SAN DIEGO, March 14 Cardium Therapeutics(Amex: CXM) today reported highlights and financial results for its fiscalyear ended December 31, 2007, and other important recent developments.
For the year ended December 31, 2007, Cardium reported net operatinglosses totaling $25.3 million, or a loss of $(0.64) per share compared to$18.6 million, or $(0.59) per share in 2006. Research and development costsin 2007 were $13.1 million compared to $8.4 million for fiscal year 2006, andselling, general and administrative expenses were $12.1 million in 2007compared to $10.1 million in 2006. Total revenue for the year ended December31, 2007 was $1,587,000 compared to $756,000 for the previous year. Theincrease in 2007 product revenues was in large part a result of an increase inInnerCool sales resulting from our expanded sales and marketing efforts, aswell as the launch of the new CoolBlue surface cooling system. Cardium endedthe year with cash and cash equivalents totaling $7.7 million compared to$5.9 million the previous year. On February 1, 2008, the Company reportedclosing a registered direct financing of $5.3 million, before placement agentfees and other expenses. Total shares of common stock outstanding at December31, 2007 were 41.0 million compared to 32.2 million at December 31, 2006. Thetotal number of shares of common stock outstanding as of March 10, 2008 was43.6 million shares.
Cardium also reported that the audit opinion accompanying its consolidatedfinancial statements for the year ended December 31, 2007, which statementswere included in its Annual Report on Form 10-K filed with the Securities andExchange Commission on March 14, 2008, contained a going concern qualificationfrom its independent registered public accounting firm, Marcum & Kliegman LLP.Consistent with its business strategy, Cardium plans to raise additional fundsthrough the strategic sale or monetization of its operating units, enteringinto strategic licensing agreements, and/or as appropriate, may also considerthe sale of securities in registered direct transactions under its effectiveshelf registration statement.
This announcement is made in compliance with Section 610(b) of theAmerican Stock Exchange Company Guide, which requires listed companies to makea public announcement of the receipt of an audit opinion that contains a goingconcern qualification. This announcement does not reflect any change oramendment to the consolidated financial statements as filed. More informationabout the going concern qualification is contained in Cardium's Annual Reporton Form 10-K for the year ended December 31, 2007, which is available free ofchange on Cardium's website at http://www.cardiumthx.com.
Cardium Therapeutics, Inc. and its subsidiaries, InnerCool Therapies, Inc.and the Tissue Repair Company, are medical technology companies primarilyfocused on the development, manufacture and sale of innovative therapeuticproducts and devices for cardiovascular, ischemic and related indications.Cardium's lead product candidate, Generx (alferminogene tadenovec, Ad5FGF-4),is a DNA-based growth factor therapeutic being developed for potential use byinterventional cardiologists as a one-time treatment to promote and stimulatethe growth of collateral circulation in the hearts of patients with ischemicconditions such as recurrent angina. For more information about CardiumTherapeutics and its businesses, products and therapeutic candidates, pleasevisit http://www.cardiumthx.com or view its 2006 Annual Report athttp://www.cardiumthx.com/flash/pdf/2006CardiumAnnualReport.pdf.
Cardium's InnerCool Therapies subsidiary is a San Diego-based medicaltechnology company in the emerging field of temperature modulation therapy torapidly and controllably cool the body in order to reduce cell death anddamage following acute ischemic events such as cardiac arrest or stroke,