ISTA Pharmaceuticals Inc. (ISTA, Financial) filed Quarterly Report for the period ended 2009-06-30.
Ista Pharmaceuticals discovers and develops new remedies for diseases and conditions of the eye. The company\'s product development efforts involve mixtures of a natural enzyme called hyaluronidase. The company targets serious conditions of the eye such as vitreous hemorrhage diabetic retinopathy corneal opacification and keratoconus. Each of these conditions affects a significant number of patients and has limited treatment options. ISTA Pharmaceuticals Inc. has a market cap of $166.1 million; its shares were traded at around $5 with and P/S ratio of 1.9.
Interest expense. Interest expense was $1.8 million for the three months ended June 30, 2009, as compared to $1.9 million for the three months ended June 30, 2008. Interest expense included interest on our borrowings under our Revolving Credit Facility, interest on our Facility Agreement, amortization of deferred financing costs, amortization of the discount on the Facility Agreement and the change in the value of a derivative associated with the Facility Agreement. Included in the three months ended June 30, 2008 is the impact of the adoption of FASB Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments That May be Settled in Cash upon Conversion (Including Partial Cash Settlement), or FSP APB 14-1. The adoption of FSP APB 14-1 required retrospective application as if FSB APB 14-1 had been in effect in prior periods. This retrospective application required us to record additional non-cash interest expense of $0.9 million, or $0.02 per share, in our financial results for the three months ended June 30, 2008. This additional non-cash interest expense represents the amortization of a debt discount recorded against our principal debt obligation on our balance sheet as required under FSB APB 14-1. Because our convertible debt was repaid in September 2008, there was no impact to our second quarter ended June 30, 2009.
Selling, general and administrative expenses. Selling, general and administrative expenses were $25.7 million for the six months ended June 30, 2009, as compared to $27.0 million for the six months ended June 30, 2008. The $1.3 million decrease primarily results from an overall improvement in expense management and a decrease of $0.2 million in stock-based compensation costs. Stock-based compensation costs included in selling, general and administrative expenses were $1.3 million for the six months ended June 30, 2009, as compared to $1.5 million for the six months period ended June 30, 2008.
For the six months ended June 30, 2009, we used $3.4 million of cash for operations principally as a result of our net loss of $56.3 million after non-cash charges of $50.4 million, offset by the net change in operating assets and liabilities of $2.5 million. Non-cash charges primarily include $47.3 million in loss on warrant valuation, $1.9 million in stock-based compensation costs, $1.1 million in amortization of discount on the Facility Agreement, $0.5 million in depreciation and amortization and $0.4 million in amortization of deferred financing costs, offset by non-cash credit of $0.8 million for the change in value of the derivative associated with the Facility Agreement.
For the six months ended June 30, 2008, we used $22.8 million of cash for operations principally as a result of the net loss of $23.2 million after non-cash charges of $4.6 million and the net change in operating assets and liabilities of ($ 4.2 million). Non-cash charges primarily include $2.0 million in stock-based compensation costs, $1.9 million in amortization of discount on the convertible notes, $0.5 million in depreciation and amortization and $0.2 million in amortization of deferred financing costs.
For the six months ended June 30, 2009, we used $2.1 million of cash in financing activities, primarily as a result of net repayments on our Revolving Credit Facility ($2.0 million). For the six months ended June 30, 2008, we received $2.5 million from financing activities, primarily as a result of net proceeds from our Revolving Credit Facility ($2.5 million).
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Ista Pharmaceuticals discovers and develops new remedies for diseases and conditions of the eye. The company\'s product development efforts involve mixtures of a natural enzyme called hyaluronidase. The company targets serious conditions of the eye such as vitreous hemorrhage diabetic retinopathy corneal opacification and keratoconus. Each of these conditions affects a significant number of patients and has limited treatment options. ISTA Pharmaceuticals Inc. has a market cap of $166.1 million; its shares were traded at around $5 with and P/S ratio of 1.9.
Highlight of Business Operations:
Selling, general and administrative expenses. Selling, general and administrative expenses were $12.7 million for the three months ended June 30, 2009, as compared to $13.3 million for the three months ended June 30, 2008. The $0.6 million decrease in selling, general and administrative expenses primarily results from an overall improvement in expense management and a decrease of $0.2 million in stock-based compensation costs. Stock-based compensation costs included in selling, general and administrative expenses were $0.6 million for the three months ended June 30, 2009, as compared to $0.8 million for the three months period ended June 30, 2008.Interest expense. Interest expense was $1.8 million for the three months ended June 30, 2009, as compared to $1.9 million for the three months ended June 30, 2008. Interest expense included interest on our borrowings under our Revolving Credit Facility, interest on our Facility Agreement, amortization of deferred financing costs, amortization of the discount on the Facility Agreement and the change in the value of a derivative associated with the Facility Agreement. Included in the three months ended June 30, 2008 is the impact of the adoption of FASB Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments That May be Settled in Cash upon Conversion (Including Partial Cash Settlement), or FSP APB 14-1. The adoption of FSP APB 14-1 required retrospective application as if FSB APB 14-1 had been in effect in prior periods. This retrospective application required us to record additional non-cash interest expense of $0.9 million, or $0.02 per share, in our financial results for the three months ended June 30, 2008. This additional non-cash interest expense represents the amortization of a debt discount recorded against our principal debt obligation on our balance sheet as required under FSB APB 14-1. Because our convertible debt was repaid in September 2008, there was no impact to our second quarter ended June 30, 2009.
Selling, general and administrative expenses. Selling, general and administrative expenses were $25.7 million for the six months ended June 30, 2009, as compared to $27.0 million for the six months ended June 30, 2008. The $1.3 million decrease primarily results from an overall improvement in expense management and a decrease of $0.2 million in stock-based compensation costs. Stock-based compensation costs included in selling, general and administrative expenses were $1.3 million for the six months ended June 30, 2009, as compared to $1.5 million for the six months period ended June 30, 2008.
For the six months ended June 30, 2009, we used $3.4 million of cash for operations principally as a result of our net loss of $56.3 million after non-cash charges of $50.4 million, offset by the net change in operating assets and liabilities of $2.5 million. Non-cash charges primarily include $47.3 million in loss on warrant valuation, $1.9 million in stock-based compensation costs, $1.1 million in amortization of discount on the Facility Agreement, $0.5 million in depreciation and amortization and $0.4 million in amortization of deferred financing costs, offset by non-cash credit of $0.8 million for the change in value of the derivative associated with the Facility Agreement.
For the six months ended June 30, 2008, we used $22.8 million of cash for operations principally as a result of the net loss of $23.2 million after non-cash charges of $4.6 million and the net change in operating assets and liabilities of ($ 4.2 million). Non-cash charges primarily include $2.0 million in stock-based compensation costs, $1.9 million in amortization of discount on the convertible notes, $0.5 million in depreciation and amortization and $0.2 million in amortization of deferred financing costs.
For the six months ended June 30, 2009, we used $2.1 million of cash in financing activities, primarily as a result of net repayments on our Revolving Credit Facility ($2.0 million). For the six months ended June 30, 2008, we received $2.5 million from financing activities, primarily as a result of net proceeds from our Revolving Credit Facility ($2.5 million).
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