Generex Biotechnology Corp. (GNBT, Financial) filed Quarterly Report for the period ended 2012-10-31.
Generex Biotechnology Corporation has a market cap of $14.9 million; its shares were traded at around $0.04 with and P/S ratio of 466.2.
During the three months ended October 31, 2012, approximately 79%, or $514,446 of our research and development expenses was attributable to Antigen's immunomedicine compared to approximately 27%, or $534,471, of our research and development expenses for the three months ended October 31, 2011. Because these products are in initial phases of clinical trials or early, pre-clinical stage of development (with the exception of the Phase II clinical trials of Antigen HER-2/neu positive breast cancer vaccine that are underway), all of the expenses were accounted for as basic research and no distinctions were made as to particular products. Due to the early stage of development, we cannot predict the timing of completion of any products arising from this technology, or when products from this technology might begin producing revenues.
We had a net loss for the quarter ended October 31, 2012 of $656,199 versus net income of $336,354 in the corresponding quarter of the prior fiscal year. The loss in this year’s fiscal quarter was caused by operating expenses of $1,940,031, which were primarily offset by income from assets held for investment of $1,042,868 and a gain due to the change in fair value of the derivative liabilities of $358,714, while in the prior year operating expenses were $3,476,447 offset by income from assets held for investment of $712,075 and a gain due to the change in fair value of the derivative liabilities of $3,128,459. Our operating loss for the quarter ended October 31, 2012 decreased to $1,940,031 compared to $3,469,778 in the same fiscal quarter of 2012. The decrease in operating loss resulted from a decrease in selling and marketing expense (to $0 from $75,661), a decrease in research and development expenses (to $653,395 from $1,979,502), and a decrease in general and administrative expenses (to $1,286,636 from $1,421,284). We did not have any revenues in the quarter ended October 31, 2012, compared to $9,931 for the quarter ended October 31, 2011, reflecting our decision to discontinue sales of our over-the-counter products.
For the three months ended October 31, 2012, we used $954,598 in cash to fund our operating activities. The use for operating activities included a net loss of $656,199, changes to working capital including a decrease of $20,769 related to deferred revenue, offset by an increase related to accounts payable and accrued expenses of $559,973 and an increase related to other current assets of $85,452,
We had cash used in financing activities in the three months ended October 31, 2012 of $809,577, which pertained primarily to the repayment of long-term debt upon sale of our office property of $1,534,577, offset by $725,000 in net proceeds from sales of convertible preferred stock in August 2012.
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Generex Biotechnology Corporation has a market cap of $14.9 million; its shares were traded at around $0.04 with and P/S ratio of 466.2.
Highlight of Business Operations:
We are a development stage company. From inception through the end of the quarter ended October 31, 2012, we have received only limited revenues from operations. We did not have any revenue for the three months ended October 31, 2012 and in the fiscal year ended July 31, 2012, we generated $28,651 in revenue. The revenue in each of the fiscal periods pertained primarily to the sale of our consumer/over-the-counter products. These numbers do not reflect deferred sales to customers during the respective periods with the right of return.During the three months ended October 31, 2012, approximately 79%, or $514,446 of our research and development expenses was attributable to Antigen's immunomedicine compared to approximately 27%, or $534,471, of our research and development expenses for the three months ended October 31, 2011. Because these products are in initial phases of clinical trials or early, pre-clinical stage of development (with the exception of the Phase II clinical trials of Antigen HER-2/neu positive breast cancer vaccine that are underway), all of the expenses were accounted for as basic research and no distinctions were made as to particular products. Due to the early stage of development, we cannot predict the timing of completion of any products arising from this technology, or when products from this technology might begin producing revenues.
We had a net loss for the quarter ended October 31, 2012 of $656,199 versus net income of $336,354 in the corresponding quarter of the prior fiscal year. The loss in this year’s fiscal quarter was caused by operating expenses of $1,940,031, which were primarily offset by income from assets held for investment of $1,042,868 and a gain due to the change in fair value of the derivative liabilities of $358,714, while in the prior year operating expenses were $3,476,447 offset by income from assets held for investment of $712,075 and a gain due to the change in fair value of the derivative liabilities of $3,128,459. Our operating loss for the quarter ended October 31, 2012 decreased to $1,940,031 compared to $3,469,778 in the same fiscal quarter of 2012. The decrease in operating loss resulted from a decrease in selling and marketing expense (to $0 from $75,661), a decrease in research and development expenses (to $653,395 from $1,979,502), and a decrease in general and administrative expenses (to $1,286,636 from $1,421,284). We did not have any revenues in the quarter ended October 31, 2012, compared to $9,931 for the quarter ended October 31, 2011, reflecting our decision to discontinue sales of our over-the-counter products.
For the three months ended October 31, 2012, we used $954,598 in cash to fund our operating activities. The use for operating activities included a net loss of $656,199, changes to working capital including a decrease of $20,769 related to deferred revenue, offset by an increase related to accounts payable and accrued expenses of $559,973 and an increase related to other current assets of $85,452,
We had cash used in financing activities in the three months ended October 31, 2012 of $809,577, which pertained primarily to the repayment of long-term debt upon sale of our office property of $1,534,577, offset by $725,000 in net proceeds from sales of convertible preferred stock in August 2012.
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