Inflazyme Pharmaceuticals Ltd.
NEX BOARD : IZP.H

Inflazyme Pharmaceuticals Ltd.

August 13, 2008 21:08 ET

Inflazyme Pharmaceuticals Ltd. Announces Financial Results for the First Quarter Ended June 30, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2008) - Inflazyme Pharmaceuticals Ltd. (NEX:IZP.H) today reported its financial results for the first quarter ended June 30, 2008.

Results of operations for the quarter ended June 30, 2008

The net loss for the quarter ended June 30, 2008 was $767,000 ($0.01 per common share) compared to a net loss of $693,000 ($0.01 per common share) for the prior year. The increase in the net loss compared to the corresponding quarter last year is primarily due to lower gains recognized on the disposal of assets offset by a lower loss from operations.

The loss from operations for the quarter ended June 30, 2008 was $801,000 compared to $1,364,000 for the corresponding quarter last year. This reduction in the loss from operations of approximately $563,000 reflects the discontinuation of all research and development activities, the reduction in professional fees and personnel expenses offset by employee termination expenses in the current quarter.

Research and development expenses

The Company discontinued substantially all of its research and development activities in February 2007 and for the quarter ended June 30, 2007 its only research activities were related to the close down of its clinical study (CAPSIC). There were no such activities in the current quarter.

Professional fees

For the quarter ended June 30, 2008, professional fees were $83,000 compared to $537,000 in the corresponding quarter of the prior year. The decrease of $454,000 was due primarily to lower legal fees associated with the filing and maintenance of intellectual property assets which were abandoned or disposed of in the prior year.

Personnel expenses

Personnel expenses for the current quarter were $122,000 versus $312,000 for the corresponding quarter last year. The Company had two full time employees during the current quarter compared to 6 in the corresponding quarter last year.

Employee termination expenses

In June 2008 the Company decided to terminate the two remaining employees. Severance and other employee separation costs for these two employees were $377,000. There were no employee terminations or restructuring charges in the corresponding quarter of the prior year.

Liquidity and Capital Resources

At June 30, 2008 the Company's cash and cash equivalents totalled $2,667,000 compared to $3,247,000 at March 31, 2008. Working capital at June 30, 2008 was $2,357,000 compared to $3,116,000 at March 31, 2008.

The Company used $592,000 to fund operations during the quarter ended June 30, 2008 compared with $2,644,000 for the corresponding quarter last year.

Cash from investing activities for the quarter ended June 30, 2008 was $12,000 compared to cash from investing activities of $700,000 for the corresponding quarter last year. In the prior year, the cash from investing activities relates to the proceeds from the disposal of research equipment held for sale.

On June 30, 2008, the Company closed, into escrow, a non-brokered private placement issuing 15,000,000 units for gross proceeds of $300,000. Each unit consisted of one common share and one warrant to purchase a common share for $0.025. The warrants expire one year from when the funds are released from escrow which is expected to occur on August 18, 2008, if the Company has received the required shareholder and regulatory approvals.

The Company believes its current cash resources are sufficient to fund the start-up of its proposed lumber trading activities.

Annual General Meeting and Special Meeting of Shareholders

Inflazyme's AGM and Special Meeting will be held at 10.00am on August 18, 2008, at the Vancouver Marriott Pinnacle Downtown Hotel, 1128 Hastings Street, Vancouver, British Columbia, V6E 4R5, Canada. The purpose of the meeting is to vote on certain corporate matters outlined in our press release dated June 12, 2008. In addition, an Information Circular describing all the matters to be voted on by shareholders will be available in early August.

Statements in this news release other than historical information are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the availability of resources, the timing and effects of regulatory actions, the strength of competition, the outcome of litigation and the effectiveness of patent protection. Additional information regarding risks and uncertainties is set forth in the MD&A for Inflazyme on file with the Canadian Securities Commissions.



Inflazyme Pharmaceuticals Ltd.
Consolidated Balance Sheets

(Unaudited)
June 30, March 31,
2008 2008
------------- -------------
Assets

Current assets
Cash and cash equivalents $ 2,667,250 $ 3,247,098
Receivables 112,415 163,771
Prepaid expenses 139,748 144,739
------------- -------------

2,919,413 3,555,608

Property and equipment 32,916 39,498

------------- -------------
$ 2,952,329 $ 3,595,106
------------- -------------
------------- -------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 562,108 $ 439,524

Shareholders' equity

Capital stock 141,212,889 141,212,889

Contributed surplus 2,202,628 2,201,298

Deficit (141,025,296) (140,258,605)
------------- -------------
2,390,221 3,155,582

------------- -------------
$ 2,952,329 $ 3,595,106
------------- -------------
------------- -------------

On behalf of the board

Michael Liggett (signed) Louis Drapeau (signed)
Chief Financial Officer Director
Director


Inflazyme Pharmaceuticals Ltd.
Consolidated Statements of Operations and Deficit
(Unaudited)
For the Three Months Ended
-----------------------------
June 30, 2008 June 30, 2007
-----------------------------
Revenues
Licensing revenue $ - $ 9,581
-----------------------------
Expenses

Research and development - 224,462
Personnel 122,286 311,540
Professional fees 83,397 537,365
Shareholder and other corporate 40,718 14,940
Insurance and other office 52,256 60,480
Facilities 108,594 91,679
Travel 10,006 71,053
Amortization of property and equipment 6,583 62,297
Employee terminations 376,972 -
-----------------------------

800,812 1,373,816
-----------------------------

Loss from operations (800,812) (1,364,235)
-----------------------------

Interest income 22,117 46,455

Gain on sale of fixed assets 12,004 625,122

-----------------------------
Loss for the period (766,691) (692,658)

Deficit, beginning of period (140,258,605) (140,031,621)
-----------------------------

Deficit, end of period $(141,025,296) $(140,724,279)
-----------------------------
-----------------------------

Basic and diluted loss per common share $ (0.01) $ (0.01)
-----------------------------
-----------------------------
Weighted average number of common shares
outstanding 131,181,375 131,181,375
-----------------------------
-----------------------------


Inflazyme Pharmaceuticals Ltd.
Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months Ended
-----------------------------
June 30, 2008 June 30, 2007
-----------------------------
Cash flows from operating activities
Loss for the period $ (766,691) $ (692,658)
Items not affecting cash:
Amortization of property and equipment 6,583 62,297
Gain on sale of fixed assets (12,004) (625,122)
Deferred licensing revenue - (9,581)
Stock-based compensation 1,330 7,385
-----------------------------
(770,782) (1,257,679)

Changes in non-cash working capital 178,930 (1,386,128)
-----------------------------
Cash used in operations (591,852) (2,643,807)
-----------------------------
Cash flows from investing activities
Purchase of property and equipment - -
Patents and licenses - -
Proceeds from sale of fixed assets 12,004 700,092
-----------------------------
12,004 700,092

-----------------------------
Decrease in cash and cash equivalents (579,848) (1,943,715)

Cash and cash equivalents, beginning of
period 3,247,098 5,461,316
-----------------------------

Cash and cash equivalents, end of period $ 2,667,250 $ 3,517,601
-----------------------------
-----------------------------

The TSX Venture Exchange (NEX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this information.

Contact Information

  • Inflazyme Pharmaceuticals Ltd.
    Michael Liggett
    C.F.O.
    1-800-315-3660 or (604) 279-8511
    (604) 279-8711 (FAX)
    Website: www.inflazyme.com