Aeolus Pharmaceuticals, Inc. (OTCBB: AOLS) announced today financial results for the three months ended December 31, 2009. The Company reported a net loss of $15,276,000, or $0.33 per basic share, compared to a loss of $459,000, or $0.01 per basic share, for the three months ended December 31, 2008. The first quarter 2009 results include non-cash financing and change in valuation charges of $13,860,000. During the three months ended December 31, 2009, the Company’s net cash used in operating activities was $389,000 compared to $606,000 for the three months ended December 31, 2008. Management believes that cash flow from operations is a better indication of the financial performance of the Company during the quarter.
“The first quarter fiscal 2010 results continue to demonstrate our commitment to operate efficiently. On the development side, we reported positive efficacy results in studies of AEOL 10150 as a potential countermeasure against exposure from radiation, mustard gas and chlorine gas, and the Biomedical Advanced Research and Development Authority Division of Chemical, Radiological and Nuclear Countermeasures invited Aeolus to submit a full proposal for a contract to develop AEOL 10150 from its current development status to FDA approval,” stated John L. McManus, President and Chief Executive Officer.
Research and development expenses increased in the first quarter of fiscal year 2010 when compared to the first quarter of fiscal 2009 due to an increase in research activities. During the quarter, the Company initiated an additional study of AEOL 10150 as a protectant against the effects of radiation on the lungs in non-human primates. The Company currently has eight studies in progress including studies of AEOL 10150 as a potential countermeasure against the effects of: radiation on the lungs in mice and non-human primates and the gastro-intestinal tract in mice, chlorine gas on the lungs and sulfur mustard gas on the lung and skin, and studies of AEOL 11207 as a potential treatment for epilepsy and for Parkinson’s disease.
General and administrative expenses increased due to an increase in stock based compensation expense. Stock compensation expense increased as a result of a higher level of grant activity and an increase in the valuation assigned to such grants in the current quarter when compared to the prior year quarter.
As of December 31, 2009, the Company had $1,870,000 in cash and cash equivalents and 48,224,320 common shares outstanding.
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