Business
Med Biogene Inc. reports financial results for first quarter 2006
Med Biogene Inc. reports financial results for first quarter 2006.
About this update from Many Bright Ideas Technologies Inc
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, May 30 /CNW/ - Med Biogene Inc. (TSX-V - MBI) today reported\nits financial results for the quarter ending March 31, 2006.\n\nFirst Quarter 2006 Financial Results\n\nFor the quarter ending March 31, 2006 MBI reported a net loss of $238,737\n($0.02 per share) compared to a net loss of $101,122 ($0.01 per share) for the\nquarter ended March 31, 2005. The increase in net loss is primarily a result\nof an increase in costs related to the acquisition of Dragon-Tex (Group)\nLimited (\"Dragon-Tex\") and concurrent listing of shares on the TSX Venture\nExchange, which was completed on April 28, 2006.\n\nResearch and Development\n\nResearch and development expenditures, which are net of government\nassistance received and investment tax credits, were $47,068 for the quarter\nended March 31, 2006 compared to $67,225 for the quarter ended March 31, 2005.\nThe decrease was due primarily to a decrease in laboratory supplies expenses\nof $30,416 and a decrease in consulting fees of $14,189. We anticipate these\nexpenses to increase as the company continues to expand its research and\ndevelopment activities related to the development of MBI's Hematological\nCancer Profiling System.\n\nGeneral and Administrative\n\nGeneral and administrative expenses were $25,052 for the quarter ended\nMarch 31, 2006 compared to $18,944 for the quarter ended March 31, 2005. The\nincrease was primarily due to increased professional fees and sales and\nmarketing related expenses for printing and website design.\n\nTransaction costs\n\nTransaction costs consist of professional and filing fees incurred to\ncomplete the acquisition of Dragon-Tex and were $150,408 for the quarter ended\nMarch 31, 2006. There were no such costs in 2004.\n\nLiquidity and Capital Resources\n\nEffective April 28, 2006, MBI completed a Private Placement which yielded\nsufficient capital for MBI to satisfy the operating expenses and capital\nrequirements required to meet MBI's business objectives for at least twelve\nmonths. However, additional capital will be required to complete the\ndevelopment of MBI's product candidates or to undertake a strategic\nacquisition. In such cases, MBI would review the different alternatives for\nobtaining additional funding from one or several sources such as granting\nlicenses or disposing of certain non-core assets, cooperative resea...