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Net loss for Fiscal 2008 was $4.6 million, or $0.26 per share, comparedwith a net loss of $3.3 million, or $0.19 per share, for the fiscal year endedJune 30, 2007 ("Fiscal 2007"). This increase in net loss was primarily theresult of an increase of $1.1 million in non-cash expenses associated with theoutstanding convertible notes that were issued during Fiscal 2008 and anincrease in operating expenses, which were slightly offset by an increase inrevenues.
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Fiscal 2008 and Recent Highlights
-- Senesco achieved all necessary milestones related to its privateplacements with YA Global Investments, LP and Stanford Venture CapitalHoldings, Inc., and therefore received the $10 million gross proceeds underthe terms of the securities purchase agreements.
-- Senesco announced positive results of preclinical animal studiesfocused on multiple myeloma. In the most recent studies undertaken, theCompany used a combination therapy of its siRNA against Factor 5A as well as aplasmid of the Factor 5A gene encapsulated in a nanoparticle. Whether thecombination therapy was injected intratumorally or systemically, humanmultiple myeloma tumors grown subcutaneously in the flanks of immunodeficientmice were reduced by approximately 95% versus tumors in untreated mice.Additionally, groups of treated mice were studied for up to three weeks afterthe last therapeutic injection and in mice whose tumors had regressed, thetumors did not regenerate.
-- The Company entered into its second and third license agreements withBayer CropScience AG for the development and commercialization of cotton andrice, respectively, based on Senesco's proprietary gene technology.
-- Bayer CropScience successfully completed the first R&D milestonerelated to their use of Senesco's technology in Brassica oilseeds.
-- Senesco entered into a license agreement with Monsanto for thedevelopment and commercialization of corn and soy utilizing Senesco'sproprietary gene technology.
Bruce Galton, President and Chief Executive Officer of the Company, said,"Our multiple myeloma pre-clinical program continues to move forward. We haveseen some promising preclinical results this past fiscal year, and lookforward to performing our planned multiple myeloma toxicology studies shortly.Subsequently, we will prepare and file our IND, which we anticipate will bewithin the next 12 months. Additionally, our technology is currently beingused to potentially enhance the viability of major food and non-food crops.We believe we have a balanced business model and head into Fiscal 2009 withenthusiasm."
Revenue of $456,667 for Fiscal 2008 consisted of initial fees andmilestone payments related to Senesco's agricultural development and licenseagreements. During Fiscal June 30, 2007, the Company reported revenue in theamount of $300,000. Such revenue consisted of initial fees, milestonepayments and the amortized portion of previous milestone payments inconnection with certain agricultural license agreements.
Research and development expenses during Fiscal 2008 were $1.8 million,compared with $1.2 million during Fiscal 2007, an increase of 46%. Thisincrease resulted primarily from the expansion of Senesco's human healthprograms, including the Company's cancer research program, and an unfavorableexchange rate variance in connection with Senesco's research agreement withthe University of Waterloo. The Company expects research and developmentexpenses to continue to increase as it expands its research activities,particularly in the area of human health.
General and administrative expenses were $2.3 million during Fiscal 2008,compared with $2.4 million during Fiscal 2007, a decrease of 5%. This slightdecrease was primarily due to a $161,000 decrease in stock-based compensationand a $69,000 decrease in depreciation and amortization. This was partiallyoffset by increases in payroll and benefits, investor relations costs andprofessional fees.
At June 30, 2008, Senesco had cash, cash equivalents and investments of$6.2 million, and working capital of $5.7 million. Senesco expects to be ableto operate according to the Company's current business plan for 13 months asof June 30, 2008.
About Senesco Technologies, Inc.
Senesco Technologies, Inc. is a U.S. biotechnology company, headquarteredin New Brunswick, NJ. Senesco has initiated preclinical research to triggeror delay cell death in mammals (apoptosis) to determine if the technology isapplicable in human medicine. Accelerating apoptosis may have applications todevelopment of cancer treatments. Delaying apoptosis may have applications tocertain diseases inflammatory and ischemic diseases. Senesco takes its namefrom the scientific term for the aging of plant cells: senescence. Delayingcell breakdown in plants extends freshness after harvesting, while increasingcrop yields, plant size and resistance to environmental stress. The Companybelieves that its technology can be used to develop superior strains of cropswithout any modification other than delaying natural plant senescence.Senesco has partnered with leading-edge companies engaged in agriculturalbiotechnology and earns research and development fees for applying itsgene-regulating platform technology to enhance its partners' products.
Certain statements included in this press release are forward-lookingstatements within the meaning of the Private Securities Litigation Reform Actof 1995. Actual results could differ materially from such statementsexpressed or implied herein as a result of a variety of factors, including,but not limited to: the development of the Company's gene technology; theapproval of the Company's patent applications; the successful implementationof the Company's research and development programs and joint ventures; thesuccess of the Company's license agreements; the acceptance by the market ofthe Company's products; success of the Company's preliminary studies andpreclinical research; competition and the timing of projects and trends infuture operating performance, the Company's ability to comply with thecontinued listing standards of the AMEX, as well as other factors expressedfrom time to time in the Company's periodic filings with the Securities andExchange Commission (the "SEC"). As a result, this press release should beread in conjunction with the Company's periodic filings with the SEC. Theforward-looking statements contained herein are made only as of the date ofthis press release, and the Company undertakes no obligation to publiclyupdate such forward-looking statements to reflect subsequent events orcircumstances.Company Contact: Investor Relations Contact: Senesco Technologies, Inc. FD Joel Brooks Brian Ritchie Chief Financial Officer [email protected] [email protected] 212-850-5600 (732) 296-8400 (tables to follow) SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY (A DEVELOPMENT STAGE COMPANY) CONSOLIDATED BALANCE SHEET June 30, 2008 2007 ASSETS Current Assets: Cash and cash equivalents $ 5,676,985 $ 408,061 Short-term investments 500,000 250,000 Prepaid expenses and other current assets 180,556 104,526 Total current assets 6,357,541 762,587 Property and Equipment, net 5,459 7,526 Intangibles, net 3,213,543 2,544,447 Deferred Financing Costs, net of amortization of $168,706 1,059,230 - Deferred Income Tax Asset, net of valuation allowance of $9,152,000 and $7,719,000, respectively - - Security Deposit 7,187 7,187 Total Assets $10,642,960 $3,321,747 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 370,167 $ 109,258 Accrued expenses 314,267 377,359 Deferred revenue - 16,667 Total current liabilities 684,434 503,284 Convertible Notes Payable, net of discount of $9,499,943 57 - Grant Payable 99,728 99,728 Other Liability 23,062 29,196 Total liabilities 807,281 632,208 Commitments Stockholders' Equity: Preferred stock - $0.01 par value; authorized 5,000,000 shares, no shares issued - - Common stock - $0.01 par value; authorized 100,000,000 and 60,000,000 shares, respectively, issued and outstanding 18,375,117 and 17,473,694, respectively 183,751 174,737 Capital in excess of par 39,874,958 28,136,342 Deficit accumulated during the development stage (30,223,030) (25,621,540) Stockholders' equity 9,835,679 2,689,539 Total Liabilities and Stockholders' Equity $10,642,960 $3,321,747 SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY (A DEVELOPMENT STAGE COMPANY) CONSOLIDATED STATEMENT OF OPERATIONS Year ended June 30, 2008 2007 2006 Revenue $ 456,667 $ 300,000 $ 66,666 Operating expenses: General and administrative 2,291,263 2,412,679 1,919,740 Research and development 1,764,426 1,208,321 1,566,267 Total operating expenses 4,055,689 3,621,000 3,486,007 Loss from operations (3,599,022) (3,321,000) (3,419,341) Noncash income - - - Sale of state income tax loss - net - - - Amortization of debt discount and financing costs (668,763) - - Interest expense - convertible Notes (434,154) - - Interest income - net 100,449 69,303 104,456 Net loss $(4,601,490) $(3,251,697) $(3,314,885) Basic and diluted net loss per common share $ (.26) $ (.19) $ (.21) Basic and diluted weighted- average number of common shares outstanding 17,660,466 16,916,918 15,469,881
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