Orthologic Corp. (CAPS, Financial) filed Quarterly Report for the period ended 2009-09-30.
OrthoLogic developsmanufactures and markets proprietarytechnologically advanced orthopedic products and packaged services for the orthopedic health care market including bone growth stimulation devicescontinuous passive motion devices and ancillary orthopedic recovery products and a therapeutic injectable for relief of pain from osteoarthritis of the knee. The compaany's products are designed to enhance the healing of diseaseddamageddegenerated or recently repaired musculoskeletal tissue. Orthologic Corp. has a market cap of $30.97 million; its shares were traded at around $0.7596 .
Net Loss: We incurred a net loss in the third quarter of 2009 of $3.3 million compared to a net loss of $3.1 million in the third quarter of 2008. The $0.2 million increase in the net loss for the three months ended September 30, 2009 compared to the same period in 2008 resulted primarily from reduced interest income, due to the decrease in interest rates earned on investments between the two periods and reduction in the amount available for investment. The impact of the decrease in interest income was partially offset by the previously described G&A cost reduction.
General and Administrative (“G&A”) Expenses: G&A expenses related to our ongoing development operations were $2,172,000 in the nine months ended September 30, 2009 compared to $2,378,000 in the same period in 2008. Our administrative expenses during the nine months ended September 30, 2009 reflect a comparable level of administrative activity to the same period of 2008. The nine months ended September 30, 2009 were favorably impacted by reduced costs related to the decision by the Securities and Exchange Commission to defer, for one more year, the requirement for the Company to have its independent registered public accountant give an opinion on the Company s internal control over financial reporting, as well as the previously announced staff reduction.
Research and Development Expenses: Research and development expenses were $9,030,000 for the nine months ended September 30, 2009, compared to $7,845,000 for the same period in 2008. Our research and development expenses increased $1,185,000 in the nine months ended September 30, 2009 compared to the same period in 2008 primarily due to an increase in AZX100 clinical trial activity and a $600,000 purchase of peptide for pre-clinical studies. Given the overlapping nature of our research efforts it is not possible to clearly separate research expenditures between Chrysalin and AZX100; however, the majority of our research and development expenses in 2009 and 2008 were directed toward AZX100 development efforts.
Net Loss: We incurred a net loss in the nine months ended September 30, 2009 of $10.6 million compared to a net loss of $8.6 million in the same period in 2008. The $2.0 million increase in the net loss for the nine months ended September 30, 2009 compared to the same period in 2008 resulted primarily from an increase in AZX100 clinical trial activity, purchases of peptide for pre-clinical studies, and reduced interest income, due to the decrease in interest rates earned on investments between the two periods and reduction in the amount available for investment.
We historically financed our operations through operating cash flows and the public and private sales of equity securities. However, with the sale of our Bone Device Business in November 2003, we sold all of our revenue producing operations. We received approximately $93.0 million in cash from the sale of our Bone Device Business. On December 1, 2005, we received the additional $7.2 million, including interest, from the escrow balance related to the sale of the Bone Device Business. On February 27, 2006, we entered into an agreement with Quintiles (see Note 15 in our Annual Report on Form 10-K for the year ended December 31, 2007), which provided an investment by Quintiles in our common stock, of which $2,000,000 was received on February 27, 2006 and $1,500,000 was received on July 3, 2006. We also received net proceeds of $4,612,000 from the exercise of stock options during our development stage period. As of September 30, 2009, we had cash and cash equivalents of $15 million and short-term investments of $23.6 million.
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OrthoLogic developsmanufactures and markets proprietarytechnologically advanced orthopedic products and packaged services for the orthopedic health care market including bone growth stimulation devicescontinuous passive motion devices and ancillary orthopedic recovery products and a therapeutic injectable for relief of pain from osteoarthritis of the knee. The compaany's products are designed to enhance the healing of diseaseddamageddegenerated or recently repaired musculoskeletal tissue. Orthologic Corp. has a market cap of $30.97 million; its shares were traded at around $0.7596 .
Highlight of Business Operations:
General and Administrative (“G&A”) Expenses: G&A expenses related to our ongoing development operations were $604,000 in the third quarter of 2009 compared to $815,000 in the third quarter of 2008. Our administrative expenses during the third quarter of 2009 reflect a comparable level of administrative activity to the same period in 2008. The third quarter of 2009 was favorably impacted by reduced costs related to the decision by the Securities and Exchange Commission to defer, for one more year, the requirement for the Company to have its independent registered public accountant give an opinion on the Company s internal control over financial reporting, as well as the previously announced staff reduction.Net Loss: We incurred a net loss in the third quarter of 2009 of $3.3 million compared to a net loss of $3.1 million in the third quarter of 2008. The $0.2 million increase in the net loss for the three months ended September 30, 2009 compared to the same period in 2008 resulted primarily from reduced interest income, due to the decrease in interest rates earned on investments between the two periods and reduction in the amount available for investment. The impact of the decrease in interest income was partially offset by the previously described G&A cost reduction.
General and Administrative (“G&A”) Expenses: G&A expenses related to our ongoing development operations were $2,172,000 in the nine months ended September 30, 2009 compared to $2,378,000 in the same period in 2008. Our administrative expenses during the nine months ended September 30, 2009 reflect a comparable level of administrative activity to the same period of 2008. The nine months ended September 30, 2009 were favorably impacted by reduced costs related to the decision by the Securities and Exchange Commission to defer, for one more year, the requirement for the Company to have its independent registered public accountant give an opinion on the Company s internal control over financial reporting, as well as the previously announced staff reduction.
Research and Development Expenses: Research and development expenses were $9,030,000 for the nine months ended September 30, 2009, compared to $7,845,000 for the same period in 2008. Our research and development expenses increased $1,185,000 in the nine months ended September 30, 2009 compared to the same period in 2008 primarily due to an increase in AZX100 clinical trial activity and a $600,000 purchase of peptide for pre-clinical studies. Given the overlapping nature of our research efforts it is not possible to clearly separate research expenditures between Chrysalin and AZX100; however, the majority of our research and development expenses in 2009 and 2008 were directed toward AZX100 development efforts.
Net Loss: We incurred a net loss in the nine months ended September 30, 2009 of $10.6 million compared to a net loss of $8.6 million in the same period in 2008. The $2.0 million increase in the net loss for the nine months ended September 30, 2009 compared to the same period in 2008 resulted primarily from an increase in AZX100 clinical trial activity, purchases of peptide for pre-clinical studies, and reduced interest income, due to the decrease in interest rates earned on investments between the two periods and reduction in the amount available for investment.
We historically financed our operations through operating cash flows and the public and private sales of equity securities. However, with the sale of our Bone Device Business in November 2003, we sold all of our revenue producing operations. We received approximately $93.0 million in cash from the sale of our Bone Device Business. On December 1, 2005, we received the additional $7.2 million, including interest, from the escrow balance related to the sale of the Bone Device Business. On February 27, 2006, we entered into an agreement with Quintiles (see Note 15 in our Annual Report on Form 10-K for the year ended December 31, 2007), which provided an investment by Quintiles in our common stock, of which $2,000,000 was received on February 27, 2006 and $1,500,000 was received on July 3, 2006. We also received net proceeds of $4,612,000 from the exercise of stock options during our development stage period. As of September 30, 2009, we had cash and cash equivalents of $15 million and short-term investments of $23.6 million.
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