Biosyntech Posts Net Loss Of CAD12.9 Million In Fiscal 2009

BioSyntech, Inc. (Biosyntech) has reported revenues of CAD40,766 for the fiscal 2009, compared with revenues of CAD0.27 million in the previous year. It also reported a net loss of CAD12.9 million, or CAD0.13 loss per share, for the fiscal 2009, compared with the net loss of CAD9.2 million, or CAD0.10 loss per share, in the previous year.

Financial Review

For the three-month period ended March 31, 2009, the company had revenues of CAD23,701 compared with CAD148,568 for the three-month period ended March 31, 2008. Revenues were mainly due to non-core activities including sales of instrumentation products and research contracts.

Interest revenue for the three-month period ended March 31, 2009, was CAD20,537 compared with CAD43,559 for the three-month period ended March 31, 2008. Interest revenue for the year ended March 31, 2009, was CAD141,370, compared with CAD322,868 for the year ended March 31, 2008. The decreases in interest revenue were mainly due to the decrease in the average cash position as well as an overall reduction in interest rates compared with the same periods last year.

Interest on long-term debt was CAD50,963 for the three-month period ended March 31, 2009, compared with CAD92,687 for the three-month period ended March 31, 2008. Interest on long-term debt was CAD255,972 for the year ended March 31, 2009, compared with CAD380,674 for the year ended March 31, 2008. The decrease is due to lower interest rates and lower debt levels.

Research and development expenses were CAD1,168,855 for the three-month period ended March 31, 2009, compared with CAD1,619,995 for the three-month period ended March 31, 2008. Research and development expenses were CAD5,800,068 for the 12-month period ended March 31, 2009, compared with CAD6,024,121 for the same period a year ago. The decreases were mainly due to reductions in staffing following the termination of certain research projects.

General and administrative expenses were CAD762,994 for the three-month period ended March 31, 2009, compared with CAD901,855 for the three-month period ended March 31, 2008. General and administrative expenses were CAD3,006,713 for the year ended March 31, 2009, compared with CAD3,668,513 for the same period a year ago. The decreases were mainly due to lower remuneration as a result of the restructuring, lower compensation expenses related to options granted, and lower marketing and investor relations expenses partly offset by higher professional fees.

The accretion in the carrying value of the convertible debenture and interest was respectively of CAD1,183,733 and CAD3,002,988 for the quarter and 12-month periods ended March 31, 2009, compared with nil for the three-month and 12-month periods ended March 31, 2008.

During fiscal 2009 as a condition of the 2008 financing, the company restructured its operations focusing its efforts and capital expenditure on the advancement of BST-CarGel for cartilage repair. The restructuring costs were CAD1,563,652 for the year ended March 31, 2009, compared with nil for the year ended March 31, 2008. The restructuring costs mainly comprise severances as dictated by contractual agreements and termination fees in accordance with Quebec common practice.

Net loss for the fourth quarter was CAD3,056,127 or three cents per share, compared with a net loss of CAD2,414,429 or three cents per share for the same period last year.

As of March 31, 2009, the company had cash and cash equivalents in the amount of CAD3,803,036 compared with CAD2,835,806 at March 31, 2008.