New Brunswick, New Jersey
February 19, 2003
Senesco Technologies, Inc.
("Senesco" or the "Company") (AMEX:SNT) today reported financial results for the
three months ended December 31, 2002.
The net loss for the second quarter of fiscal year 2003 was $562,410, or $0.05
per share, compared with a net loss of $604,766, or $0.07 per share, for the
comparable period in fiscal 2002. The decrease of $42,356, or 7.0%, was
attributable primarily to lower operating expenses. For the second quarter of
fiscal 2003, the Company reported no revenue, compared with $125,000 in revenue
reported for the comparable period in fiscal 2002 from the initial license fee
in connection with the license of the Company's technology to
Harris Moran Seed
Company.
Total operating expenses for the second quarter of fiscal 2003 were $712,089,
compared with $876,422 for the comparable period in fiscal 2002. The decrease of
$164,333, or 18.8%, was attributable primarily to a decrease in stock-based
compensation, partially offset by an increase in general and administrative and
research and development expenses.
Research and development expenses for the second quarter of fiscal 2003 were
$215,803, compared with $93,821 for the comparable period in fiscal 2002. The
increase of $121,982, or 130.0%, was attributable primarily to increased costs
in connection with the expansion of the Company's research and development
program at the University of Waterloo, the implementation of the Company's
mammalian cell research programs and the implementation of new plant research
being conducted in connection with a collaboration agreement with Tilligen, Inc.
General and administrative expenses for the second quarter of fiscal 2003 were
$398,789, compared with $395,409 for the comparable period in fiscal 2002. The
increase of $3,380, or 0.9%, was attributable primarily to increased payroll and
investor relations costs as a result of the Company's strategy to increase its
recognition in the public market, which were mostly offset by a decrease in
recruiting costs, professional fees and consulting costs.
Stock-based compensation for the second quarter of fiscal 2003 was $97,497,
compared with $387,192 for the comparable period in fiscal 2002. The decrease of
$289,695, or 74.8%, was primarily the result of a decrease in stock options
granted to members of the Scientific Advisory Board and consultants and warrants
granted to certain financial advisors.
At December 31, 2002, Senesco had cash and investments of $3.6 million and
working capital of $3.4 million.
"Our results to date have reinforced our commitment to move ahead with both our
pre-clinical medical research and our agricultural initiatives, as we continue
to engage in potential partnership discussions for certain crops," stated Bruce
Galton, President and Chief Executive Officer of Senesco. "In addition, we are
continuing discussions with the Tianjin Academy of Agricultural Sciences
regarding the letter of intent that Senesco signed in November 2002. Due to the
scope and complexity of the agreement, we anticipate that negotiations will
continue for the next several months."
Research and Development Update
Senesco is progressing in all areas of its agricultural research programs. To
this end, the Company is currently planning additional field trials in lettuce
and banana, expanding its research in canola and continuing its collaborative
programs with its partners in forestry and forage crops. In addition, the
Company's mammalian research in models for certain cancers, glaucoma and heart
ischemia continues to provide pre-clinical data that supports the role of the
Factor 5A gene in apoptosis-related diseases.
Senesco takes its name from the scientific
term for the aging of plant cells: senescence. The Company has developed
technology that regulates the onset of cell death. Delaying cell breakdown in
plants extends freshness after harvesting, while increasing crop yields, plant
size and resistance to environmental stress for flowers, fruits and vegetables.
The Company believes that its technology can be used to develop superior strains
of crops without any modification other than delaying natural plant senescence.
Senesco has begun to explore ways to trigger or delay cell death in mammals
(apoptosis) to determine if the technology is applicable in human medicine.
Accelerating apoptosis may have applications to development of cancer
treatments. Delaying apoptosis may have applications to certain diseases such as
Alzheimer's, glaucoma, ischemia and arthritis, among others. Senesco partners
with leading-edge companies and earns research and development fees for applying
its gene-regulating platform technology to enhance its partners' products.
Senesco is headquartered in New Brunswick, New Jersey, and utilizes research
laboratories at the University of Waterloo in Ontario, Canada and the University
of Colorado in Denver, Colorado.
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months For the Six Months
Ended Dec. 31, Ended Dec. 31,
2002 2001 2002 2001
Revenue $-- $125,000 $10,000 $125,000
Operating Expenses:
General and
administrative 398,789 395,409 762,013 676,128
Research and
development 215,803 93,821 360,087 156,976
Stock-based
compensation 97,497 387,192 137,177 541,040
Total Operating
Expenses 712,089 876,422 1,259,277 1,374,144
Loss From Operations (712,089) (751,422) (1,249,277) (1,249,144)
Sale of state income
tax loss 130,952 150,551 130,952 150,551
Interest income
(expense), net 18,727 (3,895) 41,283 (7,448)
Net Loss $(562,410) $(604,766) $(1,077,042) $(1,106,041)
Basic and Diluted Net
Loss Per Common Share $ (0.05) $ (0.07) $ (0.09) $ (0.14)
Basic and Diluted
Weighted Average
Number of Common
Shares Outstanding 11,880,045 8,403,231 11,880,045 8,138,262
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEET
December 31, June 30,
2002 2002
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 436,784 $ 798,711
Short-term investments 3,136,791 2,872,432
Accounts receivable -- 75,000
Prepaid expenses and other current assets 217,032 55,772
Total Current Assets 3,790,607 3,801,915
Long-term investments -- 993,535
Property and equipment, net 69,323 79,581
Intangibles 404,436 347,978
Security deposit 7,187 7,187
TOTAL ASSETS $4,271,553 $5,230,196
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 47,481 $ 80,201
Accrued expenses 299,201 296,347
Total Current Liabilities 346,682 376,548
Grant payable 79,061 67,972
TOTAL LIABILITIES 425,743 444,520
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; authorized
5,000,000 shares, no shares issued -- --
Common stock, $0.01 par value; authorized
30,000,000 shares, issued and outstanding
11,880,045 shares 118,800 118,800
Capital in excess of par 12,234,373 12,157,679
Deficit accumulated during the development
stage (8,507,363) (7,430,321)
Deferred compensation related to issuance of
options and warrants -- (60,482)
Total Stockholders' Equity 3,845,810 4,785,676
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,271,553 $5,230,196
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