GLEN ALLEN, Va., May 10 /PRNewswire-FirstCall/ -- Star Scientific, Inc. filed its first-quarter financial report on Form 10-Q today with the Securities & Exchange Commission. The company reported revenue for the first quarter of $0.2 million and a net loss of $4.9 million. Star also reported positive working capital of $16.0 million as of March 31, which includes $20.7 million in cash and cash equivalents. The company stated that losses generated from operating expenses continue to impose significant demands on liquidity. Cash needs during the remainder of 2010 include patent infringement litigation costs of roughly $1.6 million in connection with the company's patent infringement lawsuit against RJ Reynolds. Appellate counsel for Star filed the company's opening brief in its appeal of the June, 2009 trial verdict with the US Court of Appeals for the Federal Circuit on Wednesday, May 5. Star is represented in this appeal by Carter Philips and the law firm Sidley Austin, which also represented the company in its previous appeal.
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The company expects continuing cash requirements associated with the test market launch of CigRx(TM), the non-nicotine nutraceutical product developed by its Rock Creek Pharmaceuticals subsidiary. First quarter expenses related to CigRx(TM) totaled roughly $1.3 million. The company currently is engaged in a number of pre-market efforts in connection with the launch. It also is finalizing marketing plans with Gerbig, Snell, Weisheimer Advertising LLC. (GSW), a subsidiary of InVentiv Health. GSW will supply sales and marketing support when the test market commences.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Star Scientific, Inc. and its consolidated subsidiaries (collectively, the "Company") has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties and contingencies include, without limitation, the challenges inherent in new product development initiatives, the uncertainties inherent in the progress of scientific research, the Company's ability to raise additional capital in the future necessary to maintain its business, potential disputes concerning the Company's intellectual property, risks associated with litigation regarding such intellectual property, potential delays in obtaining any necessary government approvals of the Company's low-TSNA tobacco products, market acceptance of the Company's new smokeless tobacco products, competition from companies with greater resources than the Company, the Company's decision not to join the Master Settlement Agreement ("MSA"), and the Company's dependence on key employees and on its strategic relationships with Brown & Williamson Tobacco Corporation in light of its combination with RJ Reynolds Tobacco Company, Inc.
Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. See additional discussion under "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the SEC on March 16, 2010, and other factors detailed from time to time in the Company's other filings with the SEC, available at http://www.sec.gov/. All information in this release is current as of this date, and the Company undertakes no obligation to update or advise upon any such forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
About Star Scientific
Star Scientific is a technology-oriented company with a mission to reduce the harm associated with tobacco at every level. It is engaged in the development of dissolvable smokeless tobacco products that deliver fewer carcinogenic toxins, principally through the utilization of the innovative StarCured® tobacco curing technology. Through its Rock Creek Pharmaceuticals subsidiary it is also involved in the development of nutraceuticals as well as products to address neurological and mood disorders. Star Scientific has a Corporate and Sales Office in Glen Allen, VA, an Executive, Scientific & Regulatory Affairs office in Bethesda, MD, and a manufacturing facility in Chase City, VA. Rock Creek has scientific and research offices in Gloucester, MA and a regulatory office in Washington, D.C.
See Star's website at: http://www.starscientific.com/ Contact: Sara Troy Machir Vice President, Communications & Investor Relations smachir@starscientific.com (301) 654-8300
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Star Scientific, Inc.
CONTACT: Sara Troy Machir, Vice President, Communications & Investor
Relations of Star Scientific, +1-301-654-8300, smachir@starscientific.com
Web Site: http://www.starscientific.com/
