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Neuralstem Inc. Reports Operating Results (10-Q)

August 16, 2010 | About:
10qk

10qk

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Neuralstem Inc. (CUR) filed Quarterly Report for the period ended 2010-06-30.

Neuralstem Inc. has a market cap of $99.84 million; its shares were traded at around $2.17 with and P/S ratio of 326.27.

Highlight of Business Operations:

For the second quarter of 2010, the Company reported a net loss of $4,951,340, or $0.12 per share, compared to a net loss of $3,189,447, or $0.09 per share, for the three month period ended June 30, 2010 and 2009, respectively. The increase in net loss from year to year was due to increases in non cash stock-based compensation expense, and increases in R&D and legal fees.

Research and development expenses totaled $2,613,676 and $1,452,793 for the three months ended June 30, 2010 and 2009, respectively. The increase of $1,160,883 or 80% for the three months ended June 30, 2010 compared to the same period in 2009 was primarily attributable to costs associated with the continuing ALS clinical trials initiated in January of 2010.

G&A expenses totaled $1,550,814 and $1,249,947 for the three months ended June 30, 2010 and 2009, respectively. The increase of $300,867 or 24% for the three months ended June 30, 2010 compared to the same period in 2009, was primarily attributable to increased legal expenses and increased share based expenses.

Depreciation and amortization expenses totaled $30,601 and $21,424 for the three months ended June 30, 2010 and 2009, respectively. The increase of $9,177 or 43% for the three months ended June 30, 2010 compared to the same period in 2009 was primarily attributable to fixed asset and patent filing fee additions over the quarter.

Interest income totaled $9,653 and $8,516 for the three months ended June 30, 2010 and 2009 respectively. The increase for the three months ended June 30, 2010 compared to the same period in 2009 was attributable to higher cash balances and slightly higher interest rates.

On January 1, 2009 we reclassified the fair value of common stock purchase warrants, which have exercise price reset and anti-liquidation features, from equity to liability status as if these warrants were treated as a derivative liability since their date of issue. We established a long-term warrant liability of $6.6 million to recognize the fair value of such warrants. In the three months ended June 30, 2009, the fair value of these common stock purchase warrants decreased/increased because of a decrease/increase in the stock price, resulting in a gain for the quarter. In the second quarter of 2010, ended June 30, 2010, we redeemed 45,713 of the warrants outstanding at the beginning of the period which had price protection features. These changes removed the price protection features. These changes reduced our derivative liability by $73,239 at June 30, 2010. An increase in stock price resulted in an expense for the three month period of $764,440 on the remaining outstanding warrants, and a liability of $2,189,064 for the Company at June 30, 2010.

Read the The complete Report

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10qk
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