Microlslet's losses for 1st half 2006 rise 33.9%

USA-based biotechnology firm Microlslet says that its losses for the half year ended June 30, 2006, increased to $5.9 million, up 33.9% on the comparable period in 2005. The firm attributed the decline to a hike in its general and administrative expenses, which were up 107.7% to $2.7 million, largely due to higher salaries paid to senior management and fees paid to temporary consultants.

Microlslet also reported that its R&D costs increased to $3.6 million, from $2.7 million in the first half of 2005. The company said that this was as a result of higher costs relating to its collaboration with the Mayo Foundation and UC Davis, as well as an increase in laboratory personnel and materials costs. Additionally, Microlslet said that higher-than-normal legal expenses, stock issuances to certain stockholders resulting from contractual liquidated damages owed and its adoption of new accounting treatment on January 1, and the related stock-based compensation expense, also increased its costs.

The firm's previously announced review of its stock option award practices also took place during the period, and concluded that management had used incorrect accounting measurement dates for two option grants awarded in 2002 and 2003. The company added that it had recorded the resulting adjustment in the reported period as it determined that the amount was "immaterial".