CARDICA, INC. (CRDC, Financial) filed Quarterly Report for the period ended 2009-09-30.
Cardica Inc. designs and manufactures proprietary automated anastomotic systems used by surgeons to perform coronary artery bypass graft surgery. In these surgery procedures veins or arteries are used to construct alternative conduits to restore blood flow beyond narrowed or occluded portions of coronary arteries bypassing the narrowed or occluded portion of the artery that is impairing blood flow to the heart muscle. Our first two products the C-Port Distal Anastomosis System and the PAS-Port Proximal Anastomosis System provide cardiovascular surgeons with easy-to-use automated systems to perform consistent rapid and reliable connections or anastomoses of the vessels which surgeons generally view as the most critical aspect of the bypass procedure. Cardica, Inc. has a market cap of $18.9 million; its shares were traded at around $1.19 with and P/S ratio of 1.8.
On September 30, 2009, institutional and individual investors, including existing stockholders, purchased approximately $10.2 million of the Companys common stock and warrants to purchase the Companys common stock in a private placement. The net proceeds were approximately $10.0 million after offering expenses. Under the terms of the purchase agreement with these investors, the Company sold 8,142,082 units at a purchase price of $1.2525 per unit, with each unit consisting of one share of common stock and one warrant to purchase 0.50 of a share of common stock, or 4,071,046 shares of the Companys common stock. The warrants are exercisable commencing on April 1, 2010 at $1.45 per share and will expire five years after the date of issuance.
Read the The complete ReportCRDC is in the portfolios of PRIMECAP Management.
Cardica Inc. designs and manufactures proprietary automated anastomotic systems used by surgeons to perform coronary artery bypass graft surgery. In these surgery procedures veins or arteries are used to construct alternative conduits to restore blood flow beyond narrowed or occluded portions of coronary arteries bypassing the narrowed or occluded portion of the artery that is impairing blood flow to the heart muscle. Our first two products the C-Port Distal Anastomosis System and the PAS-Port Proximal Anastomosis System provide cardiovascular surgeons with easy-to-use automated systems to perform consistent rapid and reliable connections or anastomoses of the vessels which surgeons generally view as the most critical aspect of the bypass procedure. Cardica, Inc. has a market cap of $18.9 million; its shares were traded at around $1.19 with and P/S ratio of 1.8.
Highlight of Business Operations:
Inventories are recorded at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market. The Company periodically assesses the recoverability of all inventories, including materials, work-in-process and finished goods, to determine whether adjustments for impairment are required. Due to higher production costs for units manufactured in the quarter ended September 30, 2009, the Company recorded a lower of cost or market inventory write-down of $292,000 primarily on its PAS-Port inventory. Inventory that is obsolete or in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand and market conditions. Inventory write-downs are charged to cost of product sales and establish a lower cost basis for the inventory. Due to recently experienced reduced demand for the Companys C-Port systems, in the fiscal year ended June 30, 2009 the Company recorded a $248,000 write-down for excess and obsolete C-Port system inventory. During the three months ended September 30, 2009 there were no additional write-downs recorded for excess and obsolete inventory. It is at least reasonably possible that further reduced demand may result in the need for additional inventory write-downs in the near term.On September 30, 2009, institutional and individual investors, including existing stockholders, purchased approximately $10.2 million of the Companys common stock and warrants to purchase the Companys common stock in a private placement. The net proceeds were approximately $10.0 million after offering expenses. Under the terms of the purchase agreement with these investors, the Company sold 8,142,082 units at a purchase price of $1.2525 per unit, with each unit consisting of one share of common stock and one warrant to purchase 0.50 of a share of common stock, or 4,071,046 shares of the Companys common stock. The warrants are exercisable commencing on April 1, 2010 at $1.45 per share and will expire five years after the date of issuance.
Read the The complete ReportCRDC is in the portfolios of PRIMECAP Management.
