Sounds good Mark! Sold some HOM on the run up but disappointed it fell back this far...sold my API while gone also on limit orders though missed the high by a lot...and got back in STV today at 14.42 so I'm down a few cents already! LOL! Also added more AXJ at 1.60 today as their earnings report Monday didn't look bad: AXM Pharma Announces Record Revenue and Profit
Monday August 15, 4:00 pm ET
LAS VEGAS, NV--(MARKET WIRE)--Aug 15, 2005 -- AXM Pharma, Inc. (AMEX:AXJ - News) announced today financial results for the quarter ended June 30, 2005.
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During the three-month period ended June 30, 2005 AXM entered into the Company's first three international markets for its line of Sunkist labeled products. The new markets where products were launched were Hong Kong, Taiwan and Shanghai. This -- combined with the ramp up of AXM's new factory in Shenyang, China -- enabled the Company to record the best sales quarter in its history. Sales for the three months ended June 30, 2005 were $3,220,978, representing a sales increase of $2,242,315 or 229%, from the three-month period ended June 30, 2004. Sales for the six-month period ended June 30, 2005 were $3,249,238 compared to $2,097,628 for the six months ended June 30, 2004. This represents an increase of $1,151,610 or 54%.
Gross profit for the three months ended June 30, 2005 was $1,707,838 compared to $513,228 for the three-month period ended June 30, 2004, an increase of $1,194,610 and 232%. This tripling of the gross profit is attributable to the record sales reported for the quarter. For the six months ended June 30, 2005, the gross profit was $1,712,623 or an increase of $660,767, 62% greater than the comparable six-month period last year. Operating income for the three months ended June 30, 2005 was $678,348 compared to an operating loss of $4,353,251.
During the quarter ended June 30, 2005, AXM had total general and administrative expense of $1,029,490 compared to $4,866,479 for the comparable period in 2004, a decrease of $3,836,989. This general and administrative expense included $301,266 in non-cash general and administrative expense. For the sixth month period ended June 30, 2005, we had total general and administrative expenses of $4,136,568 compared to $7,900,493, a decrease of $3,763,925. This general and administrative expense included approximately $1,600,000 in non-cash general administrative expense.
The reason for the significant improvement in both cash and non-cash general and administrative expenses was the lack of significant consulting expense as compared to the prior year while AXM's new factory was undergoing construction and the Company was establishing infrastructure to enter various markets.
During the quarter the Company incurred $498,939 in interest expense with $126,755 in interest on bank loans in AXM's subsidiary in Shenyang China and $372,184 in interest charges relating to the debt discount on notes payable financing in April 2005.
AXM generated its first quarterly net profit two quarters ahead of management expectations. For the three months ended June 30, 2005 AXM had net income of $179,409 compared to a loss of $4,353,251 for the three months ended June 30, 2004. This represents an improvement of $4,532,660.
This significant improvement in operating results was the result of large increases in sales and corresponding gross profit improvements coupled with reductions in general and administrative expense as well as the reduction of costs associated with completion of our factory and resultant reductions in outside consulting expense.
"We are extremely pleased with the progress we have made as a company in 2005," said Chet Howard, CEO, AXM Pharma Inc. "We have spent a considerable amount of time, capital, and effort to build a new factory and establish ourselves as a strong, independent player in both China and the broader Asian marketplace and we're proud of how far we have come."
AXM Pharma Inc., axmpharma.com, through its wholly owned subsidiary, Werke Pharmaceuticals, Inc., is the 100% owner of AXM Pharma Shenyang, Inc. ("AXM Shenyang"), a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the People's Republic of China. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang and its predecessor company Shenyang Tianwei Pharmaceutical Factory, Ltd. ("STPF"), has an operating history of approximately 10 years. AXM Shenyang historically has been a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. For additional information on AXM Pharma Inc, please visit iccinfo.com or call Investor Communications Company, LLC at 866 562 0134.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company's operations, markets, services, products and prices. With respect to AXM, except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, AXM's extremely limited operating history, uncertainties related to the Company's access to additional capital, competition and dependence on key management.
AXM PHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2005 2004
------------ ------------
ASSETS
Current Assets
Cash $ 559,382 $ 1,255,681
Accounts Receivable, net of
allowance 3,253,055 30,750
Inventory 2,186,815 2,002,130
Advances, Suppliers 1,000,770 442,121
Other Current Assets 2,980 0
------------ ------------
Total Current Assets 7,003,452 3,730,682
Property & Equipment, Net 7,661,524 7,160,376
Licenses 1,499,888 1,449,888
------------ ------------
TOTAL ASSETS $ 16,164,864 $ 12,340,946
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short Term Loan $ 3,273,161 $ 1,001,668
Value Added Tax Payable 18,998 3,015
Accounts Payable and accrued expense 3,815,031 4,342,013
------------ ------------
Total Current Liabilities 7,107,190 5,346,696
Long Term Notes 372,184 0
STOCKHOLDERS' EQUITY
Series A, Preferred stock, $.001 par
value, 10,000,000 shares authorized,
938,200 shares issued and outstanding 938 1,675
Series B Preferred stock, $.001 par
value, 2,000,000 shares authorized,
no shares issued and outstanding - -
Series C Preferred stock, $.001 par
value, 100 shares authorized, 17.425
shares issued and outstanding - -
Common Stock, $.001 par value,
50,000,000 shares authorized,
19,564,085 shares issued and
outstanding 19,564 18,036
Additional paid-in capital 30,855,810 26,242,477
Accumulated deficit (22,190,822) (19,267,938)
------------ ------------
Total Equity 8,685,490 6,994,250
Liabilities and Equity $ 16,164,864 $ 12,340,943
============ ============
AXM PHARMA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues $ 3,220,978 $ 978,663 $ 3,249,238 $ 2,097,628
Cost of Revenues 1,513,140 465,435 1,536,615 1,045,772
----------- ----------- ----------- -----------
Gross Profit 1,707,838 513,228 1,712,623 1,051,856
General, Administrative
and Selling:
Cash 728,224 3,199,679 2,575,354 4,568,693
Non-cash 301,266 1,666,800 1,561,214 3,331,800
----------- ----------- ----------- -----------
Total general,
administrative
and selling 1,029,490 4,866,479 4,136,568 7,900,493
----------- ----------- ----------- -----------
Operating Income (Loss) 678,348 (4,353,251) (2,423,945) (6,848,637)
Interest Expense 498,939 - 498,939 -
----------- ----------- ----------- -----------
Net Income (Loss) $ 179,409 $(4,353,251) $(2,922,884) $(6,848,637)
Net Income (Loss)
applicable to
common shareholders:
Net Income (Loss) $ 179,409 $(4,353,251) $(2,922,884) $(6,848,637)
Beneficial conversion
features of
preferred stock - (827,838) - (1,775,466)
Deemed dividend
from beneficial
Conversion of
warrants (107,015) (84,051) (214,030) (221,440)
----------- ----------- ----------- -----------
Net Income (Loss)
applicable to
common shareholders $ 72,394 $(5,265,140) $(3,136,914) $(8,845,543)
=========== =========== =========== ===========
Net Income (Loss)
per share: $ 0.00 $ (0.35) $ (0.17) $ (0.60)
Basic and diluted
Weighted averaged
shares outstanding:
Basic and diluted 19,439,379 15,221,836 18,971,432 14,708,684
AXM PHARMA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30,
(Unaudited)
2005 2004
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(2,922,884) $(6,848,637)
Adjustments to reconcile net loss to
cash used in operating activities:
Common stock issued for services
and interest 1,580,124 3,331,800
Depreciation and amortization 47,916 20,100
Non-cash interest expense 372,184 -
Changes in assets and liabilities:
Accounts receivable (3,222,305) 1,786,077
Advances, suppliers (558,649) 917,520
Inventories (184,685) (732,259)
Accounts payable and accrued expenses (526,982) (192,044)
Value added tax payable 15,983 (2,239,162)
----------- -----------
CASH FLOWS USED IN OPERATING ACTIVITIES (5,399,298) (3,956,605)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (602,044) (1,326,954)
----------- -----------
CASH FROM FINANCING ACTIVITIES
Proceeds from notes payable 3,034,000 6,492,963
Proceeds from bank loans 2,271,493 -
----------- -----------
CASH FROM FINANCING ACTIVITIES 5,305,493 6,492,963
----------- -----------
NET INCREASE IN CASH (695,849) 1,209,404
Cash, beginning of period 1,255,681 2,950,782
----------- -----------
Cash, end of period $ 559,832 $ 4,160,186
=========== ===========
Contact:
Contact:
Contact Information:
Tom Bostic
Investor Communications Company, LLC
(866) 562-0134
--------------------------------------------------------------------------------
Source: AXM Pharma, Inc.
Best of luck on your MTSX! tuna |
