NORWOOD, MA (the "Company") develops and commercializes medical
device and sensor products, today reported its results for the
third quarter ended September 30, 2007. Revenue for the three
months ended September 30, 2007 was $14,000 compared with $509,000
for the same period in 2006. The Company's net loss for the third
quarter of fiscal year 2007 was $713,000 or ($0.06) per share,
compared to net loss of $739,000 or ($0.06) per share for the third
quarter of 2006.
For the nine-month period ended September 30, 2007, the Company
reported revenue of $132,000 and a net loss of $2.2 million or
($0.18) per share. This compares to revenue of $1.8 million and net
loss of $2.4 million or ($0.20) per share for the same period in
2006. The decline in revenue is related to the selling of certain
assets of the Company's former audio integrated circuit division
and the transition to the Company's new business groups, both of
which are still in the developmental phase.
Research and Development ("R&D") expenditures were $305,000
for the third quarter of 2007, compared to $421,000 for the third
quarter of 2006. Selling, General and Administrative expenditures
were $489,000 in the third quarter of 2007, compared to $816,000
for the same period last year.
Dr. Alexander K. Andrianov, the Company's Vice President of
Research & Development, said:
"The principal focus of our Medical Products Group is PyraDerm?,
a proprietary system that has the potential to deliver drugs or
vaccines directly into the skin for the treatment and prevention of
local and systemic conditions. Over the last several months we have
been conducting proof-of-concept studies to validate our
technology, as well as, working on the development of a
pre-clinical data package. One of the important components of these
efforts is evaluation of our delivery systems in vivo, or in a
living system. The initial focus of our technology is on delivery
of vaccines and in the past several months we established
collaborations with two eminent biomedical research institutions to
conduct in vivo immunization studies.
In August, we entered into an agreement with Vaccine and
Infectious Disease Organization (VIDO) to investigate the potential
of our delivery approach in immunization studies using large
animals, whose skin is considered to be the most appropriate model
of the human skin. VIDO is one of the world's leaders in the
research and development of vaccine and immunotherapeutic
technologies for both human and animal diseases.
In October, we announced a research agreement with St. Jude
Children's Research Hospital. The research group at St. Jude is
recognized as a leader in the public health and epidemiology and is
especially known for their expertise in the area of influenza
vaccines. We believe that this collaboration is an important step
in advancing our technology in the field of vaccines, including
those to prevent diseases posing global public health threat, such
as pandemic influenza. In particular, we are interested in studying
technologies that can potentially provide better shelf-life of
vaccines and 'antigen sparing.' Antigens are the main component of
vaccines. Technologies that reduce the required dose would allow a
greater number of vaccine doses to be manufactured, which is
especially important for vaccines against pandemic influenza.
In order to support our licensing/partnership business strategy,
we have been working to develop a strong intellectual property
position. In July, we filed two U.S. patent applications that
describe advanced macromolecular formulations and coating
methodologies. These applications are intended to help us protect
our rights for drug and vaccine delivery formulations, as well as,
methods and systems for precise dose control. We believe that if
these patents are issued, they will assist us in building a
competitive advantage in the field of intradermal drug and vaccine
delivery."
David Meyers, Apogee's Chief Operating Officer, said:
"Over the past several months, our Sensor Products Group has
transitioned from a component to a systems application focus in
order to develop solutions targeting the rapidly growing health
monitoring market. In August, we announced an initiative to develop
IntellaPAL?, an innovative sensor-based monitoring system designed
to improve the security, independence and quality of life for the
elderly and their families, as well as, reduce overall care
cost.
We believe that IntellaPAL? will provide significant advantages
over existing personal emergency response systems currently in the
marketplace. Our proposed system adds sensors and intelligent
software to automatically notify emergency responders and family
members when a specific condition occurs, even when the user is
unconscious or otherwise unable to initiate a call for help.
IntellaPAL? could also add continuous health monitoring and a
secure online information service. Thus, if employed as designed,
concerned family members will be able to check the status of their
loved ones without disturbing them. This information may also be
used to better understand health status, treatment compliance and
detect changes in health before they become serious and require
emergency care.
According to the U.S. Census Bureau, the number of adults age 65
to 84 in the U.S. is expected to double from 35 million to nearly
70 million by 2025. The burden for family members has also
increased, as one third of U.S. adults are currently caregivers
with the largest percentage providing care to the elderly. We
believe this growing elderly population may provide a significant
market opportunity for us to apply our experience in MEMS sensor
technology, electronics, embedded software and wireless
communications.
We plan to perform prototype testing by the end of 2007 and
introduce our first monitoring products in the second half of 2008.
Our business strategy includes both product sales and services that
we believe will provide stable long-term revenue growth, as well
as, establish a channel for the introduction of additional products
and services."
About Apogee Technology, Inc.
Apogee Technology, Inc. is a biotechnology company developing
proprietary systems for the delivery of pharmaceutical agents into
the skin for the treatment and prevention of local and systemic
conditions. The Company's PyraDerm? delivery system incorporates
structured solid-state formulations designed to penetrate the outer
layer of the skin and then release the agent in a controlled
manner. The Company is also developing and commercializing sensors
and sensor systems with a specialized focus on health monitoring.
For more information please visit our web site at:
http://www.apogeebio.com.
PyraDerm?, Sensilica� and IntellaPAL? are trademarks of Apogee
Technology, Inc. All other product names noted herein may be
trademarks of their respective holders.
Certain statements made herein that use the words "anticipate,"
"may," "hope," "estimate," "project," "will," "intend," "plan,"
"expect," "believe" and similar expressions are intended to
identify forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve the Company's design,
development and production efforts of its PyraDerm(TM), Sensilica�
and IntellaPAL(TM) technologies, known and unknown risks and
uncertainties, which could cause the actual results, performance or
achievements of the Company to be materially different from those
that may be expressed or implied. Please refer to the Company's
risk factors as set forth in the Company's filings with the
Securities and Exchange Commission, including its report on Form
10-KSB, as amended, for the year ended December 31, 2006 and its
quarterly reports on Form 10-QSB, for the quarters ended March 31,
2007, June 30, 2007 and September 30, 2007.
APOGEE TECHNOLOGY, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31,
2007 2006
------------- -------------
(Unaudited) (Audited)
ASSETS
Current assets
Cash and cash equivalents $ 793,533 $ 3,051,420
Accounts receivable, net of allowance for
doubtful accounts of $11,320 in 2007 and
$13,245 in 2006, respectively 4,994 11,196
Inventories, net -- --
Prepaid expenses and other current assets 59,016 69,465
------------- -------------
Total current assets 857,543 3,132,081
------------- -------------
Property and equipment, net 192,265 117,217
------------- -------------
Other assets
Patents 294,344 208,703
Exclusive licensing, net 28,218 22,574
Construction in progress -- 90,642
------------- -------------
$ 1,372,370 $ 3,571,217
============= =============
LIABILITIES AND STOCKHOLDERS? EQUITY
Current liabilities
Accounts payable and accrued expenses $ 598,697 $ 710,187
------------- -------------
Total current liabilities 598,697 710,187
------------- -------------
Commitments and Contingencies -- --
Stockholders? equity
Common stock, $.01 par value; 40,000,000
shares authorized, 12,033,332 issued and
outstanding at September 30, 2007 and
20,000,000 shares authorized, 11,968,332
issued and outstanding at December 31, 2006 120,333 119,683
Additional paid-in capital 18,509,598 18,396,909
Accumulated deficit (17,856,258) (15,655,562)
------------- -------------
Total stockholders? equity 773,673 2,861,030
------------- -------------
$ 1,372,370 $ 3,571,217
============= =============
APOGEE TECHNOLOGY, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
September 30, September 30,
---------------------------- ----------------------------
2007 2006 2007 2006
------------- ------------- ------------- -------------
Revenues
Product sales $ 13,601 $ 509,015 $ 132,268 $ 1,833,961
Royalties -- -- -- 1,250
------------- ------------- ------------- -------------
13,601 509,015 132,268 1,835,211
------------- ------------- ------------- -------------
Costs and expenses
Product sales 12 354,160 1,427 1,351,248
Research and
development 304,899 421,189 924,404 1,421,501
Selling,
general and
administrative 489,022 816,508 1,530,893 1,975,102
------------- ------------- ------------- -------------
793,933 1,591,857 2,456,724 4,747,851
------------- ------------- ------------- -------------
Operating loss (780,332) (1,082,842) (2,324,456) (2,912,640)
Other (expense)
income
SigmaTel
earn-out -- 299,090 -- 383,198
Interest/other
expense -- (1,754) -- (24,205)
Interest income 67,825 46,346 123,760 153,852
------------- ------------- ------------- -------------
67,825 343,682 123,760 512,845
------------- ------------- ------------- -------------
Net loss (712,507) (739,160) (2,200,696) (2,399,795)
Accumulated
deficit -
beginning (17,143,751) (14,345,194) (15,655,562) (12,684,559)
Accumulated
deficit -
ending $ (17,856,258) $ (15,084,354) $ (17,856,258) $ (15,084,354)
============= ============= ============= =============
Basic and
diluted loss
per common
share $ (0.06) $ (0.06) $ (0.18) $ (0.20)
------------- ------------- ------------- -------------
Weighted
average common
shares
outstanding -
basic and
diluted 11,993,060 11,968,332 11,976,665 11,968,332
Apogee Investor Contact: Paul J. Murphy Chief Financial Officer
and Vice President of Finance Telephone: (781) 551-9450
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