Bradmer Pharmaceuticals Inc.
TSX VENTURE : BMR.H

Bradmer Pharmaceuticals Inc.

February 26, 2013 08:00 ET

Bradmer Announces Fourth Quarter Operational and Financial Results

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2013) - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") (TSX VENTURE:BMR.H) today announced its fourth quarter 2012 operational and financial results.

Operational Highlights

The directors and officers of Bradmer continue to seek out new opportunities in the ongoing process of identifying and completing an appropriate business transaction with a view to creating value for Bradmer and its shareholders. During the last quarter, the Company has been actively involved in ongoing discussions with various parties in connection with potential investment and/or merger opportunities.

Financial Results

Amounts in US dollars, unless specified otherwise, and results prepared in accordance with International Financial Reporting Standards ("IFRS").

For the year ended December 31, 2012, we recorded a net loss of $219,000 or $0.011 per common share based on the weighted average outstanding shares of 19,659,726 during the year, compared to a net loss of $315,000 or $0.016 per common share for the year ended December 31, 2011 based on the same weighted average outstanding shares. The reduced loss in 2012 is primarily attributable to the $92,000 reduction in general and administrative expenses.

Research and development expenses totaled $NIL in the year ended December 31, 2012, compared to $28,000 in the same period of 2011. Consulting fees were $12,000 and patent fees were $15,000. These costs were incurred in connection with the termination of the Duke License Agreement.

General and administrative expenses were $209,000 in the year ended December 31, 2012 compared to $301,000 in the same period of the prior year. Major expenses in 2012 consisted of consulting fees of $72,000, insurance premiums of $57,000, legal fees of $30,000, audit fees of $20,000 and transfer agent and stock exchange listing fees of $19,000. In 2011, legal fees amounted to $211,000, consulting fees were $90,000 and insurance premiums were $61,000. The recovery of P1 Energy transaction costs partially offset these expenses. Stock-based compensation was $22,000 and stock exchange listing fees were $13,000.

The $10,000 foreign exchange loss in 2012 contrasted with the $14,000 foreign exchange gain in 2011.

Fourth Quarter Results

The main reason for the decrease in loss from $77,000 to $33,000 between the third and fourth quarters of 2012 was the foreign exchange gain of $5,000 in the fourth quarter compared to the foreign exchange loss of $15,000 in the third quarter - a change of $20,000. Limits on the directors' and officers' liability insurance were reduced from $8,000,000 to $5,000,000 resulting in a $2,000 reduction in premiums in the last half of the fourth quarter. Legal fees were lower by $8,000. Audit fees were $6,000 lower.

The $15,000 foreign exchange loss in 2012 contrasted with the $28,000 foreign exchange gain in 2011.

Bradmer's operational activities for the year ended December 31, 2012 were financed by cash on hand. At December 31, 2012, the Company had working capital of $971,000, compared to $1,165,000 at December 31, 2011. Available cash was $991,000 at December 31, 2012, compared to cash of $1,192,000 at December 31, 2011. The decrease was due to the $209,000 operating loss incurred in the year.

As at December 31, 2012 and February 26, 2013, the Company had 19,659,726 common shares and options to purchase 1,950,000 common shares outstanding.

Additional information about Bradmer, including the MD&A and financial results may be found on SEDAR at www.sedar.com.

Bradmer's common shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state regulatory agency in the United States. The resale or transfer by a U.S. investor of such common shares of Bradmer Pharmaceuticals Inc. is subject to the requirements of Rule 904 of Regulation S of the Securities Act or such other applicable exemption thereunder, and other applicable state securities laws.

Except for historical information, this news release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

BRADMER PHARMACEUTICALS INC.
Statements of Financial Position
As at December 31
(All amounts expressed in United States dollars)
2012 2011
Assets
Current assets
Cash $ 990,759 $ 1,192,307
Amounts receivable 2,861 2,951
Prepaid expenses 5,287 7,553
Total assets $ 998,907 $ 1,202,811
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 27,440 $ 37,451
Shareholders' Equity
Share capital 2,307,972 2,257,819
Warrants - 23,255
Contributed surplus 2,550,381 2,471,705
Accumulated other comprehensive loss (156,515 ) (75,798 )
Deficit (3,730,371 ) (3,511,621 )
Total shareholders' equity 971,467 1,165,360
Total liabilities and shareholders' equity $ 998,907 $ 1,202,811
BRADMER PHARMACEUTICALS INC.
Statements of Comprehensive Loss
For the years ended December 31, 2012 and 2011
(All amounts expressed in United States dollars)
2012 2011
Expenses
Research and development $ - $ 28,111
General and administrative 209,375 301,059
209,375 329,170
Other Income
Interest (390 ) (543 )
Foreign exchange loss/(gain) 9,765 (13,664 )
9,375 (14,207 )
Loss for the year $ (218,750 ) $ (314,963 )
Other comprehensive (loss)/income (80,717 ) 97,518
Comprehensive loss for the year $ (299,467 ) $ (217,445 )
Loss for the year per share
Basic and diluted $ (0.011 ) $ (0.016 )
Weighted average number of shares outstanding 19,659,726 19,659,726
BRADMER PHARMACEUTICALS INC.
Statements of Changes in Shareholders' Equity
For the years ended December 31, 2012 and 2011
(All amounts expressed in United States dollars)
Share capital
Number of
shares
Amount Warrants Contributed
surplus
Accumul-
ated
Other
Compre-hensive
Loss
Deficit Total
shareholders'
equity
Balance, January 1, 2011 19,659,726 $ 2,319,164 $ 877,233 $ 1,664,319 $ (173,316 ) $ (3,196,658 ) $ 1,490,742
Stock-based compensation - - - 22,246 - - 22,246
Expiry of warrants - - (791,684 ) 791,684 - - -
Foreign currency translation adjustment - (61,345 ) (62,294 ) (6,544 ) 97,518 - (32,665 )
Loss for the year - - - - - (314,963 ) (314,963 )
Balance, December 31, 2011 19,659,726 $ 2,257,819 $ 23,255 $ 2,471,705 $ (75,798 ) $ (3,511,621 ) $ 1,165,360
Expiry of warrants - - (23,255 ) 23,255 - - -
Foreign currency translation adjustment - 50,153 - 55,421 (80,717 ) - 24,857
Loss for the year - - - - - (218,750 ) (218,750 )
Balance, December 31, 2012 19,659,726 $ 2,307,972 $ - $ 2,550,381 $ (156,515 ) $ (3,730,371 ) $ 971,467
BRADMER PHARMACEUTICALS INC.
Statements of Cash Flows
For the years ended December 31, 2012 and 2011
(All amounts expressed in United States dollars)
2012 2011
Cash flows from operating activities
Loss for the year $ (218,750 ) $ (314,963 )
Adjustments for:
Stock-based compensation - 22,246
Foreign exchange loss/(gain) 24,857 (32,665 )
(193,893 ) (325,382 )
Change in non-cash operating items
Amounts receivable 90 7,218
Prepaid expenses 2,266 (23 )
Accounts payable and accrued expenses (10,011 ) (14,478 )
Decrease in cash (201,548 ) (332,665 )
Cash at beginning of year 1,192,307 1,524,972
Cash at end of year $ 990,759 $ 1,192,307

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