Signal Hill Acquisition (NASDAQ:SGHL)
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Sentigen Holding Corp. (NasdaqSC: SGHL), today reported
results for the first quarter ended March 31, 2005.
On February 22, 2005 we sold the Specialty Media Division of our
wholly-owned subsidiary, Cell & Molecular Technologies, Inc. ("CMT")
to Chemicon International, Inc., a wholly-owned subsidiary of
Serologicals Corporation (Nasdaq: SERO). As such the results of this
division have been accounted for as discontinued operations. Our
consolidated results of continuing operations consist of CMT's
contract research division, Sentigen Biosciences, Inc. and the
expenses of the parent company.
Consolidated Results of Continuing Operations
Revenues for the three months ended March 31, 2005 were
$1,761,516, a 32% increase over the three months ended March 31, 2004.
Our revenues are primarily attributed to our wholly-owned subsidiary,
CMT and accounted for $1,597,704 of our consolidated revenues for the
three months ended March 31, 2005 and a 20% increase when compared to
the three months ended March 31, 2004. The remainder of the increase
on a consolidated basis was due to Sentigen Biosciences' contract with
Technical Support Working Group ("TSWG") an inter-departmental agency
of the federal government which initiated in the third quarter of
2004. This contract accounted for $163,812 of revenue for the three
months ended March 31, 2005.
The loss from continuing operations for the three months ended
March 31, 2005 was $551,228 or ($0.07) per share. This compares to a
loss from continuing operations of $1,306,763 or ($0.18) per share for
the three months ended March 31, 2004. The decline in loss was
primarily due to the absence of stock based compensation charges for
the three months ended March 31, 2005. Such charges amounted to
$648,565 during the three months ended March 31, 2004 and were
attributable to stock option grants to non-employee scientific
consultants which have since expired.
Results of Continuing Operations by Segment
The Company operates through two wholly-owned subsidiaries, CMT
and Sentigen Biosciences. The expenses of the parent company, Sentigen
Holding Corp. are reflected in Corporate.
Cell & Molecular Technologies, Inc. Income from continuing
operations attributable to CMT for the three months ended March 31,
2005 was $296,951 compared to $179,196 for the three months ended
March 31, 2004, a 66% increase. The increase was primarily driven by
the increase in revenues discussed above, offset by an increase in
depreciation expense
Sentigen Biosciences. Sentigen Biosciences has been primarily
engaged in the development and commercialization of novel bioassay
systems that elucidate the underlying biology of protein-protein
interactions. Sentigen Biosciences has initially targeted its
Tango(TM) Assay System to address the functionalization of G
protein-coupled receptors (GPCRs) for pharmaceutical drug discovery
and development. Sentigen Biosciences has filed patent applications on
its Assay System and it expects to file additional patent applications
on this technology and related matters in the future. Sentigen
Biosciences is also devoting a portion of its effort and resources to
the development of a novel molecular profiling system which, if
successful, the Company will attempt to commercialize.
While we believe our technology capabilities in the Bioscience
area are substantial, up to this point, Sentigen Biosciences has not
generated any significant revenues and, moreover, has incurred quite
substantial operating losses. Although we have completed several pilot
research collaborations, we have not entered into any drug discovery
or development agreements, nor can any assurance be given that we will
be able to do so on terms that are acceptable to us.
Management intends to continually review the commercial validity
of the Tango Assay System, its applicability to functionalizing orphan
GPCR's and the prospects of our proposed new novel molecular profiling
system in order to make the appropriate decisions as to the best way
to allocate our limited resources.
Loss from continuing operations attributable to Sentigen
Biosciences for the three months ended March 31, 2005 was $380,871 a
54% decline when compared to the loss from operations of $820,432 for
the three months ended March 31, 2004. The decline was primarily due
to the absence of stock-based compensation costs attributable to
scientific consultants as previously discussed.
Corporate. Loss from continuing operations attributable to
corporate holding company expenses for the three months ended March
31, 2005 was $540,387. This compares to a loss attributable to
corporate holding company expenses of $673,134 for the three months
ended March 31, 2004. The decline is primarily attributable to reduced
stock based compensation costs.
Gain on sale of Specialty Media Division
The gain on the sale of the CMT's Specialty Media Divison, net of
accrued state and federal income taxes of $889,209 amounted to
$4,773,810.
Cash and Working Capital
At March 31, 2005, the Company had $708,875 in cash and cash
equivalents, U.S. Treasury Notes, at market value, of $14,553,678 and
working capital of $13,859,670. On February 22, 2005 we purchased a
$5,000,000 face value, 3.125% treasury note maturing on January 31,
2007 with a portion of the proceeds from the sale of CMT's Specialty
Media Division. It should be noted that we will need substantial
amounts of additional financing to commercialize the research programs
undertaken by us which financing may not be available or if available
may not be on reasonable terms.
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*T
SENTIGEN HOLDING CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
Income Statement Highlights:
----------------------------
(Unaudited)
For the Three Months
Ended
------------------------
March 31, March 31,
2005 2004
----------- ------------
Revenue
CMT $1,597,704 $1,330,217
Sentigen Biosciences 163,812 -
----------- ------------
1,761,516 1,330,217
----------- ------------
Income After Direct Costs
CMT 997,102 804,085
Sentigen Biosciences 64,050 -
----------- ------------
1,061,152 804,085
----------- ------------
Operating income (loss)
CMT $296,951 $179,196
Sentigen Biosciences (380,871) (820,432)
Corporate (540,387) (673,134)
----------- ------------
Operating loss $(624,307 $(1,314,370)
----------- ------------
Loss from continuing operations $(551,228)$(1,306,763)
Income from discontinued operation, net of tax
(including gain on disposal of $4,773,810) 4,923,322 319,440
----------- ------------
Net income (loss) $4,372,094 $(987,323)
=========== ============
Basic and diluted loss per share
from continuing operations $(0.07) $(0.18)
=========== ============
Basic and diluted income per share
from discontinued operation $0.66 $0.05
=========== ============
Basic and diluted net income (loss) per share $0.59 $(0.13)
=========== ===========
Basic and diluted weighted average of
common shares outstanding 7,471,492 7,455,984
=========== ============
*T
-0-
*T
Balance Sheet Highlights:
----------------------------------------------
March 31, December 31,
2005 2004
----------- ------------
Cash and cash equivalents $708,875 $347,560
U.S. treasury notes 14,553,678 9,738,938
Total current assets 16,619,924 12,110,677
Total assets 17,787,066 13,388,743
Current maturities of long term debt $155,463 $180,698
Current liabilities 2,760,254 2,541,296
Long-term debt 750,630 784,495
Total liabilities 3,510,884 3,325,791
Stockholder's Equity $14,276,182 $10,062,952
*T
This news release includes forward-looking statements that involve
risks and uncertainties. Although the Company believes such statements
are reasonable, it can make no assurance that such statements will
prove to be correct. Such statements are subject to certain factors
that may cause results to differ materially from the forward-looking
statements. Such factors include the risk factors discussed in the
Company's filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K, a copy of which
may be obtained from the Company without charge. The Company
undertakes no obligation to publicly release results of any of these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unexpected results.
About Sentigen Holding Corp:
Sentigen Holding Corp. (NasdaqSC: SGHL) conducts business through
two wholly owned operating subsidiaries, Cell & Molecular
Technologies, Inc. ("CMT"), and Sentigen Biosciences, Inc. CMT
provides contract research and development services to companies
engaged in the drug discovery process. Sentigen Biosciences has been
primarily engaged in the development and commercialization of novel
bioassay systems that elucidate the underlying biology of
protein-protein interactions. Sentigen Biosciences has initially
targeted its Tango(TM) Assay System to address the functionalization
of G protein-coupled receptors (GPCRs) for pharmaceutical drug
discovery and development. Sentigen Biosciences has filed patent
applications on its Assay System and it expects to file additional
patent applications on this technology and related matters in the
future. Sentigen Biosciences is also devoting a portion of its effort
and resources to the development of a novel molecular profiling system
which, if successful, the Company will attempt to commercialize. For
more information on our companies, please visit their respective
websites: http://www.cmt-inc.net and http://www.sentigen.com.