DARA Biosciences Inc. (DARA, Financial) filed Quarterly Report for the period ended 2009-03-31.
DARA BIOSCIENCES INC. is a Raleigh North Carolina -based development-stage pharmaceutical company that acquires promising therapeutic molecules and medical technologies directly or through investment in established companies. DARA focuses its therapeutic development efforts on small molecules from late preclinical development through phase 2 clinical trials. DARA is developing a portfolio of therapeutic candidates for europathic pain metabolic diseases including type 2 diabetes and dermatological disorders. DARA has licensed promising drug development candidates from Kirin Pharmaceuticals of Japan Bayer Pharmaceuticals Corporation Massachusetts General Hospital and Nuada LLC. DARA Biosciences Inc. has a market cap of $16.3 million; its shares were traded at around $0.55 with and P/S ratio of 37.
General and administrative expenses consist primarily of salaries and benefits, professional fees related to administrative, finance, human resource, legal and information technology functions and patent costs. In addition, general and administrative expenses include allocated facility, basic operational and support costs and insurance costs. General and administrative expenses decreased approximately $261,000, from approximately $1,222,000 for the three months ended March 31, 2008 to approximately $961,000 for the corresponding 2009 period, primarily as a result of the substantial expenses we incurred in the first quarter of 2008 in connection with the Merger and becoming a public company and the implementation of a cost reduction plan to conserve our remaining cash balance.
Other (expense) income, net reflects non-operating activities associated with investments and dispositions on investments made in collaborations with other companies. Other (expense) income, net increased approximately $433,000 from income of approximately $188,000 for the three months ended March 31, 2008 to approximately $621,000 for the corresponding 2009 period. The increase is primarily due to the gain on investments of approximately $551,000 from the distribution of SurgiVision stock, as well as the gain on the Companys sale of its marketable securities of approximately $81,000.
From inception through March 31, 2009, we have financed our operations primarily from the net proceeds of (1) private placements of equity securities, through which we raised approximately $25,227,000, (2) the sale of securities we acquired through investments made in other companies, through which we raised approximately $6,260,000, and (3) a $500,000 loan we received from SurgiVision, Inc.
During the three month period ended March 31, 2009, cash used in our operating activities was $1,238,000. This decrease in cash from operations was primarily due to the operating loss offset in part by non-cash stock-based compensation of approximately $146,000 and depreciation and amortization of approximately $57,000. Prepaid expenses decreased by approximately $84,000 for the three month period ended March 31, 2009, primarily representing prepaid director and officer insurance coverage. Accounts payable decreased by approximately $202,000 and accrued liabilities increased by approximately $601,000 during the three month period ended March 31, 2009 primarily due to the $500,000 milestone payment accrual to Bayer for the cleared IND application for DB959.
On April 6, 2009 we received a notice from The NASDAQ Stock Market that we no longer satisfied Marketplace Rule 4310(c)(3), which requires a listed company to maintain a minimum stockholders equity of $2.5 million, at least $35 million in market value of listed securities, or a minimum $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years for continued listing on The NASDAQ Capital Market (the Rule). The Staffs notice has no effect on the Companys listing at this time.
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DARA BIOSCIENCES INC. is a Raleigh North Carolina -based development-stage pharmaceutical company that acquires promising therapeutic molecules and medical technologies directly or through investment in established companies. DARA focuses its therapeutic development efforts on small molecules from late preclinical development through phase 2 clinical trials. DARA is developing a portfolio of therapeutic candidates for europathic pain metabolic diseases including type 2 diabetes and dermatological disorders. DARA has licensed promising drug development candidates from Kirin Pharmaceuticals of Japan Bayer Pharmaceuticals Corporation Massachusetts General Hospital and Nuada LLC. DARA Biosciences Inc. has a market cap of $16.3 million; its shares were traded at around $0.55 with and P/S ratio of 37.
Highlight of Business Operations:
Share-based compensation is accounted for using the fair value based method prescribed by SFAS No. 123R, Share-Based Payment (SFAS 123R). For stock and stock-based awards issued to employees, a compensation charge is recorded against earnings based on the fair value of the award. For transactions with non-employees in which services are performed in exchange for the Companys common stock or other equity instruments, the transactions are recorded on the basis of the fair value of the service received or the fair value of the equity instruments issued, whichever is more readily measurable at the date of issuance. Our Companys share-based compensation transactions for employees resulted in compensation expense of $120,248 and $275,637 for the three months ended March 31, 2009 and 2008, respectively. The Company recognized stock-based compensation expense for awards to non-employees totaling $25,652 and $27,500 for the three months ended March 31, 2009 and 2008, respectively.General and administrative expenses consist primarily of salaries and benefits, professional fees related to administrative, finance, human resource, legal and information technology functions and patent costs. In addition, general and administrative expenses include allocated facility, basic operational and support costs and insurance costs. General and administrative expenses decreased approximately $261,000, from approximately $1,222,000 for the three months ended March 31, 2008 to approximately $961,000 for the corresponding 2009 period, primarily as a result of the substantial expenses we incurred in the first quarter of 2008 in connection with the Merger and becoming a public company and the implementation of a cost reduction plan to conserve our remaining cash balance.
Other (expense) income, net reflects non-operating activities associated with investments and dispositions on investments made in collaborations with other companies. Other (expense) income, net increased approximately $433,000 from income of approximately $188,000 for the three months ended March 31, 2008 to approximately $621,000 for the corresponding 2009 period. The increase is primarily due to the gain on investments of approximately $551,000 from the distribution of SurgiVision stock, as well as the gain on the Companys sale of its marketable securities of approximately $81,000.
From inception through March 31, 2009, we have financed our operations primarily from the net proceeds of (1) private placements of equity securities, through which we raised approximately $25,227,000, (2) the sale of securities we acquired through investments made in other companies, through which we raised approximately $6,260,000, and (3) a $500,000 loan we received from SurgiVision, Inc.
During the three month period ended March 31, 2009, cash used in our operating activities was $1,238,000. This decrease in cash from operations was primarily due to the operating loss offset in part by non-cash stock-based compensation of approximately $146,000 and depreciation and amortization of approximately $57,000. Prepaid expenses decreased by approximately $84,000 for the three month period ended March 31, 2009, primarily representing prepaid director and officer insurance coverage. Accounts payable decreased by approximately $202,000 and accrued liabilities increased by approximately $601,000 during the three month period ended March 31, 2009 primarily due to the $500,000 milestone payment accrual to Bayer for the cleared IND application for DB959.
On April 6, 2009 we received a notice from The NASDAQ Stock Market that we no longer satisfied Marketplace Rule 4310(c)(3), which requires a listed company to maintain a minimum stockholders equity of $2.5 million, at least $35 million in market value of listed securities, or a minimum $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years for continued listing on The NASDAQ Capital Market (the Rule). The Staffs notice has no effect on the Companys listing at this time.
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