CABN News:
May 15 -
Carbon Sciences, Inc. Files Quarterly Report with SEC
Net Loss Decreases By 33% for the Quarter
Carbon Sciences, Inc. (OTCBB: CABN), the developer of a breakthrough technology to transform harmful carbon dioxide (CO2) into high value, earth-friendly products, announced its results of operations for the quarter ended march 31, 2008 compared to the quarter ended march 31, 2007:
Selling and Marketing Expenses
Selling and Marketing ("S&M") expenses decreased by $142,888 or 48.85% to $149,638 for the three months ended March 31, 2008, compared to the period ended March 31, 2007. The decreased in S&M expenses was due primarily to a decrease in salaries.
General and Administrative Expenses
General and administrative ("G&A") expenses decreased by $2,854 or 6.86% to $38,767 for the three months ended March 31, 2008, compared to the period ended March 31, 2007. The decrease in G&A expenses was due primarily to a decrease in rent expense.
Research and Development
Research and Development ("R&D") costs increased by $41,258 or 4125.80% to $42,258 for the three months ended March 31, 2008, compared to the period ended March 31, 2007. The increase in R&D was the result of testing of product alternatives.
Net Loss
Net Loss for the three months ended March 31, 2008 was $226,315 compared to $337,547 for the period ended March 31, 2007. Currently the Company is in its development stage and had no revenues.
Liquidity and Capital Resources
As of March 31, 2008, we had $720,679 of working capital as compared to $942,782 as of December 31, 2007. This decrease of $222,103 was due primarily to the use of funds for operations, since the company is in the developmental stage and has no revenues.
Cash flow used in operating activities was $198,284 for three months ended March 31, 2008, as compared to cash used of $266,901 for the period ended March 31, 2007. This decrease of $68,617 was primarily attributable to an decrease in salaries.
Cash provided by investing activities was $191,441 for the three months ended March 31, 2008, as compared to cash used of $0 for the period ended March 31, 2007. The increase of cash provided by investing activities was primarily due to withdrawals from certificates of deposits for operating expenses.
Cash provided from financing activities during the three months ended March 31, 2008 and 2007 was $0 and $315,500 respectively. From inception to March 31, 2008, we received a total of $2,228,875 from the sale of shares of our common stock through private placements of shares of common stock pursuant to Subscription Agreements, which we entered into with accredited and/or institutional buyers.
PLAN OF OPERATION AND FINANCING NEEDS
We are developing a technology to transform harmful carbon dioxide (CO2) into high value, earth-friendly products. We call this technology GreenCarbon Technology. The Company's management believes that energy and CO2 intensive industries, such as paper production, will welcome this innovative clean technology because it offers two very important benefits — lower cost and carbon neutrality.
Our plan of operation within the next twelve months is to utilize our cash balances to continue research and development of our carbon transformation technology and complete a demonstrable prototype. We believe that our current cash and investment balances will be sufficient to support development activity and general and administrative expenses for the next twelve months. Management estimates that it will require additional cash resources during 2008, based upon its current operating plan and condition. There is no assurance that capital in any form would be available to us, and if available, on terms and conditions that are acceptable. If we are unable to obtain sufficient funds during the next twelve months, we may be forced to reduce the size of our organization, which could have a material adverse impact on, or cause us to curtail and/or cease, the development of our products. |
