BOTHELL, Wash., Nov. 6 /PRNewswire-FirstCall/ -- SCOLR Pharma, Inc.
(AMEX: DDD) today reported financial results for the three and nine
months ended September 30, 2009. Stephen J. Turner, SCOLR Pharma's
President and CEO, said, "We continue to advance discussions
related to licensing our 12-hour ibuprofen formulation. Several
potential partners have committed significant resources in time,
personnel and external resources as they evaluate the potential
commercial and/or licensing opportunity. In the nutraceutical area,
we have increased our sales and marketing efforts and are
optimistic we will be able to expand our existing revenue streams
from extended release supplements. Royalties received from Perrigo
continue to improve on a quarterly basis, and we expect to see
further increases as we expand the reach of our products to new
customers. In addition, we have made significant strides in support
of our recent marketing efforts on new product offerings outside of
the Perrigo relationship both within the US and abroad. We expect
to be able to introduce newly formulated products in 2010 based on
our meetings with numerous international, national and regional
retailers and potential partners. We continue to make progress in
reducing our operating expenses including reductions in salary and
rent expenses. We renegotiated the lease for our corporate facility
to reduce the amount of leased space to 15,615 square feet from
20,468 square feet and reduce our rental payments. In addition,
effective November 1, 2009, the Company will be allowed to pay up
to $18,000 of its monthly rent for twelve months through draw downs
on the letter of credit which secures the lease. In addition, we
eliminated one executive position and reduced base salaries for two
executive officers. These additional savings will provide us the
opportunity to preserve our capital and improve our position for
the future." Total revenues, which consist of royalty revenue from
our collaboration agreements, increased 11%, or $25,343 to $261,651
for the three months ended September 30, 2009, compared to $236,308
for the same period in 2008. Total revenues decreased 15%, or
$117,223 to $664,212 for the nine months ended September 30, 2009,
compared to $781,435 for the same period in 2008. Royalty revenues
result from our relationship with Perrigo and reflect changes in
the level of sales by Perrigo. Marketing and selling expenses
decreased 53%, or $62,489 to $54,351 for the three months ended
September 30, 2009, compared to $116,840 for the same period in
2008 and decreased 63%, or $345,177 to $200,402 for the nine months
ended September 30, 2009, compared to $545,579 for the same period
in 2008. These decreases are due to a reduction in personnel
related expenses due to reduction in personnel and lower
advertising and tradeshow expenses. Research and development
expenses decreased 75%, or $1.7 million to $572,189 for the three
months ended September 30, 2009, compared to $2.3 million for the
same period in 2008 and decreased 50%, or $2.2 million to $2.2
million for the nine months ended September 30, 2009, compared to
$4.4 million for the same period in 2008. These decreases were
primarily due to our decision to defer development activities on
certain projects pending additional funding and a reduction in
personnel related expenses due to personnel reductions. General and
administrative expenses increased 29%, or $273,061 to $1.2 million
for the three months ended September 30, 2009, compared to $947,684
for the same period in 2008, and increased 3%, or $104,665, to $3.3
million for the nine months ended September 30, 2009, compared to
$3.2 million for the same period in 2008. These increases were
primarily due to severance costs associated with the resignation of
our former CEO, and increased investment banker activities. These
increases were offset by decreases in non-cash share based
compensation expense director's and shareholder relations expenses
and insurance premiums. In May 2008, we entered an agreement to
terminate the lease for our former corporate facility for
consideration of $4.1 million which was recognized as a reduction
to operating expense in September 2008. Under the terms of the
agreement, we received $1.0 million upon execution of the agreement
and the remaining $3.1 million in September 2008, at the time we
vacated the premises. We incurred costs of $116,867 related to
relocation to our new facility and the lease buyout which were
recognized in operating expense in September 2008. Other income
decreased 98%, or $41,608 to $948 for the three months ended
September 30, 2009, compared to $42,556 for the comparable period
in 2008, and decreased 96%, or $186,746 to $8,548 for the nine
months ended September 30, 2009, compared to $195,294 of net income
for the same period in 2008. These decreases were due to a decrease
in interest income due to lower cash balances. Net loss increased
$2.5 million to $1.6 million for the three months ended September
30, 2009, compared to $890,371 of net income for the same period in
2008, and the net loss for the nine months ended September 30,
2009, increased 57%, or $1.8 million to $5.1 million, compared with
a net loss of $3.2 million for the same period in 2008. The
increased net loss reflects the net impact of the non-recurring
$4.0 million income recognized in the prior year for the facility
lease buyout. We had approximately $1.9 million in cash and cash
equivalents, and $473,711 in restricted cash as of September 30,
2009. Based on our current operating plan, we anticipate that our
existing cash and cash equivalents, together with expected
royalties from third parties, will be sufficient to fund our
operations through February 2010, unless unforeseen events arise
that negatively impact our liquidity. In the event we are
unsuccessful generating additional revenues or raising additional
funds, we will have to substantially reduce our operations to
preserve capital or seek bankruptcy protection or otherwise wind up
our business. In addition to our efforts to enter into alliances
and licensing agreements, we plan to continue to seek access to the
capital markets to fund our operations. We filed a shelf
registration statement in the amount of $40 million which was
declared effective by the Securities and Exchange Commission on
November 25, 2008 under which we may offer from time-to-time, one
or more offerings of securities up to an aggregate public offering
price of $40 million. However, the financial markets have been very
difficult for companies at our development stage and financial
condition and financing may not be available on favorable terms or
at all. Additionally, we received notice from the NYSE Amex that we
are not in compliance with continued listing requirements. Our
inability to maintain listing of our common stock on the NYSE Amex
may further limit our ability to access the capital markets. Any
issuance of additional securities could be dilutive to our existing
stockholders. About SCOLR Pharma: Based in Bothell, Washington,
SCOLR Pharma, Inc. is a specialty pharmaceutical company. SCOLR
Pharma's corporate objective is to combine its formulation
expertise and its patented CDT platform to develop novel
pharmaceutical, over-the-counter (OTC), and nutritional products.
Our CDT drug delivery platforms are based on multiple issued and
pending patents and other intellectual property for the programmed
release or enhanced performance of active pharmaceutical
ingredients and nutritional products. For more information on SCOLR
Pharma, please call 425.368.1050 or visit http://www.scolr.com/.
This press release contains forward-looking statements (statements
which are not historical facts) within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve risks and uncertainties, including activities,
events or developments that we expect, believe or anticipate will
or may occur in the future. A number of factors could cause actual
results to differ from those indicated in the forward-looking
statements, including our ability to raise additional funds or
enter strategic alliances, advance development of our potential
products and complete research and development, including
pre-clinical and clinical studies, the continuation of arrangements
with our product development partners and customers, competition,
government regulation and approvals, and general economic
conditions. For example, we may not obtain regulatory approval for
our products, which would materially impair our ability to generate
revenue. Additional assumptions, risks and uncertainties are
described in detail in our registration statements, reports and
other filings with the Securities and Exchange Commission. Such
filings are available on our website or at http://www.sec.gov/. You
are cautioned that such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those set forth in the forward-looking statements.
We undertake no obligation to publicly update or revise
forward-looking statements to reflect subsequent events or
circumstances. Contacts: Investor Relations SCOLR Pharma, Inc.
425-368-1050 ext 1080 SCOLR Pharma, Inc. CONDENSED BALANCE SHEETS
(Unaudited) September 30, December 31, 2008 2009 ---- ---- ASSETS
Current Assets Cash and cash equivalents $1,946,908 $6,363,243
Accounts receivable 240,363 177,253 Interest and other receivables
6,282 1,157 Prepaid expenses and other assets 285,807 286,539
----------- ----------- Total current assets 2,479,360 6,828,192
Property and Equipment - net of accumulated depreciation of
$1,245,400 and $1,289,844, respectively 555,364 790,947 Intangible
assets - net of accumulated amortization of $493,671 and $465,724,
respectively 564,359 557,639 Restricted cash 473,711 473,711
----------- ----------- $4,072,794 $8,650,489 ===========
=========== LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities Accounts payable $26,102 $238,701 Accrued liabilities
633,277 668,694 Current portion of term loan - 87,850 -----------
----------- Total current liabilities 659,379 995,245 Deferred rent
271,790 310,010 Long-term portion of term loan - 23,269 -----------
----------- Total liabilities 931,169 1,328,524 Commitments and
Contingencies Stockholders' Equity Preferred stock, authorized
5,000,000 shares, $.01 par value, none issued or outstanding - -
Common stock, authorized 100,000,000 shares, $.001 par value
41,098,270 and 41,130,270 issued and outstanding as of September
30, 2009, and December 31, 2008, Respectively 41,098 41,130
Additional paid-in capital 72,138,140 71,255,901 Accumulated
deficit (69,037,613) (63,975,066) ----------- ----------- Total
stockholders' equity 3,141,625 7,321,965 ----------- -----------
$4,072,794 $8,650,489 =========== =========== SCOLR Pharma, Inc.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three months ended
Nine months ended September 30, September 30, 2009 2008 2009 2008
---- ---- ---- ---- Revenues Royalty income $261,651 $236,308
$664,212 $781,435 --------- ------- --------- --------- Total
revenues 261,651 236,308 664,212 781,435 Operating expenses
Marketing and selling 54,351 116,840 200,402 545,579 Research and
development 572,189 2,307,103 2,187,626 4,387,636 General and
administrative 1,220,745 947,684 3,347,279 3,242,614 ---------
------- --------- --------- 1,847,285 3,371,627 5,735,307 8,175,829
Facility lease termination Gain from lease buyout - (4,100,000) -
(4,100,000) Expenses related to relocation and lease buyout -
116,867 - 116,867 --------- ------- --------- --------- Total
facility lease buyout - (3,983,133) - (3,983,133) --------- -------
--------- --------- Total operating (revenue) expenses 1,847,285
(611,506) 5,735,307 4,192,696 --------- ------- --------- ---------
Income (loss) from operations (1,585,634) 847,814 (5,071,095)
(3,411,261) Other income (expense) Interest income 948 45,858
12,060 205,530 Interest expense - (3,393) (3,512) (11,565) Other -
91 - 1,329 --------- ------- --------- --------- Total other income
948 42,556 8,548 195,294 --------- ------- --------- --------- Net
income (loss) $(1,584,686) $890,370 $(5,062,547)$(3,215,967)
========= ======== ========= ========= Net income (loss) per share,
basic and diluted $(0.04) $.02 $(0.12) $(0.08) ========= ========
========= ========= Shares used in computing basic net income
(loss) per share 41,098,270 41,130,270 41,098,270 41,110,684 Shares
used in computing diluted net income (loss) per share 41,098,270
41,561,623 41,098,270 41,110,684 DATASOURCE: SCOLR Pharma, Inc.
CONTACT: Investor Relations, SCOLR Pharma, Inc., +1-425-368-1050
ext 1080, Web Site: http://www.scolr.com/
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