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New Brunswick, New Jersey
May 16, 2003
Senesco Technologies, Inc.
("Senesco" or the "Company") (AMEX:SNT) reported financial
results for the three months ended March 31, 2003.
The net loss for the third quarter of fiscal 2003 was
$515,683, or $0.04 per share, compared with a net loss of
$482,820, or $0.05 per share, for the comparable period in
fiscal 2002. For the third quarter of fiscal 2003, the Company
reported no revenue, similar to its comparable period in fiscal
2002.
Total operating expenses for the third quarter of fiscal 2003
were $532,090, compared with $495,495 for the comparable period
in fiscal 2002. The increase of $36,595, or 7.4%, was
attributable primarily to an increase in research and
development expenses, which were partially offset by a decrease
in general and administrative expenses and stock-based
compensation.
Research and development expenses rose substantially to
$237,687, from $100,949 in the comparable period in fiscal 2002.
The increase of $136,738, or 135.5%, was attributable primarily
to 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 Anawah, Inc.
(formerly Tilligen, Inc.).
General and administrative expenses for the third quarter of
fiscal 2003 were $294,403, down slightly from $300,400 for the
comparable period in fiscal 2002. The decrease of $5,997, or
2.0%, was attributable primarily to lower payroll and
professional fees, which were mostly offset by an increase in
investor relations costs and depreciation and amortization.
The Company reported no stock-based compensation for the
third quarter of fiscal 2003, compared with $94,146 for the
comparable period in fiscal 2002. The decrease of $94,146, or
100%, was primarily the result of a decrease in stock options
granted and becoming vested to members of the Scientific
Advisory Board and consultants and warrants granted and becoming
vested to certain financial advisors.
At March 31, 2003, Senesco had cash and investments of $3.1
million and working capital of $2.8 million.
"Our recent fiscal quarter was marked by the receipt of our
first patent, reinforcing our commitment to protect our
intellectual property," stated Bruce Galton, President and Chief
Executive Officer of Senesco. Mr. Galton added: "We are actively
continuing our discussions with the Tianjin Academy of
Agricultural Sciences regarding its letter of intent for the
exclusive use of the Company's technology in a variety of fruit
and vegetable crops in China (the "LOI") and have initiated
contact with a Chinese biotechnology seed company. This is a
necessary step in order to secure the financing envisioned and
to commercialize the seeds to be developed pursuant to the LOI.
However, due to the current SARS health crisis in China, certain
parties within various governmental positions in China have been
difficult to contact, which has made the process more lengthy
than we originally anticipated. We expect discussions to be
ongoing over the next several months."
Recent Corporate Highlights
In March, Senesco announced that it was awarded Patent No.
6,538,182 from the U.S. Patent and Trademark Office entitled
"DNA Encoding a Plant Deoxyhypusine Synthase, A Plant Eukaryotic
Initiation Factor 5A, Transgenic Plants and a Method for
Controlling Senescence Programmed Cell Death in Plants."
Also in March, the Company announced that inhibiting the
expression of its patent-pending gene, apoptosis eucaryotic
Initiation Factor 5A ("Factor 5A"), has been shown to reduce
apoptosis (cell death) in preclinical studies with human lamina
cribrosa cells from the optic nerve head of human eyes. The
lamina cribrosa is a supporting structure for the optic nerve at
the point of connection with the eye. Apoptosis is a critical
factor leading to blindness in glaucoma patients.
Also during March, the Company announced results from certain
preclinical studies being conducted at the University of
Colorado School of Medicine in Denver. The Company's
patent-pending gene, Factor 5A, has been correlated in ischemic
heart tissue to two cytokines, interleukin-1 beta and
interleukin-18 ("IL-1" and "IL-18"). IL-1 is associated with a
variety of inflammatory diseases and IL-18 has been reported to
cause premature programmed cell death.
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 For the
Three Months Three Months
Ended March 31, Ended March 31,
2003 2002
Revenue $-- $--
Operating Expenses:
General and administrative 294,403 300,400
Research and development 237,687 100,949
Stock-based compensation -- 94,146
Total Operating Expenses 532,090 495,495
Loss From Operations (532,090) (495,495)
Sale of state income tax loss -- --
Interest income, net 16,407 12,675
Net Loss $(515,683) $(482,820)
Basic and Diluted Net Loss Per
Common Share $(0.04) $(0.05)
Basic and Diluted Weighted
Average Number of Common
Shares Outstanding 11,880,045 10,527,346
For the For the From
Nine Nine Inception
Months Months on July 1,
Ended Ended 1998,
March 31, March 31, through
2003 2002 March 31,
2003
Revenue $10,000 $125,000 $210,000
Operating Expenses:
General and administrative 1,056,416 976,528 6,084,193
Research and development 597,774 257,925 2,097,350
Stock-based compensation 137,177 635,186 1,498,435
Total Operating Expenses 1,791,367 1,869,639 9,679,978
Loss From Operations (1,781,367) (1,744,639) (9,469,978)
Sale of state income tax loss 130,952 150,551 341,834
Interest income, net 57,690 5,227 105,098
Net Loss $(1,592,725) $(1,588,861) $(9,023,046)
Basic and Diluted Net Loss Per
Common Share $(0.13) $(0.18)
Basic and Diluted Weighted
Average Number of Common
Shares Outstanding 11,880,045 8,925,427
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEET
March 31, June 30,
2003 2002
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $76,239 $798,711
Short-term investments 3,045,108 2,872,432
Accounts receivable -- 75,000
Prepaid expenses and other current assets 170,917 55,772
Total Current Assets 3,292,264 3,801,915
Long-term investments -- 993,535
Property and equipment, net 82,867 79,581
Intangibles 465,614 347,978
Security deposit 7,187 7,187
TOTAL ASSETS $3,847,932 $5,230,196
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $62,131 $80,201
Accrued expenses 365,524 296,347
Total Current Liabilities 427,655 376,548
Grant payable 90,150 67,972
TOTAL LIABILITIES 517,805 444,520
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 (9,023,046) (7,430,321)
Deferred compensation related to issuance of
options and warrants -- (60,482)
Total Stockholders' Equity 3,330,127 4,785,676
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,847,932 $5,230,196
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