COSTA MESA, Calif., Aug. 15 CNS Response, Inc.(OTC Bulletin Board: CNSO) today announced financial results for its fiscalthird quarter ended June 30, 2007. CNSO is a life sciences company focused onthe commercialization of its patented referenced-EEG ("rEEG(SM)"), system thatguides psychiatrists and other physicians to determine proper treatments forpatients with behavioral (mental or addictive) disorders. This technologyallows CNSO to create and provide simple reports ("rEEG Reports") thatspecifically guide physicians to treatment strategies based on the patient'sown physiology.
Net revenues for the three-month period ended June 30, 2007 were $69,800,an increase of 64% from net revenues of $42,500 during the same period lastyear. The Company delivered 179 rEEG Reports in the quarter ended June 30,2007 as compared to 106 rEEG Reports for the comparable period in 2006 whilethe average price of a report remained constant at approximately $400 perreport. The Company does not expect a material increase in revenues until2008 when it anticipates having completed an ongoing multi-site clinical studyto validate the efficacy of its rEEG technology.
"Consistent with the plan we have previously disclosed, we have dedicatedour resources to pursuing a series of infrastructure goals prior to a moreaggressive marketing of rEEG. Included in these events is a key ongoingclinical trial that is now being conducted in five sites," commented LenBrandt, Chief Executive Officer of CNS Response. "We will make our firstprogress report on this trial in the fall. This trial is based on one of oureight smaller trials that have shown that rEEG guided therapy, when used inconjunction with other standard clinical information, guided physicians tosuccessful outcomes of these mostly treatment resistant patients. We areconfident that our current multi-site study will show similar results andfurther validate our technology."
Net loss for the three-month period ended June 30, 2007 was $(502,700), or$(0.02) per diluted share, compared to a net loss of $(510,000), or $(0.25)per diluted share, during the same period last year. The net loss for thethree month period ended June 30, 2007 consists of an operating loss of$(557,900) offset by other income of $55,200. The net loss for the threemonth period ended June 30, 2006 consists of an operating loss of $(363,900)and interest expense of $(146,100). The increase in operating loss is dueprimarily to the costs incurred in connection with the ongoing multi-siteclinical study.
About CNS Response
CNS Response is a life sciences company focused on the commercializationof the first patented system that guides psychiatrists in pharmacotherapy forpatients with certain behavioral disorders. The Company's system,"Referenced-EEG(SM)" or "rEEG(SM)", is the first objective, physiology-basedsystem consistently shown to guide psychiatrists to appropriate treatment inthe most challenging patients. It is the culmination of a 20-year effortcombining Quantitative Medicine, Psychiatry and Pathology that allows aphysician for the first time to determine objectively which CNS (centralnervous systems) medications will be effective for a particular patient..
rEEG(SM) utilizes traditional electroencephalography (EEG) in conjunctionwith a normative database and a proprietary clinical (symptomatic) database toidentify the following: (1) medication classes most likely to be needed; and(2) medications with the most probable treatment potential for each patient.Reports are provided to physicians in a relationship analogous to that of areference laboratory. Prospective, retrospective and field studies oftreatment-resistant patients have reported treatment success of 70% or greaterin managed care, outpatient psychiatric and residential substance abuseclinical settings.
In addition to providing analytical support to phy