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Marshall Edwards Inc. Reports Operating Results (10-Q)

February 11, 2011 | About:
10qk

10qk

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Marshall Edwards Inc. (MSHL) filed Quarterly Report for the period ended 2010-12-31.

Marshall Edwards Inc. has a market cap of $21 million; its shares were traded at around $2.6604 with and P/S ratio of 248.8.

Highlight of Business Operations:

Research and Development: Research and development expenses decreased $240,000 to $751,000 for the three months ended December 31, 2010 compared to $991,000 for the three months ended December 31, 2009. The decrease results from reduced work associated with the OVATURE Phase III clinical trial offset by additional costs associated with NV-143 development.

Interest and Dividend Income: We received interest on cash and cash equivalents of $10,000 for the three months ended December 31, 2010 compared to $23,000 for the three months ended December 31, 2009. The decrease was due to lower cash balances and lower interest rates earned by our cash deposits. We also received dividends of $25,000, from a small investment, during the three months ended December 31, 2010. We did not receive dividends during 2009.

Research and Development: Research and development expenses decreased $58,000 to $1,436,000 for the six months ended December 31, 2010 compared to $1,494,000 for the six months ended December 31, 2009. The decrease results from reduced work associated with the OVATURE Phase III clinical trial offset by additional costs associated with NV-143 development.

Selling, General and Administrative: Selling, general and administrative expenses increased by $1,601,000 to $2,497,000 for the six months ended December 31, 2010 compared to $896,000 for the six months ended December 31, 2009. The increase primarily relates to costs associated the transfer of the Companys operations from Australia to the United States, including hiring of U.S. based management and staff. Historically Novogen provided the Company with additional staff under service agreements which were terminated effective December 31, 2010. Additional costs were also incurred in relation to the asset purchase agreement with Novogen to acquire Novogens isoflavone-based intellectual property portfolio.

Interest and Dividend Income: We received interest on cash and cash equivalents of $24,000 for the six months ended December 31, 2010 compared to $49,000 for the six months ended December 31, 2009. The decrease was due to lower cash balances and lower interest rates earned by our cash deposits. We also received dividends of $82,000 from a small investment for the six months ended December 31, 2010. We did not receive dividends during 2009.

Under Nasdaq rules, companies listed on the Nasdaq Global Market or Capital Market are required to maintain a share price of at least $1.00 per share and if the share price declines below $1.00 for a period of 30 consecutive business days, then the listed company would have 180 days to regain compliance with the $1.00 per share minimum. In the event that the Companys share price declines below $1.00, we may be required to take action, such as a reverse stock split, in order to comply with the Nasdaq rules that may be in effect at the time.

Read the The complete Report

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10qk
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