Our Stocks to Watch today include NavStar Technologies Inc. (OTC: NVSR), Cobra Oil & Gas Co. (OTCBB: CGCA), Optical Systems Inc. (OTC: OPSY), SGD Holdings Ltd. (OTC: SGDH), EV Innovations Inc. (OTCBB: EVII), Dragon Capital Group Corp. (OTC: DRGV), NextWave Wireless Inc. (Nasdaq: WAVE), FiberTower Corp. (Nasdaq: FTWR), Nitro Petroleum Inc. (OTCBB: NTRO), Somaxon Pharmaceuticals Inc. (Nasdaq: SOMX) and VirTra Systems Inc. (OTC: VTSI).
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NAVSTAR TECHNOLOGIES INCORPORATED (OTC: NVSR)
Detailed Quote: http://www.otcpicks.com/quotes/NVSR.php
Company Profile: http://www.otcpicks.com/navstar-technologies/navstar-technologies.htm
NavStar is focused on the creation of GPS products and services that provide wireless tracking of vehicles, equipment, and other valuable and personal assets. The goal is to be a total solutions provider.
NVSR News:
August 26 - Anything Trucker & NavStar Technologies Team Up to Develop Wireless Fax Interface for Commercial Trucking Application
Anything Brands Online (OTC: ANYT) and Anything Trucker division since announcing the final agreement to provide exclusive sales and distribution of NavStar Technologies product lineup have teamed up to develop a commercial trucking application using wireless technology in combination with NavStar hardware and servers. The NavStar product lineup complements Anything Trucker's existing lineup of technology oriented security and safety product offerings and will make the company a major player in these markets through their joint efforts.
NavStar Technologies, Inc. (OTC: NVSR) (www.navstarinc.com) is a multinational firm focused on developing and commercializing asset tracking and monitoring devices for vehicles and high value cargo. Both companies are developing applications that will enable commercial transportation companies to improve data retrieval for shipping documentation, a move directly related to improving cash-flow for their clients.
Anything Trucker (www.anythingtrucker.com) and Anything Brands Online myFreightWorld division (www.3plinabox.net) will leverage their technology capabilities and sales force to provide equipment, software and related services to trucking and other commercial transportation companies in the US. The NavStar Vehicle Tracker and service will be the initial product sold in 2009 having approximately 20,000 units in service around the world and is a proven performer in the international marketplace. This current product development makes available an affordable solution to small and medium size trucking companies that will improve their cash-flow and level the playing field with their larger competitors. Considering that over 80% of trucking companies today operate with less than 30 power units, the market for this application can prove to be quite lucrative.
Tim Norton, President, Anything Trucker, stated, "We are currently working with NavStar's technical and sales team to ensure that the US marketing project is properly focused upon our target market objectives. As management with hands on experience for over 30 years in the transportation industry, we are well aware of operating conditions and the need for improvement. Bottom line management is our objective and we will bring that to prospective customers who recognize cost/performance opportunity when they see it."
"We are excited about identifying our first application, a wireless fax that interfaces with the NavStar hardware and server. Anything Trucking believes that this wireless fax solution fills a huge void in the trucking industry and expects that the market is in the thousands not hundreds. It is obvious that after the first call between our technical teams that there are many opportunities, our challenge will be to prioritize and identify the most profitable solutions," this according to Doug Pritt, President and CEO, NavStar Technologies.
ABOUT ANYTHING BRANDS ONLINE, INC.
Anything Brands markets and sells products and services that improve the level of transportation efficiency and safety of its commercial and recreational customers. Their Tradesman Tool division serves automotive, construction, industrial tools, and auto body supplies. The myFreightWorld division is a business outsourcing company that sells technology, services, and wholesale truck, rail, and airfreight capacity to the logistics manager industry that accounts for over $200 billion of the $650 billion transportation industry spend. Technology services and products are offered via the web or are accessible through web service applications and are provided primarily through private label arrangements.
COBRA OIL & GAS COMPANY (OTCBB: CGCA)
"Up 9.38% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/CGCA.php
Company Profile: http://www.otcpicks.com/cobra-oil-and-gas.htm
Cobra Oil & Gas Co. is a publicly traded independent oil and gas exploration and production company headquartered in
CGCA News:
August 25 - Skymark Research Initiates Independent Research Coverage On Cobra Oil & Gas Co.
Skymark Research, a leading provider of small- and micro-cap independent investment research, today initiated coverage on Cobra Oil & Gas Co. (OTCBB: CGCA). Skymark Research is currently offering a complimentary trial subscription. To view the company's research go to www.skymarkresearch.com.
Cobra Oil & Gas Co. Offers Update on Bakken Formation Within Starbuck Prospects
Cobra Oil & Gas Company (OTCBB: CGCA) (hereafter "Cobra") offered an updated property overview on its Starbuck Prospects Bakken formation, located within the
The state of
Technology has been a catalyst in making the Bakken so prolific. Horizontal Directional Drilling (HDD) is the new technology which allows wildcatters to drill down to the oil or gas and kick out their well thousands of feet to the left or the right. Fracturing of the rock is then necessary to release the oil, which combined turned out to be a revolutionary idea.
The Bakken as a whole has gone largely unnoticed partially due to prior lack of technology. Max Pozzoni, President of Cobra Oil & Gas stated, “These recent developments epitomize our thoughts on the Starbuck Prospects and the Bakken in general. The progressing interest in this play is going to keep growing upon the realization of the successes, technological advances, and overall potential.”
Cobra currently has an option to buy a 50% interest, with 100% working interest (WI) and approximately 80% net revenue interest (NRI) on 82,000 net acres in the Williston Basin, Valley County, Montana.
OPTICAL SYSTEMS INCORPORATED (OTC: OPSY)
Detailed Quote: http://www.otcpicks.com/quotes/OPSY.php
Company Profile: http://www.otcpicks.com/optical-systems/optical-systems.htm
Optical Systems, Inc., through its operating subsidiary, Automotive Software Designers, Inc., develops technology and services for the automotive retail industry designed to maximize productivity and increase profits at auto dealerships. ASDI's flagship technology solution, Save-a-Deal, is a turnkey customer relationship management (CRM) tool for auto dealerships. Our business development center (BDC) provides a variety of services designed to help auto dealerships drive traffic to their showroom or Web site, retain customers and generate new streams of revenue.
OPSY News:
August 24 - Optical Systems, Inc. Launches All-New Finance Manager Program in 17 Dealerships
New BDC program is designed to generate additional revenue for automotive dealerships across the
Automotive Software Designers, Inc. (ASDI), a leading provider of software and services for the automotive retail industry, and a wholly owned subsidiary of Optical Systems, Inc. (OTC: OPSY), announced the addition of 17 dealerships to its all new Finance Manager program.
"We believe our Finance Manager program will have a fit in 95 percent of the 26,000 automotive dealerships and 7,000 recreational vehicle dealerships in the United States," said B.J. Grisaffi, Chairman and Chief Executive Officer of Optical Systems, Inc. "Over the past several weeks we have launched several new BDC initiatives including our Sales Manager and Service Manager programs, and have achieved key milestones in our growth including beginning the process to become a fully reporting company. The new Finance Manager program is another step in the right direction for Optical Systems and our shareholders."
The BDC Finance Manager program utilizes the Company's cutting-edge remoteCSR program to survey a dealership's customers on their buying experience, and assesses customers' needs for an extended service contract, or aftermarket protection including tire and wheel road hazard protection, cracked windshield protection and/or dent protection for the vehicle they purchased. Products and services are specifically matched to customers based on their responses to survey questions, allowing for higher conversion rates.
All inquiries are made by ASDI's knowledgeable and professional Finance Manager remoteCSRs, and relate directly to the paperwork and financing of a customer's vehicle, ensuring that a customer is asked relevant questions at timely opportunities. All calls are made in the name of a dealership's finance manager and appointments are set in their name.
Patterson Chrysler Jeep in
"Dealerships today need to reduce costs, strengthen customer relationships, and most importantly increase profitability," said Grisaffi. "Our Finance Manager program helps dealerships achieve those goals."
SGD HOLDINGS LIMITED (OTC: SGDH)
Detailed Quote: http://www.otcpicks.com/quotes/SGDH.php
Company Profile: http://www.otcpicks.com/sgd-holdings/sgd-holdings.htm
SGD Holdings, Ltd. is a holding company which owns and operates through its wholly-owned subsidiary, Ecopaper, Inc. (www.ecopaper.com). Its goal is to acquire new technologies which can positively impact the environment either through internal development or by acquisition.
SGDH News:
August 24 - SGD Holdings, Ltd. CEO Harry Johansing Discusses Environmentally Friendly Paper
SGD Holdings, Ltd. (OTC: SGDH) reveals the benefits of Ecopaper, Inc.'s product lines. Many companies and individuals enjoy telling their peers, employers and customers they have "gone green" because they started using recycled paper. However, on closer examination, professed recycled paper products are not always what they claim to be. Harry Johansing, CEO of SGD Holdings, Ltd., is a developer of Banana Paper, which represents one of the first 100% post-consumer paper products, and is an expert in the recycled paper arena.
So, what are the benefits of tree free paper? Ecopaper, Inc.'s tree free paper is 100% post-consumer waste. Waste that would normally wind up in a landfill is being processed into high quality paper products. No trees are used during the process. Furthermore, the energy and water required to manufacture paper are drastically reduced due to the process. Lastly, unlike typical copy paper, no harmful chemicals or toxins are added to the paper.
"Recycled paper is one of the biggest misnomers in the general public. It's incredibly misleading. Most people think that recycled is the same as post-consumer content. Unless it says post-consumer, it means that the product is a virgin pulp, otherwise known as paper made from trees. What consumers should be looking for when they purchase paper is either tree free paper or the highest post-consumer content possible," stated Harry Johansing.
ABOUT ECOPAPER, INC.
Ecopaper, Inc. is the first company in the history of the paper industry to create and market treeless paper of a superior quality. Every page of Ecopaper is smooth, acid-free, durable, chemical-free, and made in
EV INNOVATIONS INCORPORATIONS (OTCBB: EVII)
Detailed Quote: http://www.otcpicks.com/quotes/EVII.php
Company Profile: http://www.otcpicks.com/ev-innovations.htm
EV Innovations, Inc. engages in the development and marketing of electric powered vehicles and products primarily in the
EVII News:
August 12 - EV Innovations Inc. Congratulates GM for Being the SECOND Company to Break the Triple Mileage Barrier
EV Innovations Inc. (OTCBB: EVII), a 21st Century Design & Engineering of emission-free automotive propulsion systems using the latest lithium battery technology, congratulates GM on being the SECOND company to break the Triple Mileage Barrier. According to Ron Cerven, Chief Engineer, "It is great to see a big player like GM following in our footsteps and breaking the Triple Mileage Barrier."
EV Innovations became the first company to get over 100 MPG when on June 17th 2009, the 2010 LiV Wise achieved 211 miles, actually driven on one single charge. EVII's Director of Government Sales, Holly J. Armstrong, said that she is "certain that having a production Plug In EV that gets over 200 actual driving miles on a single charge, has to be the reason why EV Innovations is the current sole bidder on the upcoming 2010-2015 Government contracts for electric vehicles."
EVII continues to lead the industry in both technology and business modeling. In some instances, the LiV Wise is the only NHTSA compliant, highway capable sedan available for purchase or lease on Federal, State and Local levels. EVII is organizing up for maximum production, as it estimates over 10,000 LiV Wise models will be purchased or leased by the various government agencies.
DRAGON CAPITAL GROUP INCORPORATED (OTC: DRGV)
"Up 83.33% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/DRGV.php
Dragon Capital Group Corporation (OTC: DRGV) is a holding company serving as a business incubator for emerging Chinese businesses. Dragon currently controls subsidiaries operating in high-tech, IT products and services and management consulting. Three of the subsidiaries are growing strong recurring revenue streams from electronics hardware distribution and network integration. Dragon's wholly owned management firm, Shanghai Dragon, is expected to realize its initial revenue and profits in 2007. The company's other three subsidiaries, still in the emergent stage, are focused on wireless Internet applications, mobile business solutions, software development, enterprise management, computerized automations systems integration and network integration.
DRGV News:
August 26 - Market Advisors, Inc. Issues 'Initiating Coverage' Report on Dragon Capital Group With a Speculative Buy and a Price Objective of $0.047 per Share
A new research report has been issued regarding Dragon Capital Group Corporation (OTC: DRGV) by Market Advisors, Inc. "Fundamental Analysis for Today's Investments" with a "Speculative Buy" and a $0.047 intermediate price objective. To view the report, please visit www.dragoncapital.us, a leading holding company of emerging high-tech companies in
Dragon Capital Group's (OTC: DRGV) mission is to be a leader in the development of wireless 3G-based applications and business solutions. Two companies that Dragon has acquired are among the leading providers of mobile Internet applications and business solutions in
News Flash
On June 30, 2009, total assets were $14.6 million compared to $15.9 million at December 31, 2008. In addition, 2009, shareholder equity was $7.1 million and total current assets were $14.3 million with working capital of approximately $7.8 million. Revenue for the first six months of 2009 reached $26.9 million, increasing by 20% from the $22.3 million recorded in the first six months of 2008. Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon continues to post increasing sales in this challenging environment."
Initiating Coverage
The Company offers consulting services for US enterprises seeking to invest in
Why
The Chinese government has relaxed laws and is allowing the formation of rural enterprises and private businesses, significantly opened foreign trade and investment, pulled back on state control over commodity prices, and invested in industrial production. They have also taken positive steps on educating its work force. Because of this, it is hard not to be bullish on
Update
The Company was founded in 2000 and is led by Mr. Lawrence Wang, who serves as Chairman, CEO and General Manager of Shanghai Yazheng and has been its General Manager since their inception. Mr. Wang's goal is to lead DRGV in the high-growth potential in the universe of Chinese stocks publicly-traded in global stock markets. Analysts agree that over the next twenty to thirty years, it should be a golden period for a rising
Key Points
While investing in stocks always has its risks, just like the
Subsidiaries
Our positive outlook on Dragon Capital reflects our confidence in a management team focused on growth through acquisition and subsequent exploitation of capital-starved subsidiaries. Management has successfully employed this strategy over the past few years in both strong and weak markets. Current subsidiaries include: Shanghai Yazheng Information Technology Co., Ltd engaged in developing information technology in
ABOUT MARKET ADVISORS, INC.
Officers of Market Advisors, Inc. have been in business since 1983 and have provided stock market research for their clients since 1985. Company officials have often been quoted in a wide array of financial publications such as the Wall Street Journal, Investor's Business Daily, Barron's, Forbes Magazine and The Dick Davis Digest to name a few.
NEXTWAVE WIRELESS INCORPORATED (NASDAQ: WAVE)
"Up 52.22% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/WAVE.php
NextWave Wireless Inc. provides a portfolio of next-generation mobile multimedia and wireless broadband technology solutions to the world’s leading mobile handset manufacturers, consumer electronics manufacturers and wireless service providers. From device-embedded mobile multimedia software to digital home products, NextWave solutions can be found in more than 250 million devices around the globe.
WAVE News:
August 6 - NextWave Wireless Files Second Quarter Fiscal 2009 Results
NextWave Wireless Inc. (Nasdaq: WAVE) announced that it has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the second quarter of fiscal 2009, ended June 27, 2009.
The Form 10-Q is available on the Web site maintained by the Securities and Exchange Commission at www.sec.gov and on the NextWave Web site at www.nextwave.com under the heading “Investor Relations – Financial Information – SEC Filings.” The financial information accompanying this press release should be reviewed together with the Notes to Condensed Consolidated Financial Statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors contained in the Form 10-Q.
FIBERTOWER CORPORATION (NASDAQ: FTWR)
"Up 7.80% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/FTWR.php
FiberTower is a backhaul and access services provider focused primarily on the wireless carrier market. With its extensive spectrum footprint in 24 GHz and 39 GHz bands, carrier-class microwave and fiber networks in 13 major markets, customer commitments from six of the leading cellular carriers, and partnerships with the largest tower operators in the
FTWR News:
August 6 - FiberTower Reports 2009 Second Quarter Results
6% Quarterly Revenue Growth and $1.7 million Improvement in Adjusted EBITDA
FiberTower Corporation (Nasdaq: FTWR), a wireless backhaul services provider, reported results for the quarter ended June 30, 2009.
Highlights for the second quarter of 2009 included the following:
* Revenue grew 6% to $15.6 million from $14.7 million in the first quarter of 2009. Revenue grew 31% year-over-year.
* Average monthly revenue per billing site grew 5% to $1,860 from $1,767 in the first quarter of 2009. Average monthly revenue per billing site grew 16% year-over-year.
* Gross profit (service revenues less cost of service revenues — excluding impairment charges) increased by 118% to $1.5 million from $0.7 million in the first quarter of 2009.
* Adjusted EBITDA was a loss of $3.2 million in the second quarter of 2009 compared to a loss of $4.9 million in the first quarter of 2009.
* Repurchased approximately $71 million of par value of debt resulting in a gain of $44.6 million on the early extinguishment of debt in the second quarter of 2009.
* The Company had a cash and cash equivalents balance of $89.7 million at June 30, 2009.
"We are pleased with our second quarter results which were highlighted by continuing quarter over quarter improvement in financial performance," stated Kurt Van Wagenen, President and Chief Executive Officer of FiberTower. "The Company continues to deliver solid organic revenue growth in our core cell site backhaul business. We are also encouraged by the progress we are making in our recently launched wholesale line of business which included the addition of three new wholesale partners in the quarter."
2009 Second Quarter Consolidated Results
Service revenues for the three months ended June 30, 2009 increased by $0.9 million or 6%, to $15.6 million compared to $14.7 million for the first quarter of 2009. Continuing organic growth from existing sites and the addition of 65 new billing locations drove the increase in service revenues during the second quarter of 2009.
The Company reported a gross profit of $1.5 million in the second quarter of 2009 as compared to gross profit of $0.7 million for the preceding quarter, an improvement of $0.8 million. The first quarter of 2009 represented the first time in FiberTower's history in which gross profit was positive. Gross profit or loss is calculated as service revenues less all cost of service revenues excluding impairment charges.
Operating expenses in the second quarter of 2009 decreased by $1.5 million or 5% compared to the first quarter of 2009. Net income was $20.8 million for the second quarter of 2009 reflecting the recognition of a gain of $44.6 million on the early extinguishment of debt. Net income in the first quarter of 2009 was $26.7 million and also reflected a gain on the early extinguishment of debt of $53.7 million. Diluted net income per share for the second quarter ended June 30, 2009 was $0.14 compared to diluted net income per share of $0.18 for the first quarter of 2009.
On an Adjusted EBITDA basis, the loss in the second quarter of 2009 improved to $3.2 million as compared to a loss of $4.9 million in the first quarter of 2009. Adjusted EBITDA is defined as net income (loss) from operations before interest, taxes, depreciation and amortization, impairment and restructuring charges, stock-based compensation, gain on early extinguishment of debt and other income (expense). The reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure, to net income (loss) is provided at the end of this news release.
Liquidity and Capital Resources
During the second quarter of 2009, the Company's consolidated cash consumption was $35.6 million as compared to $29.1 million in the first quarter of 2009. Excluding the impact of repurchasing debt in the second and first quarters, the Company's consolidated cash consumption was $4.7 million and $5.8 million, respectively, representing an improvement of $1.1 million.
The Company repurchased $70.9 million of par value debt at an average price of approximately $43 per $100 of par value in the second quarter of 2009. FiberTower spent $30.9 million, including accrued interest payments, on repurchasing debt in the second quarter of 2009 as compared to a total of $23.3 million in the first quarter of 2009. The Company's outstanding debt, including accretion, at June 30, 2009 was $304.5 million.
Capital expenditures for the second quarter of 2009 totaled $2.4 million compared to $2.3 million for the first quarter of 2009. The majority of the capital investments made by FiberTower in the second quarter were used towards adding incremental customers at existing sites as well as supporting future site builds.
Consolidated cash and cash equivalents at June 30, 2009 were $89.7 million, compared to $125.2 million at March 31, 2009.
"Over the past several quarters, we have improved our operational flexibility through continued high margin incremental revenue growth at our sites and aggressive cost management," said Thomas Scott, Chief Financial Officer of FiberTower. "We will continue to manage the business on those basic principles in support of new growth opportunities while responding appropriately to current market conditions. Pursuant to this strategy, since we began to repurchase our debt in the open market in the first quarter of 2009, we have repurchased approximately $142 million par value of our debt for approximately $54 million including accrued and unpaid interest. We anticipate using between $15 million to $20 million of cash for capital expenditures throughout the remainder of the year, but continue to have the ability to reduce the expenditure should market conditions warrant such an action."
NITRO PETROLEUM INCORPORATED (OTCBB: NTRO)
"Up 7.41% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/NTRO.php
Nitro Petroleum Incorporated is an independent energy company engaged in the acquisition, exploitation and development of oil and natural gas properties in the
NTRO News:
August 25 - Nitro Petroleum Inc. Receives Encouraging Results on West
Nitro Petroleum Incorporated (OTCBB: NTRO) announced that it has received a progress report on the C well, which is the first well completed on this 2 well project.
The area this discovery well is located in has been previously known for high pressure gas but the Operator reports that this well has intersected an oil zone. This oil zone is free flowing at a rate of 40 bbl/day and 320mcf gas. The well has produced over 850 bbls of oil and over 10 million cubic feet of natural gas during the 30 day production test. The operator believes this test has been flowing at 60% capacity.
There are 10 additional targets in this area that the company can participate in. The Company has entered into this investment by way of a Limited Partnership agreement. Larry Wise, President of Nitro, commented, "This is a significant discovery well on our first project in Alberta and the company is extremely encouraged by these initial results and the prospect of further participation in additional wells."
SOMAXON PHARMACEUTICALS INCORPORATED (NASDAQ: SOMX)
"Up 14.59% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/SOMX.php
Headquartered in San Diego, CA, Somaxon Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the in-licensing and development of proprietary product candidates for the treatment of diseases and disorders in the fields of psychiatry and neurology. A New Drug Application (NDA) for Silenor® (doxepin), Somaxon’s drug candidate for insomnia, has been filed with the U.S. Food and Drug Administration and currently is under review.
SOMX News:
August 6 - Somaxon Pharmaceuticals Reports 2009 Second Quarter Financial Results
Somaxon Pharmaceuticals, Inc. (Nasdaq: SOMX), a specialty pharmaceutical company focused on the in-licensing, development and commercialization of proprietary branded pharmaceutical products and late-stage product candidates for the treatment of diseases and disorders in the central nervous system therapeutic area, announced financial results for the second quarter ended June 30, 2009.
Highlights
Somaxon has accomplished a number of important objectives since the beginning of the second quarter of 2009. On June 4, 2009, the company resubmitted its New Drug Application (NDA) for Silenor® (doxepin) to the U.S. Food and Drug Administration (FDA). The FDA acknowledged receipt of the resubmission and confirmed that the review cycle will be six months, resulting in a new FDA action date of December 4, 2009.
On July 8, 2009, Somaxon closed a private placement of approximately 5.1 million shares of its common stock at a price of $1.05 per share and seven-year warrants to purchase up to approximately 5.1 million additional shares of its common stock, exercisable in cash or by net exercise at a price of $1.155 per share, for aggregate gross proceeds of approximately $6.0 million.
“The past few months have been very positive and productive for Somaxon as we continue to execute on our strategic plan. The resubmission of our NDA for Silenor and our recent $6 million financing transaction represent significant progress relating to our key corporate objectives,” said Richard W. Pascoe, Somaxon’s president and chief executive officer.
“Going forward, we will continue to work closely with the FDA toward a potential approval for Silenor, responsibly manage our financial resources, and advance our discussions with third parties toward a potential commercial partnership for Silenor,” continued Pascoe. “Our goal is to enter into an agreement that will maximize the potential commercial success of our current lead product.”
Second Quarter Financial Results
For the second quarter of 2009, net loss applicable to common stockholders was $6.1 million, or $0.33 per share, compared with $10.4 million, or $0.57 per share, for the second quarter of 2008.
As a development stage pharmaceutical company, Somaxon had no revenues during the second quarter of 2009.
Research and development expenses for the second quarter of 2009 were $1.5 million, compared with $5.8 million for the second quarter of 2008. The decrease resulted primarily from the company’s conduct during 2008 of its clinical trial to evaluate the potential for electrocardiogram (ECG) effects of doxepin, the active ingredient in Silenor. In addition, salaries and related costs decreased in 2009 as a result of the reduction in force undertaken as part of cost reduction measures. This decrease was partially offset by higher share-based compensation expense as a result of the company’s one-time stock option exchange program that was completed in June 2009 and vesting arrangements under the company’s severance-related agreements.
Marketing, general and administrative expenses were $4.6 million for both the second quarter of 2009 and the second quarter of 2008. Marketing, personnel and general costs decreased approximately $1.0 million due to a reduction in market preparation activities as a result of the delay in the FDA approval process for Silenor, as well as the company’s reduction in force and move to a smaller corporate facility. This decrease was offset by expenses incurred under severance arrangements and higher share-based compensation expense resulting from the company’s one-time stock option exchange program.
For the second quarter of 2009, the company recognized $3.0 million of share-based compensation expense. Share-based compensation expense for the second quarter of 2008 was $1.5 million.
At June 30, 2009, Somaxon had cash, cash equivalents and marketable securities totaling $1.3 million and no debt. This amount does not include $6.0 million in gross proceeds from the company’s July 2009 private placement of its common stock and warrants. The company believes, based on its current operating plan, that its cash, cash equivalents and marketable securities as of June 30, 2009, together with the proceeds from this private placement, will be sufficient to fund its operations through the expected duration of the FDA’s review of its resubmission of the Silenor NDA and through the second quarter of 2010.
At December 31, 2008, the company had cash, cash equivalents and marketable securities totaling $14.3 million and outstanding debt of $15.0 million. The December 31, 2008 cash, cash equivalents and marketable securities did not include $7.5 million of restricted cash that was required to be maintained at Silicon Valley Bank under the company’s secured loan agreement with Silicon Valley Bank and Oxford Finance Corporation. This restricted cash was released upon the full repayment in March 2009 of the remaining principal balance of $13.7 million under the secured loan facility. An additional $0.6 million of restricted cash was released in the second quarter of 2009 in connection with the termination of the company’s facility lease.
VIRTRA SYSTEMS INCORPORATED (OTC: VTSI)
"Up 8.89% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/VTSI.php
The company produces the best-in-class firearm simulators for both law enforcement and military customers throughout the world. VirTra is the higher standard in simulation: from exceptional customer service to unparalleled technology like 360 degree HD training platforms and the Threat-Fire™ safe return fire system (patent pending). When training realism matters, military and law enforcement professionals consistently select VirTra’s simulators to help save lives.
VTSI News:
August 25 - VirTra Receives Second Order from Lockheed Martin
Bob Ferris, VirTra Systems' (OTC: VTSI) CEO and President, announced that Lockheed Martin has submitted a second purchase order for a customized version of the Threat-Fire™ wireless communication station. This particular station plugs into a USB computer port and permits two-way wireless communication with the Threat-Fire™ belt.
VirTra’s patent-pending Threat-Fire™ device safely simulates return fire with a 300 millisecond electric stun (adjustable to 2.5 seconds). The device is easily rechargeable and adds an unparalleled level of simulation. VirTra ardently contends that adding a Threat-Fire™ belt to a simulator provides more realistic and thorough training, allowing the trainee to experience stress and apprehension on par with that of actual combat situations.
“I’m energized by Lockheed’s second order and the opportunity to perform custom engineering work to fit some of their unique requirements. I feel this is another indication that Lockheed is impressed with VirTra’s simulation products and I am confident that we will receive additional orders,” said Bob Ferris, CEO and President of VirTra Systems.
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Information contained in our report will contain "forward looking statements" as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company's most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements. We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company's plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company's operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related public information sources which we believe to be reliable but we cannot guarantee the accuracy of the information. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov/ and FINRA at http://www.finra.org.
Disclosure: OTCPicks.com has been compensated eight thousand dollars by a third party (Mickey Reno) for NVSR advertising and promotional services. OTCPicks.com has been compensated two thousand five hundred dollars by a third party (BlueWave Advisors) for CGCA advertising and promotional services. OTCPicks.com has been compensated one hundred thousand free trading shares by a third party for OPSY advertising and promotional services. OTCPicks.com is being compensated eight thousand dollars by a third party (Stock Awareness Group) for SGDH advertising and promotional services. OTCPicks.com has been compensated a total of two thousand five hundred dollars for a previous campaign and two thousand five hundred dollars by a third party (BlueWave Advisors) for a current EVII advertising and promotional campaign. OTCPicks.com has been compensated seven thousand five hundred dollars by a third party (China Direct) for DRGV advertising and promotional services. OTCPicks.com has been compensated one thousand five hundred dollars by BlueWave Advisors for a NTRO advertising and promotional program. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. OTCPicks.com is a website partially owned by BlueWave Advisors, LLC, a financial public relations firm. BlueWave Advisors, LLC, its principal and/or its affiliates will hold positions in the company profiled and may buy or sell securities at any time without notice.
