Sep 21 2010
BioNeutral Group Inc. (OTCBB:BONU), a specialty chemical technology-based life science company, today announced financial results for the third quarter and nine-month period ended July 31, 2010.
Key Achievements and Developments:
- During the quarter, the Company generated its initial revenues of $15,500 related to sales of its Ogiene™ product line by a U.S. distributor. The distributor is focusing on sales of the AutoNeutral™ product, which is an Ogiene™ formulation designed for cleaning and de-odorizing vehicles.
- On August 19, 2010, the Company submitted its application to the U.S. Environmental Protection Agency of the Company's Ygiene™ antimicrobial for approval for use as a bactericide, fungicide, sporicide on hard, non-porous surfaces in hospitals, health care facilities and other commercial uses. The Company expects to receive a determination from the EPA within four to six months of the filing.
- BioNeutral engaged the Wahlrich Group to help the Company bring its products to market through branding, communications consulting and positioning efforts.
- The Company completed an agreement with Keystone Research and Pharmaceuticals ("KRP") for its proprietary formulations for use in the Veterinary, Dental and Cosmetic markets. Under the terms of the agreement, BioNeutral will contribute products, knowhow and access to its Chief Scientist, Dr. Andy Kielbania, to help produce, promote and sell BioNeutral products in the above mentioned markets globally. BioNeutral will use Keystone Industries as its exclusive Manufacturer. KRP will provide free rent at its Germany plant for one year and will give BioNeutral access to its Chief Scientist, Larry Steffier, and to its distributors and distribution network and include BioNeutral products at tradeshows and feature BioNeutral products in KRP's promotional literature. KRP will be spending at least $100,000 in the first year on equipment, developing production processes, marketing research, sales development and personnel.
Financial Results
Revenue for the three months ended July 31, 2010 was $15,500 as compared to revenues of $2,825 in the same quarter last year. The increase was due to Ogiene sales by a U.S. distributor focused on sales of the AutoNeutral™ product, which is an Ogiene™ formulation designed for cleaning and de-odorizing vehicles. Gross profit for the quarter was $6,126, or 39.5% gross profit margin, compared to gross profit of $2,000, or 70.8% gross profit margin, in the third quarter last year.
Total operating expenses for the quarter were $635,164, a decrease of 63.6% compared to $1.7 million in the third quarter last year. The decrease was due to the absence of stock-based compensation in the quarter. The loss from operations was $(629,038), a narrowing of 63.9% compared to a loss from operations of $(1.7) million last year. Management expects further narrowing going forward due to the cancelation of its agreement with the Chertoff Group.
The net loss attributable to BioNeutral Group, Inc. (excluding $71,719 in net loss attributable to the non-controlling interest) was $(584,128), or $(0.01) per basic and fully diluted share (based on 63.7 million shares outstanding). This compares to a net loss attributable to BioNeutral Group, Inc. (excluding $248,935 in net loss attributable to the non-controlling interest) of $(1.5) million, or $(0.03) per basic and fully diluted share (based on 55.9 million shares outstanding).
"We continue to reduce operating expenses as we move from a development stage company and refocus resources on sales and marketing," commented Stephen J. Browand, President and CEO of BioNeutral Group Inc. "This was a milestone quarter for us as we booked our first Ogiene sale and submitted the application for our Ygiene antimicrobial product to the U.S. Environmental Protection Agency. We expect an EPA determination within the next 111 to 132 days., clearing the way for domestic sales of our Ygiene product in various formulations targeted to a wide-range of large market opportunities."
For the nine months ended July 31, 2010, revenue was $15,500 as compared to revenues of $2,825 in the same period last year. Gross profit for the first nine months was $6,126, or 39.5% gross profit margin, compared to gross profit of $2,000, or 70.8% gross profit margin, in the third quarter last year. Total operating expenses for the first nine months of the fiscal year were $3.2 million, a decrease of 40.7% compared to $5.4 million for the first nine months last year. The loss from operations was $(3.2) million, a narrowing of 40.8% compared to a loss from operations of $(5.4) million last year. The net loss attributable to BioNeutral Group, Inc. (excluding $425,740 in net loss attributable to the non-controlling interest) was $(2.9) million, or $(0.05) per basic and fully diluted share (based on 62.0 million shares outstanding). This compares to a net loss attributable to BioNeutral Group, Inc. (excluding $778,188 in net loss attributable to the non-controlling interest) of $(4.7) million, or $(0.12) per basic and fully diluted share (based on 39.3 million shares outstanding).
"We remain convinced that our newest formulations outperform the competition in terms of efficacy and safety, and this quarter we took significant steps to accelerate the commercial launch of these products in the United States." Mr. Browand added. "We are positioned to manufacture our two product platforms economically and have developed solutions to target a long-list of applications, ranging from consumer-grade products to industrial-grade products for applications such as hospitals to military or homeland security-grade products designed to meet widespread threats like Anthrax. We are entering an exciting time for BioNeutral and management has never been more confident than we are today."
Eating habits directly influence vaginal microbiome, research finds