Cardiotech International Inc (ASB, Financial) filed Quarterly Report for the period ended 2011-06-30.
.
License, royalty and development fees for the three months ended June 30, 2011 were $121,000 as compared with $101,000 for the comparable prior year period, an increase of $20,000 or 19.8%. We have agreements to license our proprietary biomaterial technology to medical device manufacturers and develop biomaterials for incorporation into medical devices under development by our customers. Royalties are earned when these manufacturers sell medical devices which use our biomaterials. The increase in license, royalty and development fees during the three months ended June 30, 2011 is primarily a result of certain new supply agreements which provide for annual usage fees and royalties from customers who have introduced new medical devices using our advanced polymer materials.
Research and development expenses for the three months ended June 30, 2011 were $166,000 as compared with $177,000 for the comparable prior year period, a decrease of $11,000 or 6.2%. Our research and development efforts are focused on developing new applications for our biomaterials. Research and development expenditures consisted primarily of the salaries of full time employees and related expenses, and are expensed as incurred. The decrease in research and development costs is primarily a result of decreased of use outside laboratory testing services which was required to evaluate a specific raw material that is expected to be used in connection with the manufacture of our finished polymer products. We continue to maintain a relatively stable research and development budget, which management believes meets the needs of our customers and internal development needs.
As of June 30, 2011, we had cash and cash equivalents of $162,000, a decrease of $315,000 when compared with a balance of $477,000 as of March 31, 2011.
Our unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business. We have experienced negative operating margins and negative cash flows from operations and expect to continue to incur net losses in the foreseeable future. For the three months ended June 30, 2011, we incurred a net loss of $562,000 and used cash from operating activities of $306,000. During the fiscal year ended March 31, 2011, we incurred a net loss of $3,185,000 and used cash from operating activities of $2,592,000. We anticipate incurring losses at least through fiscal 2012 as we continue our attempt to grow revenues, expand selling and marketing activities, expand into new sales territories, and expand research and development activities to promote new product introductions and enhancements to existing products. As of June 30, 2011, we had an accumulated deficit of $35,120,000 and cash and cash equivalents of $162,000.
In June 2011, we entered into a long-term license and consulting agreement (the “Agreements”) with a major international developer and manufacturer of medical devices. In June 2011, we received an initial payment of $150,000 (the “Initial Payment”) upon the execution of the Agreements. In July 2011, we received a subsequent payment of $250,000 (the “Subsequent Payment”) upon the transfer of certain technology and know-how. The Agreements also provide for additional payments upon the achievement of certain milestones. Until the requirements for recognition of revenue are achieved, the Initial and Subsequent Payments, and any future payments, will be deferred. The Initial Payment in the amount of $150,000 is included as deferred revenue in our unaudited condensed consolidated balance sheet as of June 30, 2011.
Read the The complete Report
.
Highlight of Business Operations:
Product sales of our biomaterials for the three months ended June 30, 2011 were $194,000 as compared with $402,000 for the comparable prior year period, a decrease of $208,000, or 51.7%. During the three months ended June 30, 2010, we realized an increase in demand for polymer products from two (2) of our major customers. During the three months ended June 30, 2011, we did not realize this same level of demand from these two (2) customers. Although management believes these two significant customers will begin ordering at increased levels during fiscal 2012, there can be no assurance that such increases in the level of orders will occur.License, royalty and development fees for the three months ended June 30, 2011 were $121,000 as compared with $101,000 for the comparable prior year period, an increase of $20,000 or 19.8%. We have agreements to license our proprietary biomaterial technology to medical device manufacturers and develop biomaterials for incorporation into medical devices under development by our customers. Royalties are earned when these manufacturers sell medical devices which use our biomaterials. The increase in license, royalty and development fees during the three months ended June 30, 2011 is primarily a result of certain new supply agreements which provide for annual usage fees and royalties from customers who have introduced new medical devices using our advanced polymer materials.
Research and development expenses for the three months ended June 30, 2011 were $166,000 as compared with $177,000 for the comparable prior year period, a decrease of $11,000 or 6.2%. Our research and development efforts are focused on developing new applications for our biomaterials. Research and development expenditures consisted primarily of the salaries of full time employees and related expenses, and are expensed as incurred. The decrease in research and development costs is primarily a result of decreased of use outside laboratory testing services which was required to evaluate a specific raw material that is expected to be used in connection with the manufacture of our finished polymer products. We continue to maintain a relatively stable research and development budget, which management believes meets the needs of our customers and internal development needs.
As of June 30, 2011, we had cash and cash equivalents of $162,000, a decrease of $315,000 when compared with a balance of $477,000 as of March 31, 2011.
Our unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business. We have experienced negative operating margins and negative cash flows from operations and expect to continue to incur net losses in the foreseeable future. For the three months ended June 30, 2011, we incurred a net loss of $562,000 and used cash from operating activities of $306,000. During the fiscal year ended March 31, 2011, we incurred a net loss of $3,185,000 and used cash from operating activities of $2,592,000. We anticipate incurring losses at least through fiscal 2012 as we continue our attempt to grow revenues, expand selling and marketing activities, expand into new sales territories, and expand research and development activities to promote new product introductions and enhancements to existing products. As of June 30, 2011, we had an accumulated deficit of $35,120,000 and cash and cash equivalents of $162,000.
In June 2011, we entered into a long-term license and consulting agreement (the “Agreements”) with a major international developer and manufacturer of medical devices. In June 2011, we received an initial payment of $150,000 (the “Initial Payment”) upon the execution of the Agreements. In July 2011, we received a subsequent payment of $250,000 (the “Subsequent Payment”) upon the transfer of certain technology and know-how. The Agreements also provide for additional payments upon the achievement of certain milestones. Until the requirements for recognition of revenue are achieved, the Initial and Subsequent Payments, and any future payments, will be deferred. The Initial Payment in the amount of $150,000 is included as deferred revenue in our unaudited condensed consolidated balance sheet as of June 30, 2011.
Read the The complete Report
