Protein Polymer Technologies Reports Year End 2001 Finanacial Result
SAN DIEGO, March 5 -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), reports today its financial results for
the fourth quarter and the year ended December 31, 2001. For the quarter,
the Company had a net loss applicable to common shareholders of $863,000
($0.04 a share), versus a net loss of $444,000 ($0.02 a share) for the comparable
period a year ago. For the year, PPTI had a net loss applicable to common
shareholders of $3,424,000 ($0.16 a share), versus a net loss of $2,776,000
($0.16 a share) for the comparable period a year ago. The net loss, and
the net loss per share amounts include accumulated and distributed dividends
related to the CompanyÕs preferred stock.
Contract and licensing revenue, and product and interest
income totaled $241,000 for the fourth quarter and $830,000 for the twelve
month period ended December 31, 2001, compared to $525,000 and $1,189,000
respectively for the same periods last year. The contract and licensing
revenue primarily represents the amortized portion of an up-front license
payment of $1 million that is associated with the formation of a partnership
with Femcare Ltd., of Nottingham England to commercialize the CompanyÕs
product for the treatment of female stress urinary incontinence in Europe
and Australia, and from research and development payments from the CompanyÕs
affiliate, SpinalWave, Inc., formed with Windamere Venture Partners in April
2001 to develop and commercialize a Spinal disc repair product for the treatment
of lower back pain. The $1 million Femcare license fee is being recognized
as income over a three-year period.
Operating expenses for the quarter were $1,034,000,
as compared to $899,000 for the same period in 2000. Operating expenses
for the year were $3,977,000 as compared to $3,688,000 for the same period
in 2000. In general, operating expenses for the past two years have remained
low due primarily to reductions in personnel and expenditures implemented
during 1999. To the extent that resources become available, expenses are
expected to rise in subsequent quarters due to the increased expenditures
for expanded human clinical testing and patient follow-up of the CompanyÕs
injectable urethral bulking agent for the treatment of female stress urinary
incontinence, and of the CompanyÕs injectable hydrogel for the treatment
of dermal contour defects (scars, wrinkles, and lines), however, their can
be no assurance that additional resources will become available.
PPTIÕs cash balance as of December 31, 2001 was $234,000,
as compared to $866,000 as of December 31, 2000. In January 2002, the Company
received $990,000 in additional capital from the exercise of outstanding
common stock warrants. In combination with anticipated additional contract
and license payments, and revenue projected for the delivery of clinical
testing materials, the CompanyÕs cash is expected to meet the CompanyÕs
anticipated capital requirements through June 2002. If additional capital
is not obtained in the near future, the Company will be required to reduce
the use of cash through layoffs and other cost reduction steps.
Protein Polymer Technologies, Inc., is a biotechnology
company focused on developing products to improve medical and surgical outcomes.
From its inception in 1988, PPTI has been a pioneer in protein design and
synthesis, developing an extensive portfolio of proprietary biomaterials.
These genetically engineered biomaterials are high molecular weight proteins,
processed into products with physical and biological characteristics tailored
to specific clinical performance requirements. Targeted products include
urethral bulking agents for the treatment of stress urinary incontinence,
dermal augmentation products for cosmetic and reconstructive surgery, surgical
adhesives and sealants for repair of Spinal discs, scaffolds for wound healing
and tissue engineering, and depots for local drug delivery.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2001 2000 2001 2000
SUMMARY OF OPERATIONS
Contract revenue $233,334 $514,156 $783,334 $1,107,396
Interest income 1,921 10,894 40,778 79,087
Product and other
income 5,912 -- 5,950 3,012
Total revenues 241,167 525,050 830,062 1,189,495
Total expenses 1,034,019 898,812 3,976,890 3,387,572
Net loss $(792,852) $(373,762) $(3,146,828) $(2,498,077)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,980 69,980 277,639 277,639
Net loss applicable
to common
shareholders $(862,832) $(443,742) $(3,424,467) $(2,775,716)
Loss per share $(0.04) $(0.02) $(0.16) $(0.16)
Weighted average
shares used in
computing loss
per share 21,740,650 18,910,313 20,964,233 17,771,744
As of As of
Dec. 31, 2001 Dec. 31, 2000
BALANCE SHEET INFORMATION (audited)
Cash and cash equivalents $234,000 $866,000
Working capital (585,000) 143,000
Total assets 527,000 1,383,000
Total capital invested 42,492,000 40,014,000
Accumulated deficit $(42,890,000) $(39,744,000)
