Neuralstem Inc. (CUR, Financial) filed Quarterly Report for the period ended 2009-06-30.
NEURALSTEM\'s patent-protected technology enables for the first time the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities and the ability to control the differentiation of these cells into mature physiologically relevant human neurons and glia. The Company expects that its first Investigational New Drug application will be for the treatment of Ischemic Paraplegia a form of paraplegia that sometimes results from the surgery to repair aortic aneurysms and for which there is no effective treatment. Neuralstem Inc. has a market cap of $39.8 million; its shares were traded at around $1.18 with and P/S ratio of 130.2.
Depreciation and amortization expenses totaled $21,424 for the three months ended June 30, 2009 compared to $15,780 for the same period of 2008. The increase of $5,644 or 36% for the three months ended June 30, 2009 compared to the comparable period in 2008 was primarily attributable to fixed asset and patent filing fee additions over the past year.
Depreciation and amortization expenses totaled $42,220 for the six months ended June 30, 2009 compared to $29,537for the same period of 2008. The increase of $12,683 or 43% for the six months ended June 30, 2009 compared to the same period in 2008 was primarily attributable to fixed asset and patent filing fee additions over the past year.
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 classification 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 first quarter 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 three months ended June 30, 2009, the fair value of these common stock purchase warrants increased to $3.2 million because of an increase in the stock price. We recognized a $473,799 non-cash expense from the change in fair value of these warrants for the three months ended June 30, 2009. The net gain for the six month period ended June 30, 2009 is $3,341,659.
Total cash and cash equivalents was $3,218,321 and $6,966,587 for the six months ended June 30, 2009 and 2008, respectively. The decrease in our cash and cash equivalents of $3,748,266 or 54% for the six months ended June 30, 2009 compared to the same period in 2008 was primarily attributed to placement of our common equity of $2,573,937 in the first quarter of 2008 vs. $1,000,000 in the second quarter of 2009, an increase of $300,000 in short term financing by vendors, employees and other service providers in the first quarter of 2009. The Company also accelerated research and development spending in the first quarter of 2009 to prepare for clinical trials and experienced higher legal fees due to litigation.
In our operating activities we used $2,528,277 for the six months ended June 30, 2009 compared to $3,078,260 for the same period in 2008. The decrease in our cash of $549,983 or 18% for the six months ended June 30, 2009 compared to the same period in 2008 was primarily attributable to an increase of $300,000 in short term financing by vendors, employees and other service providers in the first quarter of 2009 and a reduction in spending particularly in research.
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NEURALSTEM\'s patent-protected technology enables for the first time the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities and the ability to control the differentiation of these cells into mature physiologically relevant human neurons and glia. The Company expects that its first Investigational New Drug application will be for the treatment of Ischemic Paraplegia a form of paraplegia that sometimes results from the surgery to repair aortic aneurysms and for which there is no effective treatment. Neuralstem Inc. has a market cap of $39.8 million; its shares were traded at around $1.18 with and P/S ratio of 130.2.
Highlight of Business Operations:
For the second quarter of 2009, the Company reported a net loss of $3,189,447, or $0.09 per share, compared to a net loss of $2,957,672 or $0.09 per share, for the comparable 2008 period. The increase was caused by a non cash charge related to a change in the way we account for certain warrants offset in part by reductions in most other expense categories. Net loss attributable to common stockholders for the first six months of 2009 was $2,283,769 or $0.07 per share, compared to $5,232,124, or $0.16 per share, for the comparable period in 2008. The decrease in net loss from year to year was due to a year to date gain in our warrant accounting, partially offset by increases in non cash stock-based compensation expense, R&D and legal fees.Depreciation and amortization expenses totaled $21,424 for the three months ended June 30, 2009 compared to $15,780 for the same period of 2008. The increase of $5,644 or 36% for the three months ended June 30, 2009 compared to the comparable period in 2008 was primarily attributable to fixed asset and patent filing fee additions over the past year.
Depreciation and amortization expenses totaled $42,220 for the six months ended June 30, 2009 compared to $29,537for the same period of 2008. The increase of $12,683 or 43% for the six months ended June 30, 2009 compared to the same period in 2008 was primarily attributable to fixed asset and patent filing fee additions over the past year.
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 classification 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 first quarter 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 three months ended June 30, 2009, the fair value of these common stock purchase warrants increased to $3.2 million because of an increase in the stock price. We recognized a $473,799 non-cash expense from the change in fair value of these warrants for the three months ended June 30, 2009. The net gain for the six month period ended June 30, 2009 is $3,341,659.
Total cash and cash equivalents was $3,218,321 and $6,966,587 for the six months ended June 30, 2009 and 2008, respectively. The decrease in our cash and cash equivalents of $3,748,266 or 54% for the six months ended June 30, 2009 compared to the same period in 2008 was primarily attributed to placement of our common equity of $2,573,937 in the first quarter of 2008 vs. $1,000,000 in the second quarter of 2009, an increase of $300,000 in short term financing by vendors, employees and other service providers in the first quarter of 2009. The Company also accelerated research and development spending in the first quarter of 2009 to prepare for clinical trials and experienced higher legal fees due to litigation.
In our operating activities we used $2,528,277 for the six months ended June 30, 2009 compared to $3,078,260 for the same period in 2008. The decrease in our cash of $549,983 or 18% for the six months ended June 30, 2009 compared to the same period in 2008 was primarily attributable to an increase of $300,000 in short term financing by vendors, employees and other service providers in the first quarter of 2009 and a reduction in spending particularly in research.
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