Print
Email
Spherix Inc. (SPEX) filed Quarterly Report for the period ended 2011-06-30.
Spherix Inc. has a market cap of $4.2 million; its shares were traded at around $1.56 with and P/S ratio of 2.94. Spherix Inc. had an annual average earning growth of 60.7% over the past 5 years.
This is the annual revenues and earnings per share of SPEX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SPEX.
Highlight of Business Operations:
Health Sciences revenue for the three and six months ended June 30, 2011, decreased $141,000 and $167,000 between years while direct costs remained consistent between periods. The decrease in revenue is attributable to a large contract that is generating margins that are lower than the other contracts. This contract is anticipated to be completed in the third quarter of 2011.
The Company’s R&D expenses in 2011 for pre-clinical triglyceride trials will be substantially less than the diabetes trials incurred in 2010. The R&D expenditures for 2010 consisted of both the Phase 3 clinical trial and a related Phase 2 Dose Range study. For the three- and six-month periods ended June 30, 2011, R&D expenses decreased by $1.1 million (74%) and $2.1 million (73%) between years for the three and six months ended June 30, 2011, respectively, following the completion of the clinical portions of the Phase 3 and Phase 2 diabetes trials in 2010.
Our selling, general and administrative (S,G&A) expenses consist primarily of salaries and related expenses for executive, finance and other administrative personnel, professional fees and other corporate expenses, including facilities-related expenses. S,G&A expenses for the three and six months ended June 30, 2011 decreased $545,000 (44%) and $663,000 (29%) from those of the prior year. The decrease between years was primarily attributable to a scaling down of the Company’s business development activities for the use of D-tagatose as a treatment for type 2 diabetes, which included consultants, market research and other related costs
In January 2011, the Company entered into a Letter Agreement with Gilbert V. Levin and M. Karen Levin pursuant to which the Company agreed to make a one time lump sum payment of $450,000 to the Levins in full satisfaction of the Company’s obligation to make a series of continuing payments to the Levins relating to their prior employment by the Company. Per the terms of the agreement, Gilbert V. Levin resigned as a member of the Board of Directors of the Company on January 13, 2011. The Company’s estimated liability to the Levins at December 31, 2010, and prior to the above agreement was approximately $695,000. The $450,000 lump sum payment was made on January 31, 2011, and the Company recognized the $245,000 difference as a gain on settlement of obligations in January 2011.
The Company’s working capital was $5.6 million as of June 30, 2011, compared to working capital of $4.9 million as of December 31, 2010. The change in working capital for the six months ended June 30, 2011 consisted principally of (i) $2.5 million received from the sale of equity, (ii) $2.5 million used in support of the Company’s operations, and (iii) the relief of a $600,000 purchase obligation.
Over the next 12 months, the Company expects that it will need to expend between $3 million and $5 million to support our currently planned development operations. This estimate assumes (i) continuing efforts to sell, license, or obtain a partner for the diabetes drug application, (ii) no further significant expenditures for developing D-tagatose as a drug for diabetes, (iii) continuing development of SPX-106 and D-tagatose as a combination drug for treatment of high triglycerides and related dyslipidemias, (iv) ongoing operation of the Health Sciences segment at the current level of activity and (v) that we raise additional funds to continue our development efforts beyond this 12-month period.
Subscribe RSS
