A net loss of $10.77M or $0.13 per share
NeoStem, Inc (NBS) had a net loss of $10.77M or $0.13 compared to a net loss in Q2/10 of $5.4M or $0.11 per share, versus a Q1/11 net loss of $9.69M or $0.14 per share. Q2/11 revenues were $18.46M minus the cost of revenues of $13.5M rendered a gross profit of $4.94M, compared to Q2/10 was $19.47M with cost of revenue being $12.9M, and a previous gross profit of $6.49M.
R&D expenses were $2.37M compared to $2.13M in Q2/10 which represented an increase of approximately $237K or 11%. Equity-based compensation included in R&D expenses for Q2/11 was approximately $357K compared to approximately $597K for Q2/10. SG&A expenses were $12.59M compared to $7.85M in Q2/10. In Q2/11, SG&A expenses were $12.59M compared to approximately $7.85M for Q2/10, an increase of approximately $4.72M or 60%.
Equity-based compensation included in SG&A expenses for Q2/11was approximately $4.19M compared to approximately $1.6M for Q1/10. For Q2/11, the use of equity and equity-linked instruments to pay for such expenses resulted in charges to SG&A and R&D expenses of approximately $4.55M, representing an increase of approximately $2.3M over Q2/10.
Total operating losses were $10.01M for Q2/11 compared to $3.5M in Q2/10. Other income (expense) net was $600K while interest expense was $1M. Net loss attributable to non-controlling interest was $67.8K. Weighted average of common shares outstanding was 80.56M. For Q2/11, operating expenses totaled approximately $14.9K compared to approximately $9.99M for Q2/10, an increase of approximately $4,962,900 or 50%. Weighted average of common shares outstanding as to new loss was 80.567M.
For the 6 months ended 6/30/11: R&D expenses were approximately $5.28M compared to approximately $3.43M, representing an increase of approximately $1.85M or 54%. Equity-based compensation included in R&D expenses was approximately $617.5K, compared to approximately $741.2K. Operating expenses totaled approximately $28.29M compared to $17.58M representing an increase of approximately $10.71M or 61%. The use of equity and equity-linked instruments to pay for such expenses resulted in charges to SG&A and R&D expenses of $6.45M, representing an increase of approximately $2.5M over.
SG&A expenses were approximately $23M compared to approximately $14.15M, representing an increase of approximately $8.86M or 63%. Equity-based compensation included in SG&A was approximately $5.83M compared to approximately $3.2M. A net loss for 6 months of $21.1M or $0.27 per share based on 77M shares.
- Cash and cash equivalents at 6/30/11 were $4.85M while receivables were $7.3M. NBS raised an aggregate of approximately $5.6M in private placements of Common Stock from 3/11 to 6/11. In addition, on 7/6/11, 3 key Amorcyte stockholders (including a fund managed by an Amorcyte director) invested an aggregate of $728K in a private placement of 568,750 shares (purchase price $1.28 per share). Additionally, on 7/22/11, NBS completed an underwritten offering of 13.75M units at a purchase price of $1.20 per unit, with each unit consisting of one share of Common Stock and a 5 year warrant to purchase 0.75 of a share of common stock at an exercise price of $1.45 per share. NBS received gross proceeds of $16.5M, prior to deducting underwriting discounts and offering expenses payable.