GlycoGenesys, Inc. Comments on 2005 Third Quarter Financial Results and Stock Listing Status
Wednesday November 23, 4:58 pm ET
Quarterly Conference Call Scheduled for December 12, 2005
BOSTON--(BUSINESS WIRE)--Nov. 23, 2005--GlycoGenesys, Inc. (NASDAQ:GLGS - News), a biotechnology company focused on drug development, today commented on results from its Form 10-Q for the quarter ended September 30, 2005.
Select Financial Highlights:
The net loss applicable to common stock for the three months ended September 30, 2005 and 2004 was $(2,347,129), or $(0.18) per share, and $(2,799,576), or $(0.28) per share, respectively. For the nine months ended September 30, 2005 and 2004 the net loss applicable to common stock was $(7,268,970), or $(0.64) per share, and $(8,288,125), or $(0.93) per share, respectively. The net loss applicable to common stock for the three months ended September 30, 2005 and 2004 included a $187,678 and $115,021 charge for the accretion or accrual of preferred stock dividends, respectively. The net loss applicable to common stock for the nine months ended September 30, 2005 and 2004 included a $517,037 and $342,564 charge for the accretion or accrual of preferred stock dividends, respectively.
"The Company's net loss applicable to common stock was approximately $450,000 less during the third quarter compared to the same period last year mainly due to lower legal expenses, reduced drug production costs, as well as lower clinical trial expenses and reduced consulting expense offset by smaller increases in several types of administrative expenses, higher preferred stock dividends and increased GCS-100 development expenses," stated John W. Burns, SVP and CFO of GlycoGenesys, Inc.
"For the first nine months of the year, the net loss applicable to common stock was approximately $1,020,000 less than the same period last year mainly due to lower drug production and legal expenses, as well as smaller decreases in several types of administrative expenses and lower payroll expense, partially offset by increases in consulting expense, preferred stock dividends, the cost associated with the special stockholders meeting in May, higher GCS-100 development costs and increased clinical trial expense," added Mr. Burns.
Nasdaq Listing Status:
On November 18, 2005 the Company received a letter from the Nasdaq Stock Market indicating that the Company does not comply with the minimum bid price requirement for continued listing set forth in Nasdaq Marketplace Rule 4310(c)(4) (the "Bid Price Requirement"). The Company has a 180 day period ending on May 17, 2006 to regain compliance with the Bid Price Requirement.
In addition, on November 18, 2005 the Company received a second letter from the Nasdaq Stock Market indicating that based on its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, the Company does not comply with Nasdaq Marketplace Rule 4310(c)(2)(B), which requires listed companies to have (i) a minimum of $2,500,000 in stockholders' equity, (ii) $35,000,000 or more market value of listed securities or (iii) $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. The staff of the Nasdaq Stock Market is reviewing the Company's eligibility for continued listing on the Nasdaq Capital Market and has requested that the Company provide its specific plan to achieve and sustain compliance with Nasdaq Capital Market listing requirements.
For additional details on these letters please refer to the Company's Form 8-K filed on November 23, 2005.
A copy of the 2005 Third Quarter Form 10-Q and other SEC filings are available on the Company website, www.glycogenesys.com and is also available on the SEC's website, www.sec.gov.
CONFERENCE CALL ALERT
GlycoGenesys, Inc. Reports Financial Results and
Events of Quarter-Ended September 30, 2005
Date: December 12, 2005
Time: 1:00 p.m. E.S.T.
Please call:
1-800-346-7359 domestic callers
OR
1-973-528-0008 international callers
Conference Entry Code: 22476
to be connected between 12:50 p.m. and 1:00 p.m. E.S.T.
Call Leaders: Bradley J Carver, President and CEO
and John W. Burns, SVP and CFO
The call will be archived on the Company's website.
GlycoGenesys, Inc.
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