Electrooptical Sciences Inc has a market cap of $143.76 million; its shares were traded at around $6.25 .
Highlight of Business Operations:On June 26, 2008, the Company filed a Form S-3 shelf registration statement for an indeterminate number of shares of common stock, warrants to purchase shares of common stock and units consisting of a combination thereof having an aggregate initial offering price not to exceed $40 million. Management utilized this shelf registration statement in August 2008 by completing a registered direct offering of 2,088,451 shares of the Companys common stock for aggregate gross proceeds of approximately $11.9 million ($11 million approximate net proceeds to the Company), and in July 2009 by completing a registered direct offering of 2,400,000 shares of the Companys common stock for aggregate gross proceeds of $15 million ($13.75 million approximate net proceeds to the Company). Approximately $13.1 million remains available under the Companys shelf registration statement as of March 31, 2010.
In May 2009, the Company entered into a committed equity financing facility (CEFF) with Kingsbridge Capital Limited, pursuant to which Kingsbridge committed to purchase from time to time at the Companys sole discretion, up to the lesser of $45 million or 3,327,000 shares of the Companys common stock, prior to May 7, 2012 subject to various conditions for individual sales, including dollar, timing, and trading volume limitations, a minimum market per share price, and other contractual and regulatory requirements. There is no assurance that the Company will satisfy all the various conditions for individual sales enabling it to use all of the CEFF. In connection with this CEFF, the Company issued a 5 year warrant, exercisable as of November 7, 2009, to Kingsbridge to purchase up to 200,000 shares of the Companys common stock at an exercise price of $11.35 per share with a Black Scholes Fair Value of $678. The issuance of this warrant was deemed to be a cost of the offering.
Under the CEFF, during 2009, the Company sold 1,824,941 shares of common stock to Kingsbridge Capital Limited, at an average per share price of approximately $9.24, for gross proceeds of approximately $16.9 million. Under the CEFF, during the three month period ended March 31, 2010, the Company sold 406,744 shares of common stock to Kingsbridge Capital Limited, at an average per share price of approximately $9.22, for gross proceeds of approximately $3.75 million. A proportionate share of the CEFF originating expenses was allocated to these sales from deferred offering costs. Net of expenses, proceeds from these sales were approximately $16.8 million and $3.727 million for 2009 and 2010, respectively.
General and Administrative (G&A) expenses experienced an overall increase of $744 or 49% for the three months ended March 31, 2010 above the comparable period a year earlier. Within G&A, marketing costs represented $365 of the total increase. Significant to the increase in marketing costs was the addition of sales management and administrative personnel ($99), contracting of marketing consulting expertise ($179), and production of a physician educational seminar ($88).
The Information Technology function added two employees in 2010 over 2009 related to implementing significant upgrades in the IT processing capabilities of the Company through the acquisition of computer infrastructure. Increases in information technology costs include compensation costs ($69), computer supplies and maintenance costs ($56), and training costs ($29).
Other year-to-year increases in general and administrative costs for the three months ended March 31, 2010 include depreciation/amortization ($40) associated with the new location build out and computer infrastructure acquisitions, legal fees ($30), office supplies ($56), Board of Directors fees ($19), taxes and stock fees ($37), and share based compensation ($42).
Read the The complete Report