Quarterly Revenues Double | Expenses Down 15% | Net Loss Per Share Cut in Half
FAIRFIELD, CT / ACCESSWIRE / January 3, 2017 / Calmare Therapeutics Incorporated CTTC (CTI), the pain mitigation company, reported results for the three-months and nine-months ended September 30, 2016.
Conference Call
CTI will host an earnings conference call on Wednesday, January 4, 2017 at 11:00 A.M. EST. On the call, Management will discuss the Third Quarter 2016 results and recent company developments.
To participate in the conference call: Dial-in: 877.876.9176 and 785.424.1667 | ID: CALMARE. Please dial-in at least 5 minutes before the scheduled start time. Investor participation is limited.
RSVP via email to: IR@calmaretherapeutics.com by 5:00 P.M. EST, Tuesday, January 3, 2017 with "3Q2016" in the subject line.
Three Months Ended September 30, 2016
Revenues from the commercial sale and shipment of Calmare® pain therapy devices (Devices) for the three months ended September 30, 2016 were $465,000, as compared with $197,000 for the three months ended September 30, 2015.
Device sales for the three months ended September 30, 2016 were Five (5) Devices, as compared with Two (2) Devices for the three months ended September 30, 2015. All Five sales were to the U.S. private sector.
Total expenses for the three months ended September 30, 2016 were $1,023,000, as compared with $1,216,000 for the three months ended September 30, 2015. This decrease in total expenses was largely due to decreases in selling, personnel, consulting, and general and administrative expenses offset by an increase in interest expense.
General and administrative expenses for the three months ended September 30, 2016 were $168,000, as compared with $362,000 for the three months ended September 30, 2015. This decrease is primarily attributable to a significant decline in legal expense from the second quarter of 2015.
Net loss for the three months ended September 30, 2016 was $648,000 or $0.02 per basic and diluted share, as compared with a net loss of $1,063,000 or $0.04 for the three months ended September 30, 2015.
Nine Months Ended September 30, 2016
Revenues from the commercial sale and shipment of Calmare® pain therapy devices (Devices) for the nine months ended September 30, 2016 were $716,000, as compared with $405,000 for the nine months ended September 30, 2015.
Device sales for the nine months ended September 30, 2016 were Eight (8) Devices, as compared with Four (4) Devices for the nine months ended September 30, 2015. Seven (7) Devices were sold to the U.S. private sector while the other was sold to the U.S. military.
Total expenses for the nine months ended September 30, 2016 were $3,224,000, as compared with $3,189,000 for the nine months ended September 30, 2015. This slight increase in total expenses was largely due to increases in personnel and interest expense offset by decreases in consulting costs and general and administrative expense.
General and administrative expenses for the nine months ended September 30, 2016 were $654,000, as compared with $1,012,000 for the nine months ended September 30, 2015. This decrease is primarily attributable to a significant decline in legal expense from the first nine months of 2015.
Net loss for the nine months ended September 30, 2016 was $2,638,000 or $0.09 per basic and diluted share, as compared with a net loss of $2,846,000 or $0.10 for the nine months ended September 30, 2015.
Total capital raised over the past twelve quarters was $4,317,000 and consisted of: $2,923,000 of hybrid debt and $1,394,000 of equity.
"We had a good quarter," said CTI President & CEO Conrad Mir. "We were successful in cutting our loss per share in half and doubling sales, as compared with the third quarter of last year. We look forward to ending our year on a positive note."
About the Company
Calmare Therapeutics Incorporated, the Calmare Pain Mitigation Therapy™ company, researches, develops, and commercializes chronic, neuropathic pain and wound affliction devices. Our flagship medical device - the Calmare® Pain Therapy Device - is the world's only non-invasive and non-addictive modality that can successfully treat chronic, neuropathic pain. The Company holds a U.S. Food & Drug Administration 510k clearance designation (K081255) on its flagship device, which grants it the exclusive right to sell, market, research, and develop the medical device in the United States. Calmare Devices are commercially sold to medical practices throughout the world. They are also found in U.S. military hospitals, clinics, and on installations via CTI's General Services Administration (GSA) military contract (V797P-4300B).
Forward-Looking Statement
Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements deal with the Company's current plans, intentions, beliefs and expectations and statements of future economic performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from what is currently anticipated. Factors that could cause or contribute to such differences include those discussed from time to time in reports filed by the Company with the Securities and Exchange Commission. The Company cannot guarantee its future results, levels of activity, performance, or achievements.
Contacts:
Calmare Therapeutics Incorporated
Conrad Mir
President and CEO
cmir@calmaretherapeutics.com
203.368.6044
JV Public Relations
Janet Vasquez
Managing Director
jvasquez@jvprny.com
212.645.5498
|
September 30, 2016
|
December 31, 2015
|
|||||||
|
(Unaudited)
|
||||||||
|
Assets
|
||||||||
|
Current Assets:
|
||||||||
|
Cash
|
$
|
6,872
|
$
|
49,801
|
||||
|
Receivables, net of allowance of $317,659 at both September 30, 2016 and December 31, 2015
|
2,751
|
33,081
|
||||||
|
Inventory
|
3,948,220
|
4,028,220
|
||||||
|
Prepaid expenses and other current assets
|
5,510
|
58,034
|
||||||
|
Total current assets
|
3,963,353
|
4,169,136
|
||||||
|
Property and equipment, net
|
11,331
|
23,726
|
||||||
|
Security deposits
|
15,000
|
15,000
|
||||||
|
TOTAL ASSETS
|
$
|
3,989,684
|
$
|
4,207,862
|
||||
|
Liabilities and Shareholders' Deficit
|
||||||||
|
Current Liabilities:
|
||||||||
|
Accounts payable
|
$
|
1,690,860
|
$
|
1,895,382
|
||||
|
Liabilities under claims purchase agreement
|
1,995,320
|
1,995,320
|
||||||
|
Accounts payable, GEOMC
|
4,182,380
|
4,182,380
|
||||||
|
Accrued expenses and other liabilities
|
2,889,400
|
2,248,024
|
||||||
|
Notes payable
|
5,422,458
|
3,785,063
|
||||||
|
Deferred revenue
|
6,400
|
6,400
|
||||||
|
Series C convertible preferred stock derivative liability
|
83,591
|
66,177
|
||||||
|
Series C convertible preferred stock liability
|
375,000
|
375,000
|
||||||
|
Total current liabilities
|
16,645,409
|
14,553,746
|
||||||
|
Note payable - long-term
|
-
|
67,919
|
||||||
|
Commitments and Contingencies
|
||||||||
|
Shareholders' deficit:
|
||||||||
|
5% preferred stock, $25 par value, 35,920 shares authorized, 2,427 shares issued and outstanding
|
60,675
|
60,675
|
||||||
|
Series B preferred stock, $0.001 par value, 20,000 shares authorized, no shares issued and outstanding
|
-
|
-
|
||||||
|
Series C convertible preferred stock, $1,000 par value, 750 shares authorized, 375 shares issued and outstanding
|
-
|
-
|
||||||
|
Common stock, $.01 par value, 100,000,000 shares authorized, 28,787,831 shares issued and outstanding at September 30, 2016 and 28,515,888 shares issued and outstanding at December 31, 2015
|
287,877
|
285,158
|
||||||
|
Capital in excess of par value
|
49,004,905
|
48,611,413
|
||||||
|
Accumulated deficit
|
(62,009,182
|
)
|
(59,371,049
|
)
|
||||
|
Total shareholders' deficit
|
(12,655,725
|
)
|
(10,413,803
|
)
|
||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
|
$
|
3,989,684
|
$
|
4,207,862
|
||||
(Unaudited)
|
Three months ended
|
Three months ended
|
|||||||
|
September 30, 2016
|
September 30, 2015
|
|||||||
|
Revenue
|
||||||||
|
Product sales
|
$
|
465,000
|
$
|
197,204
|
||||
|
Cost of product sales
|
125,719
|
59,830
|
||||||
|
Gross profit from product sales
|
339,281
|
137,374
|
||||||
|
Other Revenue
|
||||||||
|
Retained royalties
|
4,647
|
2,389
|
||||||
|
Other income
|
30,954
|
13,673
|
||||||
|
Total other revenue
|
35,601
|
16,062
|
||||||
|
Operating expenses
|
||||||||
|
Selling expenses
|
22,718
|
67,791
|
||||||
|
Personnel and consulting expenses
|
444,082
|
455,087
|
||||||
|
General and administrative expenses
|
167,996
|
362,208
|
||||||
|
Total operating expenses
|
634,796
|
885,086
|
||||||
|
Operating loss
|
(259,914
|
)
|
(731,650
|
)
|
||||
|
Other expense
|
||||||||
|
Interest expense
|
393,867
|
300,361
|
||||||
|
Unrealized (gain) loss on derivative instruments
|
(5,388
|
)
|
30,791
|
|||||
|
Total other expense
|
388,479
|
331,152
|
||||||
|
Loss before income taxes
|
(648,393
|
)
|
(1,062,802
|
)
|
||||
|
Provision (benefit) for income taxes
|
-
|
-
|
||||||
|
Net loss
|
$
|
(648,393
|
)
|
$
|
(1,062,802
|
)
|
||
|
Basic and diluted loss per share
|
$
|
(0.02
|
)
|
$
|
(0.04
|
)
|
||
|
Basic and diluted weighted average number of common shares outstanding:
|
28,787,831
|
28,370,953
|
||||||
(Unaudited)
|
Nine months ended
|
Nine months ended
|
|||||||
|
September 30, 2016
|
September 30, 2015
|
|||||||
|
Revenue
|
||||||||
|
Product sales
|
$
|
716,250
|
$
|
405,154
|
||||
|
Cost of product sales
|
199,704
|
108,070
|
||||||
|
Gross profit from product sales
|
516,546
|
297,084
|
||||||
|
Other Revenue
|
||||||||
|
Retained royalties
|
13,973
|
7,037
|
||||||
|
Other income
|
55,175
|
39,206
|
||||||
|
Total other revenue
|
69,148
|
46,243
|
||||||
|
Operating expenses
|
||||||||
|
Selling expenses
|
85,537
|
112,131
|
||||||
|
Personnel and consulting expenses
|
1,310,139
|
1,329,466
|
||||||
|
General and administrative expenses
|
653,940
|
1,012,369
|
||||||
|
Total operating expenses
|
2,049,616
|
2,453,966
|
||||||
|
Operating loss
|
(1,463,922
|
)
|
(2,110,639
|
)
|
||||
|
Other expense
|
||||||||
|
Interest expense
|
1,156,797
|
690,892
|
||||||
|
Loss on conversion of notes
|
-
|
2,588
|
||||||
|
Unrealized loss on derivative instruments
|
17,414
|
41,694
|
||||||
|
Total other expense
|
1,174,211
|
735,174
|
||||||
|
Loss before income taxes
|
(2,638,133
|
)
|
(2,845,813
|
)
|
||||
|
Provision (benefit) for income taxes
|
-
|
-
|
||||||
|
Net loss
|
$
|
(2,638,133
|
)
|
$
|
(2,845,813
|
)
|
||
|
Basic and diluted loss per share
|
$
|
(0.09
|
)
|
$
|
(0.10
|
)
|
||
|
Basic and diluted weighted average number of common shares outstanding:
|
28,689,254
|
27,673,151
|
||||||
For the Nine Months Ended September 30, 2016
(Unaudited)
|
Preferred Stock
|
Common Stock
|
Capital
|
Total
|
|||||||||||||||||||||||||
|
Shares
outstanding
|
Amount
|
Shares
outstanding
|
Amount
|
In excess
of par value
|
Accumulated
deficit
|
shareholders'
deficit
|
||||||||||||||||||||||
|
Balance January 1, 2016
|
2,427
|
$
|
60,675
|
28,515,888
|
$
|
285,158
|
$
|
48,611,413
|
$
|
(59,371,049
|
)
|
$
|
(10,413,803
|
)
|
||||||||||||||
|
Net loss
|
-
|
-
|
-
|
-
|
-
|
(2,638,133
|
)
|
(2,638,133
|
)
|
|||||||||||||||||||
|
Common stock issued to directors
|
-
|
-
|
10,000
|
100
|
1,800
|
-
|
1,900
|
|||||||||||||||||||||
|
Stock option compensation expense
|
-
|
-
|
-
|
-
|
8,260
|
-
|
8,260
|
|||||||||||||||||||||
|
Stock grant to employee
|
261,943
|
2,619
|
47,150
|
49,769
|
||||||||||||||||||||||||
|
Warrant and beneficial conversion feature on notes payable
|
-
|
-
|
-
|
-
|
336,282
|
-
|
336,282
|
|||||||||||||||||||||
|
Balance September 30, 2016
|
2,427
|
$
|
60,675
|
28,787,831
|
$
|
287,877
|
$
|
49,004,905
|
$
|
(62,009,182
|
)
|
$
|
(12,655,725
|
)
|
||||||||||||||
(Unaudited)
|
Nine months ended
|
Nine months ended
|
|||||||
|
September 30, 2016
|
September 30, 2015
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net loss
|
$
|
(2,638,133
|
)
|
$
|
(2,845,813
|
)
|
||
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
|
Depreciation and amortization
|
12,395
|
12,267
|
||||||
|
Stock option compensation expense
|
8,260
|
49,181
|
||||||
|
Share-based compensation - common stock
|
1,900
|
2,125
|
||||||
|
Common stock and warrants issued to consultants
|
-
|
182,600
|
||||||
|
Debt discount amortization
|
705,758
|
265,358
|
||||||
|
Unrealized loss on derivative instruments
|
17,414
|
41,694
|
||||||
|
Loss on conversion of notes
|
-
|
2,588
|
||||||
|
Changes in assets and liabilities:
|
||||||||
|
Receivables
|
30,330
|
(183
|
)
|
|||||
|
Prepaid expenses and other current assets
|
52,524
|
191,249
|
||||||
|
Inventory
|
80,000
|
40,000
|
||||||
|
Accounts payable, accrued expenses and other liabilities
|
486,623
|
936,494
|
||||||
|
Deferred revenue
|
-
|
(13,286)
|
||||||
|
Net cash used in operating activities
|
(1,242,929
|
)
|
(1,135,726
|
)
|
||||
|
Cash flows from investing activities:
|
||||||||
|
Purchase of property and equipment
|
-
|
(4,700)
|
||||||
|
Net cash used in investing activities
|
-
|
(4,700)
|
||||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from notes payable
|
1,200,000
|
857,000
|
||||||
|
Repayment of note and warrant settlement
|
-
|
(42,500
|
)
|
|||||
|
Proceeds from common stock and warrants
|
-
|
365,000
|
||||||
|
Net cash provided by financing activities
|
1,200,000
|
1,179,500
|
||||||
|
Net increase (decrease) in cash
|
(42,929
|
)
|
39,074
|
|||||
|
Cash at beginning of period
|
49,801
|
5,745
|
||||||
|
Cash at end of period
|
$
|
6,872
|
$
|
44,819
|
||||
SOURCE: Calmare Therapeutics Incorporated
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