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Aquasearch Aquasearch Inc. lost $1.33 million in the three months through July 31, a 34 percent bigger deficit than the $992,000 loss that the Kona developer of medical and dietary supplements from microalgae reported for the year-earlier quarter.
loss widens to
$1.3 million
The company says
it spent most of its money
on research and developmentBy Russ Lynch
Star-Bulletin
Reporting on its fiscal third quarter, Aquasearch said it had no third-quarter sales this year or last year, according to the filing last week with the Securities & Exchange Commission. The company describes itself as a "development stage enterprise" and says it has spent most of its money on research and development and has only recently begun gearing up for sales.
Aquasearch said it had revenues of $31,000 from initial sales of its natural astaxanthin -- a product used to enhance color in pond-raised salmon and as a human health supplement -- but included it in "other income" rather than sales because the small amount was "incidental to our ongoing research and development activities."
The company recently arranged a $10 million line of credit. Earl S. Fusato, chief financial officer, said today the credit line will be drawn upon for working capital.
After years of development, Aquasearch is beginning to see money coming in, he said. In its SEC report, the company said projected sales could bring an operating profit within 12 months.
Aquasearch's big hope is for its trademarked AstaFactor astaxanthin, marketed as a dietary product that the company says has been shown to help people with a number of illnesses, including Alzheimer's and Parkinson's diseases, and stroke and cancer victims. The company is marketing the product through a Web site, www.astafactor.com, at $29.95 for a package of 60 capsules.
Since it was formed in 1984 by scientists from the Scripps Institution of Oceanography in California, Aquasearch has incurred total losses of $15.2 million, according to the latest filing.
The company's over-the-counter stock ended today at 57 cents, down a penny from yesterday. It is up 54 percent so far this year.