UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): September 29, 2005
Senesco Technologies, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware |
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001-31326 |
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84-1368850 |
(State or Other Jurisdiction |
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(Commission File Number) |
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(IRS Employer Identification No.) |
of Incorporation) |
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303 George Street, Suite 420, New Brunswick, New Jersey |
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08901 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(732) 296-8400 |
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(Registrants telephone number, |
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including area code) |
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Not applicable |
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(Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
Item 2.02. Results of Operations and Financial Condition.
On September 29, 2005, Senesco Technologies, Inc., a Delaware corporation (the Company), issued a press release to report the Companys financial results for the year ended June 30, 2005. The full text of the press release is attached to this current report on Form 8-K as Exhibit 99.1.
The information in this Form 8-K shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange Act) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. |
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Description |
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99.1 |
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Press Release of Senesco Technologies, Inc. dated September 29, 2005. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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SENESCO TECHNOLOGIES, INC. |
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Dated: September 29, 2005 |
By: |
/s/ Bruce Galton |
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Name: |
Bruce Galton |
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Title: |
President and Chief Executive Officer |
Exhibit 99.1
Company Contact: |
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Investor Relations Contacts: |
Senesco Technologies, Inc. |
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Lippert/Heilshorn & Associates |
Joel Brooks |
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Kim Sutton Golodetz |
Chief Financial Officer |
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(kgolodetz@lhai.com) |
(jbrooks@senesco.com) |
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Anne Marie Fields |
(732) 296-8400 |
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(afields@lhai.com) |
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212-838-3777 |
SENESCO TECHNOLOGIES REPORTS FISCAL 2005
FINANCIAL RESULTS
NEW BRUNSWICK, N.J. (Sept. 29, 2005) Senesco Technologies, Inc. (Senesco or the Company) (AMEX: SNT) reported financial results for the 12 months ended June 30, 2005 (Fiscal 2005).
The net loss for Fiscal 2005 was $2,188,966, or $0.16 per share, a 28.9% decrease when compared with the net loss of $3,078,282, or $0.24 per share, recorded in fiscal 2004. The decrease in net loss was primarily the result of a decrease in non-cash stock-based compensation related to general and administrative expenses, which was partially offset by an increase in research and development expenses and other general and administrative expenses.
Revenue was $125,000 in Fiscal 2005, which represented the milestone payments and amortized portion of an initial fee on a development and license agreement. This compares with revenue of $16,667 in fiscal 2004, which also represented the amortized portion of the initial fee in connection with the same development and license agreement.
Research and development expenses in Fiscal 2005 were $1,265,960, compared with $1,071,870 in fiscal 2004, an increase of 18.1%. This increase was primarily the result of our expanded research program performed by the University of Waterloo and other institutions, the weakness of the U.S currency against the Canadian currency and the expansion of our human health research programs, as well as an increase stock-based compensation, which was due to previously issued options becoming exercisable and new options being issued during Fiscal 2005.
General and administrative expenses were $1,390,825 in Fiscal 2005, compared with $2,333,432 in fiscal 2004, a decrease of 40.4%. The decrease was primarily attributable to a decrease in stock-based compensation, which was the result of a warrant being granted in connection with a financial advisory agreement during fiscal 2004. This decrease was offset by modest increases in other general and administrative expenses such as investor relations, accounting fees, amortization of patent costs and payroll and benefits.
At June 30, 2005, Senesco had cash, cash equivalents investments of $4,481,253 and working capital of $3,959,125.
In commenting on Senescos achievements for the fourth quarter of Fiscal 2005 and recent weeks, Bruce Galton, president and chief executive officer stated, We believe that our research advances have positioned us for further progress in fiscal 2006. In April 2005, we announced that our initial field trials with joint venture partner Rahan Meristem showed increased tolerance by our banana plants to Black Sigatoka, a fungal disease, as measured on an index of tolerance widely used in the industry. Black Sigatoka, which is also referred to as Black Leaf Streak Disease (BLSD), is the predominant leaf spot disease of banana and is known to cause significant reductions in leaf area and yield losses.
Senesco presented four abstracts in June 2005, at Plant Canada 2005, including data on our technology related to:
strong pathogen resistance in Arabidopsis Thaliana,
enhanced growth and seed yield in canola,
positive regulation of xylem development,
promoter activities that suggest a role in xylogenesis, leaf senescence and flower senescence.
Mr. Galton continued, During the fourth quarter of fiscal 2005, we believe we made significant strides at advancing our technology in human health research:
We added two preclinical human health research programs at the University of Virginia and at the University of Pittsburgh. These programs will assist us in further characterizing the role of our proprietary technologies in the research of cancer and inflammatory disease. These in vitro and in vivo studies are important steps in testing our technologys efficacy in human disease models.
We reported preliminary data using our Factor 5A to treat lethal septic challenge that was most encouraging and we look forward to furthering our research in this critically important medical area. Sepsis is a condition in which the immune systems rapid inflammatory response to a severe infection can cause organ damage and result in death and is the leading cause of death in non-coronary intensive care units in the United States.
We reported a preclinical lung cancer study in mice, conducted at the University of Waterloo (Ontario, Canada) in which the Companys proprietary Factor 5A technology was used to treat mice with a type of melanoma that has an affinity for lung tissue and results in metastatic lung tumors. After three weeks of treatment, the lungs of the treated and untreated mice were compared by weight to assess tumor load. The mice that received Senescos Factor 5A treatment showed an average of 41% reduction in tumor weight relative to the untreated mice. Additionally, nearly half of the treated mice had lung weights that were statistically comparable to control (healthy) mice that did not have any tumors. Previously, the Company had shown that Factor 5A induces mouse lung tumors to undergo apoptosis. These preclinical studies are indicative of Factor 5As potential efficacy to inhibit lung tumor formation and/or growth.
Mr Galton concluded, In order to continue to support our research efforts in both our agriculture and human health initiatives, we raised $3.37 million in a private placement led by Oppenheimer & Co. Consistent with our commercialization strategy, we hope to continue to attract other companies interested in strategic partnerships, joint ventures or licensing agreements for our technology. Toward that end, we participated in Bio 2005 Business Forum, where we were able
to introduce the Company and its technology to an audience of potential partners. We look forward to progressing our agricultural field testing and human health preclinical studies throughout 2006.
About Senesco Technologies, Inc.
Senesco takes its name from the scientific term for the aging of plant cells: senescence. The Company has developed technology that regulates the onset of cell death. Delaying cell breakdown in plants extends freshness after harvesting, while increasing crop yields, plant size and resistance to environmental stress for flowers, fruits and vegetables. The Company believes that its technology can be used to develop superior strains of crops without any modification other than delaying natural plant senescence. Senesco has begun to explore ways to trigger or delay cell death in mammals (apoptosis) to determine if the technology is applicable in human medicine. Accelerating apoptosis may have applications to development of cancer treatments. Delaying apoptosis may have applications to certain diseases such as Alzheimers, glaucoma, ischemia and arthritis, among others. Senesco partners with leading-edge companies and earns research and development fees for applying its gene-regulating platform technology to enhance its partners products. Senesco is headquartered in New Brunswick, New Jersey, and utilizes research laboratories at the University of Waterloo in Ontario, Canada and the University of Colorado in Denver, Colorado, as well as other institutions.
Certain 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 development of the Companys gene technology; the approval of the Companys patent applications; the successful implementation of the Companys research and development programs and joint ventures; the success of the Companys license agreements; the successful conversion of the Companys letter of intent into a license agreement; the acceptance by the market of the Companys products; success of the Companys preliminary studies and preclinical research; competition and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in the Companys periodic filings with the Securities and Exchange Commission (the SEC). As a result, this press release should be read in conjunction with the Companys 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.
(tables to follow)
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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For the Year |
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For the Year |
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Cumulative |
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Revenue |
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$ |
125,000 |
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16,667 |
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$ |
351,667 |
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Operating expenses: |
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General and administrative |
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1,390,825 |
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2,333,482 |
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11,300,228 |
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Research and development |
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1,265,960 |
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1,071,870 |
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4,929,076 |
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Total operating expenses |
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2,656,785 |
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3,405,302 |
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16,229,304 |
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Loss from operations |
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(2,531,785 |
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(3,338,635 |
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(15,877,637 |
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Sale of state income tax loss-net |
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153,160 |
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91,448 |
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586,442 |
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Noncash income |
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135,632 |
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185,627 |
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321,259 |
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Interest income, net |
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54,027 |
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33,278 |
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206,029 |
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Net loss |
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$ |
(2,188,966 |
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$ |
(3,078,282 |
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(14,763,907 |
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Basic and diluted net loss per common share |
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$ |
(0.16 |
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$ |
(0.24 |
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Basic and diluted weighted- average number of common shares outstanding |
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14,053,808 |
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12,668,396 |
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SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEET
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June 30, |
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June 30, |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
291,858 |
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$ |
186,248 |
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Short-term investments |
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3,941,627 |
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3,949,774 |
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Prepaid expenses and other current assets |
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156,544 |
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93,967 |
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Total Current Assets |
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4,390,029 |
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4,229,989 |
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Long-term Investments |
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247,768 |
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Property and Equipment, net |
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30,038 |
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51,702 |
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Intangibles, net |
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1,438,119 |
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922,214 |
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Deferred Income Tax Asset, net of valuation allowance of $4,355,000 and $3,630,000, respectively |
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Security Deposit |
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7,187 |
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7,187 |
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TOTAL ASSETS |
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$ |
6,113,141 |
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$ |
5,211,092 |
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LIABILITIES AND STOCKHOLDERS EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
217,569 |
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$ |
69,008 |
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Accrued expenses |
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180,002 |
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287,626 |
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Deferred revenue |
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33,333 |
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33,333 |
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Total Current Liabilities |
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430,904 |
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389,967 |
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Grant Payable |
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90,150 |
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90,150 |
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Other Liability |
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2,336 |
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TOTAL LIABILITIES |
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523,390 |
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480,117 |
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STOCKHOLDERS EQUITY: |
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Preferred stock, $0.01 par value; authorized 5,000,000 shares, no shares issued |
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Common stock, $0.01 par value; authorized 30,000,000 shares, issued and outstanding 15,467,388 and 13,787,250 shares, respectively |
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154,674 |
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137,873 |
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Capital in excess of par |
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20,198,984 |
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17,168,043 |
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Deficit accumulated during the development stage |
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(14,763,907 |
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(12,574,941 |
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Total Stockholders Equity |
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5,589,751 |
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4,730,975 |
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TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
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$ |
6,113,141 |
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$ |
5,211,092 |
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