LONDON, ONTARIO -- (Marketwired) -- 08/27/13 -- Critical Outcome Technologies Inc. (TSX VENTURE: COT) ("COTI" or the "Company") reported its financial and operating results today for the fourth quarter and the year ended April 30, 2013.
Highlights for the fiscal year include:
-- Entering into three collaboration research and development (R&D) agreements involving COTI's proprietary drug discovery technology, CHEMSAS®; resulting in initial R&D collaboration agreement revenues of $25,000;-- Initiating the final toxicity studies for its lead cancer drug candidate, COTI-2, and completing two of the three study components;-- Receiving two patent grants from the USPTO for COTI-2 providing a total of four granted patents on the compound; and,-- Selecting three CHEMSAS® identified and patent protected drug candidates for the treatment of Acute Myelogenous Leukemia ("AML") to be tested in animal models of human AML.
"In fiscal 2013, we made significant progress with respect to our two major commercialization efforts," said Dr. Wayne Danter, COTI's CEO. "First, we entered into three R&D partnering deals using our artificial intelligence platform, CHEMSAS®. Each of these deals, if successful, represents significant revenue potential in the coming years. Second, we moved forward with our marketing efforts for a license agreement and the continued scientific development for our lead cancer drug candidate, COTI-2. In addition, we achieved and reported on important milestones for our AML program."
"Subsequent to year-end, in June we announced positive results from experiments carried out with COTI-2 by a world-renowned cancer center," said Mr. John Drake, COTI's Chairman. "These experiments confirmed COTI-2 as a p53 normalizing agent with potential impact on mutations in over 50% of human cancers. This is an important scientific development and provides additional support for our licensing efforts. With the funding announced thus far in fiscal 2014, we are focused on moving COTI-2 and our other initiatives forward to success."
The Company reported a quarterly net loss of $443,580, or $0.01 per share, compared to a net loss of $680,815, or $0.01 per share, for the fourth quarter a year earlier. The improvement of $237,235 related primarily to a $131,583 reduction in R&D expenditures and a decrease of $97,563 in general and administrative (G&A) expenditures.
The decrease in R&D expenditures primarily reflects a decrease in R&D testing and a decline in synthesis costs both related to COTI-2, partially offset by an increase in government assistance. The major factor in the G&A decrease was a decline of $85,069 in professional accounting consulting costs for the 2012 transition to the IFRS accounting framework.
Operating revenue of $30,588 was reported for the year ended April 30, 2013 with no revenue reported for the year ended April 30, 2012 (FYE 2012). A net loss of $2,625,804, or $0.03 per share, was incurred for FYE 2013 compared to a net loss of $2,591,151, or $0.04 per share, in FYE 2012. The increased loss of $34,653 resulted primarily from increases in R&D expense of $72,658 and sales and marketing (S&M) expense of $37,556, offset by a decrease in G&A expense of $61,620.