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CEDAR KNOLLS, N.J., Aug 11, 2009 (BUSINESS WIRE) -- Emisphere Technologies, Inc. (OTC BB: EMIS) today announced financial and operational results for the second quarter and six months ended June 30, 2009.
SECOND QUARTER FINANCIAL RESULTS
For the three months ended June 30, 2009, Emisphere reported a net loss of $3.7 million, or $0.12 per basic and diluted share, including a $0.8 million one time gain on the sale of laboratory equipment, compared to a net loss of $7.6 million, or $0.25 per basic and diluted share for same period last year.
The operating loss for the three months ended June 30, 2009 was $3.0 million, compared to an operating loss of $5.9 million in same period last year.
Total operating expenses for the three months ended June 30, 2009 were $3.0 million, including the $0.8 million one time gain on the sale of laboratory equipment, a decrease of approximately $2.9 million, or 49%, compared to $5.9 million for the same period last year. Total operating expenses for the three months ended June 30, 2009 include research and development costs of $0.7 million and general and administrative expenses of $2.9 million, compared to $3.3 million and $2.4 million respectively, for the same period last year.
Other expense for the three months ended June 30, 2009 was $0.7 million, compared to other expense of $1.7 million for the same period last year.
YEAR TO DATE FINANCIAL RESULTS
For the six months ended June 30, 2009, Emisphere reported a net loss of $8.8 million, or $0.29 per basic and diluted share, compared to a net loss of $11.6 million, or $0.38 per basic and diluted share for the six months ended June 30, 2008.
Total operating expenses for the six months ended June 30, 2009 were $7.7 million, including the $0.8 million one time gain from sale of laboratory equipment, a decrease of approximately $4.9 million, or 39% compared to $12.5 million for the same period last year. Total operating expenses for the six months ended June 30, 2009 include research and development costs of $2.7 million and general and administrative expenses of $5.9 million, compared to $7.2 million and $5.1 million respectively, for the same period last year.
Other expense for the six months ended June 30, 2009 was $1.1 million, compared to other income of $0.8 million in the same period last year.
LIQUIDITY
At June 30, 2009, Emisphere reported cash and restricted cash totaling $1.5 million, compared to $4.2 million at March 31, 2009. The Company anticipates that its existing capital resources are sufficient to enable it to continue operations through August 2009. By terminating its Tarrytown lease and implementing an outsourcing strategy where appropriate, the Company achieved its cash burn target of between $7 million and $8 million per year to support continuing operations. The Company continues to implement aggressive cost controls to conserve its cash and is currently evaluating both non-dilutive and traditional financing options. Management believes there are reasonable financing alternatives potentially available to it that will enable it to meet its near term operating cash requirements. Please refer to the Quarterly Report on Form 10Q for additional information.
KEY PRODUCT AND CORPORATE DEVELOPMENTS
A live webcast of today's scheduled 10:00 AM EDT conference call can be accessed through the Company's web site at: www.emisphere.com. The live conference call dial-in number is: 1-888-595-5338(United States and Canada) or 1-201-526-1830 (International). In addition, an archive of the webcast can be accessed through the same link; an audio replay of the call will be available beginning at 1:00pm EDT today, through midnight on August 24, 2009 by calling 1-888-632-8973(United States and Canada) or 1-201-499-0429(International). The conference replay PIN is 97831246.
About Emisphere Technologies, Inc.
Emisphere is a biopharmaceutical company that focuses on a unique and improved delivery of therapeutic molecules or nutritional supplements using its Eligen(R) Technology. These molecules and compounds could be currently available or in development. Such molecules are usually delivered by injection; in many cases, their benefits are limited due to poor bioavailability, slow on-set of action or variable absorption. The Eligen(R) Technology can be applied to the oral route of administration as well other delivery pathways, such as buccal, rectal, inhalation, intra-vaginal or transdermal. The company's website is: www.emisphere.com.
Safe Harbor Statement Regarding Forward-looking Statements
The statements in this release and oral statements made by representatives of Emisphere relating to matters that are not historical facts (including without limitation those regarding the timing or potential outcomes of research collaborations or clinical trials, any market that might develop for any of Emisphere's product candidates and the sufficiency of Emisphere's cash and other capital resources) are forward-looking statements that involve risks and uncertainties, including, but not limited to, the likelihood that future research will prove successful, the likelihood that any product in the research pipeline will receive regulatory approval in the United States or abroad, the ability of Emisphere and/or its partners to develop, manufacture and commercialize products using Emisphere's drug delivery technology, Emisphere's ability to fund such efforts with or without partners, and other risks and uncertainties detailed in Emisphere's filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in Emisphere's Annual Report on Form 10-K (file no. 000-17758) filed on March 16, 2009.
EMISPHERE TECHNOLOGIES INC. BALANCE SHEETS June 30, 2009 and December 31, 2008 (in thousands, except share and per share data) | ||||||||
| June 30, | December 31, | |||||||
| 2009 | 2008 | |||||||
| (unaudited) | ||||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,279 | $ | 7,214 | ||||
| Accounts receivable, net of allowance of $9 in June 2009 and December 2008 | 72 | 232 | ||||||
| Prepaid expenses and other current assets | 402 | 273 | ||||||
| Total Current Assets | 1,753 | 7,719 | ||||||
| Equipment and leasehold improvements, net | 244 | 465 | ||||||
| Purchased technology, net | 1,196 | 1,316 | ||||||
| Restricted cash | 255 | 255 | ||||||
| Other assets | 386 | 421 | ||||||
| Total assets | $ | 3,834 | $ | 10,176 | ||||
| Liabilities and Stockholders' Deficit: | ||||||||
| Current liabilities: | ||||||||
| Notes payable, including accrued interest and net of related discount | $ | 12,283 | $ | 12,011 | ||||
| Accounts payable and accrued expenses | 3,403 | 2,361 | ||||||
| Deferred revenue, current | --- | 87 | ||||||
| Derivative instruments | ||||||||
| Related party | 307 | 153 | ||||||
| Others | 281 | 114 | ||||||
| Restructuring accrual, current | 1,253 | 927 | ||||||
| Other current liabilities | 48 | 20 | ||||||
| Total current liabilities | 17,575 | 15,673 | ||||||
| Notes payable, including accrued interest and net of related discount | 19,521 | 18,209 | ||||||
| Restructuring accrual | --- | 1,953 | ||||||
| Deferred revenue | 11,460 | 11,240 | ||||||
| Deferred lease liability and other liabilities | 96 | 129 | ||||||
| Total liabilities | 48,652 | 47,204 | ||||||
| Stockholders' deficit: | ||||||||
| Preferred stock, $.01 par value; authorized 1,000,000 shares; none issued and outstanding | -- | -- | ||||||
| Common stock, $.01 par value; authorized 100,000,000 shares; issued 30,630,810 shares (30,341,078 outstanding) as of June 30, 2009 and December 31, 2008 | 306 | 306 | ||||||
| Additional paid-in-capital | 401,313 | 400,306 | ||||||
| Accumulated deficit | (442,485 | ) | (433,688 | ) | ||||
| Common stock held in treasury, at cost; 289,732 shares | (3,952 | ) | (3,952 | ) | ||||
| Total stockholders' deficit | (44,818 | ) | (37,028 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 3,834 | $ | 10,176 | ||||
EMISPHERE TECHNOLOGIES, INC. STATEMENT OF OPERATIONS For the three and six months ended June 30, 2009 and 2008 (in thousands, except share and per share data) (unaudited) | ||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenue | $ | -- | $ | 14 | $ | -- | $ | 169 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Research and development | 748 | 3,323 | 2,670 | 7,156 | ||||||||||||
| General and administrative expenses | 2,933 | 2,363 | 5,855 | 5,057 | ||||||||||||
| Restructuring costs | -- | -- | (353 | ) | -- | |||||||||||
| Gain on disposal of fixed assets | (779 | ) | -- | (822 | ) | (135 | ) | |||||||||
| Depreciation and amortization | 96 | 223 | 307 | 449 | ||||||||||||
| Total costs and expenses | 2,998 | 5,909 | 7,657 | 12,527 | ||||||||||||
| Operating loss | (2,998 | ) | (5,895 | ) | (7,657 | ) | (12,358 | ) | ||||||||
| Other non-operating income (expense): | ||||||||||||||||
| Other income (expense) | 27 | 81 | 68 | 224 | ||||||||||||
| Sublease income | -- | 189 | 232 | 279 | ||||||||||||
| Sale of patents | 500 | -- | 500 | 1,500 | ||||||||||||
| Change in fair value of derivative instruments | ||||||||||||||||
| Related party | (205 | ) | (618 | ) | (154 | ) | 106 | |||||||||
| Other | (206 | ) | (673 | ) | (167 | ) | 96 | |||||||||
| Interest expense | ||||||||||||||||
| Related party | (685 | ) | (596 | ) | (1,346 | ) | (1,171 | ) | ||||||||
| Other | (137 | ) | (131 | ) | (273 | ) | (261 | ) | ||||||||
| Total other non-operating income (expense) | (706 | ) | (1,748 | ) | (1,140 | ) | 773 | |||||||||
| Net loss | $ | (3,704 | ) | $ | (7,643 | ) | $ | (8,797 | ) | $ | (11,585 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.12 | ) | $ | (0.25 | ) | $ | (0.29 | ) | $ | (0.38 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 30,341,078 | 30,336,928 | 30,341,078 | 30,336,928 | ||||||||||||
SOURCE: Emisphere Technologies, Inc.
Emisphere Technologies, Inc.
Michael Garone, 973-532-8005
Chief Financial Officer
mgarone@emisphere.com
OR
Daria Palestina, 973-532-8002
Director of Communications
dpalestina@emisphere.com
OR
Rx Communications Group:
Paula Schwartz, 917-322-2216
pschwartz@rxir.com
Copyright Business Wire 2009
