BioSyntech announces third quarter fiscal 2010 financial results
LAVAL, QC,
"During the quarter, we closed the second portion of our financing, raising
Financial Review
The loss for the three-month period ended
During the three-month period ended
Research and development ("R&D") expenses were
General and administrative expenses were
Accretion in the carrying value of the subordinated secured convertible debentures and interest amount to
As of
On
Subsequent to the quarter end from
The Company's Management's Discussion and Analysis is available on the BioSyntech website at www.biosyntech.com and in the Company's regulatory filings at www.sedar.com.
About BioSyntech
BioSyntech is a medical device Company specialized in the development, manufacturing and commercialization of advanced biotherapeutic thermogels for regenerative medicine (tissue repair) and therapeutic delivery. BioSyntech's platform technology is a family of hydrogels called BST-Gel(R), some of which are liquid at low temperature and solid at human body temperature. These gels can be injected or applied to a specific local site and offer beneficial properties for the local repair of damaged tissue such as cartilage, bone and chronic wounds and provide the benefit of avoiding invasive surgery. The Company's lead, late-stage product, BST-CarGel(R) is currently undergoing an international pivotal trial. For additional information, visit www.biosyntech.com
Forward-Looking Statements
This press release contains forward-looking statements and information which are subject to material risks and uncertainties. Such statements are not historical facts and are based on the current expectations of management. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking information. These risks include, but are not limited to, those associated with our capacity to finance our activities, the adequacy, timing, and results of our clinical trials, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of BioSyntech's products, the availability of government and insurance reimbursements for BioSyntech's products, the strength of our intellectual property, the success of our research and development programs, reliance on subcontractors and key personnel, and other risks and uncertainties detailed from time-to time in our filings with the Canadian securities commissions.
Readers should not place undue reliance on the forward-looking information, given that (i) our actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions which were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, could prove to be inaccurate. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in BioSyntech's annual report and other documents filed from time to time with the Canadian securities commissions which are available at www.sedar.com. These statements speak only as of the date they are made, and we assume no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.
BioSyntech, Inc.
A development stage company
INTERIM CONSOLIDATED BALANCE SHEETS
December 31, March 31,
2009 2009
CA$ CA$
(unaudited) (audited)
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ASSETS
Current assets
Cash and cash equivalents 1,437,858 3,803,036
Accounts receivable 153,148 208,179
Investment tax credits receivable 1,634,470 1,132,053
Inventories 32,151 56,892
Prepaid expenses 418,467 156,565
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3,676,094 5,356,725
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Property, plant and equipment 1,594,641 1,839,825
Deposits 13,000 2,760
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5,283,735 7,199,310
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LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities
Accounts payable and accrued liabilities 1,449,533 1,719,501
Deferred revenues 40,099 59,733
Current portion of long-term debt 603,590 591,937
Subordinated secured convertible debentures 15,201,369 9,536,156
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17,294,591 11,907,327
Long-term debt 1,492,966 1,950,408
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18,787,557 13,857,735
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Shareholders' deficiency
Share capital 52,417,680 50,608,283
Warrants 2,790,757 1,881,784
Equity portion of subordinated secured
convertible debentures 2,113,497 1,784,517
Contributed surplus 6,166,928 5,870,706
Deficit accumulated during the development
stage (76,992,684) (66,803,715)
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(13,503,822) (6,658,425)
Basis of presentation and going concern
assumption
Subsequent event
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5,283,735 7,199,310
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BioSyntech, Inc.
A development stage company
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three-month periods Nine-month periods
------------------- ------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
CA$ CA$ CA$ CA$
(unaudited) (unaudited) (unaudited) (unaudited)
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Revenues:
Sales and services 509 4,697 176,001 17,065
Expenses:
Cost of sales and
services 918 1,542 62,187 8,799
Research and
development 937,108 1,567,177 2,658,035 4,511,681
Investment tax
credits (148,384) (213,095) (502,417) (644,095)
General and
administrative 641,106 540,404 2,584,302 2,205,637
Stock-based
compensation (2,869) 87,698 297,262 157,614
Interest on
long-term debt
and capital
lease obligation 41,089 60,252 125,119 205,009
Depreciation of
property, plant
and equipment 79,438 84,332 251,704 273,164
Patents and
trademarks 51,185 36,539 93,640 60,113
Amortization of
debt issue costs 8,734 13,734 29,105 44,169
Accretion of
carrying value of
convertible
debentures 1,773,570 1,029,436 4,224,035 1,819,255
Interest revenue (466) (45,242) (5,377) (120,834)
Restructuring costs - 1,356,358 34,111 1,356,358
(Gain) loss on
foreign exchange (736) 16,586 (11,736) 22,835
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3,380,693 4,535,721 9,839,970 9,899,705
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Net loss and
comprehensive loss (3,380,184) (4,531,024) (9,663,969) (9,882,640)
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Weighted average
number of common
shares
outstanding: 106,081,973 96,087,015 104,306,995 95,821,687
Basic and diluted
loss per share (0.03) (0.05) (0.09) (0.10)
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BioSyntech, Inc.
A development stage company
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
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Three-month periods Nine-month periods
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December 31, December 31, December 31, December 31,
2009 2008 2009 2008
CA$ CA$ CA$ CA$
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OPERATING
ACTIVITIES
Loss for the period (3,380,184) (4,531,024) (9,663,969) (9,882,640)
Adjustments for:
Depreciation of
property, plant
and equipment 79,438 84,332 251,704 273,164
Amortization of
debt issue costs 8,734 13,734 29,105 44,169
Stock-based
compensation (2,869) 87,698 297,262 157,614
Accretion of
carrying value
of convertible
debentures 1,773,570 1,029,436 4,224,035 1,819,255
Exchange gain (7,600) (6,666) (8,990) (6,676)
Changes in
----------
operating assets
----------------
and liabilities
---------------
Interest
receivable - (2,241) - (5,714)
Accounts
receivable 188,722 (46,949) 55,031 (11,391)
Investment tax
credits (148,384) (213,095) (502,417) (644,095)
Inventories - (16,676) 24,741 648
Prepaid expenses
and deposits 32,136 (17,814) (90,044) 99,537
Deferred revenues - - (19,634) -
Accounts payable
and accrued
liabilities (96,712) 801,747 (75,503) 911,996
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Cash flows related
to operating
activities (1,553,149) (2,817,518) (5,478,679) (7,244,133)
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INVESTING ACTIVITIES
Purchase of
property, plant and
equipment (6,520) (27,770) (6,520) (227,154)
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Cash flows related
to investing
activities (6,520) (27,770) (6,520) (227,154)
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FINANCING ACTIVITIES
Issuance of
subordinated
secured
convertible
debentures 3,100,000 - 4,500,000 12,550,000
Subordinated
secured
convertible
debentures issue
costs (648,193) - (841,094) (1,196,852)
Repayment of
long-term debt (158,298) (158,298) (474,894) (430,494)
Share issue costs (1,400) - (75,981) -
Issuance of share
capital 1,500 - 3,000 -
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Cash flows related
to financing
activities 2,293,609 (158,298) 3,111,031 10,922,654
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Effect of exchange
rate changes on
cash and cash
equivalents 7,600 6,666 8,990 6,676
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Net increase
(decrease) in cash
and cash
equivalents 741,540 (2,996,920) (2,365,178) 3,458,043
Cash and cash
equivalents,
beginning of
period 696,318 9,290,769 3,803,036 2,835,806
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Cash and cash
equivalents, end
of period 1,437,858 6,293,849 1,437,858 6,293,849
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Additional
information
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Interest paid 41,516 66,407 125,119 206,057
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%SEDAR: 00020217EF
For further information: Casey Gurfinkel, The Equicom Group, (416) 815-0700 x283, [email protected]
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