Neurologix second-quarter net loss increases to $4.5 million

Aug 13 2010

Neurologix, Inc. (OTCBB: NRGX) (the "Company"), a biotechnology company developing innovative gene therapies for the brain and central nervous system ("CNS"), today reported its financial results for the three and six months ended June 30, 2010.

"We are extremely pleased with the continued success of NLX-P101, our Parkinson's disease gene therapy.  The positive Phase 2 results, which we announced in June and are being submitted for peer review, represent a very significant milestone both for the Company and for the advancement of gene therapy for neurological disorders," said Clark A. Johnson, President and Chief Executive Officer of the Company.  "We are confident that NLX-P101 has great potential for commercialization, and are evaluating strategies that will enable us to further develop the technology and maximize value for the Company."

For the three months ended June 30, 2010, the Company reported a net loss of $4.5 million, as compared with a net loss of $2.2 million for the three months ended June 30, 2009.  Net loss for the second quarter of 2010 includes charges for the change in estimated fair value of derivative financial instruments related to warrants previously issued in connection with the Company's Series C Convertible Preferred Stock (the "Series C Stock") and the Company's Series D Convertible Preferred Stock (the "Series D Stock") of $2.2 million.  Net loss for the second quarter of 2009 includes income for the change in estimated fair value of derivative financial instruments related to warrants previously issued in connection with the Series C Stock and the Series D Stock of $0.8 million.

The Company reported a net loss applicable to common stock for the second quarter of 2010 of $5.3 million, or $0.19 per basic and diluted share, which includes charges of $0.8 million, or $0.03 per basic and diluted share, related to preferred stock dividends in connection with the Company's Series C Stock and Series D Stock.  For the same period in 2009, the Company reported a net loss applicable to common stock of $3.0 million, or $0.11 per basic and diluted share, which included charges related to preferred stock dividends in connection with the Series C Stock and the Series D Stock of $0.7 million, or $0.03 per basic and diluted share.

For the six months ended June 30, 2010, the Company reported a net loss of $8.0 million, as compared with a net loss of $7.1 million for the same period in 2009.  Net loss includes charges for the change in estimated fair value of derivative financial instruments related to warrants previously issued in connection with the issuance of the Series C Stock and the Series D Stock of $2.6 million and $2.0 million for the first half of 2010 and 2009, respectively.  The Company reported a net loss applicable to common stock for the six months ended June 30, 2010, of $9.5 million, or $0.34 per basic and diluted share, which includes charges of $1.6 million, or $0.06 per basic and diluted share, related to preferred stock dividends in connection with the Series C Stock and the Series D Stock.  For the six months ended June 30, 2009, the Company reported a net loss applicable to common stock of $8.6 million, or $0.31 per basic and diluted share, which included charges of $1.5 million, or $0.05 per basic and diluted share, related to preferred stock dividends in connection with the Series C Stock and the Series D Stock.

Neurologix had cash and cash equivalents of approximately $4.5 million at June 30, 2010.  

The Neurologix Quarterly Report on Form 10-Q, with financial statements and management's discussion of operations and results, can be found in the "Investors" section of the Company's website at http://www.neurologix.net.

SOURCE Neurologix, Inc.