DARA Biosciences Inc. (DARA, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $18.7 million; its shares were traded at around $0.4402 with and P/S ratio of 42.4.
We incurred approximately $0 and less than $1,000 in direct development costs associated with the development of DB200 series compounds for the three and nine month periods ended September 30, 2009, respectively, and we have incurred costs of approximately $377,000 from inception to date. We estimate the market potential for the topical agent segment of the psoriasis market to be roughly $3.6 billion in 2014.
Share-based compensation is accounted for using the fair value based method prescribed by FASB ASC 718 . 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 and non-employee directors resulted in compensation expense of $117,867 and $666,228 for the three month periods ended September 30, 2009 and 2008, respectively, and $298,548 and $1,095,080 for the nine month periods ended September 30, 2009 and 2008, respectively. The Company recognized stock-based compensation expense for awards to non-employees totaling $1,478 and $24,567 for the three and nine months ended September 30, 2009, respectively. The Company did not have any non-employee option expense for the three and nine months ended September 30, 2008.
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 $574,000 from income of approximately $115,000 for the nine months ended September 30, 2008 to income of approximately $689,000 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 $178,000, offset by disposition of equipment and interest expense.
From inception through September 30, 2009, we have financed our operations primarily from the net proceeds of (1) registered direct offerings and private placements of equity securities, through which we raised approximately $29,907,000 in net proceeds, including approximately $3,418,000 in net proceeds from the Companys two registered direct offerings in September 2009 and $1,298,000 in net proceeds from the Companys private placement in June 2009 pursuant to the Purchase Agreement (see following discussion), (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 nine month period ended September 30, 2009, cash used in our operating activities was approximately $2,880,000. This decrease in cash from operations was primarily due to the operating loss offset in part by non-cash stock-based compensation of approximately $325,000 and depreciation and amortization of approximately $119,000. Prepaid expenses decreased by approximately $32,000 for the nine month period ended September 30, 2009, primarily representing prepaid director and officer insurance coverage. Accounts payable increased by approximately $193,000 and accrued liabilities decreased by approximately $60,000 during the nine month period ended September 30, 2009, primarily due to the $100,000 milestone payment to Bayer and corresponding $400,000 in accounts payable for the cleared IND application for DB959.
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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 $18.7 million; its shares were traded at around $0.4402 with and P/S ratio of 42.4.
Highlight of Business Operations:
We incurred approximately $144,000 and $422,000 in development costs associated with the development of KRN5500 during the three and nine month periods ended September 30, 2009, respectively, and we have incurred costs of approximately $3,391,000 from inception to September 30, 2009. We estimate the market potential for chemotherapy-induced neuropathy to be roughly $1.6 billion in 2014.We incurred approximately $0 and less than $1,000 in direct development costs associated with the development of DB200 series compounds for the three and nine month periods ended September 30, 2009, respectively, and we have incurred costs of approximately $377,000 from inception to date. We estimate the market potential for the topical agent segment of the psoriasis market to be roughly $3.6 billion in 2014.
Share-based compensation is accounted for using the fair value based method prescribed by FASB ASC 718 . 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 and non-employee directors resulted in compensation expense of $117,867 and $666,228 for the three month periods ended September 30, 2009 and 2008, respectively, and $298,548 and $1,095,080 for the nine month periods ended September 30, 2009 and 2008, respectively. The Company recognized stock-based compensation expense for awards to non-employees totaling $1,478 and $24,567 for the three and nine months ended September 30, 2009, respectively. The Company did not have any non-employee option expense for the three and nine months ended September 30, 2008.
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 $574,000 from income of approximately $115,000 for the nine months ended September 30, 2008 to income of approximately $689,000 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 $178,000, offset by disposition of equipment and interest expense.
From inception through September 30, 2009, we have financed our operations primarily from the net proceeds of (1) registered direct offerings and private placements of equity securities, through which we raised approximately $29,907,000 in net proceeds, including approximately $3,418,000 in net proceeds from the Companys two registered direct offerings in September 2009 and $1,298,000 in net proceeds from the Companys private placement in June 2009 pursuant to the Purchase Agreement (see following discussion), (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 nine month period ended September 30, 2009, cash used in our operating activities was approximately $2,880,000. This decrease in cash from operations was primarily due to the operating loss offset in part by non-cash stock-based compensation of approximately $325,000 and depreciation and amortization of approximately $119,000. Prepaid expenses decreased by approximately $32,000 for the nine month period ended September 30, 2009, primarily representing prepaid director and officer insurance coverage. Accounts payable increased by approximately $193,000 and accrued liabilities decreased by approximately $60,000 during the nine month period ended September 30, 2009, primarily due to the $100,000 milestone payment to Bayer and corresponding $400,000 in accounts payable for the cleared IND application for DB959.
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