Financial Results

Results for Year Ended December 31, 2010

Revenue decreased by approximately 90%, or $7.7 million, to $819,000 in fiscal year 2010 from $8.5 million in fiscal year 2009. The decrease resulted from the completion of Phase I of our HRP initiative in 2009, as well as the continued de-emphasis of our sponsored research and service business. Our 2010 revenue consisted primarily of revenue from Phase II of our HRP initiative.

Cost of revenue decreased by approximately 91%, or $7.6 million, to $786,000 in 2010 from $8.4 million in 2009. The reduction in cost of revenue was primarily attributable to the decrease in costs associated with reduced activity from the HRP initiative and other service agreements. 

Research and development expenses decreased by approximately 23%, or $2.0 million, to $6.5 million in 2010 from $8.5 million in 2009. The decrease was primarily due to the reduced activity and personnel-related costs associated with our internal biomarker discovery and development efforts, primarily our galectin-3 program.

Selling, general and administrative expenses increased by approximately 8%, or $580,000, to $8.1 million in 2010 from $7.5 million in 2009. This was primarily due to a $509,000 increase in personnel-related general and administrative expenses.

Interest expense increased by $2.5 million, to $2.8 million in 2010 from $244,000 in 2009. This increase was due to non-cash expenses arising from the issuance in 2010 of $6.0 million in bridge notes, and the related issuance of 415,347 common stock warrants.

Results for Quarter Ended December 31, 2010

Revenue for the quarter ended December 31, 2010 decreased by approximately 47%, or $174,000, to $199,000 in 2010 from $373,000 in the quarter ended December 31, 2009. The decrease resulted from a reduction in the number of projects completed under our service agreements.  Our revenue in the quarter ended December 31, 2010 consisted primarily of revenue from Phase II of our HRP initiative.

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