Helix BioMedix, Inc. (OTCBB: HXBM), a developer of bioactive peptides, today announced financial results for the company's first quarter 2010 ended March 31, 2010.
“While first quarter revenue was below our expectations due to the timing of certain customer shipments, we expect these orders to benefit our second quarter”
First Quarter Financial and Business Overview:
- Recorded revenue of approximately $70,000 compared to approximately $87,000 in the same period a year ago
- Net loss was approximately $927,000 compared to approximately $920,000 in the first quarter of 2009
- Raised $2.9 million via issuance of convertible promissory notes and warrants in March
- Announced expanded distribution of the company's Cerakine products in South Korea, China and Japan through RubyDerm Bio, Inc., a Seoul-based company with offices and distributors throughout key Asian countries
- Continued advancing Rx product development opportunities utilizing the company's vast portfolio of intellectual property
First Quarter 2010 Results
Revenue for the first quarter of 2010 was approximately $70,000 compared to revenue of approximately $87,000 in the prior year first quarter. Gross margin improved to 64.9% in the first quarter compared to 44.6% in the same period a year ago. The improvement in gross margin reflects higher revenue contribution from license and development fees relative to peptide sales. Net loss for the first quarter of 2010 was approximately $927,000, or ($0.04) per share, compared to approximately $920,000, or ($0.04) per share, for the first quarter of 2009.
As of March 31, 2010, the company's cash and cash equivalents balance was approximately $3.6 million as compared to $1.3 million at December 31, 2009. On March 5, 2010, the company issued convertible promissory notes due on July 1, 2013 in the aggregate principal amount of $2.9 million and five-year warrants to purchase an aggregate of 725,000 shares of its common stock at an exercise price of $0.80 per share.
"While first quarter revenue was below our expectations due to the timing of certain customer shipments, we expect these orders to benefit our second quarter," stated R. Stephen Beatty, President and Chief Executive Officer of Helix BioMedix. "We continue to make significant progress in developing a diverse revenue base of consumer products utilizing our peptide technologies as we work closely with our customers and licensed partners. With the recent economic improvements, our partners have increased their sales and marketing efforts to introduce new products containing our proprietary peptides, while also promoting existing products containing our proprietary peptides with favorable results. Our recently signed distribution partner, RubyDerm Bio, Inc., which specializes in the aesthetic and dermatology market place, is near completion in the requisite registration process of the Cerakine™ skin health products with the South Korean government and plans to expand their efforts into China later in the year. Additionally, we continued to earn royalty revenues from the sales of Rodan + Fields products using our proprietary technology as they continue to launch additional new products. Lastly, we are also making progress on our key Rx candidates. We look forward to reporting continued advances in developing our intellectual property into licensing partnerships, product sales, and the Rx program throughout the year ahead."
SOURCE Helix BioMedix, Inc.