Neuralstem (AMEX: CUR) Q1/11 Results
Long/Short Equity, Special Situations, Contrarian
Seeking Alpha Analyst Since 2009
R&D expanses were $1.73M while G&A logged in at $1.77M with total operating expense of $3.53M. Litigation settlement was $250K. CUR reached a settlement agreement with ReNeuron (LSE: RENE.L) resolving all claims asserted by CUR against RENE.L in Neuralstem v. ReNeuron, Case No#CV 08-02168 R, (AGRx) (in California). RENE.L agreed to immediately compensate CUR, as well as to make future milestone and royalty payments to CUR based on RENE.L’s development of certain products at issue in the case. Gain (loss) from change in fair value adjustment of warrants obligations was $161.8K for a total of non-operating expense was $434.7K. CUR reported Q1/11 net loss of $3.1M, or $0.07 per share, compared with a net loss of $6.8M, or $0.18 per share for Q1/10. The change from 2010 to 2011 was primarily due to higher non-cash expenses related to warrant accounting for Q1/10compared to Q1/11. For Q1/11, CUR reported an operating loss of $3.53M compared with an operating loss of $3.61M, for the Q1/10. The change from 2010 to 2011 was primarily due to increased research spending relating to clinical trials and increased G&A spending due to rising legal costs. These increases were offset by decreased non-cash stock based compensation expense for Q1/11compared to Q1/10 and collection of a litigation settlement during Q1/11. For Q1/11, cash used in operating activities totaled $2.28M, an increase of $161.4K or 8% compared to Q1/10. This change was primarily attributed to the cost of starting our small molecule clinical trial. Weighted average common shares outstanding, basis and diluted was 47.69M.
- Cash, cash equivalents and short-term marketable securities at 3/31/11 was $8.5M.
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