GLEN ALLEN, Va., March 17, 2011 /PRNewswire/ -- Star Scientific filed its annual report on Form 10-K yesterday with the Securities and Exchange Commission. The company reported net sales of $0.85 million for 2010 compared with $0.71 million sales for 2009. The increase reflects in part sales of the company's CigRx® smoking alternative nutraceutical that was introduced in the Richmond, VA tri-cities area in August, 2010. The company also reported a net loss of approximately ($28.3) million compared with a net loss of approximately ($22.8) for 2009. The difference in net loss was related largely to a non-cash, stock-based compensation charge of $8 million for option grants to a group of employees, directors and a consultant in April, 2010, which was partially offset by a decrease in legal expenses associated with our ongoing patent litigation with RJR.
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Research and development expenses were substantially increased during 2010: they totaled $3 million, as compared with 2009 expenditures of $1.8 million. The bulk of the increased expense related to development of CigRx® and to other research efforts underway at the company's wholly owned subsidiary, Rock Creek Pharmaceuticals. At 2010 year end Star had approximately $12.6 million of working capital that included $13.2 million in cash. Between January 1 and March 15, 2011 the company raised an additional $11 million through a securities purchase and registration rights agreement with several investors as well as the company's CEO, Jonnie Williams.
The company also stated that on March 15 Star's appellate counsel filed a letter with the US Federal Circuit Court of Appeals under its rule 28(j), informing the Court that the patent claims at issue in the company's patent infringement lawsuit against RJ Reynolds (RJR), currently on appeal to that Court, had been confirmed as valid upon reexamination by the US Patent & Trademark Office. The patent reexaminations had been requested by RJR in early 2009, several months before the jury trial in this lawsuit commenced. As the company noted in its March 11 release, it currently awaits a decision from the Federal Circuit on its appeal of the June, 2009 trial of Star's patent infringement lawsuit against RJR.
Certain statements in this press release other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "continues," "likely," "may," "opportunity," "potential," "projects," "will," "expects," "plans," "intends" and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based on information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, without limitation, the challenges inherent in new product development initiatives through Star Tobacco and Rock Creek, the uncertainties inherent in the progress of scientific research, our ability to raise additional capital in the future that is necessary to maintain our business, potential disputes concerning our intellectual property, risks associated with litigation regarding such intellectual property, uncertainties associated with the development, testing and regulatory approvals of our low-TSNA tobacco, related tobacco products and pharmaceutical and nutraceutical products , market acceptance of our new smokeless tobacco products and nutraceutical and pharmaceutical products, competition from companies with greater resources than us, our dependence on key employees and on our prior strategic relationships with Brown & Williamson Tobacco Corporation in light of its combination with R.J. 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, 2011, and other factors detailed from time to time in the Company's other filings with the SEC, available at 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. Its subsidiary, Rock Creek Pharmaceuticals, Inc., is involved in the development of nutraceuticals as well as products to address neurological and mood disorders. Rock Creek Pharmaceuticals has scientific and research offices in Gloucester, MA, and a regulatory office in Washington, D.C. 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.
See Star's website at: http://www.starscientific.com
Contact: |
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Sara Troy Machir |
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Vice President, Communications & Investor Relations |
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(301) 654-8300 |
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SOURCE Star Scientific, Inc.
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