ROCKVILLE, Md., May 15 Neuralstem Inc.(Amex: CUR) today reported financial results for the three months ended March31, 2008.
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For the first quarter of 2008, the company reported a net loss of$2,274,452, or $(0.07) per share, compared to a net loss of $949,242, or$(0.04) per share, for the comparable 2007 period. The increase in net lossyear to year was due to an increase in non cash stock-based compensationexpense of approximately $1,019,000.
Result of Operations for the Three Months ending March 31, 2008 and 2007
Revenues for the three months ended March 31, 2008 and 2007 were $0 and$181,825 respectively.
Research and development expenses for the three months ended March 31,2008 and 2007 were $1,198,843 and $845,589, respectively. The increase inexpenses in current period consists mainly of payroll and payroll relatedexpenses, stock-based compensation expense, research supplies and costsincurred in connection with specific research grants.
General and administrative expenses for the three months ended March 31,2008 and 2007 were $1,083,169, and $291,053, respectively. The principalincrease in expenses in 2008 versus 2007 is a result of increased stock-basedcompensation expenses, payroll and legal (both patent and corporate).
Other income for the three months ended March 31, 2008 and 2007 were$21,317, and $18,556, respectively. The increase in 2008 relates to interestincome derived from our higher cash deposit balance compared to prior period.
Net loss for the three months ended March 31, 2008 and 2007 was $2,274,452and $949,242, respectively.
Accounts payable and accrued expenses $494,007 $1,016,699
In May StemCells Inc. filed a second patent lawsuit against the Company ina California federal court, alleging infringement of two patents related tohuman neural stem cells. A previous patent suit filed by StemCells against theCompany in a Maryland court, which is currently on hold, involves differentpatents. The Company responded to the two new patent infringement suits bysaying that it believes them, and the earlier claims by StemCells, Inc., to bebaseless.
Previously in May 2008 the Company filed a suite against StemCells, Inc.stating, among other things, that StemCells intentionally withheld crucialinformation highly material to the patentability of StemCells' "new" patent(US Pat No. 7,361,505) and that this was done with the intent to deceive theUnited States Patent Office in order to get the '505 patent allowed.Neuralstem is asking for a declaratory judgment that the patent isunenforceable. The suit will be filed in the United States District Court forthe District of Maryland Southern Division.
Also in May 2008 Neuralstem filed a motion to re-open the infringementlawsuit with StemCells, Inc. and to have the stay lifted, so that the case canbe disposed of on summary judgment as soon as possible. The company announcedthat the recent actions of the U.S. Patent Office now entitles the company tosummary judgment in the case and that Patent Office actions have destroyed thebasis for the infringement suit filed by StemCells, Inc.
In April the European Patent Office granted Neuralstem a European patentEP0915968, covering the "Isolation, Propagation and Directed Differentiationof Stem Cells from Embryonic and Adult Central Nervous System of Mammals." TheEuropean patent has been validated in several European countries includingFrance, Germany, Ireland, Spain, Sweden, Switzerland and the United Kingdom.
In February 2008 Korean conglomerate, CJ CheilJedang Corporation ("CJ")purchased an option to negotiate for the exclusive license to Neuralstem'sstem cell products and technology after the company completes a successfulhuman c