BioDelivery Sciences International Inc. Reports Operating Results (10-Q)
Biodelivery Sciences International Inc. has a market cap of $66.94 million; its shares were traded at around $3.16 with and P/S ratio of 1.07.
Highlight of Business Operations: General and Administrative Expenses, net. During the three months ended March 31, 2010 and 2009, general and administrative expenses totaled $2.2 million and $1.5 million, respectively. General and administrative costs include legal and professional fees, office supplies, travel costs, compensation costs, consulting fees and business development costs. During the three months ended March 31, 2010, we recorded a gain on settlement for a warrant from a related party which totaled approximately $0.4 million (See Note 8 to the accompanying financial statements). This is included in general and administrative, related party.
Interest Income. During the three months ended March 31, 2010 and 2009 we had interest income of $0.004 million and $0.02 million, respectively.
At March 31, 2010, we had cash and cash equivalents of approximately $17.1 million. We used $4.3 million of cash from operations during the three months ended March 31, 2010. After giving effect to the above referenced offering, we had cash and cash equivalents of approximately $27.1 million.
As of March 31, 2010, we had stockholders equity of $14.8 million, versus $14.5 million at December 31, 2009. After giving effect to the above referenced offering, our stockholders equity was approximately $21.7 million.
We amortize intangibles with limited useful lives based on their expected useful lives and look to a number of factors for such estimations, including the longevity of our license agreements or the underlying patents. Our carrying value of other amortizing intangible assets at March 31, 2010 was $6.9 million, net of accumulated amortization of $2.4 million. We begin amortizing capitalized intangibles on their date of acquisition.
Our cash and cash equivalents consist entirely of highly liquid investments with an original maturity of three months or less. Because of the short-term maturities of our cash and cash equivalents, we do not believe that an increase in market rates would have a significant impact on the realized value of our investments. We place our cash and cash equivalents with financial institutions in the United States. In October and November 2008 the Federal Deposit Insurance Corporation (FDIC) temporarily increased coverage to $250,000 for substantially all depository accounts and temporarily provides unlimited coverage (through June 30, 2010) for certain qualifying and participating non-interest bearing transaction accounts. The increased coverage for depository accounts is scheduled to expire on December 31, 2013, at which time it is anticipated that amounts insured by the FDIC will return to $100,000. As of March 31, 2010 the Company had approximately $16 million that exceeds current FDIC insured limits.
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