Cortex Reports Fourth Quarter and Fiscal 2004 Results.IRVINE, Calif. -- Cortex Pharmaceuticals, Inc. (AMEX AMEX See: American Stock Exchange : COR) reported a net loss of $1,314,000 ($0.05 per share) for the quarter ended June 30, 2004, compared with a net loss of $85,000 ($0.01 per share) for the corresponding prior year period, with the difference representing development expenses for the AMPAKINE(R) compound, CX717. For the fiscal year ended June 30, 2004, Cortex reported a net loss of $5,994,000 ($0.26 per share), compared to a net loss of $1,175,000 ($0.07 per share) for the corresponding prior year period. Research and development expenses for the year ended June 30, 2004 increased to $6,116,000 compared to $3,724,000 for the prior year period, with the increase reflecting the costs for CX717 preclinical toxicology preclinical toxicology (prēˈ·kliˑ·ni·k  l t and Phase
I clinical testing. General and administrative expenses for the year
ended June 30, 2004 decreased to $2,291,000 from $2,480,000 for the
prior year period. Increased expenses for fiscal year 2004 also
reflected non-cash charges Non-Cash ChargeA 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. , including $3,603,000 primarily related to warrants issued in Cortex's August 2003 private placement. The non-cash charges had no impact on Cortex's working capital or its liquidity. Revenues for the year ended June 30, 2004 of $6,973,000 compared to $5,232,000 for the corresponding prior year period, with fiscal 2004 revenues including the $2,000,000 milestone payment received from 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. , as previously reported. Organon paid the milestone in order to retain its rights to Cortex's AMPAKINE technology in the field of depression. During the year ended June 30, 2004 Cortex significantly improved its balance sheet, with net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $22 million from two private placements of its common stock. These proceeds allowed the Company to accelerate its development plans for CX717, as well as other AMPAKINE compounds. Cortex's working capital increased to $20,568,000 as of June 30, 2004 compared to a working capital deficit of $1,504,000 as of June 30, 2003. 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 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 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. . Cortex is currently developing CX717, a second generation AMPAKINE compound, for Alzheimer's disease and Attention Deficit Hyperactivity Disorder attention deficit hyperactivity disorder (ADHD), formerly called hyperkinesis or minimal brain dysfunction, a chronic, neurologically based syndrome characterized by any or all of three types of behavior: hyperactivity, distractibility, and impulsivity. ("ADHD Attention-Deficit/Hyperactivity Disorder (ADHD) Definition Attention-deficit/hyperactivity disorder (ADHD) is a developmental disorder characterized by distractibility, hyperactivity, impulsive behaviors, and the inability to remain focused on tasks or "). 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 arrive at additional corporate partnerships with other pharmaceutical companies 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 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 Year ended
June 30, June 30,
2004 2003 2004 2003
--------- -------- ------- -------
Revenues
$ 1,214 $ 1,349 $6,973 $ 5,232
Operating expenses:
Research and development 2,083 816 6,116 3,724
General and administrative 514 537 2,291 2,480
Non-cash stock compensation charges 35 82 1,106 217
Total operating expenses 2,632 1,435 9,513 6,421
Loss from operations (1,418) (86) (2,540) (1,189)
Interest income, net 104 1 149 14
Increase in fair value of common stock
warrants -- -- (3,603) --
Net loss applicable to common stock $(1,314) $ (85)$(5,994)$(1,175)
Loss per share:
Basic and diluted $ (0.05) $(0.01)$(0.26)$ (0.07)
Shares used in basic and diluted
calculation 28,297 16,910 23,182 16,868
Cortex Pharmaceuticals, Inc.
Condensed Balance Sheets
(in thousands)
June 30, June 30,
2004 2003
------------ ------------
Assets:
Cash and cash equivalents $ 9,977 $ 1,125
Marketable securities 12,211 --
Restricted cash -- 84
Accounts receivable 133 428
Other current assets 268 211
22,589 1,848
Furniture, equipment and
leasehold improvements, net 269 298
Other 33 33
Total assets $22,891 $ 2,179
Liabilities and Stockholders' Equity
(Deficit): Accounts payable and
accrued expenses $ 1,815 $ 1,335
Unearned revenue -- current 206 2,017
Unearned revenue -- non-current 381 247
Stockholders' equity (deficit) 20,489 (1,420)
Total liabilities and
stockholders' equity (deficit) $ 22,891 $ 2,179
MORE INFORMATION AT www.cortexpharm.com |
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