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On May 10, 2007, the Company granted options to purchase an aggregate of200,000 shares of common stock at an exercise price of $15.00 (which was theprice per share to the public in the Company's initial public offering).Pursuant to the terms of the Company's 2005 Non-Employee Directors' StockOption Plan, all of the options were fully vested on the date of grant.Accordingly, the Company should have recorded non-cash share-basedcompensation expense of approximately $1.7 million. The Company recorded non-cash share-based compensation expense related to these options as if theoptions were to vest over a two-year period, as had been the case with earlieroption grants to the Company's non-employee directors. Accordingly, in thethird quarter of 2007, the Company only recorded approximately $0.1 million ofshare-based compensation expense related to these options and the Companywould have recorded the remaining $1.6 million of previously disclosedunamortized expense ratably over such two-year period.
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As a result, the Company will file amended unaudited financial statementsto record additional non-cash share-based compensation expense ofapproximately $1.6 million for the three- and nine-month periods ended June30, 2007. The effect of this amendment will be to increase the Company'sgeneral and administrative expenses and net loss applicable to commonstockholders for these periods by $1.6 million from the previously reportedamounts. In addition, the Company's net loss per share for the three monthsended June 30, 2007 will increase from $(0.21) to $(0.30) and the Company'snet loss per share for the nine months ended June 30, 2007 will increase from$(1.31) to $(1.43). This amendment will have no effect on the Company's cashbalances or other capital resources.
The Company expects to file an amended Quarterly Report on Form 10-Q forthe quarterly period ended June 30, 2007 as promptly as practicable.
About Biodel Inc.
Biodel Inc. is a specialty biopharmaceutical Company focused on thedevelopment and commercialization of innovative treatments for endocrinedisorders, such as diabetes and osteoporosis. Biodel's product candidates aredeveloped by using VIAdel(TM) technology, which reformulates existing FDA-approved peptide drugs. The Company's lead product candidate, VIAject(TM), isa rapid-acting injectable meal-time insulin for use by patients with Type 1 orType 2 diabetes. VIAject(TM) is currently being tested in two pivotal PhaseIII clinical trials. Biodel's pipeline also includes VIAtab(TM), a sublingualtablet formulation of insulin in Phase I clinical trials and two osteoporosisproduct candidates in pre-clinical studies. For further information regardingBiodel, please visit the Company's website.
Safe Harbor
This press release contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. All statements, otherthen statements of historical facts, including statements regarding ourstrategy, future operations, future financial position, future revenues,projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipates," "believes," "could," "estimates,""expects," "intends," "may," "plans," "potential," "predicts," "projects,""should," "will," "would" and similar expressions are intended to identifyforward-looking statements, although not all forward-looking statemen
