Yesterday, LecTec Corporation announced that they have released their 2010 first quarter financial information. In addition, they announced that they have completed a prototype of their hand sanitizer patch and are in the process of certain management changes.
The Company’s cash and cash equivalents decreased $5,586,555 for the three-month period ended March 31, 2010 to $10,179,552 from December 31, 2009. The decrease in cash and cash equivalents resulted mainly from cash dividend payments of $4,298,350 and from current operating expenses of $394,475 for the first quarter.
Royalty income was $19,529 for the first quarter. This represents a decrease of $22,578 from first quarter 2009. This decrease in revenue was primarily due to a decrease in royalty income resulting from the continued trend of lower sales by Novartis of its patch products using LecTec licensed intellectual property.
LecTec Corporation’s Board of Directors approved certain management changes on May 16, 2010. Mr. Judd Berlin, the Company’s current Chief Executive Officer and Chief Financial Officer and the Chairman of their Board of Directors will step down as Chief Executive Officer and Chief Financial Officer. Mr. Berlin will remain Chairman of the Board of Directors.
Mr. Greg Freitag will become LecTec’s new Chief Executive Officer and Chief Financial Officer, and will receive appointment to the Board of Directors. Dr. Daniel C. Sigg, Chief Scientific Officer and a member of the Board of Directors, will reduce his efforts from full-time to half time. He will remain a member of the Company’s Board of Directors.
Dr. Sigg has led the screening, identification, testing and subsequent selection of dry technologies suitable for an anti-microbial hand-sanitizer patch application. Subsequent bench testing of multiple antimicrobial technologies demonstrated noteworthy antimicrobial efficacy in the laboratory of at least two technologies. Additional technologies are still under evaluation.
Headquartered in Texarkana, Texas, LecTec Corporation is an intellectual property (IP) licensing and holding company. The Company holds multiple domestic and international patents based on their original hydrogel patch technology. Additionally, they have filed for a provisional patent for their hand sanitizer patch. The LecTec hydrogel patch technology allows for a number of potential applications. The Company’s hand sanitizer patch is a consumer product that kills targeted infectious organisms. Its intention is to be dry, which makes the patch harmless if it is licked, chewed, or exposed to the eye.
LecTec Corporation’s strategy focuses on four major areas. One area of focus is to continue limited research and development on their hand sanitizer patch and the initial prototype, and engage a strategic partner to complete the hand-sanitizer patch development and bring it to market. Another focus is further monetization, if possible, of their intellectual property portfolio, excluding the hand sanitizer patch, through licensing, selling or engaging strategic partners for all or a portion of the hydrogel IP. A third area of focus is to support LecTec’s current litigation strategy. Their fourth area of focus is to pursue merger/acquisition opportunities.