CARLSBAD, Calif., April 2 /PRNewswire-FirstCall/ --
The Immune Response Corporation (Nasdaq: IMNR) today announced its financial
results for the fourth quarter and year ended December 31, 2001. The net loss
for the fourth quarter of 2001 was $7.6 million, or $0.22 per share, compared
to a net loss of $2.5 million, or $0.08 per share, reported in the fourth
quarter of 2000. For the year ended December 31, 2001, the Company reported a
net loss of $16.3 million, or $0.48 per share, compared to a net loss of
$24.5 million, or $0.86 per share reported for the year ended December 31,
2000.
Research related revenues for the fourth quarter ended December 2001 were
$98,000 compared to $1.1 million for the same quarter in 2000. For the year
ended December 2001, revenues were $10.0 million compared to $7.4 million for
2000. The results for the year ended December 31, 2000 reflect the
implementation of the Staff Accounting Bulletin No. 101, "Revenue Recognition
in Financial Statements," (SAB 101), which the SEC issued in December 1999.
The increase in research revenue in 2001 was primarily related to the timing
of revenues recognized, per the provisions of SAB 101, from our agreement with
Agouron Pharmaceuticals, Inc., a Pfizer Inc. company.
The Company implemented SAB 101 in the fourth quarter of 2000 by restating
the first, second and third quarters of its 2000 financial statements. The
statement of operations reflects a one-time charge to earnings of
$13.2 million for the cumulative effect of the change in accounting principle
as of January 1, 2000. Deferred revenue recognized, to reflect the
application of the SAB No. 101 restatement adjustments, was
$960,000, $968,000, $968,000 and $968,000 for the first, second, third and
fourth quarters of 2000, respectively. Deferred revenue of $968,000 per
quarter was recognized in the first and second quarters of 2001 based on the
expected development period, which was estimated to be through June 2003. Due
to the termination of the development agreement with Pfizer, the remaining
deferred revenue of approximately $7.7 million was recognized as revenue
during the third quarter of 2001.
In addition to research related revenue, the Company received non-research
revenue from investment and other income of $855,000 for the year ended
December 31, 2001 versus $7.6 million for the same period in 2000. This
decrease in investment and other income in 2001 was due primarily to fewer
sales in 2001 of equity securities acquired by the Company through the
licensing of technology and from the sale of undeveloped property in 2000.
Operating expenses decreased to $25.3 million for the year ended December
31, 2001 from $26.3 million for the year 2000. The decrease in operating
expenses was due to decreased spending in research and development.
Cash, cash equivalents and short-term investments were $2.7 million at
December 31, 2001 compared with $28.4 million at the end of 2000. In February
2002, the Company raised $2.0 million in a second private placement of a
secured convertible note and warrant to an affiliate of a director and major
stockholder of the Company; and in March 2002, the Company issued a
$2.0 million promissory note to the same affiliate. The Company estimates
that its available cash resources will be sufficient to fund its planned
operations through April 2002. Additional funds will be required to fund the
Company's operations beyond such time. The Company is actively pursuing other
potential funding options. As a result of the Company's current financial
condition, the Company's independent auditors have reported that there is
question as to the Company's ability to continue as a going concern.
The Immune Response Corporation is a biopharmaceutical company based in
Carlsbad, California, developing immune-based therapies to induce specific
immune responses for the treatment of HIV, autoimmune diseases and cancer. In
addition, the Company is developing a targeted, non-viral delivery technology
for gene therapy, which is designed to enable the delivery of genes directly
to the liver via intravenous injection.
NOTE: Company information can also be located on the Internet Web Site:
http://www.imnr.com .
This news release contains forward-looking statements. Actual results
could vary materially from those expected due to a variety of risk factors,
including the uncertainty of successful completion of clinical trials, and
those risks set forth from time to time in The Immune Response Corporation's
SEC filings, including but not limited to its report on Form 10-K for the year
ended December 31, 2001. The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements, which
may be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
The Immune Response Corporation
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share data)
Three months ended Year ended
December 31, December 31,
2001 2000 2001 2000
Research revenue $98 $1,088 $9,953 $7,404
Expenses:
Research and
development 4,486 6,059 19,757 21,900
General and
administrative 1,339 1,038 5,512 4,399
5,825 7,097 25,269 26,299
Other income and expense:
Equity in loss of
investee (78) -- (201) --
Investment income
(expense), net (101) 3,473 848 6,873
Beneficial conversion
cost (444) -- (444) --
Impairment of
investment (1,237) -- (1,237) --
Other income, net -- -- 7 736
Total other income and
expense (1,860) 3,473 (1,027) 7,609
Income (loss) before
cumulative effect of
accounting change (7,587) (2,536) (16,343) (11,286)
Cumulative effect of
accounting change -- -- -- (13,212)
Net loss (7,587) (2,536) (16,343) (24,498)
Preferred stock items -- (259) (334) (1,030)
Net loss applicable to
common stockholders $(7,587) $(2,795) $(16,677) $(25,528)
Loss per share -
basic and diluted:
Net loss $(0.22) $(0.08) $(0.48) $(0.86)
Net loss applicable
to common
stockholders $(0.22) $(0.09) $(0.49) $(0.90)
Weighted average
common shares
outstanding 35,135,775 30,311,506 33,741,246 28,393,699
The Immune Response Corporation
Condensed Consolidated Balance Sheets
(Amounts in thousands)
December 31, December 31,
2001 2000
Assets
Cash, cash equivalents and
short-term investments $2,701 $28,356
Other current assets 861 607
3,562 28,963
Property and equipment, net 9,026 8,554
Licensed technology 3,532 4,238
Investment in MicroGenomics, Inc. 562 3,000
Other assets 816 848
Total assets $17,498 $45,603
Liabilities and stockholders' equity
Current liabilities $3,061 $8,409
Long-term liabilities 2,229 7,765
Redeemable, convertible preferred stock -- 9,907
Stockholders' equity 12,208 19,522
Total liabilities and stockholders' equity $17,498 $45,603
SOURCE The Immune Response Corporation
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Related links:
http://www.imnr.com
Company News On-Call:
http://www.prnewswire.com/comp/434675.html
CONTACT:
Howard Sampson, Vice President, Finance,
Chief Financial Officer and Treasurer of The Immune Response
Corporation, +1-760-431-7080
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