Scimitar Equity Blog

    Net loss was $5.1M or $0.10 per share.

Net loss was $5.1M or $0.10 per share, compared to a net loss of $3M or $0.06 per share for Q4/10.

For Q4/11, on a consolidated basis, total revenue <license fees ($62.8K), sales of research products ($405.7K) and grant income $1.16M)>was $1.63M, up $0.2M or 15% from $1.4M for Q4/10. The increase in revenue year-over-year is primarily attributable to an increase in the sale of research products.  R&D costs were $4.1M, while G&A expenses were $2.965M. Loss from operations was $5.44M.Total expense was $7.1M, compared to expense of $5.2M for Q4/10. Operating expenses increased 37% year-over-year due to an increase in staffing, stock option compensation, and the expansion of research and development efforts, were including additional expenses in the HyStem^®-Rx clinical development program and PanC-Dx^TM cancer diagnostic development program. Foreign currency loss was $118.2K. Total other income (expense) net was $184.9K. Expenses of certain BTX subsidiaries are funded in part by equity investments from the minority shareholders of those subsidiaries. Net cash used in operating activities was $3.6M for compared to $2.8M for Q4/10. The increased use of cash reflects the hiring of additional staff and the increased cost of R&D programs in BTX’s subsidiaries, including programs expanded through business acquisitions. Shares used in computing the net loss were 50.276 compared to 46.95M in Q4/10.

• Cash and cash equivalents, on a consolidated basis, totaled $22.2M as of 12/31/10, compared with $33.3M for 12/31/10.  On 8/23/11, BTX’s subsidiary OncoCyte Corporation received a $10M equity investment. This investment included a $3M cash investment from a private investor for the issuance of shares of common stock and a $7M investment from BTX, which included $1M in cash and 1,286,174 in BTX common shares with a market value of $6M when contributed to OncoCyte. The issuance of the common shares from BTX to OncoCyte is accounted for as treasury stock on a consolidated basis, but these shares, currently valued at $6.5M, may be used to fund the future operations of OncoCyte.

FY11 Results: Net loss for FY11 was $16.5M or $0.35 per share, compared to a net loss of $11.2M or $0.28 per share for FY10. For FY11, total revenue, on a consolidated basis, including royalties from product sales and other revenue, revenue recognition of deferred license fees and grant income, was $4.4M, up $0.7M or 18% from $3.7M in FY10. The increase in revenue is primarily attributable to an increase in grant revenue and a increase in the sale of research products, slightly offset by a decrease in royalties from the sale of Hextend^®, BTX’s proprietary blood plasma volume expander used in surgery and trauma care. The grant revenue increase is attributable to a new grant received in FY11 from the Office of the Chief Scientist of the Ministry of Industry, Trade and Labor of Israel and recognized through BTX’s subsidiary Cell Cure Neurosciences, Ltd. Research products revenue increased as BTX and its subsidiaries continued to develop a broader line of research products for stem cell research. Total expense for FY11 was $23M, compared to $13.5M for FY10. The increase in expenses is primarily related to an increase in staffing, stock option compensation, the expansion of research and development efforts, and the operating expenses incurred by businesses acquired by BTX during FY10 and FY11. In this regard, total expense for FY11 reflects a full year of operation of subsidiaries acquired during the course of FY10 and $2M of amortization expenses related to patent technology of the businesses acquired during FY10 and FY11. For FY11, net cash used in operating activities was $13.6M, compared to $7.7M in FY10.