North American Scientific, Inc. (Nasdaq: NASM), operating as NAS
Medical, today announced financial results for its fiscal quarter
ended January 31, 2009. For the first quarter of fiscal 2009, the
Company reported a net loss from continuing operations of $2.2
million, or $0.12 per share, compared to the net loss from
continuing operations for the first quarter of the prior fiscal
year of $4.3 million, or $0.56 per share. Continuing operations
exclude the discontinued operations of the NOMOS� Radiation
Oncology business sold in September 2007, the sale of our
Non-Therapeutic product line completed in September 2008 and the
sale of the Prostate Brachytherapy business expected to close in
April 2009.
As previously announced, on March 11, 2009, in response to the
Company�s current financial condition, current business prospects,
and to effect other arrangements surrounding the sale of its
Prostate Brachytherapy Product Line, the Company�s wholly owned
subsidiary, North American Scientific, Inc., a California
corporation, filed voluntary petitions in the United States
Bankruptcy Court for the Central District of California (the
�Bankruptcy Court�) under Chapter 11 of the U.S. Bankruptcy
Code.
First Quarter Financial Results
For the first quarter of fiscal 2009, the Company reported a net
loss from continuing operations of $2.2 million, or $0.12 per
share, compared to the net loss from continuing operations for the
first quarter of the prior fiscal year of $4.3 million, or $0.56
per share. The $2.1 million decrease in the net loss from
continuing operations was primarily due to decreases in General
& Administrative costs of $0.7 million, a decrease in Research
and Development costs of $0.1 million and a $1.4 million decrease
in interest and other expenses, which was offset by a $0.1 million
increase in selling expenses.
At the end of the first quarter of fiscal 2009, the Company had
$2.1 million in cash and cash equivalents, compared with $2.3
million at the end of the first quarter for fiscal year 2008.
Through the first quarter of fiscal 2009, the Company used $2.4
million cash to fund continuing operations, compared with $2.9
million in the first quarter of the prior year. As of January 31,
2009, the Company had $2.5 million in interest-bearing debt
outstanding. The Company�s independent registered public accounting
firm's report on the company's financial statements for the fiscal
year ended October 31, 2008 included a going concern
qualification.
Our expectation is that both the Prostate Brachytherapy business
and ClearPath assets will be sold through the Chapter 11 process
and that they will continue to be operated by the buyers. With the
sale of both product lines, the Company will be left with no
operating assets and may not be able to pay all its creditors in
full from the proceeds from such sales.
About North American Scientific
North American Scientific is a leader in radiation therapy in
the fight against cancer. Its innovative products provide
physicians with tools for the treatment of various types of
cancers. They include Prospera� brachytherapy seeds and�SurTRAK�
needles and strands used primarily in the treatment of prostate
cancer. In addition, the Company has continued to gain clinical
experience with its ClearPath� multi-channel catheter breast
brachytherapy devices. They are the only such devices approved for
both high dose and continuous release, or low dose, radiation
treatments. The devices are designed to provide flexible, precise
dose conformance and an innovative delivery system that is intended
to offer the more advanced form of brachytherapy for the treatment
of breast cancer. Please visit www.nasmedical.com for more
information.
Statements included in this release that are not historical
facts may be considered forward-looking statements that are subject
to a variety of risks and uncertainties. There are a number of
important factors that could cause actual results to differ
materially from those expressed in any forward-looking statements
made by the Company including, but not limited to, the impact of
competitive products and pricing, technological changes, changes in
relationships with strategic partners and dependence upon strategic
partners for the performance of critical activities under
collaborative agreements, the ability of the Company to
successfully directly market and sell its products, uncertainties
relating to patent protection and regulatory approval, the stable
supply of appropriate isotopes, research and development estimates,
market opportunities, risks associated with strategic opportunities
or acquisitions the Company may pursue and the risk factors
included in the Company�s filings with the Securities and Exchange
Commission. Any forward-looking statements contained in this news
release speak only as of the date of this release, and the Company
undertakes no obligation to revise or update any forward-looking
statements, whether as a result of new information, future results
or otherwise.
NORTH AMERICAN SCIENTIFIC,
INC.
Condensed Consolidated Balance
Sheets
(in thousands, except share
data)
�
January 31,
October 31,
2009 2008
(Unaudited)
�
�
�
Assets � Current assets � Cash and cash equivalents $ 2,142 $ 2,256
Accounts receivable, net of reserves 2,052 1,907 Prepaid expenses
and other current assets 331 758
Receivable from sale of assets
423 2,190 Assets held for sale 1,963 2,166 �
�
�
� Total current assets 6,911 9,277 Equipment and leasehold
improvements, net 344 298 Intangible assets, net 23 23 Other assets
4 4 �
�
�
Total assets $ 7,282 $ 9,602 �
�
�
Liabilities and Stockholders� Equity � Current liabilities Line of
credit, in default $ 1,022 $ � Short-term portion of long-term
debt, net of discount, in default 1,397 376 Accounts payable 1,741
1,732 Accrued expenses 2,316 3,118 �
�
�
Total current liabilities 6,476 5,226 � Long-term debt, net of
discount --- 988 Long-term severance liability 472 569 �
Commitments and contingencies
� Stockholders� Equity
Preferred stock, $0.01 par value,
2,000,000 shares authorized; no shares issued
� � Common stock, $0.01 par value, 150,000,000 shares authorized:
18,561,676 shares issued: and 18,520,472 shares outstanding as of
January 31, 2009 and October 31, 2008, respectively 185 185
Additional paid-in capital 161,915 161,732 Treasury stock, at cost
� 41,204 common shares as of January 31, 2009 and October 31, 2008
(227
)
(227
)
Accumulated deficit (161,539 ) (158,871 )
�
�
Total stockholders� equity 334 2,819 �
�
�
Total liabilities and stockholders� equity $ 7,282 $ 9,602 � �
NORTH AMERICAN SCIENTIFIC,
INC.
Condensed Consolidated
Statements of Operations
(Unaudited)
(in thousands, except share and
per share data)
� �
Three Months Ended January 31, 2009 �
2008
�
�
� Operating expenses Selling and marketing expenses $ 231 $ 142
General and administrative expenses 1,161 1,882 Research and
development 784 � 850 �
�
�
Total operating expenses 2,176 � 2,874 �
�
�
Loss from operations (2,176 ) (2,874 ) Interest expense 76 1,132
Adjustment to fair value of derivatives --- (311 ) Interest income
and other income, net 10 � --- � �
�
�
Loss before provision for income taxes (2,242 ) (4,317 ) Provision
for income taxes � � � �
�
�
Loss from continuing operations (2,242 ) (4,317 ) Loss from
discontinued operations (426 ) (78 )
�
�
Net loss $ (2,668 ) $ (4,395 )
�
�
� Basic and diluted loss per share: Continuing operations $ (0.12 )
$ (0.56 ) Discontinued operations (0.02 ) (0.01 )
�
�
Net loss per share $ (0.14 ) $ (0.57 )
�
�
� Weighted average number of shares outstanding-basic and diluted
18,520,472 �
7,660,226
�
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