DiagnoCure reported its results for the fourth quarter 2014 and fiscal year ended October 31, 2014. The corporation announced a net loss of $461,710 or $0.01 per share for the fourth quarter ended October 31, 2014.
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This compares to $1,334,099 or $0.03 per share for the same period in 2013 and a net loss of $2,032,151 or $0.05 per share for fiscal year 2014 compared to $3,566,942 or $0.08 per share for the same period in 2013. At the end of the quarter, cash and short-term investments stood at $2,227,326 compared to $4,190,296 at the end of fiscal year 2013.
Total revenues for fiscal 2014 were $553,140 compared with $671,228 for 2013. This decrease of $118,088 or 18% is mainly attributable to PCA3 royalties reflecting a decrease in U.S. royalty revenues.
Operating expenses decreased by $1,652,879 to $2,585,291 for 2014 from $4,238,170 for 2013. This decrease is mainly attributable to reduction in professional fees and amortization and impairment of intangible assets. Total operating expenses decreased primarily as a result of the following:
Research and development expenses, net of investment tax credits, decreased by $1,064,123 to $1,083,124 for 2014 from $2,147,247 for 2013. This decrease in research and development expenses is mostly attributable to the amortization charge of the GCC intangible asset following the review of its useful life and to the amortization and impairment of the Shc intangible asset, since the Corporation recognized a full impairment charge in fiscal year 2013.
General and administrative expenses decreased by $563,448, to $1,346,011 for 2014 from $1,909,459 in fiscal 2013. This decrease is attributable to reduction in professional fees and stock-based compensation expenses.
Based on the above, for fiscal 2014, DiagnoCure recorded a net loss and comprehensive loss of $2,032,151 or $0.05 per share, compared with $3,566,942 or $0.08 per share for fiscal 2013.
These results reflect activities undertaken during fiscal 2014 on PCA3, Previstage GCC, research and development and business development. As at October 31, 2014, cash and short-term investments stood at $2,227,326 down from $4,190,296 as at October 31, 2013.
This decrease of $1,962,970 is due to the use of liquidities to finance the operating activities of fiscal 2014. With the operating expenses reduction announced on October 30, 2014, Management estimates the cash burn of fiscal 2015 to be $1.2M and is satisfied that it has adequate cash resources to finance the Corporation's activities, and will continue to monitor its cash levels.
Total revenues for the fourth quarter of 2014 were $122,254 compared with $149,465 for the same period of 2013. This decrease of $27,211 or 18% is mostly attributable to PCA3 royalties, reflecting a decrease in royalty revenues from Europe.
Operating expenses decreased by $899,600 to $583,964 for the third quarter of 2014 from $1,483,564 for the same period of 2013. This decrease is mainly attributable to reduction in professional fees, amortization and impairment of intangible assets. ■