Spherix Announces Third Quarter 2012 Financial Results

Spherix Announces Third Quarter 2012 Financial Results

BETHESDA, Md., Nov. 15, 2012 (GLOBE NEWSWIRE) -- Spherix Incorporated
(Nasdaq:SPEX) – an innovator in biotechnology for therapy in diabetes,
metabolic syndrome and atherosclerosis, and provider of technical and
regulatory consulting services to food, supplement, biotechnology and
pharmaceutical companies – today reported financial results for the three and
nine months ended September 30, 2012.

On November 13, 2012, the Company expanded its Board of Directors to eight
board members and will be re-examining its business strategies and exploring
strategic alternatives. This effort may result in the divestiture or winding
down of certain of our current businesses and the possible entry into a new,
as yet unidentified business, including acquisitions.

Financial Results for the Three and Nine Months Ended September 30, 2012

The net loss for the third quarter of 2012 was $0.8 million or $3.69 per
share, compared with a net loss of $0.9 million or $7.13 per share for the
third quarter of 2011.  Working capital was $3.1 million as of September 30,
2012, compared with $4.6 million as of December 31, 2011. The Company's cash
and cash equivalents as of September 30, 2012 were $3.7 million, compared with
$4.9 million as of December 31, 2011. In November 2012, Spherix raised $2.6
million in a private placement.

The net loss for the nine months ended September 30, 2012 was $2.7 million or
$13.31 per share, compared with a net loss of $2.2 million or $17.13 per share
for the nine months ended September 30, 2011.

About Spherix

Spherix Incorporated was launched in 1967 as a scientific research company
under the name Biospherics Research. The Company now leverages its scientific
and technical expertise and experience through its two subsidiaries –
Biospherics Incorporated and Spherix Consulting, Inc. Biospherics is dedicated
to developing and licensing/marketing proprietary therapeutic products for
treatment of diabetes, metabolic syndrome and atherosclerosis. Biospherics is
exploring new drugs and combinations for treatment of high triglycerides, a
risk factor for atherosclerosis, myocardial infarction, and stroke. Spherix's
Consulting subsidiary provides scientific and strategic support for suppliers,
manufacturers, distributors and retailers of conventional foods,
biotechnology-derived foods, medical foods, infant formulas, food ingredients,
dietary supplements, food contact substances, pharmaceuticals, medical
devices, consumer products and industrial chemicals and pesticides. For more
information, please visit www.spherix.com.

The Spherix Incorporated logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=14019

Forward-Looking Statements

This release contains forward-looking statements which are made pursuant to
provisions of Section 21E of the Securities Exchange Act of 1934. Investors
are cautioned that such statements in this release, including statements
relating to planned clinical study design, regulatory and business strategies,
plans and objectives of management and growth opportunities for existing or
proposed products, constitute forward-looking statements which involve risks
and uncertainties that could cause actual results to differ materially from
those anticipated by the forward-looking statements. The risks and
uncertainties include, without limitation, risks that product candidates may
fail in the clinic or may not be successfully marketed or manufactured, we may
lack financial resources to complete development of our products, the FDA may
interpret the results of studies differently than us, competing products may
be more successful, demand for new pharmaceutical products may decrease, the
biopharmaceutical industry may experience negative market trends, our
continuing efforts to develop products may be unsuccessful, our common stock
could be delisted from the Nasdaq Capital Market, and other risks and
challenges detailed in our filings with the U.S. Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on any
forward-looking statements which speak only as of the date of this release. We
undertake no obligation to publicly release the results of any revisions to
these forward-looking statements that may be made to reflect events or
circumstances that occur after the date of this release or to reflect the
occurrence of unanticipated events.

 
Condensed Consolidated Statements of Operations
(Unaudited)
                                                                 
                        Three Months Ended Sept.  Nine Months Ended Sept. 30, 
                       30, 
                        2012         2011         2012           2011 
                                                                 
Revenue                 $ 194,301    $ 198,464    $ 609,966      $ 690,817
                                                                 
Operating expenses                                               
Direct costs            (111,135)    (87,399)     (354,600)      (336,714)
Research and            (107,817)    (371,327)    (617,470)      (1,131,329)
development expense
Selling, general and    (742,142)    (653,651)    (2,310,163)    (2,271,369)
administrative expense
Total operating         (961,094)    (1,112,377)  (3,282,233)    (3,739,412)
expenses
                                                                 
Loss from operations    (766,793)    (913,913)    (2,672,267)    (3,048,595)
Interest income         830          595          2,774          2,680
Other income            --           --           --             53,007
Gain on settlement of   --           --           --             845,000
obligations
Loss before taxes       (765,963)    (913,318)    (2,669,493)    (2,147,908)
                                                                 
Income tax expense      --           --           --             (14,485)
                                                                 
Net loss                $ (765,963)  $ (913,318)  $ (2,669,493)  $ (2,162,393)
                                                                 
                                                                 
Net loss per share,     (3.69)       (7.13)       (13.31)        (17.13)
basic
Net loss per share,     (3.69)       (7.13)       (13.31)        (17.13)
diluted
                                                                 
Weighted average
shares outstanding,     207,806      128,124      200,547        126,227
basic
Weighted average
shares outstanding,     207,806      128,124      200,547        126,227
diluted

 
Condensed Consolidated Balance Sheets
                                                                  
ASSETS                                            Sept. 30, 2012  December 31,
                                                 (Unaudited)      2011 
Current assets                                                    
Cash and cash equivalents                         $ 3,650,037     $ 4,911,350
Trade accounts receivable, net of allowance of    156,438         286,065
$0 and $8,174
Other receivables                                 34,348          293
Prepaid research expenses                         --              209,780
Prepaid expenses and other assets                 24,166          120,427
 Total current assets                             3,864,989       5,527,915
                                                                  
Property and equipment, net of accumulated        42,145          91,482
depreciation of $316,438 and $265,502
Patents, net of accumulated amortization of $0    --              --
and $2,146
Deposit                                           25,625          35,625
 Total assets                                     $ 3,932,759     $ 5,655,022
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                              
Current liabilities                                               
Accounts payable and accrued expenses             $ 213,424       $ 269,996
Accrued salaries and benefits                     454,393         549,815
Deferred revenue                                  80,876          72,871
 Total current liabilities                        748,693         892,682
                                                                  
Deferred rent                                     44,876          47,675
 Total liabilities                                793,569         940,357
                                                                  
Commitments and contingencies                                     
                                                                  
Stockholders' equity                                              
Preferred stock, $0.01 par value, 2,000,000
shares authorized; 5,250 series B issued and 1    --              --
outstanding at September 30, 2012 and December
31, 2011
Common stock, $0.01 par value, 2,500,000 shares
authorized; 208,207 and 155,150 issued, 207,806   2,082           1,551
and 154,723 outstanding at September 30, 2012
and December 31, 2011, respectively
Paid-in capital in excess of par value            43,418,272      42,324,785
Treasury stock                                    (464,786)       (464,786)
Accumulated deficit                               (39,816,378)    (37,146,885)
 Total stockholders' equity                       3,139,190       4,714,665
 Total liabilities and stockholders' equity       $ 3,932,759     $ 5,655,022

CONTACT: Investor Relations
         Phone: (301) 897-2564
         Email: info@spherix.com

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