CHICAGO, Aug. 21 /PRNewswire-FirstCall/ -- CytoCore, Inc. (BULLETIN BOARD: CYCR) , a life sciences company engaged in the design, development, and commercialization of cost effective screening systems to assist in the early detection of cervical and uterine cancers, reports a loss of $.01 per share for quarter ended June 30, 2006 and a loss of $.02 per share for the six months ending June 30, 2006. During this quarter, the company has reduced Stockholder's Deficit by 54 percent and liabilities by 34 percent.
During the quarter ending June 30, 2006, the company continued its progress toward successfully restructuring its financial position as it increased its cash balance to $2.1 million through the sale of equity, reduced stockholders' deficit by 54 percent or $5.3 million through conversion of debt to equity and reduced liabilities by 34 percent or $3.5 million by payment and settlement of accounts payable and accrued liabilities. This was accomplished while CytoCore restarted clinical research operations, moved the e2 Collector(TM) toward manufacturing, and organized two clinical trials, set to begin this fall.
"We are very pleased with the progress the new management team has achieved since assuming operational responsibility for the company ten months ago," said Robert McCullough, Jr., Chief Financial Officer of CytoCore. "For the past 12 months, management has reduced liabilities from $13.4 million as of June 30, 2005 to $6.92 million as of June 30, 2006. Since June 30, 2006, an additional $1 million in liabilities has been settled, and management believes an additional $1.25 million in liabilities may soon be settled. Of the remaining liabilities, $2 million in convertible notes and accrued interest is due to a single shareholder. Over the past 12 months, most of the legal claims brought against the company have been settled, representing approximately $2.5 million in liabilities."
During the recent six-month period ending June 30, 2006, investors and note holders demonstrated and reaffirmed their confidence in CytoCore's future. The company raised approximately $4.9 million in new funding through the sale of equity, and converted $6.2 million of notes with accrued interest and preferred stock into equity.
"We are nearly finished with the cleanup and simplification of our capital structure, thereby significantly reducing the cost and expense of financing the company, which gives us the ability to channel new resources into clinical work, marketing and product development. We are very excited about the operational activities that occurred for the Company in this current quarter," said McCullough.
About CytoCore Inc.
CytoCore develops cost-effective cancer screening systems, which can be utilized in a laboratory or at the point-of-care, to assist in the early detection of cervical, endometrial, and other cancers. The InPath(TM) System is being developed to provide medical practitioners with a highly accurate, low-cost, cervical cancer screening and treatment system that can be integrated into existing medical models or at the point-of-care. More information is available at: http://www.cytocoreinc.com/ .
Certain statements in this release are forward-looking. These statements are based on CytoCore's current expectations and involve many risks and uncertainties, such as the company's inability to obtain sufficient financing, the possibility that clinical trials will not substantiate CytoCore's expectations with respect to the InPath(TM) System, and other factors set forth in reports and documents filed by CytoCore with the Securities and Exchange Commission. Actual results may differ materially from CytoCore's current expectation depending upon a number of factors affecting the Company's business. These factors include, among others, risks and uncertainties detailed in the Company's periodic public filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2005. Except as expressly required by law, CytoCore undertakes no obligation to publicly update or revise any forward-looking statements contained herein.
