ISTA Pharmaceuticals Inc. (ISTA, Financial) filed Quarterly Report for the period ended 2011-03-31.
Ista Pharmaceuticals Inc. has a market cap of $343 million; its shares were traded at around $10.2 with a P/E ratio of 510 and P/S ratio of 2.2.
Stock-based compensation costs. Total stock-based compensation costs for the three months ended March 31, 2011 and 2010 were $0.8 million and $0.9 million, respectively. For the three months ended March 31, 2011 and 2010, we granted stock options to employees to purchase 635,940 shares of common stock (at a weighted average exercise price of $6.60 per share) and 708,540 shares of common stock (at a weighted average exercise price of $3.74 per share), respectively, equal to the fair market value of our common stock at the time of grant. We also issued 139,543 and 129,470 restricted stock awards for the three months ended March 31, 2011 and 2010, respectively. Included in stock-based compensation costs were $0.1 million for each of the three months ended March 31, 2011 and 2010, related to restricted stock awards.
Gain (loss) on warrant valuation. For the three months ended March 31, 2011, we recorded a non-cash valuation loss of $72.2 million, or $2.14 per basic and diluted share, as compared to a non-cash valuation gain of $7.2 million, or $0.21 per basic and diluted share, for the three months ended March 31, 2010. The change in the valuation of the warrants for the three months ended March 31, 2011 was primarily driven by a significant increase in our stock price. The change in the valuation of the warrants for the three months ended March 31, 2010 was primarily driven by a decrease in our stock price, offset by an increase in related volatility.
As of March 31, 2011, we had $75.8 million in cash and working capital of $6.6 million. One-third of our $65 million Facility Agreement (or $21.5 million) is due in September 2011 and we anticipate making the $21.5 million principal repayment out of cash on hand. Historically, we have financed our operations primarily through sales of our debt and equity securities and cash receipts from product sales. Since March 2000, we have received gross proceeds of approximately $347.2 million from sales of our common stock and the issuance of promissory notes and convertible debt.
We have a Facility Agreement with certain institutional accredited investors, collectively known as the Lenders. On March 31, 2011, we had total indebtedness under the Facility Agreement of $65 million, which excludes unamortized discounts of $4.3 million and the value of the derivative of $0.2 million. Outstanding amounts under the Facility Agreement accrue interest at a rate of 6.5% per annum, payable quarterly in arrears. We are required to repay the Lenders 33% of the original principal amount (or $21.5 million) on each of September 26, 2011 and 2012, and 34% of the original principal amount (or $22.0 million) on September 26, 2013.
For the three months ended March 31, 2011, we used $3.4 million of cash from operations, primarily the result of the decrease of accrued compensation costs and other accrued expenses. We incurred a net loss of $84.1 million, which included a loss on warrant valuation ($72.2 million) and other non-cash charges of $2.3 million. Non-cash charges consisted primarily of stock-based compensation costs ($0.8 million), amortization of discounts on the Facility Agreement ($0.7 million), depreciation and amortization ($0.5 million) and amortization of deferred financing costs ($0.3 million). For the three months ended March 31, 2010, we used $10.3 million of cash from operations, primarily the result of the increase in accounts receivable of $7.3 million and other changes in operating assets and liabilities. We had net income of $0.5 million, which included a gain on warrant valuation ($7.2 million) and other non-cash charges of $2.1 million. Non-cash charges consisted primarily of stock-based compensation costs ($0.9 million), amortization of discounts on the Facility Agreement ($0.7 million), depreciation and amortization ($0.2 million) and amortization of deferred financing costs ($0.3 million).
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Ista Pharmaceuticals Inc. has a market cap of $343 million; its shares were traded at around $10.2 with a P/E ratio of 510 and P/S ratio of 2.2.
Highlight of Business Operations:
Selling, general and administrative expenses. Selling, general and administrative expenses were $26.9 million for the three months ended March 31, 2011, as compared to $20.9 million for the three months ended March 31, 2010. The $6.0 million increase primarily reflect expenses of $4.5 million in legal, professional and other fees incurred in connection with financing and due diligence activities to pursue a potential acquisition of a company with marketed products, for which we were successful in securing a financing commitment but were unsuccessful in concluding the acquisition, and additional promotional costs associated with our products of $1.1 million, primarily BROMDAY.Stock-based compensation costs. Total stock-based compensation costs for the three months ended March 31, 2011 and 2010 were $0.8 million and $0.9 million, respectively. For the three months ended March 31, 2011 and 2010, we granted stock options to employees to purchase 635,940 shares of common stock (at a weighted average exercise price of $6.60 per share) and 708,540 shares of common stock (at a weighted average exercise price of $3.74 per share), respectively, equal to the fair market value of our common stock at the time of grant. We also issued 139,543 and 129,470 restricted stock awards for the three months ended March 31, 2011 and 2010, respectively. Included in stock-based compensation costs were $0.1 million for each of the three months ended March 31, 2011 and 2010, related to restricted stock awards.
Gain (loss) on warrant valuation. For the three months ended March 31, 2011, we recorded a non-cash valuation loss of $72.2 million, or $2.14 per basic and diluted share, as compared to a non-cash valuation gain of $7.2 million, or $0.21 per basic and diluted share, for the three months ended March 31, 2010. The change in the valuation of the warrants for the three months ended March 31, 2011 was primarily driven by a significant increase in our stock price. The change in the valuation of the warrants for the three months ended March 31, 2010 was primarily driven by a decrease in our stock price, offset by an increase in related volatility.
As of March 31, 2011, we had $75.8 million in cash and working capital of $6.6 million. One-third of our $65 million Facility Agreement (or $21.5 million) is due in September 2011 and we anticipate making the $21.5 million principal repayment out of cash on hand. Historically, we have financed our operations primarily through sales of our debt and equity securities and cash receipts from product sales. Since March 2000, we have received gross proceeds of approximately $347.2 million from sales of our common stock and the issuance of promissory notes and convertible debt.
We have a Facility Agreement with certain institutional accredited investors, collectively known as the Lenders. On March 31, 2011, we had total indebtedness under the Facility Agreement of $65 million, which excludes unamortized discounts of $4.3 million and the value of the derivative of $0.2 million. Outstanding amounts under the Facility Agreement accrue interest at a rate of 6.5% per annum, payable quarterly in arrears. We are required to repay the Lenders 33% of the original principal amount (or $21.5 million) on each of September 26, 2011 and 2012, and 34% of the original principal amount (or $22.0 million) on September 26, 2013.
For the three months ended March 31, 2011, we used $3.4 million of cash from operations, primarily the result of the decrease of accrued compensation costs and other accrued expenses. We incurred a net loss of $84.1 million, which included a loss on warrant valuation ($72.2 million) and other non-cash charges of $2.3 million. Non-cash charges consisted primarily of stock-based compensation costs ($0.8 million), amortization of discounts on the Facility Agreement ($0.7 million), depreciation and amortization ($0.5 million) and amortization of deferred financing costs ($0.3 million). For the three months ended March 31, 2010, we used $10.3 million of cash from operations, primarily the result of the increase in accounts receivable of $7.3 million and other changes in operating assets and liabilities. We had net income of $0.5 million, which included a gain on warrant valuation ($7.2 million) and other non-cash charges of $2.1 million. Non-cash charges consisted primarily of stock-based compensation costs ($0.9 million), amortization of discounts on the Facility Agreement ($0.7 million), depreciation and amortization ($0.2 million) and amortization of deferred financing costs ($0.3 million).
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