Vermillion's cash nearly tripled in October after exercising warrants and receiving a loan from Quest Diagnostics, according to documents filed this week with the US Bankruptcy Court in Delaware.
The results come on the heels of the US Food and Drug Administration's clearance of Vermillion's OVA1 ovarian cancer test in September [See PM 12/11/09].
In addition to the monthly income statement for October, Vermillion filed income statements for August and September the same day this week with bankruptcy court. They reveal that the company, which filed for Chapter 11 protection in March, had nearly run out of cash by the end of the summer, but after receiving clearance for OVA1, its finances began a sharp turnaround.
Vermillion ended August with $64,213 in cash but by the end of September, after receiving 510(k) clearance for the test, that figure increased 20-fold to more than $1.3 million, which included $1.2 million from the exercise of warrants.
By the end of October, Vermillion's cash rose to almost $3.9 million, after it exercised warrants that netted the company nearly $2.4 million. It also recorded $400,000 from a debtor-in-possession loan it received from Quest. Together, the two transactions accounted for Vermillion's total receipts of about $2.8 million.
Quest's loan is for a total of $1.5 million. It and Vermillion forged an alliance in 2005, and are currently preparing to launch OVA1.
Vermillion's disbursements for October totaled $240,696. It ended the month with a net loss of $602,614.
It said it had cash and cash equivalents of almost $3.9 million as of Oct. 31, while total assets reached $13.3 million and total liabilities were $33.1 million.
Vermillion recently filed its reorganization plan with bankruptcy court and a hearing on it is scheduled for Jan. 7, 2010 [See PM 12/04/09].