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Incara Announces Fiscal Year 2003 Results
RESEARCH TRIANGLE PARK, N.C., Dec. 12 /PRNewswire-FirstCall/ -- Incara
Pharmaceuticals Corporation (BULLETIN BOARD: INCR) ( http://www.incara.com/ )
announced today the financial results for its fiscal year ended September 30,
2003. The Company reported a net loss attributable to common stockholders of
$3,925,000, or $.29 per share. For the previous fiscal year ended September 30,
2002, the Company had a net loss attributable to common stockholders of
$12,189,000, or $.94 per share. For the quarter ended September 30, 2003,
Incara had a net loss attributable to common stockholders of $1,315,000 or $.10
per share. For the quarter ended September 30, 2002, Incara had a net loss
attributable to common stockholders of $2,740,000, or $.20 per share. Financial
results for fiscal 2002 include expenses for three programs, two of which Incara
no longer operates.
Incara Pharmaceuticals Corporation is developing a new class of small molecule
catalytic antioxidants that destroy oxygen-derived free radicals, believed to be
an important contributor to the pathogenesis of many diseases. During the fiscal
year 2002, Incara was also developing liver stem cell therapy for the treatment
of liver failure, however this program was sold in October 2002. The results
for fiscal 2002 include $3,657,000 of losses from discontinued operations for
the liver stem cell therapy program. In addition, in September 2002, Incara
ceased development of deligoparin following unsatisfactory results of a Phase
2/3 clinical trial. The results for the fiscal year 2002 include $1,040,000 of
charges for "Equity in loss of Incara Development." Incara Development, Ltd. is
the company that was formed by Incara and Elan Corporation, plc to develop
deligoparin for treatment of inflammatory bowel disease.
In November 2003, Incara completed a corporate reorganization that consisted of
the merger of Incara Pharmaceuticals into one of its wholly owned subsidiaries.
The reorganization resulted in the conversion of Incara's then outstanding
Series C preferred stock into common stock of the merged company, conversion of
a $3 million bridge loan into common stock of the merged company and conversion
of Incara's Series B preferred stock into nonvoting common stock equivalent
shares of the merged company. Incara common stock was converted into common
stock of the merged company, and continues to trade as Incara Pharmaceuticals
Corporation on the OTC Bulletin Board under the same symbol, INCR. Shares
outstanding after the reorganization total 52,376,042 shares of common stock and
common stock equivalent shares combined.
Incara Pharmaceuticals Corporation is developing a new class of small molecule
catalytic antioxidants that destroy oxygen-derived free radicals, believed to be
an important contributor to the pathogenesis of many diseases. Incara's
catalytic antioxidants have been shown to reduce damage to tissue in animal
studies of neurological disorders such as amyotrophic lateral sclerosis (Lou
Gehrig's disease, also known as ALS) and stroke, and in other non-neurological
indications such as cancer radiation therapy, chronic bronchitis and asthma.
"During the past 18 months Incara completed a needed reorganization, both to
simplify our capital structure and to focus our operations," stated Clayton I.
Duncan, Chairman and CEO of Incara. "Our capital structure is much less
cumbersome, which, combined with our preclinical data in ALS, should enhance our
ability to raise capital in the future. We continue to be encouraged by the
preclinical results being generated by our catalytic antioxidant compounds and
are pushing hard to get into clinical trials next year."
Because Incara has suffered recurring losses from operations and has a net
capital deficiency, the company's independent auditors are expected to issue a
going concern qualification in their audit opinion for fiscal 2003. The Company
currently has sufficient financial resources to fund operations only through the
end of December. In September 2003 the Company entered into an agreement with
its current majority stockholder for up to an additional $5,000,000 in funding
subject to satisfactory completion of certain toxicology studies and additional
closing conditions. The Company is currently conducting the toxicology studies
necessary to meet the funding conditions. Incara is also seeking to raise
additional funds for operations from other investors. Additional funding may
also be raised by establishing a collaborative relationship with a corporate
partner for the catalytic antioxidant program. The Company is also exploring
other strategic and financial alternatives. If the Company is not able to
complete a financing transaction soon, it will need to discontinue some or all
of its activities.
The statements in this press release that are not purely statements of
historical fact are forward-looking statements, and actual results might differ
materially from those anticipated. These statements and other statements made
elsewhere by Incara or its representatives, which are identified or qualified by
words such as "intends," "likely," "will," "suggests," "expects," "might,"
"may," "believe," "could," "should," "would," "anticipates," "plans," or the
negative of those terms or similar expressions, are based on a number of
assumptions that are subject to risks and uncertainties. Important factors that
could cause results to differ include risks associated with the immediate need
to obtain funds for operations, uncertainties of scientific research, clinical
trials and product development activities. These and other important risks are
described in Incara's reports on Form 10-K, Form 10-Q and Form 8-K and its
registration statements filed with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Incara assumes no
obligation to update the information in this release.
Incara Pharmaceuticals Corporation
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Fiscal Year Ended
September 30, September 30,
2003 2002 2003 2002
(Unaudited)
Costs and expenses:
Research & development $515 $932 $2,780 $3,927
General & administrative 421 579 2,025 2,778
Total costs and expenses 936 1,511 4,805 6,705
Income (loss) from operations (936) (1,511) (4,805) (6,705)
Equity in loss of Incara
Development (2) (175) (76) (1,040)
Interest income (expense), net (136) (21) (192) (50)
Other income 2 - 223 150
Loss from continuing
operations (1,072) (1,707) (4,850) (7,645)
Discontinued operations - (806) (38) (3,657)
Gain on sale of discontinued
operations - - 1,912 -
Net income (loss) (1,072) (2,513) (2,976) (11,302)
Preferred stock dividend
and accretion (243) (227) (949) (887)
Net loss attributable to
common stockholders $(1,315) $(2,740) $(3,925) $(12,189)
Net income (loss) per common
share (basic and diluted) :
Loss from continuing
operations available to
common stockholders $(.10) $(.14) $(.43) $(.66)
Discontinued operations $- $(.06) $- $(.28)
Gain on sale of discontinued
operations $- $- $.14 $-
Net loss attributable to
common stockholders $(.10) $(.20) $(.29) $(.94)
Weighted average common
shares outstanding: 13,723 13,349 13,645 12,962
Selected Balance Sheet Items:
(In thousands)
September 30,
2003 2002
Cash and cash equivalents $586 $209
Total assets 1,080 2,201
Series C preferred stock 14,503 13,554
Total stockholders' equity (deficit) (17,079) (14,480)
DATASOURCE: Incara Pharmaceuticals Corporation
CONTACT: W. Bennett Love of Incara, +1-919-558-1907
Web site: http://www.incara.com/