Ontario, Canada
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0-31198
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Not Applicable
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(State or Other Jurisdiction
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(Commission
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(I.R.S. Employer
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of Incorporation)
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File Number)
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Identification No.)
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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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Exhibit No.
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Description
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99.1 |
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Stellar Pharmaceuticals Strong Product Sales in 2011; Builds for the Future
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STELLAR PHARMACEUTICALS INC.
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By:
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/s/ Scott Langille
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Scott Langille
Chief Financial Officer
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Press Release
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Source: Stellar Pharmaceuticals Inc.
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●
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Domestic product sales increased 35.6%
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●
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International product sales increased 56.4%
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●
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Total product sales up 42.0%
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●
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Gross profits from product sales up 37.9%
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●
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Completes acquisition of Tribute Pharmaceuticals
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●
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Obtains exclusive license for MycoVa in Canada
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Scott Langille
CFO
519-434-1540
scott.langille@stellarpharma.com
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or
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Arnold Tenney
Chairman
705-445-9505
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ASSETS
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2011
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2010
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||||||
CURRENT
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||||||||
Cash and cash equivalents
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$ | 2,227,973 | $ | 4,352,285 | ||||
Accounts receivable, net of allowance of $nil (2010 - $nil)
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763,810 | 493,370 | ||||||
Inventories
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870,630 | 611,676 | ||||||
Taxes recoverable
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180,160 | — | ||||||
Loan receivable
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15,814 | 15,814 | ||||||
Prepaid expenses and other receivables
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124,101 | 99,433 | ||||||
Total current assets
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4,182,488 | 5,572,578 | ||||||
PROPERTY, PLANT AND EQUIPMENT, net
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1,207,462 | 1,568,729 | ||||||
GOODWILL
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3,408,741 | — | ||||||
INTANGIBLE ASSETS, net)
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10,409,744 | 139,287 | ||||||
Total assets
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$ | 19,208,435 | $ | 7,280,594 | ||||
LIABILITIES
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||||||||
CURRENT | ||||||||
Accounts payable and accrued liabilities
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$ | 2,684,542 | $ | 802,800 | ||||
Product returns liability
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— | 112,500 | ||||||
Amount payable and contingent consideration due)
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2,684,542 | — | ||||||
Warrant liability
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2,543 | — | ||||||
Total current liabilities
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4,311,374 | 915,300 | ||||||
LONG TERM WARRANT LIABILITY
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— | 216,823 | ||||||
DEFERRED TAX LIABILITY
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1,524,200 | — | ||||||
Total liabilities
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5,835,574 | 1,132,123 | ||||||
Contingencies and commitments
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||||||||
SHAREHOLDERS’ EQUITY
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||||||||
CAPITAL STOCK
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||||||||
AUTHORIZED | ||||||||
Unlimited Non-voting, convertible redeemable and retractable
preferred shares with no par value |
||||||||
Unlimited Common shares with no par value | ||||||||
ISSUED
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||||||||
Common shares 37,610,042 (2010 – 24,585,040)
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16,469,621 | 9,055,982 | ||||||
Additional paid-in capital options
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1,277,830 | 945,298 | ||||||
17,747,451 | 10,001,280 | |||||||
DEFICIT | (4,374,590 | ) | (3,852,809 | ) | ||||
Total shareholders’ equity
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13,372,861 | 6,148,471 | ||||||
Total liabilities and shareholders’ equity
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$ | 19,208,435 | $ | 7,280,594 |
2011
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2010
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|||||||
REVENUES
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||||||||
Licensed domestic product net sales
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$ | 572,272 | $ | — | ||||
Other domestic product sales
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1,977,167 | 1,879,554 | ||||||
International product sales
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1,306,215 | 835,381 | ||||||
Royalty and licensing revenues
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14,227 | 2,022,383 | ||||||
TOTAL REVENUE FROM ALL SOURCES
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3,869,881 | 4,737,318 | ||||||
COST OF SALES
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||||||||
Licensor sales and distribution fees
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484,480 | — | ||||||
Cost of products sold
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932,755 | 947,069 | ||||||
Write down of inventories
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26,117 | 120,328 | ||||||
Product returns allowance
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— | 75,160 | ||||||
GROSS PROFIT
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2,426,529 | 3,594,761 | ||||||
EXPENSES
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||||||||
Selling, general and administrative
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3,034,740 | 2,488,278 | ||||||
Amortization of assets (non-manufacturing property, plant and equipment)
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77,951 | 49,720 | ||||||
3,112,691 | 2,537,998 | |||||||
(LOSS) INCOME FROM OPERATIONS
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(686,162 | ) | 1,056,763 | |||||
NON-OPERATING INCOME (EXPENSES)
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||||||||
Retirement payout
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— | (401,000 | ) | |||||
Change in warrant liability
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214,280 | (10,048 | ) | |||||
Change in fair value of contingent consideration
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(57,996 | ) | — | |||||
Loss on disposal of equipment
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(259,636 | ) | (15,308 | ) | ||||
Research and development
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(49,977 | ) | (115,471 | ) | ||||
Acquisition and restructuring costs
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(671,112 | ) | — | |||||
Accretion expense
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(6,888 | ) | — | |||||
Interest income
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18,910 | 10,772 | ||||||
NET (LOSS) INCOME AND COMPREHENSIVE (LOSS)
INCOME FOR THE YEAR (before tax) |
(1,498,581 | ) | 525,708 | |||||
DEFERRED INCOME TAX (RECOVERY)
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(976,800 | ) | — | |||||
NET (LOSS) INCOME
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$ | (521,781 | ) | $ | 525,708 | |||
(LOSS) EARNINGS PER SHARE - Basic
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$ | (0.02 | ) | $ | 0.02 | |||
- Diluted
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$ | (0.02 | ) | $ | 0.02 | |||
WEIGHTED AVERAGE NUMBER OF COMMON
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||||||||
SHARES OUTSTANDING - Basic
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25,706,000 | 23,767,369 | ||||||
- Diluted
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25,706,000 | 23,767,369 |
2011
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2010
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|||||||
CASH FLOWS (USED IN) PROVIDED BY OPERATING ACTIVITIES
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|
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||||||
Net (loss) income
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$ | (521,781 | ) | $ | 525,708 | |||
Items not affecting cash:
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||||||||
Deferred income tax (recovery)
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(976,800 | ) | — | |||||
Amortization
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143,505 | 104,042 | ||||||
Loss on disposal of equipment
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259,636 | 15,308 | ||||||
Issuance of equity instruments for services rendered
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14,467 | 4,000 | ||||||
Change in warrant liability
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(214,280 | ) | 10,048 | |||||
Change in fair value of contingent consideration
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57,996 | — | ||||||
Stock-based compensation
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332,532 | 166,400 | ||||||
Accretion expense
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6,888 | — | ||||||
Change in non-cash operating assets and liabilities
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(113,611 | ) | 483,754 | |||||
CASH FLOWS (USED IN) PROVIDED BY OPERATING ACTIVITIES
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(1,011,448 | ) | 1,309,260 | |||||
CASH FLOWS (USED IN) INVESTING ACTIVITIES
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||||||||
Additions to property, plant and equipment
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(9,990 | ) | (307,920 | ) | ||||
Increase in other assets
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(42,521 | ) | (27,224 | ) | ||||
Proceeds from sale of equipment
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— | 12,630 | ||||||
Acquisition, net of cash acquired
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(1,036,110 | ) | — | |||||
CASH FLOWS (USED IN) INVESTING ACTIVITIES
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(1,088,621 | ) | (322,514 | ) | ||||
CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES
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||||||||
Stock options exercised
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— | 69,000 | ||||||
Issuance costs
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(24,243 | ) | (42,273 | ) | ||||
Private placement units issued for cash
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— | 1,013,600 | ||||||
CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES
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(24,243 | ) | 1,040,327 | |||||
CHANGE IN CASH AND CASH EQUIVALENTS
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(2,124,312 | ) | 2,027,073 | |||||
CASH AND CASH EQUIVALENTS, beginning of year
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4,352,285 | 2,325,212 | ||||||
CASH AND CASH EQUIVALENTS, end of year
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$ | 2,227,973 | $ | 4,352,285 |
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