Pharmathene Q2 2009 Earnings Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Elemer Piros - Rodman & Renshaw - Analyst : Yes, hi, this is Elemer Piros actually. Good morning. Can you hear me?

Question: Elemer Piros - Rodman & Renshaw - Analyst : What I would like to ask David, if you could please walk us through the timeline from the point on when the government actually asked for FDA feedback. And, if you could provide us what sort of activities took place up to-date, and what else is remaining to be done?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Got it.

Question: Elemer Piros - Rodman & Renshaw - Analyst : Understand. If you were to get the grant or the contract, David, would there be some sort of an upfront payment made by the government, is that part of the negotiation?

Question: Elemer Piros - Rodman & Renshaw - Analyst : And I know you can't disclose specific numbers, but an upfront payment would be -- is it crazy to speculate that it would be somewhere in the order of say a year's worth of cash burn for PharmAthene?

Question: Elemer Piros - Rodman & Renshaw - Analyst : And, Chris, I have couple of numbers related questions as well. The line item in your balance sheet, other receivables, it is fairly sizeable during this quarter. Those are receivables within the third quarter?

Question: Elemer Piros - Rodman & Renshaw - Analyst : And so, your cash position is closer to almost double of what you have actually --?

Question: Elemer Piros - Rodman & Renshaw - Analyst : I think the numbers related question -- what would be your cash burn, Chris, with or without a SparVax contract on a monthly basis?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Thank you for that. And what are the -- just the rough size of those so-called BAA contracts maybe, David, or, Chris?

Question: Elemer Piros - Rodman & Renshaw - Analyst : And over a three-year period -- three to five-years?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Okay. And one last question, and thanks for answering these. Is there an update that you can provide vis-a-vis the litigation with SIGA?

Question: Elemer Piros - Rodman & Renshaw - Analyst : But you are still in the discovery phase, is it safe to assume?

Question: Elemer Piros - Rodman & Renshaw - Analyst : Thank you so much, gentlemen.

Question: Debra Fiakas - Crystal Equity - Analyst : Thank you. Some of my questions were answered in the preceding queries, but I wondered if you could also elaborate on what the cash burn was in the second quarter, just for that quarter?

Question: Debra Fiakas - Crystal Equity - Analyst : Okay, very good. And then also, could you just for housekeeping purposes give us an idea of what are the unused portions or unspent portions -- unbilled portions of the contract that have already been awarded? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Debra Fiakas - Crystal Equity - Analyst : Okay, very good. And then, you mentioned that there will be presentation of SparVax data or SparVax development progress at an upcoming event at the end of August. So I wondered whether you could repeat where that is, and whether or not those materials will be available to the public.

Question: Debra Fiakas - Crystal Equity - Analyst : Okay, thank you. That is all for right now. Thanks.

Question: Steve Brozak - WBB Securities - Analyst : Hey, good morning, gentlemen. I just want to go over some mechanics of when contracts are awarded in terms of, how distributions are made and how milestones are set up. We have been following the system of awards, and a lot of things that are done are done based on milestones, which you basically have boxes to check where funds are then distributed to the Company. Is that your expectation going into the future and looking at this award, where you do X, Y, and Z and it becomes a situation where you actually control your destiny in terms of revenue recognition and things like that? Can you give a little bit of clarity in terms of how that works?

Question: Steve Brozak - WBB Securities - Analyst : Okay. So when the contract is awarded then at that point, you can basically provide granularity and some idea of how to model in terms of revenue, expenses and everything that will be discussed, and that will give you a good way of figuring out of doing discounted cash flow models. Is that -- ?

Question: Steve Brozak - WBB Securities - Analyst : Great, great. I look forward to the good news. Thank you, gentlemen.