EANS-Adhoc: Oxygen Biotherapeutics Reports First Quarter FY2012 Financial
Results and Announces Conference Call and Webcast for Shareholders
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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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quarterly report
20.09.2011
MORRISVILLE, NC, September 19, 2011 Oxygen Biotherapeutics, Inc. (NASDAQ and
SIX Swiss Exchange: OXBT), a development stage biomedical company focused on
developing oxygen-rich intravenous and topical products, today announced results
for the fiscal year (FY) 2012 first quarter ended July 31, 2011. The company
also announced that the company will host a conference call regarding these
results on Tuesday, September 20, 2011 at 10:30 AM EDT. (see conference call
access details below)
Company Highlights
-Raised approximately $4.9 million in a private placement of unregistered
convertible notes and warrants
-Received approval by the Drug Controller General of India to conduct our
traumatic brain injury Phase IIb trials known as STOP-TBI at clinical sites in
India
-Signed a Letter of Intent to conduct preclinical research for imaging and
therapeutic intervention of acute ischemic stroke. The research will be
conducted by Aurum Biosciences using our proprietary Oxycyte® PFC
(perfluorocarbon) emulsion in combination with Aurum's proprietary Glasgow
Oxygen Level Dependent (GOLD) Magnetic Resonance Imaging techniques
Financial Results
Oxygen Biotherapeutics reported a net loss of approximately $2.8 million, or
$0.12 per share, for the three months ended July 31, 2011, compared to a net
loss of approximately $3 million, or $0.13 per share for the same period in the
prior fiscal year. The decrease in net loss over the same period last year was
primarily due to a decrease in Oxycyte development costs, clinical trial costs,
and overall administrative expenses which were offset by an increase in costs
associated with marketing and selling our cosmetic products.
Revenue for the quarter ended July 31, 2011 increased to $59,477 compared to
$6,900 in the same quarter in 2010 due to the addition of our DERMACYTE
Concentrate and Eye Cream products, increased sales from our internal sales
force, and shipments to our distributor in Mexico.
Gross profit as a percent of revenue was 42% and 74% for the three months ended
July 31, 2011 and 2010, respectively. The decrease primarily was due to changes
in the product mix resulting from the addition of DERMACYTE Concentrate and Eye
Serum and sales through distribution channels in the three months ended July 31,
2011.
Marketing and sales expenses increased to approximately $230,000 for the quarter
ended July 31, 2011 compared to $105,076 for the same period in 2010. This
increase was driven primarily by costs incurred for compensation and direct
advertising.
General and administrative expenses decreased 12% to $1.5 million from $1.8
million for the periods ended July 31, 2011 and 2010, respectively. This
decrease was driven primarily by a reduction in compensation costs, travel
expenses, and amortization of intangible assets. The decrease was partially
offset by an increase in accounting and legal fees.
Research and development expenses decreased 43% to nearly $652,000 during the
period ended July 31, 2011 compared to over $1.1 million during the same period
in 2010. The decrease was due to a reduction in Oxycyte development costs and
contract research organization costs, partially offset by an increase in
compensation and consulting costs.
As of July 31, 2011, the company had cash and cash equivalents totaling
approximately $4 million, up from $951,944 at April 30, 2011. This was due
primarily to a financing that closed at the end of June 2011. Subsequent to the
end of the first quarter, the company received over $600,000 from the exercise
of certain outstanding warrants on August 2, 2011.
end of ad-hoc-announcement
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Management Changes
On August 24, 2011, the Board of Directors announced that Rene Eckert, a
director on our Board since October 2009, was named interim Chairman of the
Board, and Chief Financial Officer Michael B. Jebsen was named interim Chief
Executive Officer. They fill the positions vacated by Chris J. Stern who was
dismissed with cause on the same day. Due to the circumstances surrounding his
dismissal, Mr. Stern was not paid any severance in connection with the
termination of his employment or his departure from the Board.
As previously disclosed, our Audit Committee, which is composed of independent
directors, conducted an investigation into the conduct of Mr. Stern resulting in
his dismissal. The focus of the Audit Committees investigation primarily
concerned the accuracy of the credentials set forth in Mr. Sterns biography and
the circumstances surrounding certain transactions occurring prior to 2009. This
investigation has concluded and a report of the Audit Committees findings can
be found in Managements Discussion and Analysis of Financial Condition and
Results of Operations Audit Committee Investigation included in our Form 10-Q
filed today with the U.S. Securities and Exchange Commission (SEC).
In light of the conduct discovered by the Audit Committee, the company has
informed the staff of the SEC and representatives of NASDAQ of the Audit
Committees findings.
The companys transition, while difficult, is not insurmountable. We have
already engaged a firm to conduct a nationwide executive search for a leader
with the expertise necessary to move our products through the regulatory
process. Meanwhile, our dedicated employees are focused on the day-to-day
operations to progress our preclinical studies with the Army, Navy and
Hackensack University Medical Center, and our TBI clinical trials. I wish to
express my deep appreciation to our employees who are working diligently to
execute our daily operations as we work through the issues surrounding this
abrupt management change, said Mr. Eckert.
Added Mr. Jebsen: I am pleased to say that our internal controls were
instrumental in this entire process. Although we believe they were sufficient
as of the end of the first quarter, we are strengthening them further by
adopting new measures with respect to background checks, related-party
transactions, and revising our Code of Ethics to explicitly state that providing
false or misleading information in response to a corporate investigation is a
violation of the Code subject to discipline. As interim CEO I will work with
management and the Board to clarify our top priorities, reduce costs and aid in
the selection of a new chief executive officer. We have very promising
technology that has resulted in high potential product candidates that can
address a variety of medical conditions. In the coming months, you can expect us
to focus on the areas that we believe demonstrate the highest technical and
commercial potential.
Conference Call Dial-In, Webcast Information
Management will host a conference call on Tuesday, September 20 at 10:30 a.m.
EDT. To access the live teleconference, dial (866)770-7120 (U.S. and Canada),
or (617) 213-8065 (international), and enter the passcode 78227206. It will
also be available via live webcast in the Investor section on our website
www.oxybiomed.com. A replay of the webcast will be available on the Oxygen
Biotherapeutics website or by phone for a limited time. To access the replay by
phone, call (888) 286-8010 (U.S. and Canada) or (617) 801-6888 (international)
for a limited time. The passcode for the replay is 43757071.
General Annual Meeting of Shareholders
All shareholders of record as of August 19, 2011, are invited to attend the
companys General Annual Meeting of Shareholders on Friday, September 30, 2011.
It will be held at the Hotel Sierra in Morrisville, NC at 9 AM EDT. Photo
identification is required to attend. Shareholders of record can cast their
votes by phone, on line, by fax or in person as per the instructions on your
proxy card. If you need additional information, or a copy of your proxy, please
make your request to Investor Relations at e.corliss@oxybiomed.com.
About Oxygen Biotherapeutics, Inc.
Headquartered in Morrisville, NC, Oxygen Biotherapeutics, Inc. is developing
medical and cosmetic products that efficiently deliver oxygen to tissues in the
body. The company has developed a proprietary perfluorocarbon (PFC) therapeutic
oxygen carrier product called Oxycyte® that is being formulated for both
intravenous and topical delivery. The company has commercialized its DERMACYTE®
line of oxygen-rich skin care products. In addition, the company is focused on
perfluorocarbon-based oxygen carriers for use in traumatic brain injury,
decompression sickness, personal care, and topical wound healing. More
information is available at www.oxybiomed.com or www.DermacyteUS.com.
Caution Regarding Forward-Looking Statements
This news release contains certain forward-looking statements by the company
that involve risks and uncertainties and reflect the companys judgment as of
the date of this release. These statements include the management transition,
and expansion of research and development of the Oxycyte and DERMACYTE product
lines, including the timing of the introduction of these new products. The
forward-looking statements are subject to a number of risks and uncertainties
including matters beyond the companys control that could lead to delays in new
product introductions and customer acceptance of these new products, and other
risks and uncertainties as described in our filings with the Securities and
Exchange Commission, including in the current Form 10-Q filed on September 19,
2011, and our annual report on Form 10-K filed on July 15, 2011, as well as
other filings with the SEC. The company disclaims any intent or obligation to
update these forward-looking statements beyond the date of this release. This
caution is made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
Further inquiry note:
Ellen Corliss
Vice President, Corporate Communications
& Investor Relations
Oxygen Biotherapeutics, Inc
One Copley Pkwy, Suite 490
Morrisville, NC 27560
Direct Telephone: +1 919 855 2112
Direct Fax: +1 919 806 4417
Email: e.corliss@oxybiomed.com
end of announcement euro adhoc
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issuer: Oxygen Biotherapeutics Inc.
One Copley Parkway, Suite 490
US-27560 Morrisville, NC
phone: +1 (919) 855 21 12
FAX: +1 (919) 806 44 17
mail: e.corliss@oxybiomed.com
WWW: www.oxybiomed.com
sector: Biotechnology
ISIN: US69207P2092
indexes: SSIRT
stockmarkets: Nasdaq: New York, Main Standard: SIX Swiss Exchange
language: English