VANCOUVER, Aug 27, 2004 (Canada NewsWire via COMTEX) -- Burcon NutraScience Corporation (TSXV -BU) ("Burcon") today reported financial results for the quarter ended June 30, 2004.
During the quarter, Burcon focused on producing and providing samples to its alliance partner, Archer Daniels Midland, needed for applications work and toxicology studies. The samples were completed and delivered in June 2004. The completion of this process-identification stage of development allows the initiation of the process to obtain regulatory recognition for canola protein as Generally Recognized as Safe (GRAS) from the U.S. Food and Drug Administration.
Financial Results and Highlights
Burcon reported a net loss of $925,631 or $0.05 per share for the quarter ended June 30, 2004, as compared to $621,987 or $0.04 per share for the comparative quarter in fiscal 2004.
Research and development expenses amounted to $364,764 for the current quarter, compared with $337,111 in the same quarter last year. The increase is attributed primarily to stock-based compensation expense (a non-cash expense), hiring of a new employee and other salary increases, an increase in laboratory operational expenses due to the production of samples for ADM, offset by a decrease in equipment amortization expense.
General and administrative expenses amounted to $336,470 in the first quarter, compared with $161,964 during the same quarter last year, an increase of $174,506 due almost entirely to stock-based compensation expense recorded as a result of stock options granted to certain employees and directors during the quarter.
Professional fees amounted to $198,317 during the three months ended June 30, 2004, compared with $102,780 for the same period last year, with the increase due primarily to patent legal fees and disbursements reflecting the increased patent filing activities and the costs of maintaining existing patents.
At June 30, 2004, Burcon's cash position amounted to $2,904,991, and its working capital position was $2,797,966. Due to the higher patent filing and maintenance activities, the Company has revised its original forecast with respect to patent legal fees and disbursements. Given the revised estimates, Burcon's management believes that it has sufficient resources to fund its expected level of operations and working capital requirements to September 2005. This estimate excludes potential proceeds from any outstanding stock options or warrants being exercised.
About Burcon NutraScience
Burcon is a research and development company developing a portfolio of composition, application and process patents around its plant protein extraction and purification technology. The goal of Burcon's research is to develop its patented process to utilize inexpensive oilseed meals for the production of purified plant proteins that exhibit valuable nutritional, functional or nutraceutical profiles. Burcon, in conjunction with Archer Daniels Midland, is currently focusing its efforts on developing the world's first commercial canola proteins, Puratein(R) and Supertein(TM). Canola, recognized for its nutritional qualities, is the second-largest oilseed crop in the world after soybeans. Burcon's goal is to develop Puratein and Supertein to participate with soy, dairy and egg proteins in the expanding multi-billion-dollar protein ingredient market, with potential uses in prepared foods, nutritional supplements and personal care products.
ON BEHALF OF THE BOARD OF DIRECTORS "Johann F. Tergesen" Johann F. Tergesen President & Chief Operating Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations regarding the prospect for future success depend upon our ability to develop and sell products, which we do not produce today and cannot be sold without further research and development. When used in this press release, the words "goal," "intend," "believes" and "potential" and similar expressions, generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties. In light of the many risks and uncertainties surrounding the development of a source of protein from canola meal, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.