Threshold Pharmaceuticals Inc. (THLD, Financial) filed Quarterly Report for the period ended 2010-03-31.
Threshold Pharmaceuticals Inc. has a market cap of $58.1 million; its shares were traded at around $1.73 with and P/S ratio of 40.4.
Research and Development. Research and development expenses were $4.5 million for the three months ended March 31, 2010 compared to $3.5 million for the three months ended March 31, 2009. The $1.0 million increase in expenses is due primarily to a $1.0 million increase in clinical development expenses and $0.2 million increase in consulting, partially offset by a $0.2 million decrease in stock based compensation.
General and Administrative. General and administrative expenses were $1.3 million for the three months ended March 31, 2010, compared to $1.7 million for the three months ended March 31, 2009. The decrease of $0.4 million is due to a decrease in stock based compensation.
We have incurred net losses of $213.8 million since inception through March 31, 2010. We have not generated and do not expect to generate revenue from sales of product candidates in the near term. From inception until our initial public offering in February 2005, we funded our operations primarily through private placements of our preferred stock. In February 2005, we completed our initial public offering of 1,018,768 shares of common stock, raising net proceeds of $38.1 million. In October 2005, we completed a public offering of 1,066,537 shares of our common stock for net proceeds of $62.4 million. On August 29, 2008, we sold to certain investors an aggregate of 8,970,574 shares of our common stock and warrants exercisable for a total of 3,588,221 shares of our common stock raising net proceeds of $16.8 million. On October 5, 2009, we sold to certain investors an aggregate of 18,324,599 shares of our common stock and warrants exercisable for a total of 7,329,819 shares of our common stock for aggregate net proceeds of $33.1 million. We had cash, cash equivalents and marketable securities of $31.9 million and $37.3 million at March 31, 2010 and December 31, 2009, respectively, available to fund operations.
Net cash used provided by financing activities for the three months ended March 31, 2010 and 2009 was $76,000, compared to net used in financing activities for the three months ended March 31, 2009 of $0.2 million. The cash used in financing activities in the three months ended March 31, 2009 reflects the $0.2 million of repayments of notes payable.
In addition, our ability to raise additional capital may be dependent upon our stock being quoted on the NASDAQ Capital Market. Previously we had fallen out of compliance with continued listing requirements because our common stock did not comply with the $1.00 minimum bid price requirement for continued listing set forth in NASDAQ Marketplace Rule 5450(a)(1) (formerly Rule 4450(a)(5)). On August 13, 2008 our Board of Directors implemented a one for six reverse stock split, effective August 20, 2008, to regain compliance with the minimum bid price requirement. On September 5, 2008, the NASDAQ Stock Market notified us that we had regained compliance with the minimum bid price. Even though we regained compliance with the minimum bid price requirement, we cannot be assured that we will be able to maintain compliance with the minimum bid price requirement in the future, and our failure to do so could result in the delisting of our shares from the NASDAQ Capital Market. To maintain our listing on the NASDAQ Capital Market, we are also required, among other things, to either maintain stockholders equity of at least $2.5 million or a market value of at least $35 million. While we currently satisfy the stockholders equity and market value requirements, we may not continue to do so.
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Threshold Pharmaceuticals Inc. has a market cap of $58.1 million; its shares were traded at around $1.73 with and P/S ratio of 40.4.
Highlight of Business Operations:
We are a development stage company incorporated in October 2001. We have devoted substantially all of our resources to research and development of our product candidates. We have not generated any revenue from the sale of our product candidates, and prior to our initial public offering in February 2005, we funded our operations through the private placement of equity securities. In February 2005, we completed our initial public offering that raised net proceeds of $38.1 million, and in October 2005, we completed an offering of common stock that raised net proceeds of $62.4 million. In August 2008, we completed an offering of common stock and warrants that raised net proceeds of $16.8 million. In October 2009, we completed an offering of common stock and warrants that raised net proceeds of $33.1million. As of March 31, 2010 we had cash, cash equivalents and marketable securities of $31.9 million. Our net loss for the three months ended March 31, 2010 was $6.0 million and our cumulative net loss since our inception through March 31, 2010 was $213.8 million.Research and Development. Research and development expenses were $4.5 million for the three months ended March 31, 2010 compared to $3.5 million for the three months ended March 31, 2009. The $1.0 million increase in expenses is due primarily to a $1.0 million increase in clinical development expenses and $0.2 million increase in consulting, partially offset by a $0.2 million decrease in stock based compensation.
General and Administrative. General and administrative expenses were $1.3 million for the three months ended March 31, 2010, compared to $1.7 million for the three months ended March 31, 2009. The decrease of $0.4 million is due to a decrease in stock based compensation.
We have incurred net losses of $213.8 million since inception through March 31, 2010. We have not generated and do not expect to generate revenue from sales of product candidates in the near term. From inception until our initial public offering in February 2005, we funded our operations primarily through private placements of our preferred stock. In February 2005, we completed our initial public offering of 1,018,768 shares of common stock, raising net proceeds of $38.1 million. In October 2005, we completed a public offering of 1,066,537 shares of our common stock for net proceeds of $62.4 million. On August 29, 2008, we sold to certain investors an aggregate of 8,970,574 shares of our common stock and warrants exercisable for a total of 3,588,221 shares of our common stock raising net proceeds of $16.8 million. On October 5, 2009, we sold to certain investors an aggregate of 18,324,599 shares of our common stock and warrants exercisable for a total of 7,329,819 shares of our common stock for aggregate net proceeds of $33.1 million. We had cash, cash equivalents and marketable securities of $31.9 million and $37.3 million at March 31, 2010 and December 31, 2009, respectively, available to fund operations.
Net cash used provided by financing activities for the three months ended March 31, 2010 and 2009 was $76,000, compared to net used in financing activities for the three months ended March 31, 2009 of $0.2 million. The cash used in financing activities in the three months ended March 31, 2009 reflects the $0.2 million of repayments of notes payable.
In addition, our ability to raise additional capital may be dependent upon our stock being quoted on the NASDAQ Capital Market. Previously we had fallen out of compliance with continued listing requirements because our common stock did not comply with the $1.00 minimum bid price requirement for continued listing set forth in NASDAQ Marketplace Rule 5450(a)(1) (formerly Rule 4450(a)(5)). On August 13, 2008 our Board of Directors implemented a one for six reverse stock split, effective August 20, 2008, to regain compliance with the minimum bid price requirement. On September 5, 2008, the NASDAQ Stock Market notified us that we had regained compliance with the minimum bid price. Even though we regained compliance with the minimum bid price requirement, we cannot be assured that we will be able to maintain compliance with the minimum bid price requirement in the future, and our failure to do so could result in the delisting of our shares from the NASDAQ Capital Market. To maintain our listing on the NASDAQ Capital Market, we are also required, among other things, to either maintain stockholders equity of at least $2.5 million or a market value of at least $35 million. While we currently satisfy the stockholders equity and market value requirements, we may not continue to do so.
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