La Jolla Pharmaceutical Company (LJPC, Financial) filed Quarterly Report for the period ended 2010-09-30.
La Jolla Pharmaceutical Company has a market cap of $3.12 million; its shares were traded at around $0 with and P/S ratio of 0.38.
For the three months ended September 30, 2010, we incurred minimal research and development expense compared to a credit of $0.2 million for the same period in 2009. This credit was a result of negotiated settlements related to accounts payable obligations and accrued liabilities with our vendors that were less than the amounts originally invoiced and accrued. For the nine months ended September 30, 2010, research and development expense was similarly minimal compared to $9.6 million for the same period in 2009, as a result of the discontinuation of the Riquent Phase 3 ASPEN study which had been actively in process during part of that period.
For the three and nine months ended September 30, 2010, general and administrative expense decreased to $0.7 million and $3.4 million, respectively, from $1.0 million and $5.6 million, respectively, for the same periods in 2009. The decrease for the three months ended September 30, 2010 is primarily due to a $0.2 million decrease in stock compensation expense as a result of the completion in February 2010 of the amortization of certain stock options granted to our CEO during March 2006. The remaining amount of the decrease is due to reductions in the cost of director and officer insurance in 2010. The decrease for the nine months ended September 30, 2010 is primarily due to a $1.5 million decrease in stock compensation and salaries expense as a result of the termination of a majority of our workforce in April 2009. The remainder of the decrease is due to decreases in consulting and legal expenses, which were higher during the nine months ended September 30, 2009 as a result of our restructuring activities, as well as decreases in insurance expense.
Non-operating income as a result of adjustments to the estimated fair value of derivative liabilities for the three and nine months ended September 30, 2010 was $0.5 million and $3.5 million, respectively. The derivative liabilities issued in the May 2010 financing were remeasured at their estimated fair value as of September 30, 2010 resulting in net decreases in value from their issuance and from June 30, 2010, based upon changes in the price per share of common stock and other inputs to the valuation models used to estimate the liabilities, of $0.5 million and $3.5 million which were recorded as non-operating income for the three and nine months ended September 30, 2010, respectively.
From inception through September 30, 2010, we have incurred a cumulative net loss of approximately $429.4 million and have financed our operations through public and private offerings of securities, revenues from collaborative agreements, equipment financings and interest income on invested cash balances. From inception through September 30, 2010, we have raised approximately $417.0 million in net proceeds from sales of equity securities.
At September 30, 2010, we had $7.3 million in cash, of which up to $5.4 million could be required to be paid upon the triggering of a redemption right under our outstanding preferred securities including accrued dividends, as compared to $4.3 million of cash at December 31, 2009. Our working capital at September 30, 2010 was a deficit of $0.7 million compared to $4.2 million at December 31, 2009 and is largely driven by our derivative liability obligations which will likely change in value. These changes in value could be significant, based on changes in the inputs to the valuation models used to derive them. The increase in cash resulting from the net proceeds of $6.0 million received in the May 2010 financing was offset by the use of our financial resources to fund our general corporate operations.
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La Jolla Pharmaceutical Company has a market cap of $3.12 million; its shares were traded at around $0 with and P/S ratio of 0.38.
Highlight of Business Operations:
In May 2010, we sold approximately 29.0 million shares of common stock and 5,134 shares of redeemable convertible preferred stock, for aggregate gross proceeds of approximately $6.0 million in a private placement. The investors also received a three-year warrant to purchase, for cash, an additional 10,268 shares of convertible preferred stock for an aggregate exercise price of approximately $10.3 million. The investors will be required to exercise the warrants and purchase the additional shares of convertible preferred stock in the event that the Company consummates a Strategic Transaction (as defined in the Certificate of Designations) approved by the investors.For the three months ended September 30, 2010, we incurred minimal research and development expense compared to a credit of $0.2 million for the same period in 2009. This credit was a result of negotiated settlements related to accounts payable obligations and accrued liabilities with our vendors that were less than the amounts originally invoiced and accrued. For the nine months ended September 30, 2010, research and development expense was similarly minimal compared to $9.6 million for the same period in 2009, as a result of the discontinuation of the Riquent Phase 3 ASPEN study which had been actively in process during part of that period.
For the three and nine months ended September 30, 2010, general and administrative expense decreased to $0.7 million and $3.4 million, respectively, from $1.0 million and $5.6 million, respectively, for the same periods in 2009. The decrease for the three months ended September 30, 2010 is primarily due to a $0.2 million decrease in stock compensation expense as a result of the completion in February 2010 of the amortization of certain stock options granted to our CEO during March 2006. The remaining amount of the decrease is due to reductions in the cost of director and officer insurance in 2010. The decrease for the nine months ended September 30, 2010 is primarily due to a $1.5 million decrease in stock compensation and salaries expense as a result of the termination of a majority of our workforce in April 2009. The remainder of the decrease is due to decreases in consulting and legal expenses, which were higher during the nine months ended September 30, 2009 as a result of our restructuring activities, as well as decreases in insurance expense.
Non-operating income as a result of adjustments to the estimated fair value of derivative liabilities for the three and nine months ended September 30, 2010 was $0.5 million and $3.5 million, respectively. The derivative liabilities issued in the May 2010 financing were remeasured at their estimated fair value as of September 30, 2010 resulting in net decreases in value from their issuance and from June 30, 2010, based upon changes in the price per share of common stock and other inputs to the valuation models used to estimate the liabilities, of $0.5 million and $3.5 million which were recorded as non-operating income for the three and nine months ended September 30, 2010, respectively.
From inception through September 30, 2010, we have incurred a cumulative net loss of approximately $429.4 million and have financed our operations through public and private offerings of securities, revenues from collaborative agreements, equipment financings and interest income on invested cash balances. From inception through September 30, 2010, we have raised approximately $417.0 million in net proceeds from sales of equity securities.
At September 30, 2010, we had $7.3 million in cash, of which up to $5.4 million could be required to be paid upon the triggering of a redemption right under our outstanding preferred securities including accrued dividends, as compared to $4.3 million of cash at December 31, 2009. Our working capital at September 30, 2010 was a deficit of $0.7 million compared to $4.2 million at December 31, 2009 and is largely driven by our derivative liability obligations which will likely change in value. These changes in value could be significant, based on changes in the inputs to the valuation models used to derive them. The increase in cash resulting from the net proceeds of $6.0 million received in the May 2010 financing was offset by the use of our financial resources to fund our general corporate operations.
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