Corautus Genetics Announces First Quarter 2004 Financial Results.Business Editors ATLANTA--(BUSINESS WIRE)--May 3, 2004 Corautus Genetics Inc. (AMEX AMEX See: American Stock Exchange : CAQ CAQ Center for Audit Quality (New York, New York) CAQ Certificat d'Acceptation du Quebec CAQ Computer-Aided Quality Assurance CAQ Certificate of Added Qualification CAQ Computer-Aided Quality Control CAQ Condition Adverse to Quality ) reported a net loss of $2.6 million, or $0.22 per share, for the quarter ended March 31, 2004 compared to a net loss of $21.5 million, or $3.07 per share, in the comparable quarter of 2003. The decrease in per share net loss was primarily due to the issuance of new shares through previously announced private placements in December 2003, January 2004 and March 2004 as well as the write-off of property and equipment and acquired in-process technology in the first quarter of 2003. Revenues for the quarter ended March 31, 2004 were $20,833 as a result of the sublicense sub·li·cense n. A license giving rights of production or marketing of products or services to a person or company that is not the primary holder of such rights. tr.v. of certain patents to Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, Corporation (NYSE NYSE See: New York Stock Exchange : BSX BSX Bermuda Stock Exchange BSX Bandai Satellaview-X BSX Bicycle Super-X (Cross) ) concurrent with their investment in July 2003. Cash and cash equivalents as of March 31, 2004 increased by 62% to $14.5 million over the previous quarter ending December 31, 2003. The increase was primarily due to recent private placements and note proceeds from Boston Scientific Corporation. As a result, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased 244% to $8.6 million compared with the quarter ending December 31, 2003. Since December 2003, Corautus has raised a total of $10.7 million, in addition to the $2.5 million loan facility advance from Boston Scientific Corporation. On April 30, 2004, Corautus Genetics Inc. filed its quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2004. This press release reports information disclosed in that Form 10-Q. Richard E. Otto, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , of Corautus Genetics, stated, "We continue to focus on cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. in advance of starting our Phase IIb clinical trial. With our recent success in bringing in funding from the capital markets, we are pleased that we currently have the financial resources to effectively execute our business plan through June 2005." About Corautus Genetics Corautus Genetics Inc. is a clinical stage biopharmaceutical company dedicated to the development of gene transfer therapy products for the treatment of severe cardiovascular and peripheral vascular disease Peripheral Vascular Disease Definition Peripheral vascular disease is a narrowing of blood vessels that restricts blood flow. It mostly occurs in the legs, but is sometimes seen in the arms. . Corautus is currently developing a gene transfer product using the Vascular Endothelial Growth Factor Vascular endothelial growth factor (VEGF) is an important signaling protein involved in both vasculogenesis (the de novo formation of the embryonic circulatory system) and angiogenesis (the growth of blood vessels from pre-existing vasculature). 2 (VEGF-2) gene to promote therapeutic angiogenesis Therapeutic angiogenesis is an experimental area of treatment of ischemia, the condition which associated with decrease in blood supply to certain body organs, tissue or part. This usually caused by constriction or obstruction of the blood vessels. in ischemic Ischemic An inadequate supply of blood to a part of the body, caused by partial or total blockage of an artery. Mentioned in: Antiangiogenic Therapy, Subarachnoid Hemorrhage, Ventricular Fibrillation ischemic muscle. In July 2003, Corautus entered into a series of agreements with Boston Scientific Corporation to fund, develop, commercialize and distribute the VEGF-2 gene therapy products. Forward Looking Statement This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are subject to certain factors, risks and uncertainties that may cause actual results, events and performances to differ materially from those referred to in such statements. These risks include statements which address operating performance, events or developments that we expect or anticipate will occur in the future, such as projections about our future results of operations or our financial condition, benefits from the alliance with Boston Scientific, research, development and commercialization of our product candidates, anticipated trends in our business, manufacture of sufficient and acceptable quantities of our proposed products, approval of our product candidates, meeting additional capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , and other risks that could cause actual results to differ materially. These risks are discussed in Corautus Genetics Inc.'s Securities and Exchange Commission filings, including, but not limited to, the risk factors in Corautus' Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2003 (File No. 001-15833) filed March 30, 2004, which are incorporated by reference into this press release. (tables follow)
Corautus Genetics Inc.
Condensed Balance Sheets
March 31, 2004 December 31, 2003
(Unaudited) (A)
ASSETS
Current assets:
Cash and cash equivalents $ 14,466,795 $ 8,911,994
Accounts receivable and other
current assets 517,155 684,150
----------------- ----------------
Total current assets 14,983,950 9,596,144
Property and equipment, net 161,580 184,338
Other assets 734,527 753,553
----------------- ----------------
Total Assets $ 15,880,057 $ 10,534,035
================= ================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 859,489 $ 1,257,815
Capital lease obligation, current
portion 266,684 376,265
Deferred revenue, current portion 83,333 83,333
Lease settlement obligation,
current portion 1,456,031 1,128,189
----------------- ----------------
Total current liabilities 2,665,537 2,845,602
Notes and interest payable 2,537,397 2,500,000
Lease settlement obligation, net of
current portion 1,257,014 1,815,289
Deferred revenue, net of current
portion 861,111 881,944
----------------- ----------------
Total liabilities 7,321,059 8,042,835
Total stockholders' equity 8,558,998 2,491,200
----------------- ----------------
Total Liabilities and Stockholders'
Equity $ 15,880,057 $ 10,534,035
================= ================
(A) Derived from the audited financial statements included in our
Annual Report on Form 10-K for the fiscal year ended December 31,
2003
Corautus Genetics Inc.
Condensed Statements of Operations
For the Three Months Ended
March 31, 2004 March 31, 2003
(Unaudited) (Unaudited)
Revenues $ 20,833 $ -
Costs and expenses:
Research and development 1,412,604 1,317,644
General and administrative 1,148,201 1,012,784
Write-off of acquired in-process
technology - 17,699,863
Write-off of property and equipment - 1,358,128
----------------- ----------------
Total costs and expenses 2,560,805 21,388,419
----------------- ----------------
Loss from operations (2,539,972) (21,388,419)
Other income, net 973 -
Interest expense (83,940) (87,625)
Interest income 30,028 23,950
----------------- ----------------
Net Loss $ (2,592,911)$ (21,452,094)
================= ================
----------------- ----------------
Basic and diluted loss per share $ (0.22)$ (3.07)
================= ================
Number of weighted-average shares
used in the computation of basic
and diluted loss per share 11,807,077 6,990,217
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