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Q3/10 Results, Pluristem (PSTI)

PSTI reported a net loss of $1.67M or ($0.08).

PSTI has no revenues.  Q3/10 R&D expenses, net of participation of the OCS increased by 15% to $998K from $867K in Q3/09. The increase is attributed to salaries and benefits as a result of hiring to support clinical trials activity since 9/09.  G&A expenses for Q3/10 decreased slightly by 2% to $756K from $770K in Q3/09.   Financial income increased to $65K for Q3/10 due to exchange rate adjustments from $20K in Q3/09.

  • PSTI had $1.1M in cash and equivalents but total liabilities of $1.23M;
  • On 10/11-12/10, PSTI entered into securities purchase agreements with investors, pursuant to  selling 4.375M shares (Shares) of Common stock at a price of $1.20 per share and warrants to purchase 2.625M shares of warrants, at an exercise price per share of $1.80. The warrants have a term of 4 years and are exercisable starting 6 months following the issuance;
  • PSTI believes funds together with the approved R&D grant from the OCS will be sufficient for operating until at least the end of FY11.

Net loss was $1.6M for Q3/09 and compared to $0.11 for Q3/09.  The net loss per share decreased as a result of the increase in the weighted average number of shares (21M) following issuances of additional shares since Q3/09. PSTI has negative cash flow from operations of $23M with a deficit of $41.M since inception in 5/01. This negative cash flow is mostly attributable to R&D, clinical program and G&A expenses. PSTI estimates net operating cash expenses in the next 12 months will be approximately $7M. Operating activities used cash of $688K in Q3/10 consisted of payments of salaries to employees, and payments of fees to consultants, subcontractors and professional services providers including costs of the clinical trials, minus R&D grants by the OCS. Financing activities generated cash of $228K during Q3/10 attributable to the 4/10 offerings.