Q1/10 Results, Neuralstem (CUR)
Q1/10 net loss of $6.8 M or $0.18 per share. For Q1/10, reported an operating loss of $3.6 M. The increase (versus Q1/09) was due to increased R&D spending relating to beginning of clinical trials and the costs of completing preclinical trial studies for new indications. G&A spending increased because of rising legal costs and an increase in non-cash stock based compensation expense. For Q1/10, cash used in operating activities totaled $2.12 M. The increase versus Q1/09 was primarily attributable to increased research spending relating to the beginning of clinical trials, the costs of completing preclinical trial studies for new indications, and increased legal fees. During Q1/10, CUR received a total of $7.4 M from warrant exercises. Cash, cash equivalents and short-term marketable securities at 3/31/10 was $7.5 M.
- The change from 2009 to 2010 was primarily due to noncash entries relating to CUR’s adoption of Accounting Guidance EITF 07-05, which took effect on 1/1/09. In Q1/09, CUR recognized a mark to market gain from the change in the fair value of warrant obligations of approximately $3.8 M. In Q1/10, CUR recognized a mark to market loss of $1.2 M and a charge of $1.9 M for the modification of certain warrants.
Q1/10 Highlights:
- In 1/10 the first ALS (Amyotrophic Lateral Sclerosis, or Lou Gehrig’s disease) patient in it’s FDA-approved Phase I clinical trial was treated with its spinal cord stem cells at Emory University, in Atlanta, GA. A total of up to 18 patients are planned to be treated in this first U.S. clinical trial to evaluate human neural stem cells for the treatment of ALS.
