The improved market conditions didn’t favor AMARANTUS BIOSCIENCE HOLDINGS, INC. (OTCBB:AMBS) as much as the company expected in the previous year. As per the reports, it surged 5.05% in the stock market to touch $0.052 figure on Friday, but the recently announced financial results were not as attractive as it would want them to be.
Insights On The Financial Results:
The primary objective of Amarantus is to conduct research and find possibilities for new developments in the bioscience field. It spent a lot of money on research activities in the last year, thus, witnessed an increased research cost. As per the reports, the cost occurred in research and development activities in 2014 were $13.76 million, $11.67 million more than the year before. The primary things that led to this exponential growth in R&D activities included start-up clinical expenses, technology and litigation in relation to the potential Lonza transaction, and $7.2 million on in-process research activities.
Out of the total $7.2 million in-research expenses, $3 million belonged to non-cash expenses that were paid in the form of company’s common stock shares. The in-research cost and development expenses inclined to a level for which the company was not prepared; hence, it had to suffer from huge research expenses in 2014.
Apart from R&D expenses, Amarantus had to bear increased G&A expenses as well. As per the reports, its G&A expenses increased by $3.9 million in the previous year and touched a whopping figure of $7.5 million. The primary reason for this extraordinary growth in G&A expenses was due to company’s focus on key hiring.
It wanted to be ready for the future products, research activities, and other functions. Others things that inclined the cost to this level were patent-related legal costs, stock-based compensation, and commencement of various development programs. The management of the company hopes that Amarantus would perform better in 2015 and overcome from previous year’s losses.