Hemispherx Biopharma Inc (HEB, Financial) filed Quarterly Report for the period ended 2009-03-31.
Hemispherx Biopharma Inc. is a biopharmaceutical company engaged in the manufacture and clinical development of new drug entities for treatment of seriously debilitating disorders. Hemispherx's flagship products include Alferon N Injection and the experimental therapeutics Ampligen and Oragens. Alferon N Injection is approved for a category of STD infection and Ampligen and Oragens represent a large portfolio experimental RNA nucleic acids being developed for globally important viral diseases severely debilitating disorders and biodefense applications. Hemispherx's platform technology includes large and small agent components for potential treatment of various severely debilitating and life threatening diseases. The Company is actively engaged in further expansion of its intellectual property on a world wide basis to reflect the global distribution of the various disorders which its platform technologies address. Hemispherx Biopharma Inc has a market cap of $87.4 million; its shares were traded at around $1.08 with and P/S ratio of 329.6. Hemispherx Biopharma Inc had an annual average earning growth of 9.4% over the past 5 years.
Overall research and development costs for the three months ended March 31, 2009 were $1,595,000 as compared to $1,307,000 for the same period a year ago reflecting an increase of $288,000 or 22%. The first three months of 2009 s Research and Development costs include the book value write-off expense of 21 patents that Management deemed no longer of value or material to future operations as an abandonment expense along with non-cash labor expenses which were attributed to Research and Clinical employees participating in the Employee Wage Or Hour Reduction Program (see “Liquidity and Capital Resources; Employee Wage Or Hours Reduction Program” below). As an offset, Research and development expenses during the first three months of 2009 did not include prior year s NDA related consulting costs.
General and Administrative (“G&A”) expenses for the three months ended March 31, 2009 and 2008 were approximately $1,166,000 and $1,897,000, respectively, reflecting a decrease of $731,000 or 39%. This decrease relates primarily to a reduction in all areas of expenses due to the implementation of our cash conservation and cost reduction program implemented in January 2009. Accordingly, savings were obtained in legal and accounting fees, stock compensation expense and controllable expenses for the three months ended March 31, 2009. However, these expense reductions were partially offset by an increase of non-cash labor costs resulting from General and Administrative employees participating in the Employee Wage Or Hour Reduction Program.
Interest and other income for the three months ended March 31, 2009 and 2008 was $7,000 and $80,000, respectively, representing a decrease of $73,000 or 91%. The decrease in interest and other income during the current period was mainly due to $5,541,000 less in cash, cash equivalents and short-term investments were held at the end of the current quarter as compared to that of the prior year s first quarter.
Cash used in operating activities for the three months ended March 31, 2009 was $1,424,000 compared to $2,806,000 for the same period in 2008 a reduction of $1,382,000 or 49%. This reduction reflects lower expenditures primarily related to Management s cash conservation program that included reducing controllable expenses and utilizing our common stock where possible as payment to Board Members, employees, consultants and vendors. Cash provided (used) by investing activities during the three months ended March 31, 2009 and 2008 totaled ($1,943,000) and $979,000, respectively, primarily due to the 2009 purchase and 2008 maturity of short term investments. We had proceeds from financing activities of $869,000 and $-0- during the three months ended March 31, 2009 and 2008, respectively. As of March 31, 2009, we had approximately $5,541,000 in cash, cash equivalents and short-term investments, or a decrease of approximately $578,000 from December 31, 2008.
For agreeing to be obligated to loan us money, each Individual received 10 year warrants (the “Commitment Warrants”) to purchase our common stock at the rate of $50,000 worth in warrants per $100,000 committed. The exercise price of these warrants is $0.51 (125% of the market closing price of our Common Stock on the date that Agreement was executed. These warrants vested immediately. If and when we notify the Individuals that we are consummating the Standby Financing, upon each Individual s payment of his committed amount, he will receive additional 10 year warrants to purchase our Common Stock at the rate of $50,000 worth in warrants per $100,000 paid. The exercise price of the warrants will be the closing market price of our Common Stock on the day we receive the funds from the Individuals. These warrants will vest immediately. While any portion of the Notes are outstanding, Individuals will have weighted average anti-dilution rights with regard to the exercise price of all warrants issued pursuant hereto except that these rights will not apply if the securities are issued to employees, Board members, corporate and scientific advisors, select vendors, pursuant to our current agreement with Fusion Capital Fund II, LLC or part of a corporate or strategic alliance.
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Hemispherx Biopharma Inc. is a biopharmaceutical company engaged in the manufacture and clinical development of new drug entities for treatment of seriously debilitating disorders. Hemispherx's flagship products include Alferon N Injection and the experimental therapeutics Ampligen and Oragens. Alferon N Injection is approved for a category of STD infection and Ampligen and Oragens represent a large portfolio experimental RNA nucleic acids being developed for globally important viral diseases severely debilitating disorders and biodefense applications. Hemispherx's platform technology includes large and small agent components for potential treatment of various severely debilitating and life threatening diseases. The Company is actively engaged in further expansion of its intellectual property on a world wide basis to reflect the global distribution of the various disorders which its platform technologies address. Hemispherx Biopharma Inc has a market cap of $87.4 million; its shares were traded at around $1.08 with and P/S ratio of 329.6. Hemispherx Biopharma Inc had an annual average earning growth of 9.4% over the past 5 years.
Highlight of Business Operations:
Revenues for the three months ended March 31, 2009 were $29,000 compared to revenues of $208,000 for the same period in 2008. There were no revenues related to the sale of Alferon N Injection® for this period in 2009 versus $173,000 in 2008. Revenues from our Ampligen® cost recovery program were down $6,000 for a total of $29,000 in 2009 for the quarter as fewer patients are participating in the program. Commercial sales of Alferon N Injection® were halted in April 2008 as the current expiration date of our Finished Goods Inventory expired in March 2008. As a result, we have no Alferon N Injection® product to commercially sell and all revenue was generated from Ampligen® cost recovery clinical treatment programs.Overall research and development costs for the three months ended March 31, 2009 were $1,595,000 as compared to $1,307,000 for the same period a year ago reflecting an increase of $288,000 or 22%. The first three months of 2009 s Research and Development costs include the book value write-off expense of 21 patents that Management deemed no longer of value or material to future operations as an abandonment expense along with non-cash labor expenses which were attributed to Research and Clinical employees participating in the Employee Wage Or Hour Reduction Program (see “Liquidity and Capital Resources; Employee Wage Or Hours Reduction Program” below). As an offset, Research and development expenses during the first three months of 2009 did not include prior year s NDA related consulting costs.
General and Administrative (“G&A”) expenses for the three months ended March 31, 2009 and 2008 were approximately $1,166,000 and $1,897,000, respectively, reflecting a decrease of $731,000 or 39%. This decrease relates primarily to a reduction in all areas of expenses due to the implementation of our cash conservation and cost reduction program implemented in January 2009. Accordingly, savings were obtained in legal and accounting fees, stock compensation expense and controllable expenses for the three months ended March 31, 2009. However, these expense reductions were partially offset by an increase of non-cash labor costs resulting from General and Administrative employees participating in the Employee Wage Or Hour Reduction Program.
Interest and other income for the three months ended March 31, 2009 and 2008 was $7,000 and $80,000, respectively, representing a decrease of $73,000 or 91%. The decrease in interest and other income during the current period was mainly due to $5,541,000 less in cash, cash equivalents and short-term investments were held at the end of the current quarter as compared to that of the prior year s first quarter.
Cash used in operating activities for the three months ended March 31, 2009 was $1,424,000 compared to $2,806,000 for the same period in 2008 a reduction of $1,382,000 or 49%. This reduction reflects lower expenditures primarily related to Management s cash conservation program that included reducing controllable expenses and utilizing our common stock where possible as payment to Board Members, employees, consultants and vendors. Cash provided (used) by investing activities during the three months ended March 31, 2009 and 2008 totaled ($1,943,000) and $979,000, respectively, primarily due to the 2009 purchase and 2008 maturity of short term investments. We had proceeds from financing activities of $869,000 and $-0- during the three months ended March 31, 2009 and 2008, respectively. As of March 31, 2009, we had approximately $5,541,000 in cash, cash equivalents and short-term investments, or a decrease of approximately $578,000 from December 31, 2008.
For agreeing to be obligated to loan us money, each Individual received 10 year warrants (the “Commitment Warrants”) to purchase our common stock at the rate of $50,000 worth in warrants per $100,000 committed. The exercise price of these warrants is $0.51 (125% of the market closing price of our Common Stock on the date that Agreement was executed. These warrants vested immediately. If and when we notify the Individuals that we are consummating the Standby Financing, upon each Individual s payment of his committed amount, he will receive additional 10 year warrants to purchase our Common Stock at the rate of $50,000 worth in warrants per $100,000 paid. The exercise price of the warrants will be the closing market price of our Common Stock on the day we receive the funds from the Individuals. These warrants will vest immediately. While any portion of the Notes are outstanding, Individuals will have weighted average anti-dilution rights with regard to the exercise price of all warrants issued pursuant hereto except that these rights will not apply if the securities are issued to employees, Board members, corporate and scientific advisors, select vendors, pursuant to our current agreement with Fusion Capital Fund II, LLC or part of a corporate or strategic alliance.
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