Pharmos Corp. (PARS, Financial) filed Quarterly Report for the period ended 2009-09-30.
Pharmos Corporation is a bio-pharmaceutical company that discovers and develops novel therapeutics to treat a range of inflammatory and neurological disorders such as traumatic brain injury and stroke. Theyhave an extensive portfolio of drug candidates under development, as well as discovery, preclinical and clinical capabilities. Pharmos Corp. has a market cap of $7.45 million; its shares were traded at around $0.07 .
General and administrative expenses for the third quarter of 2009 decreased by $94,438, or 22%, from $436,758 in 2008 to $342,320 in 2009. The primary reductions are a $24,000 decrease in payroll, a $100,000 reduction in miscellaneous expenses and an $8,000 reduction in investor relations. This is offset in part, by increases of $29,000 in rent and utilities and $15,000 of miscellaneous expenses. The decrease in payroll costs reflect the impact of the 2008 restructuring plans which have reduced the Company s head count from 18 employees in December 2007 to 5 employees at the end of December 2008 and 4 employees at the end of September 2009. The decrease in investor relations expenses is attributable to holding the annual meeting earlier in the year. The increase in rent is the result of the settlement of the Rehovot lease in which a third quarter charge was booked. The increase in 2009 miscellaneous expenses is the result of a 2008 gain on the disposal of fixed assets at our Rehovot facility which reduced the 2008 net expenses. Finally the cumulative effect of the other areas was minimal in the overall numbers.
Other expense net, decreased by $58,162 from $83,859 in other expense in 2008 to $25,697 in other expense in 2009. The reduction is related to the decreased interest income of $42,285 from a decline in cash and cash equivalents offset by a $92,973 reduction in interest expense attributable to reduced debenture interest and a $7,474 decrease in translation gains and losses that were recorded at our Rehovot location. In the third quarter of 2009 the Company recorded $29,607 in interest expense related to the remaining of $1,000,000 in convertible debentures issued on January 3, 2008.
General and administrative expenses for the first nine months of 2009 decreased by $585,882, or 35%, from $1,687,747 in 2008 to $1,101,865 in 2009. The decline reflects decreases in virtually every general and administrative expense category. The primary reductions include a $359,000 reduction in payroll, a $100,000 reduction in miscellaneous expenses, a $123,000 reduction in consultant and professional fees and a reduction in various other expenses of $75,000. This is offset in part, by increases of $36,000 in investor relations and $34,000 of miscellaneous expenses. The decrease in payroll costs reflect the impact of the 2008 restructuring plans which have reduced the Company s head count from 18 employees in December 2007 to 5 employees at the end of December 2008 and 4 employees at the end of September 2009. The decrease in consulting and professional fees in 2009 result from a decline in legal costs and a one time IRS section 382 tax analysis cost incurred in 2008. The decrease in the various costs result primarily from a reduction in facility related expenses. The increase in investor relations expenses is attributable to holding the annual meeting earlier in the year. The increase in 2009 miscellaneous expenses is the result of a 2008 gain on the disposal of fixed assets at our Rehovot facility as this event was classified as a reduction of overall expenses.
Other expense net, increased by $669,151 from $122,623 in other expense in 2008 to $791,774 in other expense in 2009. The majority of this increase is related to the conversion of debentures into equity resulting in an expense of $596,104 and from decreased interest income of $230,003 from a decline in cash and cash equivalents. We also recorded an increase in other expenses of $15,801 which is a net of translation losses on assets held in Israel due to currency translation fluctuations and other income which relates to Amino Labs. Finally we recorded a decrease in interest expense of $172,757 as the decrease is attributable to reduced debenture interest. In the first nine months of 2009 the Company recorded $196,536 in interest expense related to the issuance of $4,000,000 in convertible debentures issued on January 3, 2008.
As of September 30, 2009, the Company had working capital of $0.9 million consisting of current assets of $1.4 million and current liabilities of $0.5 million. This represents a decrease of $3.3 million from its working capital of $4.2 million on current assets of $5.8 million and current liabilities of $1.6 million as of December 31, 2008. This decrease in working capital of $3.3 million was principally associated with the funding of research and development and general and administrative activities.
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Pharmos Corporation is a bio-pharmaceutical company that discovers and develops novel therapeutics to treat a range of inflammatory and neurological disorders such as traumatic brain injury and stroke. Theyhave an extensive portfolio of drug candidates under development, as well as discovery, preclinical and clinical capabilities. Pharmos Corp. has a market cap of $7.45 million; its shares were traded at around $0.07 .
Highlight of Business Operations:
The results for the three and nine months ended September 30, 2009 and 2008 were a net loss of $1.4 million and $2.8 million and a net loss of $7.3 million and $9.1 million, respectively. On a loss per share basis, this equates to $(0.02) and $(0.11) for the quarter and $(0.16) and $(0.35) for the first nine months, respectively.General and administrative expenses for the third quarter of 2009 decreased by $94,438, or 22%, from $436,758 in 2008 to $342,320 in 2009. The primary reductions are a $24,000 decrease in payroll, a $100,000 reduction in miscellaneous expenses and an $8,000 reduction in investor relations. This is offset in part, by increases of $29,000 in rent and utilities and $15,000 of miscellaneous expenses. The decrease in payroll costs reflect the impact of the 2008 restructuring plans which have reduced the Company s head count from 18 employees in December 2007 to 5 employees at the end of December 2008 and 4 employees at the end of September 2009. The decrease in investor relations expenses is attributable to holding the annual meeting earlier in the year. The increase in rent is the result of the settlement of the Rehovot lease in which a third quarter charge was booked. The increase in 2009 miscellaneous expenses is the result of a 2008 gain on the disposal of fixed assets at our Rehovot facility which reduced the 2008 net expenses. Finally the cumulative effect of the other areas was minimal in the overall numbers.
Other expense net, decreased by $58,162 from $83,859 in other expense in 2008 to $25,697 in other expense in 2009. The reduction is related to the decreased interest income of $42,285 from a decline in cash and cash equivalents offset by a $92,973 reduction in interest expense attributable to reduced debenture interest and a $7,474 decrease in translation gains and losses that were recorded at our Rehovot location. In the third quarter of 2009 the Company recorded $29,607 in interest expense related to the remaining of $1,000,000 in convertible debentures issued on January 3, 2008.
General and administrative expenses for the first nine months of 2009 decreased by $585,882, or 35%, from $1,687,747 in 2008 to $1,101,865 in 2009. The decline reflects decreases in virtually every general and administrative expense category. The primary reductions include a $359,000 reduction in payroll, a $100,000 reduction in miscellaneous expenses, a $123,000 reduction in consultant and professional fees and a reduction in various other expenses of $75,000. This is offset in part, by increases of $36,000 in investor relations and $34,000 of miscellaneous expenses. The decrease in payroll costs reflect the impact of the 2008 restructuring plans which have reduced the Company s head count from 18 employees in December 2007 to 5 employees at the end of December 2008 and 4 employees at the end of September 2009. The decrease in consulting and professional fees in 2009 result from a decline in legal costs and a one time IRS section 382 tax analysis cost incurred in 2008. The decrease in the various costs result primarily from a reduction in facility related expenses. The increase in investor relations expenses is attributable to holding the annual meeting earlier in the year. The increase in 2009 miscellaneous expenses is the result of a 2008 gain on the disposal of fixed assets at our Rehovot facility as this event was classified as a reduction of overall expenses.
Other expense net, increased by $669,151 from $122,623 in other expense in 2008 to $791,774 in other expense in 2009. The majority of this increase is related to the conversion of debentures into equity resulting in an expense of $596,104 and from decreased interest income of $230,003 from a decline in cash and cash equivalents. We also recorded an increase in other expenses of $15,801 which is a net of translation losses on assets held in Israel due to currency translation fluctuations and other income which relates to Amino Labs. Finally we recorded a decrease in interest expense of $172,757 as the decrease is attributable to reduced debenture interest. In the first nine months of 2009 the Company recorded $196,536 in interest expense related to the issuance of $4,000,000 in convertible debentures issued on January 3, 2008.
As of September 30, 2009, the Company had working capital of $0.9 million consisting of current assets of $1.4 million and current liabilities of $0.5 million. This represents a decrease of $3.3 million from its working capital of $4.2 million on current assets of $5.8 million and current liabilities of $1.6 million as of December 31, 2008. This decrease in working capital of $3.3 million was principally associated with the funding of research and development and general and administrative activities.
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