NMT Medical Inc. (NMTI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Nmt Medical Inc. has a market cap of $7.5 million; its shares were traded at around $0.47 with and P/S ratio of 0.6. NMTI is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Research and Development. Research and development expense decreased approximately $590,000, or 24.3%, for the three months ended June 30, 2010 compared with the three months ended June 30, 2009. The decrease in research and development expenses was primarily due to reduced costs associated with our clinical trials and the timing of expenditures related to our development programs. We currently expect full year 2010 research and development expense to decrease to approximately $7.5 million compared to approximately $8.9 million in 2009. This anticipated decrease is primarily related to the completion of our clinical trial enrollment and patient follow-up work.
General and Administrative. General and administrative expense increased approximately $350,000, or 20.3%, for the three months ended June 30, 2010 compared with the three months ended June 30, 2009. Included as a reduction to general and administrative expense for the three months ended June 30, 2009, is a payment received of $375,000 pursuant to a settlement agreement with Cardia, Inc. Reductions in expense for the three months ended June 30 ,2010, compared to the comparable prior period occurred in payroll costs, insurance costs and professional fees.
General and administrative expense is currently expected to increase to approximately $7.9 million in 2010 compared to approximately $6.8 million in 2009, as a result of non-recurring transactions impacting the prior year. In 2009, recorded as reductions to general and administrative expense were payments received pursuant to settlements with Cardia, Inc. and Gore, Inc. of $1.2 million and $800,000 respectively.
Gain on Change in Fair Value of Warrants. The liability related to warrants issued to investors in connection with the February 16, 2010 private placement was initially recorded at fair market value and is adjusted to fair market value at the end of each reporting period. The decrease in the liability from March 31, 2010 to June 30, 2010 of $6.4 million was due primarily to the decrease in our stock price during that period from $4.53 to $0.52. The market price for our common stock has been and may continue to be volatile. Consequently, future fluctuations in the price of our common stock may cause significant increases or decreases in the reported value of the warrant liability.
Income Tax Provision. We provide for income taxes based upon our anticipated effective income tax rate. We anticipate incurring a loss in 2010 and therefore have not made a provision for taxes in the three months ended June 30, 2010. For the three months ended June 30, 2010 we recorded an income tax benefit of $190,832, related to the suspended alternative tax net operating loss limitation and extended carryback period recently made available under the Worker, Homeownership, and Business Assistance Act of 2009. For the three months ended June 30, 2010 and 2009 we also recorded income tax expense of $9,774 and $10,557, respectively, for the establishment of a liability for uncertain tax positions, which do not impact our measurement of required valuation allowance on unrealized deferred tax assets.
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Nmt Medical Inc. has a market cap of $7.5 million; its shares were traded at around $0.47 with and P/S ratio of 0.6. NMTI is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
full year 2010, we currently expect cost of product sales to be approximately 47.0% of total product sales, compared with approximately 41.6% for fiscal 2009. Included in cost of product sales are royalty expenses of approximately $420,000 and $480,000 for the three months ended June 30, 2010 and 2009, respectively.Research and Development. Research and development expense decreased approximately $590,000, or 24.3%, for the three months ended June 30, 2010 compared with the three months ended June 30, 2009. The decrease in research and development expenses was primarily due to reduced costs associated with our clinical trials and the timing of expenditures related to our development programs. We currently expect full year 2010 research and development expense to decrease to approximately $7.5 million compared to approximately $8.9 million in 2009. This anticipated decrease is primarily related to the completion of our clinical trial enrollment and patient follow-up work.
General and Administrative. General and administrative expense increased approximately $350,000, or 20.3%, for the three months ended June 30, 2010 compared with the three months ended June 30, 2009. Included as a reduction to general and administrative expense for the three months ended June 30, 2009, is a payment received of $375,000 pursuant to a settlement agreement with Cardia, Inc. Reductions in expense for the three months ended June 30 ,2010, compared to the comparable prior period occurred in payroll costs, insurance costs and professional fees.
General and administrative expense is currently expected to increase to approximately $7.9 million in 2010 compared to approximately $6.8 million in 2009, as a result of non-recurring transactions impacting the prior year. In 2009, recorded as reductions to general and administrative expense were payments received pursuant to settlements with Cardia, Inc. and Gore, Inc. of $1.2 million and $800,000 respectively.
Gain on Change in Fair Value of Warrants. The liability related to warrants issued to investors in connection with the February 16, 2010 private placement was initially recorded at fair market value and is adjusted to fair market value at the end of each reporting period. The decrease in the liability from March 31, 2010 to June 30, 2010 of $6.4 million was due primarily to the decrease in our stock price during that period from $4.53 to $0.52. The market price for our common stock has been and may continue to be volatile. Consequently, future fluctuations in the price of our common stock may cause significant increases or decreases in the reported value of the warrant liability.
Income Tax Provision. We provide for income taxes based upon our anticipated effective income tax rate. We anticipate incurring a loss in 2010 and therefore have not made a provision for taxes in the three months ended June 30, 2010. For the three months ended June 30, 2010 we recorded an income tax benefit of $190,832, related to the suspended alternative tax net operating loss limitation and extended carryback period recently made available under the Worker, Homeownership, and Business Assistance Act of 2009. For the three months ended June 30, 2010 and 2009 we also recorded income tax expense of $9,774 and $10,557, respectively, for the establishment of a liability for uncertain tax positions, which do not impact our measurement of required valuation allowance on unrealized deferred tax assets.
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