SAN DIEGO, May 13 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), reports today its financial results for the
first quarter ended March 31, 2003.
On March 25, 2003, the Company raised approximately $3,000,000 (less
expenses) from the sale Series I Convertible Preferred Stock and warrants. In
connection with this transaction, the Company is obligated to include a
one-time, non-cash "imputed dividends" charge of $1,305,000 related to the
fair market value difference of the Company's common stock on March 25, 2003
and the conversion price of the Series I Preferred Stock. Including this
extraordinary expense, the Company had a net quarterly loss applicable to
common shareholders of $1,744,000 ($.06 a share), versus a net loss of
$536,000 ($.02 a share) for the comparable period in 2002. The net loss, and
the net loss per share amounts also include accumulated dividends related to
the Company's preferred stock. Excluding the effect of the imputed dividends
expense, the net loss applicable to common shareholders would have been
$438,000 ($.01 per share) for the quarter ended March 31, 2003.
Contract and licensing revenue, and product and interest income totaled
$453,000 for the quarter ended March 31, 2003, compared to $473,000 for the
same period last year. The contract and licensing revenue primarily
represents research and development payments from Spine Wave, Inc. for the
development of an injectable spinal disc repair product for the treatment of
lower back pain.
Operating expenses for the quarter were $822,000, as compared to
$940,000 for the same period in 2002. In general, operating expenses for the
past two years have declined due primarily to reductions in personnel and
discretionary expenditures. To the extent that resources become available,
expenses are expected to rise in subsequent quarters due to the increased
expenditures for expanded human clinical testing and patient follow-up of the
Company's injectable urethral bulking agent for the treatment of female stress
urinary incontinence, and of the Company's injectable hydrogel for the
treatment of dermal contour defects (scars, wrinkles, and lines). However,
there can be no assurance that additional resources will become available.
PPTI's cash balance as of March 31, 2003 was $2,721,000, as compared to
$734,000 as of December 31, 2002. In combination with anticipated additional
contract and license payments, and revenue projected for the delivery of
clinical testing materials, the Company's cash is expected to meet the
Company's anticipated capital requirements until April 2004.
Protein Polymer Technologies, Inc., is a San Diego-based company focused
on developing bioactive products to improve medical and surgical outcomes.
From its inception in 1988, PPTI has been a pioneer in protein design and
synthesis, developing an extensive portfolio of proprietary biomaterials.
These genetically engineered biomaterials are high molecular weight proteins,
processed into products with physical and biological characteristics tailored
to specific clinical performance requirements. Targeted products include
urethral bulking agents for the treatment of stress urinary incontinence,
dermal augmentation products for cosmetic and reconstructive surgery, surgical
adhesives and sealants, scaffolds for wound healing and tissue engineering,
and depots for local drug delivery. To date, PPTI has been issued twenty-four
U.S. Patents on its core technology with corresponding issued and pending
patents in key international markets.
This press release contains forward-looking statements that are based on
management's views and expectations. Actual results could differ materially
from those expressed here; further, the Company is not obligated to comment
specifically on those differences. Risks associated with the Company's
activities include raising adequate capital to continue operations scientific
and product development uncertainties, competitive products and approaches,
continuing collaborative partnership interest and funding, regulatory testing
and approvals, and manufacturing scale up. The reader is encouraged to refer
to the Company's 2002 Annual Report Form 10-KSB, and other recent filings with
the Securities and Exchange Commission, copies of which are available from the
Company, to further ascertain the risks associated with the above statements.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended
March 31,
2003 2002
SUMMARY OF OPERATIONS
Contract and licensing revenue $450,983 $469,577
Product and other income 1,583 1,500
Interest income -- 1,620
Total revenues 452,566 472,697
Total expenses 822,287 939,884
Net loss (369,721) (467,187)
Undeclared and/or paid
dividends on Preferred Stock 1,373,831 68,459
Net loss applicable to common
shareholders $(1,743,552) $(535,646)
Net loss per common share -
basic and diluted $(0.06) $(0.02)
Shares used in computing net
profit/loss per share -
basic and diluted 29,792,399 24,116,726
As of As of
Mar. 31, 2002 Dec. 31, 2002
BALANCE SHEET INFORMATION
Cash and cash equivalents $2,721,000 $734,000
Working capital 2,473,000 189,000
Total assets 2,914,000 875,000
Total capital invested 48,131,000 44,182,000
Accumulated deficit $(45,582,000) $(43,907,000)
SOURCE Protein Polymer Technologies, Inc.
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CONTACT:
J. Thomas Parmeter, President, or Janis Y.
Neves, Director of Finance & Administration, both of Protein
Polymer Technologies, Inc., +1-858-558-6064, info@ppti.com
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