we recorded $54,000 and $32,000 respectively, in stock-based compensation expense. Selling expenses are expected to increase with ramp up of marketing development activities.
For the six month period ended June 30, 2010, general and administrative expense decreased by $623,000, or 27%, compared with the six month period ended June 30, 2009. The decrease is primarily due to reduced consulting and legal expenses ($575,000) mainly related to the 2009 consolidation and restructuring, and a decrease in general office and insurance expense ($220,000), offset by an increase in stock based compensation expense ($168,000). For the six months ended June 30, 2010 and 2009, we recorded $371,000 and $203,000 respectively, in stock-based compensation expense. General and administrative expenses are expected to remain at the same level for the remaining months in 2010.
Research and development expenses for the three months ended June 30, 2010 decreased $916,000 or 35%, compared with the three months ended June 30, 2009. The decrease between periods is primarily attributable to capitalized materials, labor and overhead of $1,270,000 as a result of receiving IDE approval from the FDA and thus beginning to produce inventory and a decrease in research expenses related to 2009 research and licensing agreements with certain partners ($100,000), offset by an increase in payroll related costs ($90,000) resulting from hiring of additional clinical and manufacturing personnel, clinical support ($145,000), depreciation expense ($100,000) and stock based compensation expense ($39,000). For the three months ended June 30, 2010 and June 30, 2009, we recorded $154,000 and $115,000, respectively, in stock-based compensation expense. For the six months ended June 30, 2010, research and development expenses decreased by $698,000, or 15%. The decrease is primarily attributable to capitalized materials, labor and overhead of $1,558,000, decrease in research expense related to the 2009 research and licensing agreements with certain partners ($70,000), offset by an increase in payroll and related benefits ($365,000), clinical support ($210,000), depreciation expense ($120,000) and stock based compensation expense ($238,000). Research and development expenses are expected to increase during the remainder of 2010 as we continue to develop our Levacor VAD and continue activities on pre-clinical testing and other product development.
Other income (expenses), net: Other income (expense), net, consists primarily of interest expense, investment income, other income and loss on liquidation of a foreign entity. Other expense, net, for the three months ended June 30, 2010 was $31,000 compared to $12,000 for the three months ended June 30, 2009. During the three months ended June 30, 2010, we recorded interest expense of $36,000 relating to the $1.0 million LaunchPoint Note issued by us in December 2010, consisting of $25,000 in imputed interest expense and $11,000 in stated interest expense on the LaunchPoint Note. During the three months ended June 30, 2009, we recorded $400 in interest expense and $18,000 in unrealized foreign exchange, offset by $6,000 in investment income on our available cash and cash equivalents balance. Other expense, net, for the six months ended June 30, 2010 was $74,000 compared to other income, net, of $7,000 for the six months ended June 30, 2009. During the six months ended June 30, 2010, we recorded interest expense of $71,000 relating to the $1.0 million LaunchPoint Note, consisting of $50,000 in imputed interest expense and $21,000 in stated interest expense on the LaunchPoint Note and 12,000 in unrealized foreign exchange currency loss, offset by $9,000 in investment income on our available cash and cash equivalents balance. During the six months ended June 30, 2009, we recorded $800 in interest expense and $6,000 in foreign exchange currency losses, offset by $18,000 in investment income on our available cash and cash equivalent balances. Additionally, we recorded a $6.3 million loss on liquidation of foreign entity during the six months ended June 30, 2010 related to World Heart Corporation changing its jurisdiction of incorporation from the federal jurisdiction of Canada to the state of Delaware and terminating a majority of operations in Canada.
At June 30, 2010, we had cash and cash equivalents of $4.8 million and $1.3 million in available for sale investment securities totaling $6.1 million compared to a total of $6.1 million as of December 31, 2009. For the six months ended June 30, 2010, cash used in operating activities was $6.7 million, consisting primarily of the net loss for the period of $12.4 million, offset by $6.3 million for non-cash loss on liquidation of foreign entity, $806,000 for non-cash stock compensation expense, $49,000 for non-cash imputed interest on debt and $228,000 for amortization and depreciation expense. Additionally, working capital changes consisted of cash decreases related to a $421,000 increase in trade accounts receivable and other receivables, $60,000 increase in
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World Heart Corp. has a market cap of $43.8 million; its shares were traded at around $2.97 with and P/S ratio of 8750.2.
Highlight of Business Operations:
Total revenue for the three months ended June 30, 2010 was $467,000 compared to zero for the three months of June 30, 2009. Revenue from Levacor VAD implant kits sold during the three months ended June 30, 2010 was $413,000 compared to zero for the three months ended June 30, 2009. Revenue in 2010 relates to five Levacor VADs that were sold during the three months ended June 30, 2010 in our BTT clinical study. The BTT clinical study with the Levacor VAD received an unconditional IDE from the FDA in January 2010. Levacor VAD peripherals and other revenue for the three months ended June 30, 2010 and June 30, 2009 was $54,000 and zero, respectively. Revenue in 2010 relates to revenue recognized as a result of our Levacor VAD BTT clinical study. Total revenue for the six months ended June 30, 2010 was $1,023,000 reflecting an increase of $1,018,000 compared with revenue for the six months ended June 30, 2009. Revenue from Levacor VAD implant kits sold during the six months ended June 30, 2010 was $818,000, an increase of 100% compared with revenue for the six months ended June 30, 2009. Revenue in 2010 relates to ten Levacor VADs that were sold during the six months ended June 30, 2010 in our BTT clinical study. Levacor VAD peripherals and other revenue for the six months ended June 30, 2010 and June 30, 2009 was $205,000 and $5,000, respectively. Revenue in 2010 relates to revenue recognized as a result of our Levacor VAD BTT clinical study.Selling expenses for the three months ended June 30, 2010 decreased by $108,000, or 45%, compared with the three months ended June 30, 2009. The decrease is due to lower personnel costs ($60,000) including related payroll benefits cost, and lower consulting expenses ($15,000). For the three months ended June 30, 2010 and June 30, 2009, we recorded $21,000 and $27,000, respectively, in stock-based compensation expense. For the six months ended June 30, 2010, selling expenses decreased by $67,000, or 17%, compared with the six months ended June 30, 2009. The decrease is due to lower personnel costs ($75,000) including payroll and benefit costs and lower consulting expenses ($15,000), offset by an increase in marketing development expenses due to increased marketing initiatives ($17,000) and stock based compensation expense ($22,000). For the six months ended June 30, 2010 and June 30, 2009, we recorded $54,000 and $32,000 respectively, in stock-based compensation expense. Selling expenses are expected to increase with ramp up of marketing development activities.
For the six month period ended June 30, 2010, general and administrative expense decreased by $623,000, or 27%, compared with the six month period ended June 30, 2009. The decrease is primarily due to reduced consulting and legal expenses ($575,000) mainly related to the 2009 consolidation and restructuring, and a decrease in general office and insurance expense ($220,000), offset by an increase in stock based compensation expense ($168,000). For the six months ended June 30, 2010 and 2009, we recorded $371,000 and $203,000 respectively, in stock-based compensation expense. General and administrative expenses are expected to remain at the same level for the remaining months in 2010.
Research and development expenses for the three months ended June 30, 2010 decreased $916,000 or 35%, compared with the three months ended June 30, 2009. The decrease between periods is primarily attributable to capitalized materials, labor and overhead of $1,270,000 as a result of receiving IDE approval from the FDA and thus beginning to produce inventory and a decrease in research expenses related to 2009 research and licensing agreements with certain partners ($100,000), offset by an increase in payroll related costs ($90,000) resulting from hiring of additional clinical and manufacturing personnel, clinical support ($145,000), depreciation expense ($100,000) and stock based compensation expense ($39,000). For the three months ended June 30, 2010 and June 30, 2009, we recorded $154,000 and $115,000, respectively, in stock-based compensation expense. For the six months ended June 30, 2010, research and development expenses decreased by $698,000, or 15%. The decrease is primarily attributable to capitalized materials, labor and overhead of $1,558,000, decrease in research expense related to the 2009 research and licensing agreements with certain partners ($70,000), offset by an increase in payroll and related benefits ($365,000), clinical support ($210,000), depreciation expense ($120,000) and stock based compensation expense ($238,000). Research and development expenses are expected to increase during the remainder of 2010 as we continue to develop our Levacor VAD and continue activities on pre-clinical testing and other product development.
Other income (expenses), net: Other income (expense), net, consists primarily of interest expense, investment income, other income and loss on liquidation of a foreign entity. Other expense, net, for the three months ended June 30, 2010 was $31,000 compared to $12,000 for the three months ended June 30, 2009. During the three months ended June 30, 2010, we recorded interest expense of $36,000 relating to the $1.0 million LaunchPoint Note issued by us in December 2010, consisting of $25,000 in imputed interest expense and $11,000 in stated interest expense on the LaunchPoint Note. During the three months ended June 30, 2009, we recorded $400 in interest expense and $18,000 in unrealized foreign exchange, offset by $6,000 in investment income on our available cash and cash equivalents balance. Other expense, net, for the six months ended June 30, 2010 was $74,000 compared to other income, net, of $7,000 for the six months ended June 30, 2009. During the six months ended June 30, 2010, we recorded interest expense of $71,000 relating to the $1.0 million LaunchPoint Note, consisting of $50,000 in imputed interest expense and $21,000 in stated interest expense on the LaunchPoint Note and 12,000 in unrealized foreign exchange currency loss, offset by $9,000 in investment income on our available cash and cash equivalents balance. During the six months ended June 30, 2009, we recorded $800 in interest expense and $6,000 in foreign exchange currency losses, offset by $18,000 in investment income on our available cash and cash equivalent balances. Additionally, we recorded a $6.3 million loss on liquidation of foreign entity during the six months ended June 30, 2010 related to World Heart Corporation changing its jurisdiction of incorporation from the federal jurisdiction of Canada to the state of Delaware and terminating a majority of operations in Canada.
At June 30, 2010, we had cash and cash equivalents of $4.8 million and $1.3 million in available for sale investment securities totaling $6.1 million compared to a total of $6.1 million as of December 31, 2009. For the six months ended June 30, 2010, cash used in operating activities was $6.7 million, consisting primarily of the net loss for the period of $12.4 million, offset by $6.3 million for non-cash loss on liquidation of foreign entity, $806,000 for non-cash stock compensation expense, $49,000 for non-cash imputed interest on debt and $228,000 for amortization and depreciation expense. Additionally, working capital changes consisted of cash decreases related to a $421,000 increase in trade accounts receivable and other receivables, $60,000 increase in
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