Wednesday, April 20, 2005

Provectus Pharmaceuticals

Capital Raised: $ 23.73 million
Capital Burned: $ 14.57 million
Previous Executive Compensation: Not Available, disclosed on their proxy statement

At first glance, Provectus appears to be a company that hasn't completely burned through all of their capital. Upon closer examination, we find an intangible $10 million item on their balance sheet carried as "patents". Whether or not Provectus really has patents worth $10 million is subject to debate, but their income statement shows 2004 total revenues of just under $32,000 while they took a $671,000 amortization charge against those patents.

Frequently, you will hear the "naked short seller" scammers talk about all the wonderful research and development that isn't getting done because "naked short selling" suffocates these small, innovative companies. Over the past three years, Provectus has spent nearly five times more money on general and administrative expenses than they spent on actual research and development.

How long do you think that kind of behavior would be tolerated at a real research and development oriented company?


Post a Comment

<< Home