Cocrystal Pharma Inc (OTCBB:COCP) reported grant revenue of $27,000 for the quarter completed March 31, 2015 compared to no grant revenue in the comparable period. During the quarter the sole focus was on research and development of effective medications for use in the cure of human viral diseases.
Cocrystal reported a net loss of almost $16 million compared to a net loss of nearly $372,000 for the same quarter in FY2014. The increase in net loss was due to the additional expenses resulting from the change in the fair value of warrant liabilities. The company said that investors should focus on operating loss compared to net income as the operating loss does not cover the increase or decrease in the value of derivative liabilities.
Cocrystal announced that due to cumulative losses they preferred to have a full valuation allowance versus net deferred tax assets. The company posted a net deferred tax liability of $65 million as of March 31, 2015 compared to none in previous quarter. It is associated with acquired in-process R&D, to be a prospect source of taxable income in assessing the need for a valuation allowance versus company deferred tax assets. The in-process R&D asset is being stated as an indefinite-lived intangible asset.
Cocrystal Pharma Inc (OTCBB:COCP) utilized net cash of $1.559 million in operating activities in the reported quarter compared to $1.78 million for the same quarter in FY2014. Net cash offered by investing activities came at almost $14,000 for the quarter ended March 31, 2015 against $576,000 for the same quarter in FY2014. The company obtained $589,000 as cash from the merger with Biozone.
In last trading session, the stock price of COCP declined more than 2% to close the trading session at $1.15. The decline came at a share volume of 248,852 compared to average share volume of 446,479.