Star Scientific Files Annual Financial Report; Rock Creek Pharmaceuticals Prepares for National Launch of Anatabloc at GNC Stores
Star Scientific, Inc. (NASDAQ: CIGX) today filed its annual financial report on Form 10-K with the Securities & Exchange Commission (SEC). The company reported that net sales for 2011 totaled $1.73 million, a 100% increase over 2010 net sales of $.848 million. Fourth-quarter 2011 net sales totaled $0.91 million compared with $0.15 million in fourth-quarter 2011.
Net sales of the company's dietary supplements constituted 71.8% of gross sales for 2011, and dietary supplement sales continued to increase month over month in both January and February, 2012. In a parallel development, Rock Creek Pharmaceuticals, the company's wholly-owned subsidiary, is preparing for a national launch of Anatabloc at GNC retail stores.
Total operating expenses for 2011 increased to $36.0 million from $26.9 million for 2010. The company reported a net loss of $38.0 million for 2011, which includes a non-cash, stock-based compensation charge of approximately $17.3 million, attributable primarily to stock option grants that were approved by the company's stockholders at Star Scientific's Annual Meeting in December. Star reported 2011 year-end cash and cash equivalents of $10.19 million. The company also reported that on February 28, 2012 it entered into two Securities Purchase Agreements that resulted in gross proceeds of $12.0 million to Star Scientific.
The company previously announced that on December 28th, 2011 it had entered into a Securities Purchase Agreement that resulted in gross proceeds of $6.3 million. That transaction, along with the February 28th transactions, resulted in a total of $18.3 million in gross proceeds to Star.
The company also reported that in February, 2012 PGA Tour professional Fred Couples entered into an agreement with Rock Creek Pharmaceuticals, under which Mr. Couples agreed to be a brand ambassador for Anatabloc® at tournaments and related events
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