Nanotechnology Now - Press Release: Senesco Technologies Reports Fiscal Year 2008 Financial Results

Home > Press > Senesco Technologies Reports Fiscal Year 2008 Financial Results

Abstract:
Senesco Technologies, Inc. ("Senesco" or the "Company") SNT today reported financial results for the fiscal year ended June 30, 2008 ("Fiscal 2008").

Senesco Technologies Reports Fiscal Year 2008 Financial Results

NEW BRUNSWICK, NJ | Posted on September 30th, 2008

Net loss for Fiscal 2008 was $4.6 million, or $0.26 per share, compared with a net loss of $3.3 million, or $0.19 per share, for the fiscal year ended June 30, 2007 ("Fiscal 2007"). This increase in net loss was primarily the result of an increase of $1.1 million in non-cash expenses associated with the outstanding convertible notes that were issued during Fiscal 2008 and an increase in operating expenses, which were slightly offset by an increase in revenues.

Fiscal 2008 and Recent Highlights

-- Senesco achieved all necessary milestones related to its private placements with YA Global Investments, LP and Stanford Venture Capital Holdings, Inc., and therefore received the $10 million gross proceeds under the terms of the securities purchase agreements.

-- Senesco announced positive results of preclinical animal studies focused on multiple myeloma. In the most recent studies undertaken, the Company used a combination therapy of its siRNA against Factor 5A as well as a plasmid of the Factor 5A gene encapsulated in a nanoparticle. Whether the combination therapy was injected intratumorally or systemically, human multiple myeloma tumors grown subcutaneously in the flanks of immunodeficient mice were reduced by approximately 95% versus tumors in untreated mice. Additionally, groups of treated mice were studied for up to three weeks after the last therapeutic injection and in mice whose tumors had regressed, the tumors did not regenerate.

-- The Company entered into its second and third license agreements with Bayer CropScience AG for the development and commercialization of cotton and rice, respectively, based on Senesco's proprietary gene technology.

-- Bayer CropScience successfully completed the first R&D milestone related to their use of Senesco's technology in Brassica oilseeds.

-- Senesco entered into a license agreement with Monsanto for the development and commercialization of corn and soy utilizing Senesco's proprietary gene technology.

Bruce Galton, President and Chief Executive Officer of the Company, said, "Our multiple myeloma pre-clinical program continues to move forward. We have seen some promising preclinical results this past fiscal year, and look forward to performing our planned multiple myeloma toxicology studies shortly. Subsequently, we will prepare and file our IND, which we anticipate will be within the next 12 months. Additionally, our technology is currently being used to potentially enhance the viability of major food and non-food crops. We believe we have a balanced business model and head into Fiscal 2009 with enthusiasm."

Revenue of $456,667 for Fiscal 2008 consisted of initial fees and milestone payments related to Senesco's agricultural development and license agreements. During Fiscal June 30, 2007, the Company reported revenue in the amount of $300,000. Such revenue consisted of initial fees, milestone payments and the amortized portion of previous milestone payments in connection with certain agricultural license agreements.

Research and development expenses during Fiscal 2008 were $1.8 million, compared with $1.2 million during Fiscal 2007, an increase of 46%. This increase resulted primarily from the expansion of Senesco's human health programs, including the Company's cancer research program, and an unfavorable exchange rate variance in connection with Senesco's research agreement with the University of Waterloo. The Company expects research and development expenses to continue to increase as it expands its research activities, particularly in the area of human health.

General and administrative expenses were $2.3 million during Fiscal 2008, compared with $2.4 million during Fiscal 2007, a decrease of 5%. This slight decrease was primarily due to a $161,000 decrease in stock-based compensation and a $69,000 decrease in depreciation and amortization. This was partially offset by increases in payroll and benefits, investor relations costs and professional fees.

At June 30, 2008, Senesco had cash, cash equivalents and investments of $6.2 million, and working capital of $5.7 million. Senesco expects to be able to operate according to the Company's current business plan for 13 months as of June 30, 2008.

####

About Senesco Technologies, Inc.
Senesco Technologies, Inc. is a U.S. biotechnology company, headquartered in New Brunswick, NJ. Senesco has initiated preclinical research to trigger or delay cell death in mammals (apoptosis) to determine if the technology is applicable in human medicine. Accelerating apoptosis may have applications to development of cancer treatments. Delaying apoptosis may have applications to certain diseases inflammatory and ischemic diseases. Senesco takes its name from the scientific term for the aging of plant cells: senescence. Delaying cell breakdown in plants extends freshness after harvesting, while increasing crop yields, plant size and resistance to environmental stress. The Company believes that its technology can be used to develop superior strains of crops without any modification other than delaying natural plant senescence. Senesco has partnered with leading-edge companies engaged in agricultural biotechnology and earns research and development fees for applying its gene-regulating platform technology to enhance its partners' products.

Certain statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including, but not limited to: the development of the Company's gene technology; the approval of the Company's patent applications; the successful implementation of the Company's research and development programs and joint ventures; the success of the Company's license agreements; the acceptance by the market of the Company's products; success of the Company's preliminary studies and preclinical research; competition and the timing of projects and trends in future operating performance, the Company's ability to comply with the continued listing standards of the AMEX, as well as other factors expressed from time to time in the Company's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

(tables to follow)

                  SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
                        (A DEVELOPMENT STAGE COMPANY)
                          CONSOLIDATED BALANCE SHEET


                                                             June 30,
                                                       2008           2007
    ASSETS
    Current Assets:
      Cash and cash equivalents                 $  5,676,985     $  408,061
      Short-term investments                         500,000        250,000

      Prepaid expenses and other current assets      180,556        104,526

       Total current assets                        6,357,541        762,587

Property and Equipment, net 5,459 7,526

Intangibles, net 3,213,543 2,544,447

    Deferred Financing Costs, net of
     amortization of $168,706                      1,059,230              -

    Deferred Income Tax Asset, net of valuation
     allowance of $9,152,000 and $7,719,000,
     respectively                                          -              -
    Security Deposit                                   7,187          7,187

       Total Assets                              $10,642,960     $3,321,747

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
      Accounts payable                           $   370,167     $  109,258
      Accrued expenses                               314,267        377,359

      Deferred revenue                                     -         16,667

       Total current liabilities                     684,434        503,284

    Convertible Notes Payable, net of discount
     of $9,499,943                                        57              -

    Grant Payable                                     99,728         99,728

    Other Liability                                   23,062         29,196

Total liabilities 807,281 632,208

    Commitments
    Stockholders' Equity:
      Preferred stock - $0.01 par value; authorized
       5,000,000 shares, no shares issued                  -              -
      Common stock - $0.01 par value; authorized
       100,000,000 and 60,000,000 shares,
       respectively, issued and outstanding
       18,375,117 and 17,473,694, respectively       183,751        174,737
      Capital in excess of par                    39,874,958     28,136,342

      Deficit accumulated during the
        development stage                        (30,223,030)   (25,621,540)

       Stockholders' equity                        9,835,679      2,689,539

       Total Liabilities and Stockholders'
        Equity                                   $10,642,960     $3,321,747

                  SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
                        (A DEVELOPMENT STAGE COMPANY)
                     CONSOLIDATED STATEMENT OF OPERATIONS

                                               Year ended June 30,
                                         2008         2007         2006

    Revenue                        $   456,667  $   300,000  $    66,666

    Operating expenses:
      General and administrative     2,291,263    2,412,679    1,919,740
      Research and development       1,764,426    1,208,321    1,566,267
    Total operating expenses         4,055,689    3,621,000    3,486,007

    Loss from operations            (3,599,022)  (3,321,000)  (3,419,341)
    Noncash income                           -            -            -
    Sale of state income tax loss
     - net                                   -            -            -
    Amortization of debt discount
     and financing costs              (668,763)           -            -
    Interest expense - convertible
     Notes                            (434,154)           -            -
    Interest income - net              100,449       69,303      104,456
    Net loss                       $(4,601,490) $(3,251,697) $(3,314,885)

    Basic and diluted net loss per
     common share                  $      (.26) $      (.19) $      (.21)

    Basic and diluted weighted-
     average number of common shares
     outstanding                    17,660,466   16,916,918   15,469,881

For more information, please click here

Contacts:
Company Contact:
Senesco Technologies, Inc.
Joel Brooks
Chief Financial Officer

(732) 296-8400

Investor Relations Contact:
FD
Brian Ritchie

212-850-5600