SAN DIEGO, Aug. 21, 2006 (PRIMEZONE) -- MicroIslet, Inc. (AMEX:MII) announced that it filed its Quarterly Report on Form 10-QSB for the quarter ended June 30, 2006 with the Securities and Exchange Commission today. The Company reported a net loss of $5.9 million for the first half of 2006 compared to a net loss of $3.9 million in the first half of 2005. Grant revenue was $154,000 and $295,000 for the three and six months ended June 30, 2006, respectively, and consisted entirely of research grants. No grant revenue was recognized for the first half of 2005.
Research and development expenses increased to $1.7 million in the second quarter of 2006 from $1.3 million in the second quarter of 2005, and increased to $3.6 million for the six months ended June 30, 2006, compared to $2.7 million for the same period in 2005. These increases were due to increased costs from our collaboration with the Mayo Foundation and UC Davis, an increase in headcount for lab personnel, increases in materials and services relating to testing of our technology in animals, and compensation expense from the new accounting treatment for stock-based compensation, SFAS 123(R), adopted by the Company on January 1, 2006. General and administrative expenses increased to $1.1 million in the second quarter of 2006 from $0.6 million in the second quarter of 2005 and increased to $2.7 million for the six months ended June 30, 2006, compared to $1.3 million for the same period in 2005. The increases were due to higher salaries and fees paid to senior management, fees for temporary consultants to fill open positions, higher-than-normal legal expenses, stock issuances to certain stockholders resulting from contractual liquidated damages owed them, and compensation expense from the new accounting treatment for stock-based compensation.
As previously announced, the Company undertook a review of its stock option award practices and has now concluded that management used incorrect accounting measurement dates for two stock option grants awarded in 2002 and 2003. The Company recorded the resulting adjustment in the current period as it determined the amount of the adjustment to be immaterial.
About MicroIslet
MicroIslet is a biotechnology company engaged in the research, development, and commercialization of patented technologies in the field of transplantation therapy for people with insulin-dependent diabetes. MicroIslet's patented islet transplantation technology, exclusively licensed from Duke University, includes methods for isolating, culturing, cryopreservation, and immuno-protection (microencapsulation) of islet cells. MicroIslet is working to develop and commercialize a first product, called MicroIslet-P(TM), a microencapsulated porcine islet cell suspension that will be used for transplantation in patients with insulin-dependent diabetes. Additional information about MicroIslet can be found at www.microislet.com.
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including MicroIslet's ability to continue as a going concern, the risks and uncertainties inherent in medical treatment discovery, development and commercialization, the risks and uncertainties associated with MicroIslet's early stage xenotransplantation technologies, the risks and uncertainties of governmental approvals and regulation, dependence on the Mayo Foundation for Medical Education and Research as a sole source supplier of animal parts for pre-clinical and clinical studies, MicroIslet's need to raise substantial additional capital to proceed through human clinical trials and bring any product to market, the risks that MicroIslet's competitors will develop or market technologies or products that are more effective or commercially attractive than MicroIslet's products, and other risks detailed from time to time in MicroIslet's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. MicroIslet disclaims any intent or obligation to update these forward-looking statements.
For more information, please visit our Web site at www.microislet.com.