|By Marketwired .||
|March 14, 2014 09:00 AM EDT||
LONDON, ONTARIO -- (Marketwired) -- 03/14/14 -- Critical Outcome Technologies Inc. (TSX VENTURE: COT) ("COTI" or the "Company"), the bioinformatics and accelerated drug discovery company, reported its financial and operating results today for the three and nine month periods ended January 31, 2014.
During the third quarter, the Company continued to receive positive results from experiments conducted with the Company's lead cancer drug candidate, COTI-2, in support of the 28-day two-species toxicity testing (contract signed February 11, 2014) and its investigational new drug filing with the U.S. Food and Drug Administration (FDA) planned for later in the calendar year. Repeat studies were also carried out at the M.D. Anderson Cancer Center concerning the impact of COTI-2 on various p53 mutations in support of their upcoming final report and the preparation of a joint scientific journal publication. The Company's efforts in licensing and financing during the quarter led to several announcements after the quarter-end.
"With the financing announced in early February, we have moved ahead with our two-species 28-day toxicity testing contract," said Dr. Wayne Danter, President and CEO. "This testing is the final toxicity testing required before we can prepare our investigational new drug filing with the FDA and will determine the safe starting dosage for COTI-2 in human trials."
"We are pleased that our efforts in the third quarter resulted in the receipt of a letter of intent to form a joint venture to fund the continued development of COTI-2 with considerable expertise and resources from our joint venture partner," continued Dr. Danter. "After a period of due diligence, we were able to announce this opportunity in late February and look forward to completing definitive agreements in the fourth quarter."
The Company had a net loss of $671,386, or $0.01 per share, for the quarter compared to a net loss of $696,785, or $0.01 per share, for the third quarter a year earlier. For the nine months ended January 31, 2014, the Company reported a loss of $1,769,658, or $0.02 per common share, compared to a loss of $2,182,223, or $0.03 per common share, for the same period last year. The expense reduction for the quarter and the year-to-date were attributable to expense reductions of $25,399 and $412,565 respectively in the Company's three functional expense areas.
Research and development expenditures decreased $17,872 for the quarter and $267,260 year-to-date primarily reflecting a decrease in the contract testing related to COTI-2 compared to the first nine months in fiscal 2013. General and administration expenditures increased $46,476 in the quarter and decreased $73,593 year-to-date related to an increase in professional fees, lower salaries and benefits due to a staffing reduction, and a decrease in share-based compensation. Sales and marketing expenditures decreased $65,158 in the quarter and $152,902 year-to-date resulting from lower salaries and benefits and a reduction in consulting expense. A decline in other income sources of $4,362 during the quarter and $52,315 year-to-date offset some of the expenditure cost savings and related primarily to a decrease in investment tax credits (ITC) calculated on the overall lower level of R&D contract expenses year-to-date compared to the prior year period and reductions to the amount of such expenses eligible for ITCs as set out in the federal budget of March 2012.
Efforts at identifying additional sources of financing during the third quarter, culminated in the closing of a non-brokered private placement of equity of $100,000, and of a non-convertible debenture of $400,000, for total gross proceeds of $500,000 following the quarter end. The Company continues to seek additional financing to support the development of its lead asset COTI-2 to a licensing agreement and fund its other activities, and in this regard, also announced following the quarter end, the engagement of a U.S. investment bank, Maxim Capital LLC. Maxim will act as a strategic advisor to the Company and will also act as the Company's exclusive placement agent for a best efforts private placement of securities of the Company to U.S. based accredited investors.
More detailed operating and financial results can be found in the Company's Unaudited Condensed Interim Financial Statements and Management Discussion and Analysis for the quarter ended January 31, 2014, which can be found on SEDAR at www.sedar.com. This material is also available on the Company's website at www.criticaloutcome.com.
About Critical Outcome Technologies Inc. (COTI)
COTI is a leading-edge technology company specializing in accelerating the discovery and development of small molecules - dramatically reducing the time and cost to bring new drugs to market. COTI'S proprietary artificial intelligence system, CHEMSAS®, utilizes a series of predictive computer models to identify compounds with a high probability of being successfully developed from disease specific drug discovery through chemical optimization and preclinical testing. These compounds are targeted for a variety of diseases, particularly those for which current treatments are either lacking or ineffective.
For more information, visit www.criticaloutcome.com.
Follow @CriticalOutcome on Twitter at http://twitter.com/CriticalOutcome
Notice to Readers
Information contained in this press release may contain certain statements, which constitute "forward- looking statements" within the meaning of the Securities Act (Ontario) and applicable securities laws. For example, the statement "... its investigational new drug filing with the U.S. FDA planned for later in the calendar year..." and "... support of their upcoming final report and the preparation of a joint scientific journal publication..." and "... look forward to completing definitive agreements in the fourth quarter..." and "... continues to seek additional financing to support the development of its lead asset COTI-2 to a licensing agreement and fund its other activities..." are forward-looking statements. Forward-looking statements by their nature are not guarantees of future performance and are based upon management's current expectations, estimates, projections and assumptions. COTI operates in a highly competitive environment that involves significant risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. Management of COTI considers the assumptions on which these forward-looking statements are based to be reasonable, but as a result of the many risk factors, cautions the reader that actual results could differ materially from those expressed or implied in these forward-looking statements. Information in this press release should be considered accurate only as of the date of the release and may be superseded by more recent information disclosed in later press releases, filings with the securities regulatory authorities or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Aug. 3, 2015 03:30 PM EDT
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Aug. 3, 2015 03:30 PM EDT Reads: 231
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
Aug. 3, 2015 03:30 PM EDT
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Aug. 3, 2015 03:15 PM EDT
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 3, 2015 03:00 PM EDT Reads: 558
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Aug. 3, 2015 02:31 PM EDT
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Aug. 3, 2015 12:30 PM EDT Reads: 202
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Aug. 3, 2015 12:15 PM EDT Reads: 269
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Aug. 3, 2015 11:45 AM EDT Reads: 204
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 3, 2015 09:45 AM EDT Reads: 363
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 3, 2015 07:30 AM EDT Reads: 186
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Aug. 2, 2015 10:00 PM EDT Reads: 684
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Aug. 2, 2015 06:00 PM EDT Reads: 1,136
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 2, 2015 05:45 PM EDT Reads: 516
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Aug. 2, 2015 04:00 PM EDT Reads: 432