NexMed Inc. (NEXM, Financial) filed Quarterly Report for the period ended 2011-06-30.
Nexmed Inc. has a market cap of $13.01 million; its shares were traded at around $0 .
Loss on sale of Bio-Quant subsidiary. On June 30, 2011 we sold Bio-Quant to BioTox and incurred a non cash loss of $2,759,920 during the second quarter of 2011. The loss is primarily due to the sale of the remaining balance of Bio-Quant Know-How and Bio-Quant trade name in the amount of approximately $2,642,000, net of amortization. In addition to the intangible assets, we sold net assets of approximately $985,000 offset by liabilities of approximately $367,000. The loss resulting from the disposal of these tangible and intangible assets was computed based on the realized down payment received in the transaction of $500,019.
Net Loss. The net loss was $7,794,092 or $0.39 per share in the second quarter of 2011 as compared to $4,278,647 or $0.47 per share during the same period in 2010. The increase in net loss is primarily attributable to the increased research and development expenses, the increase in general and administrative expenses and non-cash loss on the sale of the Bio-Quant subsidiary of $2,759,920. These increased expenses were partially offset by the decreased non-cash interest charges as discussed above.
Loss on sale of Bio-Quant subsidiary. On June 30, 2011 we sold Bio-Quant to BioTox and incurred a non-cash loss of $2,759,920 during the second half of 2011. The loss is primarily due to the sale of the remaining balance of Bio-Quant Know-How and Bio-Quant trade name in the amount of approximately $2,642,000, net of amortization. In addition to the intangible assets, we sold net assets of approximately $985,000 offset by liabilities of approximately $367,000. The loss resulting from the disposal of these tangible and intangible assets was computed based on the realized down payment received in the transaction of $500,019.
Net Loss. The net loss was $11,205,098 or $0.58 per share in the first half of 2011 as compared to $13,516,103 or $1.64 per share during the same period in 2010. The decrease in net loss is primarily attributable to the decreased non-cash interest charges as discussed above. This decrease in net loss is partially offset by the increased research and development expenses, general and administrative expenses in addition to the loss on the sale of the subsidiary as discussed above.
As part of our sale of our wholly-owned subsidiary, Bio-Quant, Inc., to BioTox, we were paid $500,019 as an up-front payment and after the second anniversary of the closing of that transaction, are to be paid the higher of $500,000 per year or a double digit royalty payment per year over the next 9 year period for a total of minimum future payments of $4.5 million or up to $20 million based on the projections of BioTox as of the closing date of the transaction. The annual payments are secured by a first priority secured lien on the assets of Bio-Quant as well as the assets of BioTox for a certain period of time after the closing date of the transaction.
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Nexmed Inc. has a market cap of $13.01 million; its shares were traded at around $0 .
Highlight of Business Operations:
At June 30, 2011, we had cash and cash equivalents of approximately $9.1 million, equivalent to the $9.1 million at December 31, 2010. During the first half of 2011, we received net proceeds of approximately $2.7 million as a result of the sale of our Common Stock and pursuant to a Sales Agreement as discussed in Note 12 to the consolidated financial statements. We also received net proceeds of approximately $1.3 million from the exercise of warrants and $0.5 million at June 30, 2011 from the sale of the Bio-Quant subsidiary. The receipt of this cash during the first half of 2011 was offset by our cash used from operations. Our net cash outflow from operations during the first half of the year was approximately $4.5 million which resulted from the increase in expenditures for research and development activities as we seek to commercialize our Vitaros® product for sale in the Canadian market and obtain market approval in other regions. During the first half of 2011, we operated our Bio-Quant CRO which contributed revenue for us, yet had a net use of cash in the first half of 2011. Our net outflows related to Bio-Quant will be eliminated with the sale of the operation on June 30, 2011 and the transaction was structured with an earn-out that allows for cash to be received by us over the next 10 years based on the success of the buyer, BioTox. Our operational structure with a minimum number of employees and limited space need allows us to closely regulate our level of expenditures and to quickly adjust our spending rates as commercial opportunities develop. We operate in a rapidly changing and highly regulated marketplace and we expect to adjust our capital needs and financing plans as market conditions dictate.Loss on sale of Bio-Quant subsidiary. On June 30, 2011 we sold Bio-Quant to BioTox and incurred a non cash loss of $2,759,920 during the second quarter of 2011. The loss is primarily due to the sale of the remaining balance of Bio-Quant Know-How and Bio-Quant trade name in the amount of approximately $2,642,000, net of amortization. In addition to the intangible assets, we sold net assets of approximately $985,000 offset by liabilities of approximately $367,000. The loss resulting from the disposal of these tangible and intangible assets was computed based on the realized down payment received in the transaction of $500,019.
Net Loss. The net loss was $7,794,092 or $0.39 per share in the second quarter of 2011 as compared to $4,278,647 or $0.47 per share during the same period in 2010. The increase in net loss is primarily attributable to the increased research and development expenses, the increase in general and administrative expenses and non-cash loss on the sale of the Bio-Quant subsidiary of $2,759,920. These increased expenses were partially offset by the decreased non-cash interest charges as discussed above.
Loss on sale of Bio-Quant subsidiary. On June 30, 2011 we sold Bio-Quant to BioTox and incurred a non-cash loss of $2,759,920 during the second half of 2011. The loss is primarily due to the sale of the remaining balance of Bio-Quant Know-How and Bio-Quant trade name in the amount of approximately $2,642,000, net of amortization. In addition to the intangible assets, we sold net assets of approximately $985,000 offset by liabilities of approximately $367,000. The loss resulting from the disposal of these tangible and intangible assets was computed based on the realized down payment received in the transaction of $500,019.
Net Loss. The net loss was $11,205,098 or $0.58 per share in the first half of 2011 as compared to $13,516,103 or $1.64 per share during the same period in 2010. The decrease in net loss is primarily attributable to the decreased non-cash interest charges as discussed above. This decrease in net loss is partially offset by the increased research and development expenses, general and administrative expenses in addition to the loss on the sale of the subsidiary as discussed above.
As part of our sale of our wholly-owned subsidiary, Bio-Quant, Inc., to BioTox, we were paid $500,019 as an up-front payment and after the second anniversary of the closing of that transaction, are to be paid the higher of $500,000 per year or a double digit royalty payment per year over the next 9 year period for a total of minimum future payments of $4.5 million or up to $20 million based on the projections of BioTox as of the closing date of the transaction. The annual payments are secured by a first priority secured lien on the assets of Bio-Quant as well as the assets of BioTox for a certain period of time after the closing date of the transaction.
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