New Brunswick, New Jersey
October 1, 2007
Senesco Technologies, Inc. ("Senesco" or the "Company")
(AMEX:SNT) reported financial results for the fiscal year ended
June 30, 2007 ("Fiscal 2007").
The net loss for Fiscal 2007 was $3,251,697, or $0.19 per share,
compared with the net loss of $3,314,885, or $0.21 per share,
for the fiscal year ended June 30, 2006 ("Fiscal 2006"). The
slight decrease in net loss was primarily the result of higher
revenues, which was mostly offset by an increase in operating
expenses.
Revenue of $300,000 and $66,666 for Fiscal 2007 and Fiscal 2006,
respectively, consisted of initial fees and milestone payments
under certain agricultural license agreements.
Research and development expenses for Fiscal 2007 were
$1,208,321, compared with $1,566,267 for Fiscal 2006, a decrease
of 23%. This decrease was primarily due to the completion of
certain university based human health research programs and a
reduction of the budget in connection with the research
agreement at the University of Waterloo. The Company expects
research and development expenses to increase in Fiscal 2008 as
it advances its technology in human health applications.
General and administrative expenses were $2,412,679 for Fiscal
2007, compared with $1,919,740 for Fiscal 2006, an increase of
26%. This increase was primarily attributable to an increase in
stock based compensation and depreciation and amortization,
which was partially offset by a decrease in other general and
administrative expenses. The Company expects general and
administrative expenses to modestly increase in Fiscal 2008.
At June 30, 2007, Senesco had cash, cash equivalents and
investments of $658,061 and working capital of $259,303.
Due to the Company's recurring net losses, negative cash flows
from operations, planned spending levels and the limited amount
of funds on its balance sheet, the Company's independent
auditors, in their audit report, have expressed substantial
doubt about the Company's ability to continue as a going
concern. However, subsequent to the end of Fiscal 2007, the
Company entered into binding Securities Purchase Agreements of
secured convertible debentures and accompanying warrants for
aggregate gross proceeds of $10 million, to be funded upon the
achievement of certain administrative and research milestones.
The Company believes that the proceeds from these transactions
would be sufficient to fund its planned activities for the next
two years. The terms and conditions of this financing were
previously disclosed by the Company on Forms 8-K filed on August
7,
2007, September 4, 2007 and September 26, 2007 and in our Form
10-K filed on September 28, 2007. You are encouraged to read the
disclosure in the Form 10-K for additional information regarding
this financing.
Senesco Technologies, Inc. is a U.S. biotechnology company,
headquartered in New Brunswick, NJ. Senesco has initiated
preclinical research 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 inflammatory and ischemic diseases.
Senesco takes its name from the scientific term for the aging of
plant cells: senescence. Delaying cell breakdown in plants
extends freshness after harvesting, while increasing crop
yields, plant size and resistance to environmental stress. 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 partnered with
leading-edge companies engaged in agricultural biotechnology and
earns research and development fees for applying its
gene-regulating platform technology to enhance its partners'
products. |
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