Chemokine Therapeutics Corp.
TSX : CTI
OTC Bulletin Board : CHKT

Chemokine Therapeutics Corp.

May 15, 2008 10:26 ET

Chemokine Therapeutics Announces First Quarter 2007 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - Chemokine Therapeutics Corp. (the "Company") (TSX:CTI)(OTCBB:CHKT), a biotechnology company developing chemokine-based therapies to treat cancer, blood disorders and vascular diseases, today announced the financial and operating results of the first quarter ended March 31, 2008.

First Quarter Highlights:

- $1,050,000 financing closed.

- Received approval from FDA and Health Canada to commence Phase II liver cancer study with CTCE-9908.

- Publication of study results in scientific journal "Clinical & Experimental Metastasis".

Subsequent event

- New President and Chief Executive Officer named.

- Positive breast cancer preclinical data presented at the AACR meeting on lead drug candidate CTCE-9908.

- Liver cancer preclinical data presented at AACR meeting on lead drug candidate CTCE-9908.

Financial Results - Unaudited

(All amounts in U.S. dollars and in accordance with U.S. GAAP unless otherwise specified)

The Company incurred a net loss of $751,931 ($0.02 per share) for the three months ended March 31, 2008 compared to $1,611,937 ($0.04 per share) for the three months ended March 31, 2007. The decrease in our net loss was principally caused by the decrease in research and development and general and administrative expenditures as described above.

The Company had no revenues in the three months ended March 31, 2008, or in the three months ended March 31, 2007.

Research and development expenses were $192,611 during the three months ended March 31, 2008, a decrease of $522,635 from the $715,246 for the three months ended March 31, 2007. The decrease is in respect to reductions of approximately $284,000 in contract research costs, approximately $116,000 in salaries, approximately $127,000 in lab expenditures, and an increase of approximately $5,000 for other expenditures. The decrease in contract research costs of approximately $284,000 is a result of nearing the completion of the Phase I/II CTCE-9908 multi-tumor clinical trial. Research and development expenses include contract research, staff salaries and lab expenditures.

The Company recorded direct costs for CTCE-9908 of approximately $140,556 for the three months ended March 31, 2008. This compares to approximately $395,566 for the three months ended March 31, 2007, which included preparatory and clinical trial costs of the Phase I/II clinical trial and related manufacturing of compound. The decrease in direct costs for CTCE-9908 in the current period is a result of nearing the completion of the Phase I/II clinical trial.

Direct costs for CTCE-0214 were approximately $9,728 for the three months ended March 31, 2008 compared to $182,438 for the three months ended March 31, 2007. The decrease in CTCE-0214 direct costs in the current period reflects a reduction of spending on clinical and preclinical studies.

Assuming that the Company is able to raise the required financing, research and development expenses are expected to increase in the future as and when the Company incurs costs for clinical trials. Completion dates and completion costs to bring a drug candidate to market vary significantly for each drug candidate given the nature of the clinical trials and the fact that more clinical trials may need to be conducted to advance a drug candidate based upon the results of each phase. In addition, the Company anticipates partnering with larger pharmaceutical companies to conduct and finance later stage clinical trials and therefore the timing of completion of the approval of a drug will likely not be within our control. Based on these factors the Company cannot reasonably estimate the completion dates and completion costs required to gain regulatory approval of the compounds for sale. Drug candidates are required to successfully complete Phase III clinical trials before gaining regulatory approval for sale which for the drug candidates is not expected to occur for several years.

General and administrative expenses for the three months ended March 31, 2008 were $479,618, compared to $862,805 for the three months ended March 31, 2007. The decrease of $383,187 was in respect of reduced expenditures of approximately $132,000 in salaries and directors fees, approximately $178,000 in professional fees, and approximately $73,000 for travel and other expenses. Other general and administrative expenses included consulting, marketing and promotion expenses incurred for business development.

Interest income was $5,877 for the three months ended March 31, 2008 compared with $ 56,572 for the three months ended March 31, 2007. The decrease of interest income of $50,695 was due to decreases in short-term investments and cash equivalents.

Foreign exchange loss was $1,643 for the three months ended March 31, 2008, compared to $20,861 for the three months ended March 31, 2007. The gain in 2007 principally resulted from short-term investments and foreign currency transactions and the strengthening of other currencies against the US currency.

At March 31, 2008, the Company had approximately $800,000 in cash and cash equivalents on hand, compared to approximately $4.5 million as of March 31, 2007, a decrease of $3.7 million. Our working capital at March 31, 2008 was approximately $200,000, compared to working capital of approximately $4.3 million at March 31, 2007, a decrease of $4.1 million.

About Chemokine Therapeutics Corp. (TSX:CTI)(OTCBB:CHKT)

Chemokine Therapeutics is a product-focused biotechnology company developing drugs in the field of chemokines. Chemokines are a class of signaling proteins which play a critical role in the growth, differentiation, and maturation of cells necessary for fighting infection as well as tissue repair and regeneration. Chemokines also have an important role in cancer metastasis and growth. Chemokine Therapeutics is a leader in research in the field of chemokines and has several products in various stages of development.

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements in this document regarding management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "projects", and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, those associated with the success of research and development programs, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company's products, the availability of government and insurance reimbursements for the Company's products, the strength of the Company's intellectual property, the ability of the Company to obtain adequate financing to fund its operations, the potential dilutive effects of any financing, reliance on subcontractors and key personnel and other risks detailed from time-to-time in the Company's public disclosure documents and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. Forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.



CHEMOKINE THERAPEUTICS CORP.
(A Development Stage Company)

INTERIM CONSOLIDATED BALANCE SHEETS

March 31, December 31,
2008 2007
------------ --------------
(Unaudited) (Audited)

ASSETS

CURRENT ASSETS
Cash and cash equivalents $ 733,031 $ 688,388
Short-term investments 74,411 75,658
Amounts receivable 37,450 27,353
Prepaid expense and deposits 75,612 41,122
------------ --------------

TOTAL CURRENT ASSETS 920,504 832,521

PROPERTY AND EQUIPMENT, net 270,543 337,751

LICENSE COSTS, net 6,681 8,605

AMOUNT DUE FROM AFFILIATE - 50,439
------------ --------------

$ 1,197,728 $ 1,229,316
------------ --------------
------------ --------------

LIABILITIES

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 711,431 $ 897,996
Current portion of capital lease obligation 6,359 10,254
------------ --------------

TOTAL CURRENT LIABILITIES 717,790 908,250
------------ --------------

COMMITMENTS

STOCKHOLDERS' EQUITY

PREFERRED STOCK
Authorized - 6,000,000 shares; par
value $ 0.001 per share at March 31, 2008
Issued and outstanding: March 31, 2008 - Nil;
December 31, 2007 - Nil - -

COMMON STOCK
Authorized - 200,000,000 shares; par value
$ 0.001 per share at March 31, 2008 and
December 31, 2007
Issued and outstanding:
March 31, 2008 - 47,433,748
December 31, 2007 - 42,183,748 47,434 42,184

ADDITIONAL PAID-IN CAPITAL 31,967,733 31,062,180

(DEFICIT) ACCUMULATED DURING THE
DEVELOPMENT STAGE (31,535,229) (30,783,298)
------------ --------------

479,938 321,066
------------ --------------

$ 1,197,728 $ 1,229,316
------------ --------------
------------ --------------

See notes to the consolidated financial statements on SEDAR or EDGAR.


CHEMOKINE THERAPEUTICS CORP.
(A Development Stage Company)

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Cumulative
from inception
Three months ended on July 15,
March 31, 1998 to
--------------------------- March 31,
2008 2007 2008
----------- ------------ --------------

REVENUE $ - $ - $ 275,000
----------- ------------ --------------

EXPENSES
Research and development 192,611 715,246 16,768,433
General and administrative 479,618 862,805 15,237,809
Stock-based compensation 17,169 34,835 680,109
Amortization of license 1,923 1,923 43,921
Depreciation & amortization
of property and equipment 65,538 74,561 708,043
----------- ------------ --------------

756,859 1,689,370 33,438,315
----------- ------------ --------------

OTHER INCOME
Interest income 5,877 56,572 744,163
Foreign exchange gain (loss) (1,643) 20,861 904,358
Gain (loss) on sale of
property and equipment 694 - (20,435)
----------- ------------ --------------

4,928 77,433 1,628,086
----------- ------------ --------------

NET LOSS $ (751,931) $ (1,611,937) $ (31,535,229)
----------- ------------ --------------

NET LOSS PER COMMON SHARE
FOR THE PERIOD - BASIC
AND DILUTED $ (0.02) $ (0.04)
----------- ------------
----------- ------------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 43,452,979 42,183,748
----------- ------------
----------- ------------

See notes to the consolidated financial statements on SEDAR or EDGAR.


CHEMOKINE THERAPEUTICS CORP.
(A Development Stage Company)

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)

Cumulative
from inception
Three months ended on July 15,
March 31, 1998 to
--------------------------- March 31,
2008 2007 2008
----------- ------------ --------------

CASH FLOW FROM OPERATING
ACTIVITIES
Net loss $ (751,931) $ (1,611,937) $ (31,535,229)
Adjustments to reconcile
net cash provided by
operating activities
Depreciation and amortization 67,461 76,484 751,964
Patent application expensed - 81,858
Loss (gain) on sale of
property and equipment (697) 20,432
Realized foreign exchange
loss (gain) (192) (11,814)
Common shares issued for
consulting services - - 1,033,669
Warrants issued for
consulting services - - 404,842
Options issued for
consulting services - - 87,968
Stock-based compensation 17,169 34,835 680,109
Decrease (increase) in
Amounts receivable (10,097) (7,174) (37,450)
Prepaid expense and deposits (34,490) 16,380 (75,612)
Increase (decrease) in
Accounts payable and
accrued liabilities (186,565) 114,106 711,432
----------- ------------ --------------

Cash provided (used) by
operating activities (899,342) (1,377,306) (27,887,831)
----------- ------------ --------------

CASH FLOW FROM FINANCING
ACTIVITIES
Stock issued for cash 1,042,104 - 32,689,580
Stock issued for settlement
of debt - - 200,000
Offering costs (148,470) - (3,123,066)
Net advances (to) from
affiliates 50,444 (10,666) (35,036)
Promissory note payable to
affiliate - 219,778 -
Capital lease payments (3,895) (2,855) (28,291)
----------- ------------ --------------

Cash provided (used) by
financing activities 940,183 206,257 29,703,187
----------- ------------ --------------

CASH FLOW FROM INVESTING
ACTIVITIES
Cash held by disposed subsidiary - - (4,754)
Purchase of investments - (928,083) (17,309,252)
Redemption of investments 1,247 1,577,955 17,234,842
Payment under license agreement - - (50,603)
Proceeds on sale of property
and equipment 3,354 - 55,160
Purchase of property and
equipment (799) (354,516) (1,007,718)
----------- ------------ --------------

Cash provided (used) by
investing activities 3,802 295,356 (1,082,325)
----------- ------------ --------------

INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS DURING
THE PERIOD 44,643 (875,693) 733,031

CASH AND CASH EQUIVALENTS,
beginning of period 688,388 4,446,668 -
----------- ------------ --------------

CASH AND CASH EQUIVALENTS,
end of period $ 733,031 $ 3,570,975 $ 733,031
----------- ------------ --------------
----------- ------------ --------------

See notes to the consolidated financial statements on SEDAR or EDGAR.


Contact Information

  • Chemokine Therapeutics Corp.
    Mr. Don Evans
    Vice President, Corporate Communications
    (604) 822-0305 or 1-888-822-0305
    (604) 822-0302 (FAX)
    Email: devans@chemokine.net
    Website: www.chemokine.net