Full Press Release Details
| Company Contact: | Investor Relations Contact: |
| Senesco Technologies, Inc. | Lippert/Heilshorn & Associates, Inc. |
| Jack Van Hulst | Anne Marie Fields |
| Chief Executive Officer | (afields@lhai.com) |
| (jvanhulst@senesco.com) | (212) 838-3777 |
| (732) 296-8400 |
TECHNOLOGIES REPORTS FISCAL THIRD QUARTER FINANCIAL RESULTS
NEW BRUNSWICK, N.J. (May 18,
2010) - Senesco Technologies, Inc. ("Senesco" or the "Company") (NYSE
Amex: SNT) today announced financial results for the three and nine months ended
Third Quarter and Recent Highlights
the third quarter of fiscal 2010 we made great strides to simplify and
strengthen the Company's capital structure in order to allow an unfettered focus
on the clinical development of SNS-01. We were especially pleased to
enter into definitive agreements and subsequently close on $10.3 million of an
$11.5 million private placement as it underscores the interest and support we
have received to advance the development of our Factor 5a gene therapy in human
health indications including oncology," stated Jack Van Hulst, President and
Chief Executive Officer of Senesco Technologies, Inc. "We believe
that these funds will allow us to advance our planned development program for
our lead compound, SNS-01, into human clinical trials in multiple
myeloma. As we have demonstrated repeatedly in preclinical multiple
myeloma models, we expect this novel gene therapy to induce apoptosis in the
cancerous cells and we look forward to reporting our clinical
Third Quarter Financial Results
Company reported no revenue for the third quarter of fiscal 2010 compared with
revenue of $75,000 for the third quarter of fiscal 2009, which consisted of a
milestone payment in connection with an agricultural license
and development expenses increased 4.6% during the third quarter of fiscal
2010 to $566,307 from $540,494 during the third quarter of fiscal
2009. The increase was primarily due to an increase in costs incurred
in connection with our development of SNS-01 for Multiple Myeloma.
third quarter of fiscal 2010, general and administrative expenses of $554,953
increased 4.3% compared with $532,245 for the third quarter
of fiscal. The increase was primarily due to an increase in
professional fees and stock-based compensation, which was partially offset by a
decrease in payroll and investor relations.
Company incurred a net loss $5,284,235 or $0.17 per share for the third quarter
of fiscal 2010, compared with a net loss of $1,331,477 or $0.07 per share for
the third quarter of fiscal 2009. The higher net loss was primarily
the result of an increase in non-cash expenses associated with the outstanding
and redeemed convertible notes and a change in the fair value of a warrant
revenue for the nine months ended March 31, 2010 was $140,000 compared with
$275,000 for the nine months ended March 31, 2009. Revenue for both
periods consisted of milestone payments in connection with certain agricultural
and development expenses for the first nine months of fiscal 2010 were
$1,735,317 compared with $1,711,166 in the year-ago period. The
decrease was primarily due to a decrease in the costs incurred in connection
with our development of SNS01 for multiple myeloma and the cost of the research
performed at the University of Waterloo.
and administrative expenses were $1,522,610, a decrease from $1,624,166 for the
nine months ended March 31, 2009. The increase was primarily due to
an increase in professional fees and payroll, which was partially offset by a
decrease in investor relations.
loss for the first nine months of fiscal 2010 was 7,177,196 or $0.27 per share,
and compares with a net loss for the first nine months of fiscal 2009 of
$4,137,224 or $0.22 per share. The higher net loss in fiscal 2010 was
primarily the result of an increase in non-cash expenses associated with the
outstanding and redeemed convertible notes and a change in the fair value of a
March 31, 2010 Senesco had cash and cash equivalents of $39,707. On
April 1, 2010 the Company received gross proceeds of approximately $10.3 million
in connection with a private placement of convertible preferred stock and
warrants, which the Company expects will cover its expenses for the next 12
months. A further $1.2 million in gross proceeds will be closed upon
following the receipt of stockholder approval. As of April 1, 2010,
the Company had working capital of approximately $6,783,069.
Senesco Technologies, Inc.
Technologies is leveraging proprietary technology that regulates cell death, or
apoptosis. Accelerating apoptosis may have application in treating
cancer, while delaying apoptosis may have application in certain inflammatory
and ischemic diseases. The Company is preparing to initiate a human
clinical trial in multiple myeloma with its lead therapeutic
SNS-01. Senesco also has partnered with leading-edge companies
engaged in agricultural biotechnology, and earns milestone fees for applying its
gene-regulating platform technology to enhance its partners'
statements included in this press release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Actual results could differ materially from such statements
expressed or implied herein as a result of a variety of factors, including, but
not limited to: the ability of the Company to consummate additional financings;
the development of the Company's gene technology; the approval of the Company's
patent applications; the successful implementation of the Company's research and
development programs and joint ventures; the success of the Company's license
agreements; the acceptance by the market of the Company's products; success of
the Company's preliminary studies and preclinical research; competition and the
timing of projects and trends in future operating performance, the Company's
ability to meet its funding milestones under its financing transaction, the
Company's ability to continue to comply with the continued listing standards of
the AMEX, as well as other factors expressed from time to time in the Company's
periodic filings with the Securities and Exchange Commission (the
"SEC"). As a result, this press release should be read in conjunction
with the Company's periodic filings with the SEC. The forward-looking
statements contained herein are made only as of the date of this press release,
and the Company undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
SENESCO TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
| For the Three Months Ended March 31, | For the Three Months Ended March 31, | For the Nine Months Ended March 31, | For the Nine Months Ended March 31, | From Inception on July 1, 1998 through March 31, | ||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | 2010 | ||||||||||||||||
| Revenue | $ | -- | $ | 75,000 | $ | 140,000 | $ | 275,000 | $ | 1,590,000 | ||||||||||
| Operating Expenses: | ||||||||||||||||||||
| General and administrative | 554,953 | 532,245 | 1,735,317 | 1,711,166 | 25,666,510 | |||||||||||||||
| Research and development | 566,307 | 540,494 | 1,522,610 | 1,624,166 | 13,834,169 | |||||||||||||||
| Total Operating Expenses | 1,121,260 | 1,072,739 | 3,257,927 | 3,335,332 | 39,500,679 | |||||||||||||||
| Loss From Operations | (1,121,260 | ) | (997,739 | ) | (3,117,927 | ) | (3,060,332 | ) | (37,910,679 | ) | ||||||||||
| Sale of state income tax loss, net | -- | -- | -- | -- | 586,442 | |||||||||||||||
| Loss on extinguishment of debt | (275,345 | ) | -- | (361,877 | ) | -- | (361,877 | ) | ||||||||||||
| Fair value - warrant liability | (527,566 | ) | -- | 1,811,775 | -- | 6,543,542 | ||||||||||||||
| Other noncash income | -- | -- | -- | -- | 321,259 | |||||||||||||||
| Interest income (expense), net | (7,375 | ) | 737 | (6,349 | ) | 41,788 | 516,964 | |||||||||||||
| Amortization of debt discount and financing costs | (3,206,049 | ) | (107,240 | ) | (4,973,909 | ) | (319,637 | ) | (6,120,672 | ) | ||||||||||
| Interest expense on convertible notes | (146,640 | ) | (227,235 | ) | (528,909 | ) | (799,043 | ) | (1,970,307 | ) | ||||||||||
| Net Loss | $ | (5,284,235 | ) | $ | (1,331,477 | ) | $ | (7,177,196 | ) | $ | (4,137,224 | ) | $ | (38,395,328 | ) | |||||
| Basic and Diluted Net Loss Per Common Share | $ | (0.17 | ) | $ | (0.07 | ) | $ | (0.27 | ) | $ | (0.22 | ) | ||||||||
| Basic and Diluted Weighted Average Number of | ||||||||||||||||||||
| Common Shares Outstanding | 31,650,371 | 19,033,091 | 26,610,925 | 18,678,109 |
SENESCO TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE
CONDENSED CONSOLIDATED
| March 31, | June 30, | |||||||
| 2010 | 2009 | |||||||
| ASSETS | (unaudited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 39,707 | $ | 380,569 | ||||
| Short-term investments | - | 1,050,000 | ||||||
| Deferred financing costs | 177,279 | - | ||||||
| Prepaid expenses and other current assets | 1,269,488 | 1,161,348 | ||||||
| Total Current Assets | 1,486,474 | 2,591,917 | ||||||
| Property and equipment, net | 5,581 | 5,986 | ||||||
| Intangibles, net | 4,483,750 | 3,884,999 | ||||||
| Deferred financing costs | - | 632,324 | ||||||
| Security deposit | 7,187 | 7,187 | ||||||
| TOTAL ASSETS | $ | 5,982,992 | $ | 7,122,413 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 1,401,135 | $ | 976,680 | ||||
| Accrued expenses | 621,614 | 355,937 | ||||||
| Line of credit | 2,198,609 | - | ||||||
| Convertible note, net of discount | 82,047 | - | ||||||
| Total Current Liabilities | 4,303,405 | 1,332,617 | ||||||
| Convertible note, net of discount | - | 6,217 | ||||||
| Warrant liability ($416,667 to related parties) | 1,388,333 | - | ||||||
| Grant payable | 99,728 | 99,728 | ||||||
| Other liability | 10,049 | 16,017 | ||||||
| TOTAL LIABILITIES | 5,801,515 | 1,454,579 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, $0.01 par value; authorized 5,000,000 shares, no shares issued | -- | -- | ||||||
| Common stock, $0.01 par value; authorized 120,000,000 shares, issued and outstanding 33,584,121 and 19,812,043, respectively | 335,841 | 198,120 | ||||||
| Capital in excess of par, | 38,240,964 | 36,687,846 | ||||||
| Deficit accumulated during the development stage | (38,395,328 | ) | ( 31,218,132 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 181,477 | 5,667,834 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,982,992 | $ | 7,122,413 |