SNT Senesco Technologies

Senesco Technologies, Inc. (“Senesco” or the “Company”) (NYSE Amex: SNT) today reported financial results for the first quarter of fiscal year 2012 which ended on September 30, 2011.

Highlights of the first quarter and recent weeks include:

• Initiated patient dosing in its Phase 1b/2a clinical study of SNS01-T
• Finalized an agreement with Mayo Clinic to study SNS01-T in multiple myeloma
• Selected Criterium, Inc. to manage the operational aspects of Phase 1b/2a clinical study
• Presented at the 2011 BIO Investor Forum Conference
• Presented at the 13th Annual Rodman & Renshaw Healthcare Conference

“We are pleased to have dosed our first patient at Mayo Clinic in our first human clinical study of SNS01-T” said Leslie J. Browne, Ph.D., President and CEO of Senesco. “After a challenging journey to move our proprietary technology from the research lab to bedside, we now hope to see a benefit for the patient as we work to validate SNS01-T in the clinic.”

First Quarter Fiscal 2012 Financial Results

There was no revenue for the three month periods ended September 30, 2011 and September 30, 2010.

Research and development expenses for the three month period ended September 30, 2011 were $634,186 compared with $1,536,507 for the three month period ended September 30, 2010, a decrease of 59%. The lower expenditures were primarily due to a decrease in the costs incurred in connection with our development of SNS01-T for multiple myeloma. Specifically, during the three month period ended September 30, 2010, the Company incurred significant costs related to its pivotal toxicology study and other preclinical work that it did not incur during the three month period ended September 30, 2011.

General and administrative expenses for the three month period ended September 30, 2011 were $645,959, compared with $668,884 for the three month period ended September 30, 2010, a decrease of 3%. The decrease was primarily due to a decrease in stock-based compensation, which was partially offset by an increase in professional fees and amortization of intangibles.

The loss applicable to common shares for the three month period ended September 30, 2011 was $1,947,829, or $0.02 per share, compared with a loss of $3,021,882, or $0.05 per share, for the three month period ended September 30, 2010. The decrease in the loss applicable to common shares was primarily the result of lower research and development expenses.

As of September 20, 2011 Senesco had cash and cash equivalents of $2,841,974, compared to cash and cash equivalents of $3,609,954 as of June 30, 2011. The Company believes that its cash resources are sufficient to fund the current business plan through March 31, 2012. However the Company has the ability to raise additional capital through its ATM facility, utilize its unused line of credit and, if necessary, delay certain costs which will provide Senesco with enough cash to fund operations at least through June 30, 2012.

About Multiple Myeloma

Multiple myeloma is an incurable cancer of plasma cells, a type of white blood cell derived from B-lymphocytes, normally responsible for the production of antibodies, in which abnormal cells accumulate in the bone marrow leading to bone lesions and interfering with the production of normal blood cells. Senesco was previously granted orphan drug status for SNS01-T, the Company’s lead drug candidate for treatment of multiple myeloma.

About Senesco Technologies, Inc.

Senesco Technologies is leveraging proprietary technology that regulates programmed cell death, or apoptosis. Accelerating apoptosis may have applications in treating cancer, while delaying apoptosis may have applications treating certain inflammatory and ischemic diseases. The Company has initiated a clinical study in multiple myeloma with its lead therapeutic candidate SNS01-T. Senesco has already partnered with leading-edge companies engaged in agricultural biotechnology and is entitled to earn research and development milestones and royalties if its gene-regulating platform technology is incorporated into its partners’ products.

Forward-Looking Statements

Certain statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including, but not limited to: the ability of the Company to consummate additional financings; the development of the Company’s gene technology; the approval of the Company’s patent applications; the successful implementation of the Company’s research and development programs and collaborations; the success of the Company's license agreements; the acceptance by the market of the Company’s products; the timing and success of the Company’s preliminary studies, preclinical research and clinical trials; competition and the timing of projects and trends in future operating performance, the Company’s ability to comply with the continued listing standards of the NYSE Amex, as well as other factors expressed from time to time in the Company’s periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with the Company’s periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

 

SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY

(A DEVELOPMENT STAGE COMPANY)

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

                September 30, June 30, 2011 2011  

ASSETS

  CURRENT ASSETS: Cash and cash equivalents $ 2,841,974 $ 3,609,954 Prepaid research supplies and expenses   1,824,519     1,446,064     Total Current Assets 4,666,493 5,056,018   Equipment, furniture and fixtures, net 3,324 3,782 Intangibles, net 3,596,709 3,524,731 Deferred income tax assets, net - - Security deposit   5,171     12,358     TOTAL ASSETS $ 8,271,697   $ 8,596,889    

LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES: Accounts payable $ 949,090 $ 559,525 Accrued expenses 651,085 509,806 Line of credit   2,199,108     2,199,108     Total Current Liabilities 3,799,283 3,268,439   Warrant liabilities 439,556 711,259 Grant payable   99,728     99,728     TOTAL LIABILITIES   4,338,567     4,079,426     STOCKHOLDERS' EQUITY:   Preferred stock, $0.01 par value, authorized 5,000,000 shares Series A 10,297 shares issued and 3,645 and 3,690 shares outstanding, respectively 37 37 (liquidation preference of $3,827,250 and $3,792,252 at September 30, 2011 and June 30, 2011, respectively) Series B 1,200 shares issued and outstanding 12 12 (liquidation preference of $1,260,000 and $1,230,000 at September 30, 2011 and June 30, 2011, respectively) Common stock, $0.01 par value, authorized 250,000,000 shares, issued and outstanding 79,695,624 and 77,769,677, respectively 796,956 777,697 Capital in excess of par 65,832,389 64,488,152 Deficit accumulated during the development stage   (62,696,264 )   (60,748,435 )   Total Stockholders' Equity   3,933,130     4,517,463     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,271,697   $ 8,596,889    

See Notes to Condensed Consolidated Financial Statements

   

SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY

(A DEVELOPMENT STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)                       Cumulative Three months ended September 30, Amounts from

2011

2010

Inception

  Revenue $ -   $ -   $ 1,590,000     Operating expenses: General and administrative 645,959 668,884 29,536,492 Research and development   634,186     1,536,507     19,303,544   Total operating expenses   1,280,145     2,205,391     48,840,036     Loss from operations (1,280,145 ) (2,205,391 ) (47,250,036 )   Other non-operating income (expense)   Grant income - - 244,479   Fair value – warrant liability 271,703 319,476 8,129,370   Sale of state income tax loss – net - - 586,442   Other noncash (expense) income, net - (111,265 ) 205,390   Loss on extinguishment of debt - - (361,877 )   Write-off of patents abandoned - - (1,588,087 )   Amortization of debt discount and financing costs - - (11,227,870 )   Interest expense – convertible notes - - (2,027,930 )   Interest (expense) income - net   (30,541 )   (18,296 )   380,515     Net loss (1,038,983 ) (2,015,476 ) (52,909,604 )   Preferred dividends   (908,846 )   (1,006,406 )   (9,786,660 )   Loss applicable to common shares $ (1,947,829 ) $ (3,021,882 ) $ (62,696,264 )   Basic and diluted net loss per common share $ (0.02 ) $ (0.05 )   Basic and diluted weighted-average number of common shares outstanding   79,289,756     56,930,150