MathStar Inc. New (MATHD, Financial) filed Quarterly Report for the period ended 2009-09-30.
MathStar designs develops and markets a new class of semiconductor integrated circuit or chip it calls field programmable object arrays or FPOAs. The company's headquater is in Minnetonka Minnesota with a facility in Portland Oregon. Mathstar Inc. New has a market cap of $15.24 million; its shares were traded at around $1.52 .
Cost of Sales. There was no cost of sales for the nine months ended September 30, 2009. For the nine months ended September 30, 2008, the cost of sales was $1,195,000. Cost of sales for the nine months ended September 30, 2008 included product costs of $36,000, a non-cash charge of $776,000 for excess and obsolete inventory, scrap costs associated with tool licenses and raw material write-offs of $363,000, and other costs of $20,000.
Research and Development. For the nine months ended September 30, 2009, all research and development activities were curtailed and no expenses were incurred. For the nine months ended September 30, 2008, research and development costs were $7,259,000. The $7,259,000 included employee related expenses of $2,863,000, consulting and contractor expense of $1,550,000, development tool expense of $614,000, charges for application IP development of $515,000 because technological feasibility had not been established on the development projects, external development costs associated with the completion of the next generation FPOA of $1,456,000, and other costs of $261,000.
Selling, General and Administrative. For the nine months ended September 30, 2009, selling, general and administrative expenses were $1,738,000 compared to $4,228,000 for the nine months ended September 30, 2008. The $1,738,000 in expenses for the nine months ended September 30, 2009 included employee related expenses of $252,000, outside services and professional fees of $683,000, facility charges of $240,000, insurance of $85,000, other operating expenses of $48,000, and payment related to investment banking activities of $430,000. The $4,228,000 in expenses for the nine months ended September 30, 2008 included employee related expenses of $2,353,000, outside services and professional fees of $834,000, marketing and advertising of $110,000, travel expenses of $237,000, facility charges and depreciation of $288,000, insurance of $116,000, expenses related to evaluating strategic alternatives of $73,000 and other operating expenses of $217,000. Our selling, general and administrative infrastructure is reduced to key individuals necessary to sustain the corporate structure and activities and plan our strategic direction. Should we choose to increase operations, there will be significant one-time and recurring expenses required to grow our organizational infrastructure.
Net cash used in operating activities was $1,376,000 and $13,590,000 for the nine months ended September 30, 2009 and 2008, respectively. Net cash used for operating activities for the nine months ended September 30, 2009 was to pay outstanding liabilities and ongoing expenses of the company of $1,103,000 and $273,000 in fees and expenses used in evaluating strategic alternatives. Net cash used for operating activities for the nine months ended September 30, 2008 was to fund the completion of the design of our next generation of FPOA chip, pay our selling, general and administrative costs, pay severance payments to employees whose employment was terminated, and fund contract termination expenses of $13,517,000 and $73,000 in fees and expenses related to evaluating strategic alternatives.
Net cash provided by investing activities was $2,527,000 and $16,082,000 for the nine months ended September 30, 2009 and 2008, respectively. Net cash provided by investing activities for the nine months ended September 30, 2009 was from the proceeds from the sale of investments. Net cash provided by investing activities for the nine months ended September 30, 2008 was from the proceeds from the sale of investments of $16,002,000, the release of $107,000 of restricted cash that was on deposit to secure company credit cards, $23,000 from the sale of equipment, and $50,000 used to purchase capital equipment.
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MathStar designs develops and markets a new class of semiconductor integrated circuit or chip it calls field programmable object arrays or FPOAs. The company's headquater is in Minnetonka Minnesota with a facility in Portland Oregon. Mathstar Inc. New has a market cap of $15.24 million; its shares were traded at around $1.52 .
Highlight of Business Operations:
Selling, General and Administrative. For the three months ended September 30, 2009, selling, general and administrative expenses were $742,000 compared to $666,000 for the three months ended September 30, 2008. The $742,000 consisted of personnel expenses of $15,000, outside services, legal and accounting fees of $364,000, facility costs of $80,000, insurance costs of $29,000, and payments to investment bankers and consultants associated with the sale of the IP and strategic opportunities of $254,000. The $666,000 of expenses for the three months ended September 30, 2008 included personnel costs of $193,000, outside services and contractors of $202,000, insurance costs of $39,000, depreciation expense of $44,000, building rent and facility costs of $95,000, expenses related to evaluation of strategic directions of $73,000 and other costs of $20,000. Excluding expenses associated with investigating strategic alternatives and IP sales, we believe our expenses are at the lowest sustainable level possible while still meeting the requirements of a public company. Any changes in this level will depend on the strategic direction of the Company chosen by our Board of Directors and the timing for executing the plan.Cost of Sales. There was no cost of sales for the nine months ended September 30, 2009. For the nine months ended September 30, 2008, the cost of sales was $1,195,000. Cost of sales for the nine months ended September 30, 2008 included product costs of $36,000, a non-cash charge of $776,000 for excess and obsolete inventory, scrap costs associated with tool licenses and raw material write-offs of $363,000, and other costs of $20,000.
Research and Development. For the nine months ended September 30, 2009, all research and development activities were curtailed and no expenses were incurred. For the nine months ended September 30, 2008, research and development costs were $7,259,000. The $7,259,000 included employee related expenses of $2,863,000, consulting and contractor expense of $1,550,000, development tool expense of $614,000, charges for application IP development of $515,000 because technological feasibility had not been established on the development projects, external development costs associated with the completion of the next generation FPOA of $1,456,000, and other costs of $261,000.
Selling, General and Administrative. For the nine months ended September 30, 2009, selling, general and administrative expenses were $1,738,000 compared to $4,228,000 for the nine months ended September 30, 2008. The $1,738,000 in expenses for the nine months ended September 30, 2009 included employee related expenses of $252,000, outside services and professional fees of $683,000, facility charges of $240,000, insurance of $85,000, other operating expenses of $48,000, and payment related to investment banking activities of $430,000. The $4,228,000 in expenses for the nine months ended September 30, 2008 included employee related expenses of $2,353,000, outside services and professional fees of $834,000, marketing and advertising of $110,000, travel expenses of $237,000, facility charges and depreciation of $288,000, insurance of $116,000, expenses related to evaluating strategic alternatives of $73,000 and other operating expenses of $217,000. Our selling, general and administrative infrastructure is reduced to key individuals necessary to sustain the corporate structure and activities and plan our strategic direction. Should we choose to increase operations, there will be significant one-time and recurring expenses required to grow our organizational infrastructure.
Net cash used in operating activities was $1,376,000 and $13,590,000 for the nine months ended September 30, 2009 and 2008, respectively. Net cash used for operating activities for the nine months ended September 30, 2009 was to pay outstanding liabilities and ongoing expenses of the company of $1,103,000 and $273,000 in fees and expenses used in evaluating strategic alternatives. Net cash used for operating activities for the nine months ended September 30, 2008 was to fund the completion of the design of our next generation of FPOA chip, pay our selling, general and administrative costs, pay severance payments to employees whose employment was terminated, and fund contract termination expenses of $13,517,000 and $73,000 in fees and expenses related to evaluating strategic alternatives.
Net cash provided by investing activities was $2,527,000 and $16,082,000 for the nine months ended September 30, 2009 and 2008, respectively. Net cash provided by investing activities for the nine months ended September 30, 2009 was from the proceeds from the sale of investments. Net cash provided by investing activities for the nine months ended September 30, 2008 was from the proceeds from the sale of investments of $16,002,000, the release of $107,000 of restricted cash that was on deposit to secure company credit cards, $23,000 from the sale of equipment, and $50,000 used to purchase capital equipment.
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