BELLEVUE , WA., MAR. 23 , 2004 - SCOLR, Inc. (Amex: DDD) today reported financial results for the year ended December 31, 2003 .
For the year ended December 31, 2003 , net revenues increased one percent, or $79,830, to $6,594,073 as compared with revenues of $6,514,243 for the corresponding period in 2002. Operating loss for the period was $(3,058,800), and net loss was $(8,742,537), or ($0.41) per share (based on the weighted average of shares outstanding during the year). The operating loss included $896,955 non-cash expense for the accelerated vesting of options associated with the December 2003 divestiture of its probiotics development and manufacturing operations. The net loss included $5,302,460 non-cash expense related to the accounting treatment of convertible notes issued in June 2003, including the amortization of debt discount and associated debt issue costs, and expenses associated with the issuance of a warrant as part of the $1 million loan issued in 2002. Excluding the non-cash charges described above, the 2003 operating loss would have been $2,161,845 and net loss would have been $2,543,121. For the corresponding period in 2002, operating loss was $(2,269,182) and net loss was $(2,661,152), or ($0.13) per share (based on the weighted average of shares outstanding during the year).
Royalty revenues for the year ended 2003 were $582,953 as compared with $992 for the year ended 2002. Gross profit increased 46 percent, or $639,760, to $2,017,394 for the year ended December 31, 2003 as compared with $1,377,634 for the year ended 2002.
Effective December 31, 2003 , the Company sold its probiotics development and manufacturing operations, which was historically the Company’s primary revenue generating division. Current drug delivery revenues are generated from the development and licensing of CDT TM -based sales in the dietary supplement markets. The Company expects to realize increased royalty income from its initial supplement products and from future OTC formulations in 2004.
Daniel O. Wilds, President and CEO, said that, “These results and the increasing royalty revenues reflect both the final transition of SCOLR to a drug delivery company and the continued development of our drug delivery business. We continue to expect substantial losses attributable to the costs of developing that business.”
“We continue our ongoing efforts to commercialize CDT products for the pharma and OTC markets. The recently completed $10 million funding will allow us to significantly accelerate our oral drug delivery development and to simultaneously pursue multiple routes towards bringing our patented CDT technology to market in the form of OTC products and prescription drugs. We expect to announce that drug development program shortly. We plan to apply our CDT platform to multiple internal targets in 2004 while continuing discussions with potential licensees.”
Wilds also noted, “2003 was a year of important developments for SCOLR in which it built upon the groundwork laid in prior years.” Highlights include:
* In February 2003 the Company shipped its first CDT health supplement products
* Three national retail chains contracted to carry CDT glucosamine/chondroitin products
* In May, 2003 SCOLR reported its first drug delivery revenues and in June it completed a $5.3 million financing
* The Company expanded its management team and Board of Directors
* August 2003 SCOLR entered into an Evaluation Agreement for drug delivery systems with a leading Fortune 100 technology-based company to identify opportunities and accelerate the introduction of its CDT platform to the pharmaceutical market
* In October 2003 the Company opened its new R&D laboratory facility
* Development of six new CDT health supplements were announced in November 2003
* In November 2003 SCOLR’s Fortune 100 partner accepted the successful completion of our first Feasibility Study
* December 2003 the Company expanded its CDT health supplements line with orders for two of the newly developed products announced in November
* Also as of December, SCOLR completed the sale of its probiotics development and manufacturing operations and completes the transition to a drug delivery company.
“We look forward,” Wilds concluded, “to increasing both the market penetration of our existing CDT portfolio and expanding the number of CDT based products. We also look forward to advancing relationships with both existing and new partners in 2004.”
Based in Bellevue , Washington , SCOLR , Inc. is a biopharmaceutical company leveraging specialized knowledge, proprietary and patented products and technologies, such as the patented CDT Controlled Delivery Technology platform, to introduce distinctive and novel OTC products, prescription drugs and dietary supplements. SCOLR’s CDT drug delivery platform provides distinctive products with tangible benefits for the consumer and competitive commercial advantages for licensees. P artnerships with pharmaceutical, OTC and natural products industry companies will enable SCOLR to co-develop new products and to add value and protection to existing product franchises. For more information on SCOLR, please call 425.373.0171 or visit http://www.SCOLR.com/ .
This press release contains forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the company expects, believes or anticipates will or may occur in the future. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the Company’s ability to continue to market and provide its products and services and maintain their effectiveness, the continuation of arrangements with the Company’s product development partners and customers, competition, government regulation, and general economic conditions. Such statements are subject to a number of assumptions, risks and uncertainties which are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission. Such filings are available on our website or at www.sec.gov . Readers are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances.
FINANCIAL HIGHLIGHTS
Year Ended December 31,
2003 2002
Revenues $ 6,594,073 $ 6,514,243
Gross Profit 2,017,394 1,377,634
Net (Loss) from Operations (3,058,800) (2,269,182)
Net (Loss) (8,742,537) (2,661,152)
(Loss) Per Share, Basic & Diluted (0.41) (0.13)
Weighted Average Shares Outstanding 21,518,982 20,124,161
BELLEVUE, Wash.–(BUSINESS WIRE)–March 16, 2004–SCOLR, Inc. (Amex: DDD - News ) announced today that the Company’s Chief Executive Officer, Daniel O. Wilds, will make a presentation on the Company’s patented controlled delivery technology (CDT(TM)) at the Invest Northwest Conference at the Bell Harbor International Conference Center in Seattle, Washington, on Tuesday, March 23, 2004. The presentation materials will be made available on the SCOLR web site the following day.
The Washington Biotechnology & Biomedical Association (WBBA) in collaboration with BC Biotech, BioAlberta and the Oregon Biosciences Association hosts its third CEO and Investor conference on March 22-23, 2004.
Invest Northwest(TM) is a two-day forum for analysts, investment bankers, institutional investors, pension fund managers and pharmaceutical and biotech corporate partners to meet with CEOs and senior executives from public and private life sciences companies based in Washington, Oregon, Montana, British Columbia and Alberta.
Based in Bellevue, Washington, SCOLR, Inc. is a biopharmaceutical company leveraging specialized knowledge, proprietary and patented products and technologies, such as the patented CDT Controlled Delivery Technology platform, to introduce distinctive and novel OTC products, prescription drugs and dietary supplements. SCOLR’s CDT drug delivery platform provides distinctive products with tangible benefits for the consumer and competitive commercial advantages for licensees. Partnerships with pharmaceutical, OTC and natural products industry companies will enable SCOLR to co-develop new products and to add value and protection to existing product franchises. For more information on SCOLR, please call 425-373-0171 or visit http://www.SCOLR.com/ .
This press release contains forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the company expects, believes or anticipates will or may occur in the future. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the Company’s ability to continue to market and provide its products and services and maintain their effectiveness, the continuation of arrangements with the Company’s product development partners and customers, competition, government regulation, and general economic conditions. Such statements are subject to a number of assumptions, risks and uncertainties which are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission. Such filings are available on our website or at www.sec.gov . Readers are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances.
Contact: Bibicoff & Associates, Inc. Terri MacInnis, 818-379-8500 Dir. Of Investor Relations terrimac@pacbell.net
