Protox reports net and comprehensive loss of $2.2 million for first quarter 2011

April 05, 2017

Research and development ("R&D") costs of $1.3 million were incurred during 2011-Q1: an increase of $265,000 from the $1.0 million incurred in the three months ended March 31, 2010. This reflects the effect of increased regulatory activities to support a submission of the IND application to the FDA as well as increased CMC activities offset by lower clinical trial expenses as there were no active studies in the first quarter of 2011. Stock based compensation also contributed to the increase due to a higher number of options vesting during the first quarter of 2011 compared to 2010. With the Warburg Pincus financing secured, the Company plans to initiate additional BPH clinical activities and as such, development costs associated with clinical trials, drug manufacturing and regulatory activities are expected to increase through 2011.

General and administrative costs for the three months ended March 31, 2011 were $876,000 an increase of $239,000 from the $637,000 incurred the 2010-Q1 comparative period. General and administrative costs vary from period to period depending on the specific business development, market research and shareholder relations initiatives undertaken and related travel required at such time to support the Company's corporate objectives. The increase in general and administrative expenses is attributed to costs associated with closing the Warburg Pincus Financing, the approval and payment of corporate bonuses, as well as preparation for the anticipated expansion of our operations. The relocation of operations to San Diego, California and infrastructure costs associated with our increasing development activities will result in increased general and administrative expenses in 2011.

At March 31, 2011, the Company had cash and cash equivalents of $10.8 million, representing a net decrease of $1.5 million from December 31, 2010. The Company had working capital of $8.9 million at March 31, 2011, 2010, a decrease of $1.8 million from December 31, 2010.

As of May 27, 2011, the Company has 121,563,537 common shares issued and outstanding.

The Company has 21,281,929 common share purchase warrants outstanding which expire between March 2015 and November 2015 and entitle warrant holders to purchase common shares at a prices ranging between $0.50 and $0.65. The weighted average warrant price is $0.54 and the weighted average remaining term is 4.3 years.

The Company has 7,305,167 options outstanding to purchase common shares of the Company. Of the options currently outstanding, approximately 4.4 million are exercisable into an equivalent number of common shares of the Company at exercise prices ranging from $0.51 to $0.90 and with an average exercise price of $0.65.