Cortex Reports First Quarter Fiscal 2005 Results.IRVINE, Calif. -- Cortex Pharmaceuticals, Inc. (AMEX AMEX See: American Stock Exchange : COR cor (kor) [L.] heart. acute cor pulmonale acute overload of the right ventricle due to pulmonary hypertension, usually due to acute pulmonary embolism. ) reported a net loss of $1,511,000 ($0.05 per share) for the quarter ended September 30, 2004. This compares with a net loss of $4,319,000 ($0.24 per share) for the corresponding prior year period, which included non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $3,844,000 related to warrants issued in the Company's private placement of common stock in August 2003. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased from $1,816,000 to $2,756,000 for the quarter ended September 30, 2004 compared to the corresponding prior year period, reflecting increased research and development expenses, including costs for Phase I clinical testing of the second generation AMPAKINE(R) compound, CX717. "With the encouraging results from the Phase I studies, our plans include advancing CX717 into several pilot Phase IIa studies in selected indications in early 2005," commented Roger G. Stoll, Ph.D., Chairman, President and Chief Executive Officer of Cortex. Cortex Pharmaceuticals, Inc. Cortex, located in Irvine, California Irvine is an incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28 1971, the 69.7 square mile (180.5 km²) city has a population of 202,079 (as of 2007). , is a neuroscience neu·ro·sci·ence n. Any of the sciences, such as neuroanatomy and neurobiology, that deal with the nervous system. neuroscience the embryology, anatomy, physiology, biochemistry and pharmacology of the nervous system. company focused on novel drug therapies for neurological neurological, neurologic pertaining to or emanating from the nervous system or from neurology. neurological assessment evaluation of the health status of a patient with a nervous system disorder or dysfunction. and psychiatric psy·chi·at·ric adj. Of or relating to psychiatry. psychiatric adjective Pertaining to psychiatry, mental disorders disorders. The Company is pioneering a class of proprietary pharmaceuticals called AMPAKINE compounds, which act to increase the strength of signals at connections between brain cells. The loss of these connections is thought to be responsible for memory and behavior problems in Alzheimer's disease Alzheimer's disease (ăls`hī'mərz, ôls–), degenerative disease of nerve cells in the cerebral cortex that leads to atrophy of the brain and senile dementia. . Many psychiatric diseases, including schizophrenia schizophrenia (skĭt'səfrē`nēə), group of severe mental disorders characterized by reality distortions resulting in unusual thought patterns and behaviors. , occur as a result of imbalances in the brain's neurotransmitter neurotransmitter, chemical that transmits information across the junction (synapse) that separates one nerve cell (neuron) from another nerve cell or a muscle. Neurotransmitters are stored in the nerve cell's bulbous end (axon). system. These imbalances may be improved by using the AMPAKINE technology. Cortex has alliances with N.V. Organon or·ga·non or or·ga·num n. pl. or·ga·nons or or·ga·nums or or·ga·na 1. An organ. 2. A set of principles for use in scientific investigation. organon pl. organa [Gr.] organ. for the treatment of schizophrenia The concept of a cure as such in the treatment of schizophrenia remains controversial, as there is no consensus on the definition of "treatment" in the case of schizophrenia, although some criteria for the remission of symptoms have recently been suggested. and depression and with Les Laboratoires Servier for the development of AMPAKINE compounds to treat the neurodegenerative effects associated with aging and disease, including Mild Cognitive Impairment mild cognitive impairment (MCI), n memory loss generally associated with aging; does not affect normal independent functioning of an individual. , Alzheimer's disease and anxiety disorders Anxiety disorders A group of distinct psychiatric disorders characterized by marked emotional distress and social impairment, including generalized anxiety disorder, panic disorder, obsessive-compulsive disorder, and posttraumatic stress disorder. . Forward-Looking Statement 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. Note -- This press release contains forward-looking statements concerning the Company's research and development activities, clinical trials and business development plans. Actual results may differ materially, depending on a number of risk factors, including the risks that the agreements with Organon and Servier will not result in any commercial products or that any additional milestone payments will be earned by the Company; that the Company may be unable to obtain sufficient funding to develop AMPAKINE compounds for indications it wishes to retain; that the Company may be unable to arrive at additional corporate partnerships with other pharmaceutical companies for other indications on acceptable terms and therefore be required to independently fund clinical development of AMPAKINE compounds through the sale of additional equity securities or otherwise; that the Company's proposed products may at any time be found to be unsafe or ineffective for any or all of their proposed indications; that competitors may challenge or design around the Company's patents or develop competing technologies; and that clinical studies may at any point be suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. or take substantially longer than anticipated to complete. As discussed in the Company's Securities and Exchange Commission filings, the Company's proposed products will require additional research, lengthy and costly clinical testing and regulatory approval. AMPAKINE compounds are investigational drugs and have not been approved for the treatment of any disease.
Cortex Pharmaceuticals, Inc.
Condensed Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three months ended
September 30,
-----------------------
2004 2003
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Research, license and grant revenues $ 1,175 $ 1,337
Operating expenses:
Research and development 2,042 1,033
General and administrative 664 460
Non-cash, stock compensation charges 50 323
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Total operating expenses 2,756 1,816
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Loss from operations (1,581) (479)
Interest income, net 70 4
Increase in fair value of common stock warrants -- (3,844)
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Net loss $ (1,511) $ (4,319)
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Net loss per share, basic and diluted $ (0.05) $ (0.24)
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Shares used in computing per share amounts
Basic and diluted 28,355 18,321
Cortex Pharmaceuticals, Inc.
Condensed Balance Sheets
(in thousands)
September 30,
2004 June 30,
(Unaudited) 2004
-------------- ----------
Assets:
Cash and cash equivalents $ 11,414 $ 9,977
Marketable securities 8,699 12,211
Accounts receivable 10 133
Other current assets 254 268
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20,377 22,589
Furniture, equipment and leasehold
improvements, net 337 269
Other assets 33 33
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Total assets $ 20,747 $ 22,891
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Liabilities and stockholders' equity:
Current liabilities $ 1,627 $ 2,021
Non-current liabilities 81 381
Stockholders' equity 19,039 20,489
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Total liabilities and
stockholders' equity $ 20,747 $ 22,891
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MORE INFORMATION AT www.cortexpharm.com |
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