Neuralstem Inc. Reports Operating Results (10-Q)
Neuralstem Inc. has a market cap of $110.41 million; its shares were traded at around $3.17 with and P/S ratio of 360.81.
Highlight of Business Operations:For the first quarter of 2010, the Company reported a net loss of $6,766,961, or $0.18 per share, compared to a net income of $905,678, or $0.03 per share, for the comparable 2009 period. The gain in 2009 was caused by a non-cash entry related to a change in the way we account for certain warrants offset in part by reductions in most other expense categories. The increase in net loss from year to year was due to gain in our warrant accounting for the first quarter in 2009 versus losses in the first quarter 2010, increases in non cash stock-based compensation expense, and increases in R&D and legal fees.
Research and development expenses totaled $1,899,963 and $1,434,010 for the three months ended March 31, 2010 and 2009, respectively. The increase of $465,953 or 33% for the three months ended March 31, 2010 compared to the comparable period in 2009 was primarily attributable to costs associated with the initiation of our clinical trials in January of 2010.
G&A expenses totaled $1,687,835 and $1,457,238 for the three months ended March 31, 2010 and 2009, respectively. The increase of $230,597 or 16% for the three months ended March 31, 2010 compared to the comparable period in 2009, was primarily attributable to increased legal expenses.
Depreciation and amortization expenses totaled $29,063 and $20,796 for the three months ended March 31, 2010 and 2009, respectively. The increase of $8,267 or 40% for the three months ended March 31, 2010 compared to the comparable period in 2009 was primarily attributable to fixed asset and patent filing fee additions over the quarter.
On January 1, 2009 we reclassified the fair value of common stock purchase warrants, which have exercise price reset and anti-liquidation features, from equity to liability status as if these warrants were treated as a derivative liability since their date of issue. We established a long-term warrant liability of $6.6 million to recognize the fair value of such warrants. In the three months ended March 30, 2009, the fair value of these common stock purchase warrants decreased because of a decrease in the stock price, resulting in a gain for the quarter. In the first quarter of 2010, ended March 31, 2010, the Company converted, redeemed or modified more than 70% of the warrants outstanding at the beginning of the year which had price protection features. These changes removed the price protection features. These changes reduced the Company s derivative liability from $6,462,039 at December 31, 2009 to $1,497,863 at March 31, 2010. An increase in stock price resulted in an expense for the period of $1,248,452 on the remaining outstanding warrants.
Total cash and cash equivalents was $7,515,269 and $3,567,108 on March 31, 2010 and 2009 respectively. The increase in our cash and cash equivalents of $3,948,161 or 111% for the three months ended March 31, 2010 compared to the same period in 2009 was primarily attributable to the exercise of outstanding warrants.
Read the The complete Report