SAN DIEGO, Aug. 22 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), reported today its financial results for the
second quarter and six-months ended June 30, 2005.
The net loss for the quarter ended June 30, 2005 applicable to common
shareholders was $2,487,000 ($0.04 per share), compared to a net loss of
$858,000 ($0.02 per share), for the same period in 2004. The net loss for the
six-months ended June 30, 2005 was $3,559,000 ($0.07 per share), compared to a
net loss of $1,778,000 ($0.05 per share), for the six-months ended June 30,
2004. The net loss and the net loss per share amounts for quarter ended June
30, 2005 include a $1,245,000 one time, non-cash charge to earnings associated
with the issuance of warrants for services to William N. Plamondon III, the
Company's recently appointed chief executive officer. In addition to the
charge to earnings associated with the issuance of the warrants, the net loss
and the net loss per share also included in each of the three-month and the
six-month periods of 2005 and 2004 $69,000 and $619,000 and $69,000 and
$138,000, respectively, for undeclared dividends related to the Company's
preferred stock.
In April 2005, the Company raised approximately $7,775,000 from the sale
of Common Stock and warrants. In connection with this transaction, the
Company eliminated approximately $1.2 million in the form of short-term
promissory notes and increased its working capital by approximately
$6 million. Excluding the effect of the non-cash charge to earnings incurred
in the issuance of warrants and the imputed dividends, the net loss for the
six months ended June 30, 2005 applicable to common shareholders would have
been $1,695,000 ($0.04 per share).
Total revenue was $145,000 for the quarter ended June 30, 2005, compared
to $199,000 for the same period in 2004. Total revenue was $658,000 for the
six-months ended June 30, 2005, compared to $388,000 for the same period in
2004. The contract and licensing revenue primarily represents research and
development payments and receivables from Spine Wave, Inc. for the development
of an injectable spinal disc repair product for the treatment of lower back
pain and a $250,000 benchmark payment in March 2005 from Genencor
International.
Operating expenses for the quarter, excluding the one time non-cash charge
to earnings incurred in the issuance of warrants, were $1,334,000, as compared
to $988,000 for the same period in 2004 and $2,283,000 for the six months
ended June 30, 2005 as compared to $2,029,000 for the six months ended 2004.
The increase in operating expenses for the quarter and the six month period
are primarily due to increased personnel costs, additional public and investor
relations expenses and certain costs associated with the financing effort.
As of June 30, 2005, PPTI had $4,392,000 in working capital compared to a
negative working capital deficiency of $1,531,000 at December 31, 2004.
William N. Plamondon III, Chief Executive Officer of Protein Polymer
Technologies, commented, "The completion of financing earlier this year allows
us to continue to focus on the clinical trials of several of our products.
Additionally we will continue to produce materials for Spine Wave's clinical
trials of our injectable spinal disc repair product and to pursue strategic
acquisitions that we have identified."
About Protein Polymer Technologies, Inc.
Protein Polymer Technologies, Inc. is a biotechnology company that
discovers and develops innovative therapeutic devices to improve medical and
surgical outcomes. The Company focuses on developing technology and products
to be used for soft tissue augmentation, tissue adhesives and sealants, wound
healing support and drug delivery devices. Protein Polymer Technologies
proprietary protein-based biomaterials are uniquely tailored to optimize
clinical performance and contain no human or animal components that could
potentially transmit or cause disease. The company is headquartered in San
Diego, California. For additional information about the company, please visit
http://www.ppti.com.
To date, PPTI has been issued twenty-six 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 2004 Annual Report Form 10-KSB, and 10KSB/A 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 Six months ended
June 30, June 30,
2005 2004 2005 2004
Revenues:
Contract revenue $145,225 $199,366 $657,996 $388,416
Product and other
income 430 -- 1,101 6
Total revenues 145,655 199,366 659,097 388,422
Expenses:
Research and
development 692,408 587,806 1,248,376 1,226,553
Selling, general and
administrative 1,886,704 400,094 2,279,997 802,849
Total expenses 2,579,112 987,900 3,528,373 2,029,402
Net loss from
operations (2,433,457) (788,534) (2,869,276) (1,640,980)
Other income (expense):
Interest income 16,122 866 16,201 2,824
Interest expense (249) (899) (86,874) (1,798)
Total other income
(expense) 15,873 (33) (70,673) 1,026
Net loss (2,417,584) (788,567) (2,939,949) (1,639,954)
Undeclared, imputed
and/or paid dividends
on preferred stock 69,220 69,220 619,261 137,678
Net loss applicable to
common shareholders $(2,486,804) $(857,787) $(3,559,210) $(1,777,632)
Basic and diluted net
loss per common share $(0.04) $(0.02) $(0.07) $(0.05)
Shares used in
computing basic and
diluted net loss per
common share 59,687,009 38,091,587 50,044,186 37,702,398
SOURCE Protein Polymer Technologies, Inc.
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Related links:
http://www.ppti.com
CONTACT:
Erin Davis of Protein Polymer Technologies,
Inc., +1-858-558-6064, ext. 120; or Media, Carole Boucard,
+1-954-370-2524, or Bryan deCastro, +1-631-495-9177, both of
Creative Public Relations, for Protein Polymer Technologies, Inc.
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