Nanotechnology Now

Our NanoNews Digest Sponsors





Heifer International

Wikipedia Affiliate Button


android tablet pc

Home > Press > Nanosphere, Inc. Announces Third Quarter 2007 Financial Results

Abstract:
Initiates Commercial Launch of the Verigene® System

Nanosphere, Inc. Announces Third Quarter 2007 Financial Results

Northbrook, IL | Posted on December 13th, 2007

Nanosphere, Inc. (NASDAQ: NSPH), a leader in the development and commercialization of advanced molecular diagnostics systems, today reported financial results for the third quarter ended September 30, 2007.

Third quarter 2007 results reflect investments associated with the commercial launch of the Verigene platform and its initial menu of tests, as well as significant non-cash charges associated with the Company's equity structure prior to its November 6 initial public offering (IPO).

"Nanosphere's progress over the past several months has been significant with several noteworthy events. We received United States Food and Drug Administration clearance for our initial products, including The Verigene System, our hyper-coagulation panel and our warfarin metabolism test, the first ever cleared by the FDA," said William Moffitt, president and chief executive officer. "We are currently focused on product launch, initial customer placements, and continuing investments in research and development to expand our test menu and develop next generation systems."

During the third quarter of 2007, the Company incurred increased sales and marketing expenses associated with the launch of its first commercial products. Sales, general and administrative expenses increased from $1.4 million for the third quarter of 2006 to $4.4 million for the third quarter of 2007, which included a one-time $1.7 million compensation expense in connection with the Company's IPO filing. In addition, the third quarter 2007 sales and marketing expenses included $0.5 million in increased sales personnel and marketing expense to support the launch of the Verigene System and $0.4 million in increased stock compensation expense.

Continued investments in the development of the Verigene platform, expansion of the Company's test menu, and development of manufacturing systems and production scale up resulted in an increase in research and development expenses from $4.1 million in the third quarter of 2006 to $5.7 million in the third quarter of 2007.

As a result of these investments, loss from operations for the third quarter of 2007 increased to $9.9 million from $5.1 million in the same period in 2006. In addition to this operating loss, 2007 third quarter results included non-cash charges to earnings of $16.7 million due to the increase in fair value of the convertible derivative liability and preferred stock warrants. The increased valuation of the Company resulted from FDA 510(k) clearance of the Verigene System and the Company's initial diagnostic assays.

Common shares outstanding as of September 30, 2007 were 932,646. Taking into effect the conversion of all preferred shares outstanding into common stock immediately prior to the closing of the IPO, 14,118,401 shares were outstanding. The sale of 8,050,000 shares in the IPO, including the overallotment, resulted in 22,168,401 common shares outstanding.

Nine-Month Results

During the first nine months of 2007, the Company hired additional sales and marketing personnel and incurred marketing expenses to prepare for the commercialization of the products cleared by the FDA. Sales, general and administrative expenses increased from $4.1 million for the nine-month period ended September 30, 2006, to $9.7 million for the nine-month period ended September 30, 2007.

To prepare the Verigene System for commercial launch, expand Nanosphere's test menu, develop manufacturing systems, and production scale up investment in research and development increased 32% over the prior year for the nine-month period ended September 30, 2007.

As a result of these investments cited above, loss from operations for the first nine months of 2007 increased to $24.6 million from $15.2 million in the same period in 2006. In addition to the operating loss, the nine-month period ended September 30, 2007, includes non-cash charges to earnings of $17.0 million due to the increase in fair value of the Company's convertible derivative liability and preferred stock warrants discussed previously.

Conference Call Details

The Company will hold a live conference call and webcast for investors on Thursday, December 13, 2007 at 10:30 A.M., Eastern Standard Time. The teleconference can be accessed by dialing 866-510-0705 (U.S./Canada) or 617-597-5363 (international), participant code 98769147. The call will also be broadcast live over the Internet and can be accessed by interested parties at the Investor Relations tab on the Nanosphere website: www.nanosphere.us. For interested individuals unable to join the call or webcast, a replay will be available through Thursday, December 27, 2007, by dialing 888-286-8010 or for international calls 617-801-6888, pass code 89061695, or on the company's website.

####

About Nanosphere, Inc.

About Nanosphere, Inc.

Nanosphere develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene® System for direct genomic and ultra-sensitive protein detection. This easy to use and cost effective platform enables simple, low cost and highly sensitive genomic and protein testing on a single platform. Nanosphere is based in Northbrook, IL. Additional information is available at http://www.nanosphere.us.

Nanosphere, Inc.

(A Development Stage Company)

Statements of Operations

(Unaudited)

       
Three Month Three Month Nine Month Nine Month
Period Ended Period Ended Period Ended Period Ended
September 30, September 30, September 30, September 30,
2006 2007 2006 2007
 
 
REVENUE:
Grant and contract revenue $ 379,494 $ 192,880 $ 818,006 $ 919,383
Product sales   89,030     6,125     116,660     59,795  
Total revenue 468,524 199,005 934,666 979,178
COSTS AND EXPENSES:
Cost of product sales 31,049 2,844 31,049 21,211
Research and development 4,134,451 5,674,390 12,009,047 15,893,437
Sales, general, and administrative   1,443,795     4,429,214     4,107,726     9,685,797  
Total costs and expenses   5,609,295     10,106,448     16,147,822     25,600,445  
Loss from operations (5,140,771 ) (9,907,443 ) (15,213,156 ) (24,621,267 )
OTHER INCOME (EXPENSE):
Change in fair value of convertible derivative liability - (11,888,721 ) (2,916,822 ) (11,888,721 )
Change in fair value of preferred stock warrants 7,053 (4,858,974 ) (237,051 ) (5,135,586 )
Foreign exchange loss - (27,175 ) - (40,945 )
Interest expense related party - - (146,550 ) -
Interest expense (1,879 ) (572,772 ) (3,464 ) (1,396,520 )
Interest income   505,010     286,654     988,765     1,045,087  
Total other income (expense)   510,184     (17,060,988 )   (2,315,122 )   (17,416,685 )
NET LOSS (4,630,587 ) (26,968,431 ) (17,528,278 ) (42,037,952 )
Accumulated convertible preferred stock dividends (1,531,329 ) (1,652,493 ) (2,882,262 ) (4,832,822 )
Convertible preferred stock redemption value adjustment   -     -     (17,737,544 )   (608,940 )
NET LOSS ATTRIBUTABLE TO COMMON STOCK $ (6,161,916 ) $ (28,620,924 ) $ (38,148,084 ) $ (47,479,714 )
Net loss per common share basic and diluted $ (6.61 ) $ (30.69 ) $ (45.32 ) $ (50.91 )
Weighted average number of common shares outstanding basic and diluted 932,564 932,646 841,824 932,646

Nanosphere, Inc.

(A Development Stage Company)

Balance Sheets

(Unaudited)

   
December 31, September 30,
2006 2007
 
 
CURRENT ASSETS:
Cash and cash equivalents $ 29,112,429 $ 18,105,934
Accounts receivable 44,816 73,485
Inventories 884,849 1,874,421
Deferred equity financing costs - 1,946,928
Other current assets   462,858     522,375  
Total current assets   30,504,952     22,523,143  
PROPERTY AND EQUIPMENT At cost:
Computer equipment and software 730,144 846,275
Laboratory equipment 2,788,164 3,303,217
Furniture and fixtures 143,134 251,506
Leasehold improvements 2,086,977 2,235,938
Manufacturing equipment 2,056,830 2,916,520
Office equipment 66,007 67,068
Tooling   707,018     957,326  
Total property and equipment at cost 8,578,274 10,577,850
Less accumulated depreciation   (2,999,802 )   (4,186,301 )
Net property and equipment at cost   5,578,472     6,391,549  
INTANGIBLE ASSETS Net of accumulated amortization   4,865,950     5,284,892  
OTHER ASSETS   88,460     171,736  
TOTAL $ 41,037,834   $ 34,371,320  
 
CURRENT LIABILITIES:
Accounts payable $ 1,499,514 $ 2,071,595
Accrued compensation 872,508 857,189
Accrued license fees 360,000 406,455
Accrued legal expenses 137,088 139,218
Accrued financing costs - 1,928,358
Other current liabilities 270,935 879,352
Note payable related party - -
Long term debt current portion - 2,494,534
Lease payable current portion   32,444     35,922  
Total current liabilities   3,172,489     8,812,623  
LONG-TERM LIABILITIES:
Accrued license fees noncurrent 330,000 -
Lease payable noncurrent portion 58,802 31,121
Long term debt noncurrent portion - 8,363,649
Preferred stock warrants 1,761,533 6,897,119
Convertible derivative liability   32,085,041     44,582,702  
Total liabilities   37,407,865     68,687,214  
CONVERTIBLE PREFERRED STOCK:
Series B Convertible Preferred Stock, $0.01 par value; Liquidation preference of $32,832 at September 30, 2007 25,396 25,396
Series C Convertible Preferred Stock, $0.01 par value; Liquidation preference of $6,968,675 at September 30, 2007 6,030,003 6,030,003
Series C-2 Convertible Preferred Stock, $0.01 par value; Liquidation preference of $47,794,091 at September 30, 2007 47,037,902 49,140,111
Series D Convertible Preferred Stock, $0.01 par value; Liquidation preference of $62,376,967 at September 30, 2007   55,774,739     60,442,890  
Total Convertible Preferred Stock   108,868,040     115,638,400  
STOCKHOLDERS DEFICIT:
Common stock, $0.01 par value; 450,000,000 shares authorized at December 31, 2006 and September 30, 2007 92,580 92,580
Additional paid-in capital 2,051,126 3,374,617
Note receivable from chief executive officer (1,440,000 ) -
Deficit accumulated during the development stage   (105,941,777 )   (153,421,491 )
Total stockholders deficit   (105,238,071 )   (149,954,294 )
TOTAL $ 41,037,834   $ 34,371,320  

For more information, please click here

Contacts:
Nanosphere, Inc.
Roger Moody, 847-400-9021
CFO

or
The Torrenzano Group
Stuart Pearlman, 212-681-1700, Ext. 124

Copyright © Business Wire 2007

If you have a comment, please Contact us.

Issuers of news releases, not 7th Wave, Inc. or Nanotechnology Now, are solely responsible for the accuracy of the content.

Bookmark:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

Nanomedicine

Innovative strategy to facilitate organ repair April 18th, 2014

Novel stapled peptide nanoparticle combination prevents RSV infection, study finds April 17th, 2014

More effective kidney stone treatment, from the macroscopic to the nanoscale April 17th, 2014

High-temperature plasmonics eyed for solar, computer innovation April 17th, 2014

Announcements

'Exotic' material is like a switch when super thin April 18th, 2014

Innovative strategy to facilitate organ repair April 18th, 2014

Oxford Instruments Asylum Research Introduces the MFP-3D InfinityTM AFM Featuring Powerful New Capabilities and Stunning High Performance April 18th, 2014

Transparent Conductive Films and Sensors Are Hot Segments in Printed Electronics: Start-ups in these fields show above-average momentum, while companies working on emissive displays such as OLED are fading, Lux Research says April 17th, 2014

Financial Reports

Nanometrics to Announce First Quarter Financial Results on April 29, 2014 April 9th, 2014

Acid folic was used in the production of the nanogel as targeting agent in drug delivery. The nanogel can be used in the treatment of cancer as a stable nanocarrier. Stability of nanocarriers is an important issue in target delivery mechanisms. Most of nanocarriers, due to their March 17th, 2014

Arrowhead Reports Fiscal 2014 First Quarter Financial Results - Conference Call Today at 4:30 p.m. Eastern Time February 4th, 2014

Arrowhead to Report Fiscal 2014 First Quarter Financial Results - Conference Call Scheduled for Tuesday, February 4, 2014 January 28th, 2014

NanoNews-Digest
The latest news from around the world, FREE







  Premium Products
NanoNews-Custom
Only the news you want to read!
 Learn More
NanoTech-Transfer
University Technology Transfer & Patents
 Learn More
NanoStrategies
Full-service, expert consulting
 Learn More














ASP
Nanotechnology Now Featured Books




NNN

The Hunger Project







© Copyright 1999-2014 7th Wave, Inc. All Rights Reserved PRIVACY POLICY :: CONTACT US :: STATS :: SITE MAP :: ADVERTISE