Celsion Corporation Reports Second Quarter 2005 Financial Results
The Company recorded a net loss for the second quarter of $2.6 million, or $0.01 per basic and diluted share, compared to a net loss of $1.7 million or $0.01 per basic and diluted share for the comparable quarter in 2004. The increase in the net loss for the quarter was primarily due to non cash adjustments to stock related compensation resulting from the change in the stock price versus the comparable period.
Revenue for the six months ended June 30, 2005 was $4.8 million compared to $0.5 million in the comparable period in 2004. Net loss for the six months was $5.0 million, or $0.03 per basic and diluted share, compared to $7.8 million, or $0.05 per basic and diluted share in the first half of 2004
Dr. Lawrence Olanoff, Celsion's Chief Executive Officer, commented, "Having come on board as CEO at the end of July, I am pleased with the progress this business has made, reflected in the results for this quarter and for the year to date. Prolieve continues to perform very well and is exceeding expectations. We are also making good progress on our liver cancer Phase I study for ThermoDox in combination with radio frequency ablation."
Celsion has research, license or commercialization agreements with leading institutions such as the National Institutes of Health, Duke University Medical Center, Massachusetts Institute of Technology, Harbor UCLA Medical Center, Montefiore Medical Center and Memorial Sloan-Kettering Cancer Center in New York City, Roswell Park Cancer Institute in Buffalo, New York, and Duke University. For more information on Celsion, visit our website: http://www.celsion.com.
Celsion wishes to inform readers that forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
Celsion Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
-------------------------- --------------------------
2004 2005 2004 2005
------------ ------------ ------------ ------------
Revenues $ 443 $ 2,896 $ 543 $ 4,767
Cost of Sales 349 1,926 424 3,199
------------ ------------ ------------ ------------
Gross Margin 94 970 119 1,568
------------ ------------ ------------ ------------
Operating
Expenses
Research &
development 1,386 2,485 5,973 4,704
General &
Administrative 367 1,072 1,936 1,838
------------ ------------ ------------ ------------
Total
Operating
Expenses 1,753 3,557 7,909 6,542
------------ ------------ ------------ ------------
Loss from
Operations (1,659) (2,587) (7,790) (4,974)
Other
Income/(Expense)
License fee
amortization 143 143 191 286
Interest income 59 64 100 125
Loss from
investment in
Celsion China
Ltd 14 24 38 21
------------ ------------ ------------ ------------
Net loss before
income taxes (1,471) (2,404) (7,537) (4,584)
Income taxes - - - -
------------ ------------ ------------ ------------
Net loss $ (1,471) $ (2,404) $ (7,537) $ (4,584)
============ ============ ============ ============
Net loss per
common share
(basic and
diluted) $ (0.01) $ (0.01) $ (0.05) $ (0.03)
============ ============ ============ ============
Weighted
average shares
outstanding 160,302,355 160,898,206 156,764,532 160,850,846
============ ============ ============ ============
Celsion Corporation
Condensed Balance Sheets
(in thousands)
December 31 June 30
---------------------------
2004 2005
------------ -----------
ASSETS (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 10,484 $ 5,316
Accounts receivable 783 962
Inventory 2,202 3,950
Prepaid expenses 679 620
------------ ------------
Total current assets 14,148 10,848
Property and equipment, net 682 615
Investment in Celsion China, Ltd. 108 64
Escrow account - license fee 2,007 2,023
Other assets 107 72
------------ ------------
Total assets $ 17,052 $ 13,622
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 819 $ 1,656
Accrued expenses 738 1,296
Deferred income 571 571
------------ ------------
Total current liabilities 2,128 3,523
Deferred revenue 2,952 2,667
------------ ------------
Total liabilities 5,080 6,190
------------ ------------
Stockholders' equity
Common stock 1,608 1,609
Additional paid-in capital 84,581 84,648
Accumulated deficit (74,217) (78,825)
------------ ------------
Total stockholders' equity 11,972 7,432
------------ ------------
Total liabilities and stockholders'
equity $ 17,052 $ 13,622
============ ============
CONTACT: Celsion Corporation
Tony Deasey, 410-290-5390
tony@celsion.com
or
Financial Relations Board
General Info:
Marilynn Meek, 212-827-3773
mmeek@financialrelationsboard.com
or
Investor Info:
Susan Garland, 212-827-3775
sgarland@financialrelationsboard.com
SOURCE: Celsion Corporation
