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Aastrom Biosciences Inc. Reports Operating Results (10-Q/A)

February 24, 2011 | About:
10qk

10qk

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Aastrom Biosciences Inc. (ASTM) filed Amended Quarterly Report for the period ended 2010-03-31.

Aastrom Biosciences Inc. has a market cap of $84.6 million; its shares were traded at around $2.19 with and P/S ratio of 950.2. Hedge Fund Gurus that owns ASTM: Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Costs and expenses include an increase in research and development expenses to $2,845,000 for the quarter ended March 31, 2010 from $2,785,000 for the quarter ended March 31, 2009. This increase reflects continued expansion of our clinical development activities including the costs associated with recruitment and treatment of patients in our IMPACT-DCM clinical trial. Research and development expenses also included a non-cash charge relating to share-based compensation expense of $146,000 for the quarter ended March 31, 2010 compared to $100,000 for the quarter ended March 31, 2009. A reversal of $171,000 was recorded for the quarter ended March 31, 2010, in share-based compensation expense for certain stock options no longer expected to vest related to employee terminations and forfeitures.

Selling, general and administrative expenses increased for the quarter ended March 31, 2010 to $1,418,000 from $1,260,000 for the quarter ended March 31, 2009. This increase is primarily the result of increased legal fees and contract services. Selling, general and administrative expenses for the quarter ended March 31, 2010, included a non-cash charge relating to share-based compensation expense of $225,000 compared to $273,000 for the quarter ended March 31, 2009. A reversal of $125,000 was recorded for the quarter ended March 31, 2010, in share-based compensation expense for certain stock options no longer expected to vest related to employee terminations and forfeitures.

Research and development expenses increased for the nine months ended March 31, 2010 to $9,039,000 from $8,340,000 for the nine months ended March 31, 2009. This increase reflects continued expansion of our clinical development activities including the costs associated with recruitment and treatment of patients in our IMPACT-DCM clinical trial. Research and development expenses also included a non-cash charge relating to stock-based compensation expense of $506,000 for the nine months ended March 31, 2010 compared to $435,000 for the nine months ended March 31, 2009. A reversal of $171,000 was recorded for the nine months ended March 31, 2010, in share-based compensation expense for certain stock options no longer expected to vest related to employee terminations and forfeitures.

Selling, general and administrative expenses decreased for the nine months ended March 31, 2010 to $3,680,000 from $3,909,000 for the nine months ended March 31, 2009. This decrease is primarily due to an offset of $404,000 in share-based compensation expense recorded for certain stock options no longer expected to vest related to employee terminations and forfeitures. Selling, general and administrative expenses for the nine months ended March 31, 2010, included a non-cash charge relating to share-based compensation expense of $494,000 compared to $694,000 for the nine months ended March 31, 2009.

Our net loss was $2,679,000, or $0.10 per common share for the quarter ended March 31, 2010 compared to $3,491,000, or $0.19 per common share for the quarter ended March 31, 2009. For the nine months ended March 31, 2010, our net loss decreased to $10,791,000, or $0.47 per common share compared to a net loss of $12,049,000, or $0.70 per common share for the nine months ended March 31, 2009. The fluctuations are due primarily to the change in fair value of warrants as described above.

Our combined cash and cash equivalents and short-term investments totaled $22,844,000 at March 31, 2010, an increase of $5,844,000 from June 30, 2009. During the nine months ended March 31, 2010, the primary source of cash and cash equivalents was from equity transactions, of which net proceeds of $17,500,000 were raised through sales of our equity securities pursuant to the June 2009 agreement with Fusion Capital and an underwritten public offering of public offering of our common stock and warrants. The primary uses of cash and cash equivalents during the nine months ended March 31, 2010 included $11,430,000 to finance our operations and working capital requirements, and $103,000 in capital equipment additions. Our combined cash and cash equivalents at April 30, 2010 was approximately $21,556,000.

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