CathRx Ltd (CathRx), an Australia-based company, has reported revenues and other income of AUD553,451 for the first half of fiscal 2009, compared with the revenues and other income of AUD552,419 million in the year-ago period. It has also reported a net loss of AUD7.1 million for the first half of fiscal 2009, compared with the net loss of AUD4.4 million in the year-ago period.
The company will continue to develop and commercialize its products for the established cardiac catheter market in the 2009 financial year and will incur further operating losses and have net cash outflows from its operating activities for at least the next 12 months. The company expects to generate cash from sales in this period as it continues to achieve its milestones. Delays may be experienced as a result of current market conditions.
Notwithstanding this, by actively managing its cash flows, controlling costs and revising its development plans as necessary the company believes it has sufficient cash reserves to continue as a going concern through the next 12 months and will lead to the generation of positive operating cash flows during calendar year 2010.
The company may choose to further develop its product range and expand its research and development activity in the future depending on current market conditions and will look to raise further capital to achieve this goal.
The company has entered into license/lease agreements for the lease of its premises. The license/lease agreements have a remaining term of up to nine years (from the end of the half year ended 31 December 2008) and require the company to pay Homebush license fees of $580,000 in total on an annual basis. In addition, outgoings may also be payable.