Spherix Inc. Reports Operating Results (10-Q)
Spherix Inc. has a market cap of $25.6 million; its shares were traded at around $1.5001 with and P/S ratio of 19. Spherix Inc. had an annual average earning growth of 83.7% over the past 5 years.SPEX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Our selling, general and administrative (S,G&A) expenses consist primarily of salaries and related expenses for executive, finance and other administrative personnel, professional fees and other corporate expenses, including facilities-related expenses. S,G&A expenses for the three and six months ended June 30, 2010 increased $541,000 (83%) and $832,000 (59%) over those of the prior year. The increase in S,G&A costs between 2010 and 2009 are primarily related to the expansion of the Companys commercialization efforts of D-tagatose as a treatment for Type 2 diabetes and high-triglycerides.
As of June 30, 2010, the Company had cash and short-term investments of approximately $4.7 million and expects to expend all of this amount within the next six months. Our working capital was $3.0 million as of June 30, 2010, compared to working capital of $7.7 million as of December 31, 2009. We have incurred substantial development costs in our efforts to explore whether D-tagatose is an effective treatment for Type 2 diabetes. We have financed our development activities through the remaining proceeds received from the 2007 sale of InfoSpherix and the November 2009 stock placement. Over the next 12 months, the Company expects that it will need to expend between $7 million and $9 million to support its development operations.
tagatose, as well as general and administrative costs. Over the next 12 months, the Company expects that it will need to expend between $7 million and $9 million to support its development operations. We will need to raise additional funds in 2010 to continue operations and will likely require additional capital raises thereafter to fully pursue the triglycerides opportunity. We cannot ensure that additional funding will be available or, if it is available, that it can be obtained on terms and conditions we will deem acceptable. Any additional funding derived from the sale of equity securities is likely to result in significant dilution to our existing stockholders. These matters involve risks and uncertainties that may prevent us from raising additional capital or may cause the terms upon which we raise additional capital, if additional capital is available, to be less favorable to us than would otherwise be the case.
WE HAVE SUSTAINED LOSSES IN THE PAST AND WE WILL SUSTAIN LOSSES IN THE FUTURE. We have incurred losses from continuing operations in prior years, including 2009 and 2008. Our net losses from continuing operations before taxes for the years ended December 31, 2009 and 2008 were $9.1 million and $6.2 million, respectively. The Companys cumulative deficit was $30.7 million at June 30, 2010. We expect to incur substantial losses in 2010 and thereafter until we find a purchaser/licensee. The Companys total cash used through the six months ended June 30, 2010 was $4.4 million. We may not return to profitable operations.
THE PRICE OF OUR COMMON STOCK HAS BEEN HIGHLY VOLATILE DUE TO SEVERAL FACTORS THAT WILL CONTINUE TO AFFECT THE PRICE OF OUR STOCK. Our common stock has traded as low as $0.25 and as high as $4.15 between January 1, 2009 and June 30
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