Biotech company reports 2003 net loss of $11.0 million.

2004 APR 14 - (NewsRx.com & NewsRx.net) -- Lipid Sciences, Inc., (LIPD) reported results for the fourth quarter and the year ended December 31, 2003.

Lipid Sciences is a development-stage biotechnology company engaged in the research and development of products and processes intended to treat major medical indications, including viral infections, such as human immunodeficiency virus (HIV), and cardiovascular diseases, in which lipids, or fat components, play a key role.

For the fourth quarter, the company reported a net loss of $2.5 million, or $0.11 per share, on a basic and diluted basis, compared with a net loss of $4.6 million, or $0.22 per share, for the same period in the prior year. For the year ended December 31, 2003, the company reported a net loss of $11.0 million, or $0.52 per share, on a basic and diluted basis, compared with a net loss of $14.8 million, or $0.70 per share, in the prior year. The 2003 net loss included a net loss from discontinued operations of $707,000, or $0.04 per share.

Operating expenses for the fourth quarter 2003 were $2.4 million versus $5.9 million during the same quarter in 2002. For the year ended December 31, 2003, operating expenses decreased 48% to $11.3 million compared with $21.7 million for the prior year. The decrease in operating expenses, year over year, was due primarily to a reduction in external development services and employee-related expenses as a result of restructuring activities, reduced investor and public relations-related expenses, legal, consulting, and accounting fees, as well as the cessation of all operations in Australia in January 2003.

At December 31, 2003, the company had $13.9 million in cash, cash equivalents, and short-term investments, and real-estate holdings of approximately $12.3 million, which includes current assets of discontinued operations of $6.8 million, and notes receivable of $5.5 million. During 2003, the company continued to make significant progress with the planned disposal of real estate assets. Since the adoption of the asset disposition plan in March 2002, approximately 80% of the company's real estate assets have been disposed of and converted into working capital.

Cash used for the company's operating activities was $9.6 million for the year ended December 31, 2003, while the discontinued operations provided cash of $2.8 million during the same period. During the prior year, cash used for the company's operating activities was $13.1 million, while the discontinued operations provided cash of $22.2 million.

Dr. S. Lewis Meyer, president and CEO, commented, "With the milestones of our restructuring successfully achieved, we are now able to completely focus our attention on the ...