Cortech Announces Year End Results and Settlement of Arbitration with Ono.Business Editors BEDMINSTER, N.J.--(BUSINESS WIRE)--March 26, 2004 Cortech, Inc. (CRTQ - NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on ) today announced a net loss of $330,000 or $.09 per share for the year ended December 31, 2003, compared to a net loss of $1,097,000 or $.30 per share for the year ended December 31, 2002. The decrease in the net loss was due primarily to lower legal fees incurred in connection with the Company's previously announced arbitration with Ono Pharmaceutical Co., Ltd., ("Ono"). The Company also announced that it has entered into an Assignment, Termination and Settlement Agreement with Ono. In 1999 the parties entered into a research, development and license agreement to collaborate on developing oral elastase elastase /elas·tase/ (e-las´tas) see pancreatic elastase. e·las·tase n. An enzyme found especially in pancreatic juice that catalyzes the hydrolysis of elastin. inhibitors. Elastase is a protein-degrading enzyme released from the neutrophil neutrophil /neu·tro·phil/ (noo´tro-fil) 1. a granular leukocyte having a nucleus with three to five lobes connected by threads of chromatin, and cytoplasm containing very fine granules; cf. heterophil. 2. and is considered to play a major role in tissue damage and organ failure in severe inflammatory conditions. The agreement anticipated the development of an orally active elastase inhibitor inhibitor /in·hib·i·tor/ (in-hib´i-tor) 1. any substance that interferes with a chemical reaction, growth, or other biologic activity. 2. as a new therapy for patients with chronic inflammatory diseases Noun 1. inflammatory disease - a disease characterized by inflammation disease - an impairment of health or a condition of abnormal functioning NEC, necrotizing enterocolitis - an acute inflammatory disease occurring in the intestines of premature infants; . Subsequently the parties sought arbitration for disputes regarding property rights under the 1999 agreement. The arbitration had been pending before the American Arbitration Association The American Arbitration Association (AAA) is a private enterprise in the business of arbitration, and one of several arbitration organizations that administers arbitration proceedings. The AAA also administers mediation and other forms of alternative dispute resolution. . Under the Assignment, Termination and Settlement Agreement, Ono has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to Cortech all pharmaceutical compounds and intellectual property rights that Ono acquired and developed under the parties' 1999 agreement, including all technical and clinical information related to the pharmaceutical compounds. Moreover, Ono agreed to pay outstanding patent prosecution Patent prosecution describes the interaction between an applicant, or their representative, and a patent office with regard to a patent, or an application for a patent. Broadly, patent prosecution can be split into pre-grant prosecution, which involves negotiation with a patent expenses. Cortech and Ono settled the pending arbitration in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. . Both parties terminated the 1999 agreement, with all of Ono's rights under the 1999 agreement reverting re·vert intr.v. re·vert·ed, re·vert·ing, re·verts 1. To return to a former condition, practice, subject, or belief. 2. Law To return to the former owner or to the former owner's heirs. to Cortech. Ono's confidentiality obligations survived the termination of the agreement. Cortech will continue to seek other partners to develop the elastase technology. Cortech has 3,595,780 shares of common stock outstanding. This release contains 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. which may involve known and unknown risks, uncertainties and other factors that may cause Cortech's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Cortech cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectations on this date. The per share earnings in the text of this news release are diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of .
CORTECH, INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
(in $000's, except per share amounts)
Years Ended December 31,
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2003 2002
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Revenues:
Interest $ 119 $ 209
Expenses:
General and administrative 447 1,306
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Loss before income taxes (328) (1,097)
Provision for income taxes 2 -
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Net loss ($330) ($ 1,097)
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Basic and diluted net loss per share ($.09) ($ .30)
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Basic and diluted weighted average
number of common shares
outstanding (in $000's) 3,596 3,644
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CONDENSED BALANCE SHEET
December 31, 2003
(in $000's)
ASSETS
Cash and cash equivalents $ 11,696
Other assets 8
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Total assets $ 11,704
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities $ 156
Stockholders' equity 11,548
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Total liabilities and stockholders' equity $ 11,704
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