ADDISON, Texas, Nov. 17, 2015 /PRNewswire/ -- ULURU Inc.
(OTCQB: ULUR) today announced its financial results for the third
quarter ended September 30, 2015 and
provided a review of its business activities.
Commenting on recent business activities, Kerry P. Gray, President and CEO, stated "Over
the past 90 days registration activities throughout the
Middle East and India have been extensive. We are currently
awaiting approval of Altrazeal® in a number of markets,
in particular India where we had
anticipated receiving approval and making initial shipments in the
third quarter. The registration process and price reimbursement has
taken longer than we had previously projected. Advancements have
been made extending our international marketing network where we
anticipate the finalization of agreements in the near future. Also
during this period, we completed an equity financing of
approximately $1.4 million with a
group of European investors."
Financial Results
For the third quarter of 2015, the
Company reported a net loss of $866,000, or $0.03
per share, as compared with a net loss of $679,000, or $0.03
per share, for the same period last year. For the nine months
ended September 30, 2015, the
reported net loss was $2.33 million,
or $0.09 per share, as compared with
a net loss of $2.26 million, or
$0.10 per share, for the same period
last year.
Commenting on the financial results Mr. Gray added, "The
third quarter revenue was adversely impacted by the timing of
receipt of orders from our international distributors resulting in
part from delays in receipt of registrations and finalization of
labeling and our inability to ship outstanding product orders. This
compares with revenues in the third quarter of 2014 which were
favorably impacted by initial orders being shipped to 11 new
markets. We currently have orders for in excess of 60,000 blisters
which we are processing. The operating expense comparisons for both
the quarter and year to date are significantly impacted by the
increase in marketing expenses in 2015 associated with our European
activities and a reduction in legal expenses due to the settlement
of a license agreement dispute in 2014."
Revenues
Revenues for the third quarter of 2015 were
$25,000, as compared to $323,000 for the third quarter of 2014. The
net decrease of $298,000 in revenues
is attributable to a decrease of $274,000 in Altrazeal® product sales to our
international distributors and a decrease of $24,000 in royalties from our international
distributors.
Revenues for the nine months ended September 30, 2015 were $578,000, as compared to $634,000 for the comparative period of
2014. The net decrease of $56,000 in revenues is attributable to a decrease
of $17,000 in Altrazeal® product
sales to our international distributors and a decrease of
$41,000 in royalties from our
international distributors; which were partially offset by an
increase of $2,000 in license fees
related to Altrazeal®.
Research and Development
Research and development
expenses for the third quarter of 2015 were $172,000, including $19,000 in share-based compensation, as compared
to $173,000 for the third quarter of
2014, which included $6,000 in
share-based compensation.
Research and development expenses were $596,000 for the nine months ended September 30, 2015, including $56,000 in share-based compensation, as compared
to $545,000 for the nine months ended
September 30, 2014, which included
$17,000 in share-based
compensation. The increase of approximately $51,000 in research and development expenses was
primarily due to an increase of $54,000 in scientific compensation primarily
related to share-based compensation.
Selling, General and Administrative
Selling, general
and administrative expenses for the third quarter of 2015 were
$502,000, including $52,000 in share-based compensation, as compared
to $390,000, which included
$18,000 in share-based compensation,
for the third quarter of 2014. The increase of approximately
$112,000 in selling, general and
administrative expenses was primarily due to an increase of
$105,000 in marketing costs, an
increase of $34,000 related to our
annual meeting of stockholder held in September 2015, an increase of $32,000 in directors fees related to share-based
compensation and an increase of $14,000 in investor relations consulting and an
increase of $10,000 in costs
associated with financing activities. These expense increases were
partially offset by a decrease of $92,000 in legal costs due to the settlement of a
licensing agreement dispute.
Selling, general and administrative expenses were $1,443,000 for the nine months ended September 30, 2015, including $160,000 in share-based compensation, as compared
to $1,270,000 for the nine months
ended September 30, 2014, which
included $54,000 in share-based
compensation. The increase of approximately $173,000 in selling, general and administrative
expenses was primarily due to an increase of $260,000 in marketing costs, an increase of
$98,000 in directors fees related to
share-based compensation, an increase of $26,000 related to costs for investor meetings,
an increase of $17,000 in
administrative compensation cost primarily related to share-based
compensation and an increase of $16,000 in costs associated with financing
activities. These expense increases were partially offset by a
decrease of $168,000 in legal costs
due to settlement of a licensing agreement dispute, a decrease of
$65,000 in investor relations
consulting as the prior year included the recognition of a
share-based compensation award and a decrease of $25,000 in commission costs relating to product
licensing.
Interest Expense
Interest expense for the third
quarter of 2015 was $52,000 as
compared to $27,000 for the third
quarter of 2014. The increase of approximately $25,000 is primarily attributable to costs
associated with our convertible debt.
Interest expense was $128,000 for
the nine months ended September 30,
2015 as compared to $24,000
for the nine months ended September
30, 2014. The increase of approximately $104,000 in interest expense is primarily
attributable to the prior year expense including a credit of
approximately $101,000 associated
with the deduction and offset in January
2014 of the outstanding notes receivable against the
outstanding principle due on the convertible promissory note and
the final payoff of the convertible promissory note in March 2014.
Foreign Currency Transaction Gain (Loss)
Foreign
currency transaction gain for the third quarter of 2015 was
$1,000 as compared to a loss of
$10,000 for the third quarter of
2014. The gain is related to the fluctuations in the Euro
exchange rate experienced during 2014 and 2015 and the pricing of
Altrazeal® to our international distributors being denominated in
Euros.
Foreign currency transaction loss $57,000 for the nine months ended September 30, 2015 as compared to a loss of
$10,000 for the nine months ended
September 30, 2014. The
increase of approximately $47,000 is
as noted above.
About ULURU Inc.:
ULURU Inc. is a specialty
pharmaceutical company focused on the development of a portfolio of
wound management and oral care products to provide patients and
consumers improved clinical outcomes through controlled delivery
utilizing its innovative Nanoflex® Aggregate technology
and OraDisc™ transmucosal delivery system. For further information
about ULURU Inc., please visit our website at
www.uluruinc.com. For further information about
Altrazeal®, please visit our website at
www.altrazeal.com.
This press release contains certain statements that are
forward-looking within the meaning of Section 27a of the Securities
Act of 1933, as amended, including but not limited to statements
made relating to future financial performance of ULURU Inc. (the
"Company"), the advancement of licensing discussions for additional
markets, the anticipated launch of Altrazeal® in various
markets and countries, the demonstration of clinical benefits and
cost benefits of Altrazeal®, the completion of strategic
alliances, the anticipated escalation of revenues, positive cash
flows, and improved profitability in 2015, and the acceptance of
Altrazeal® by medical practitioners. When used in
this press release, the words "believe," "expect" and "anticipate"
and similar expressions may be indicative of forward-looking
statements including without limitation statements relating to the
regulatory results for our products. These statements by
their nature involve substantial risks and uncertainties, certain
of which are beyond the Company's control. Any forward-looking
statement speaks only as of the date on which such statement is
made, and the Company undertakes no obligation to update any
forward-looking statement or statements to reflect events or
circumstances after the date on which such statement is made or to
reflect the occurrence of an unanticipated event. Further,
management cannot assess the impact of each such factor on the
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements. These
statements are subject to numerous risks and uncertainties,
including but not limited to the risk factors detailed in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2014 and other reports
filed by us with the Securities and Exchange Commission.
ULURU
Inc.
|
|
SUMMARY OF
RESULTS
|
|
STATEMENTS OF
OPERATIONS DATA
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
License
fees
|
$ 16,157
|
|
$ 14,861
|
|
$ 46,675
|
|
$ 44,098
|
|
Royalty
income
|
---
|
|
24,439
|
|
---
|
|
41,452
|
|
Product sales,
net
|
8,642
|
|
283,483
|
|
531,769
|
|
548,508
|
|
Total
Revenues
|
24,799
|
|
322,783
|
|
578,444
|
|
634,058
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
Cost of product
sold
|
4,246
|
|
223,646
|
|
187,062
|
|
377,779
|
|
Research and
development
|
172,169
|
|
172,556
|
|
595,663
|
|
544,574
|
|
Selling, general and
administrative
|
502,165
|
|
389,876
|
|
1,443,356
|
|
1,270,228
|
|
Amortization of
intangible assets
|
119,763
|
|
119,763
|
|
355,385
|
|
355,385
|
|
Depreciation
|
41,973
|
|
58,702
|
|
146,500
|
|
178,809
|
|
Total Costs and
Expenses
|
840,316
|
|
964,543
|
|
2,727,966
|
|
2,726,775
|
Operating
(Loss)
|
(815,517)
|
|
(641,760)
|
|
(2,149,522)
|
|
(2,092,717)
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
|
Interest and
miscellaneous income
|
---
|
|
198
|
|
211
|
|
5,258
|
|
Interest (expense)
income
|
(51,765)
|
|
(27,030)
|
|
(127,919)
|
|
(24,061)
|
|
Equity in earnings
(loss) of unconsolidated subsidiary
|
---
|
|
---
|
|
---
|
|
---
|
|
Foreign currency
transaction gain (loss)
|
1,192
|
|
(10,267)
|
|
(56,512)
|
|
(10,267)
|
|
Loss on early
extinguishment of convertible note
|
---
|
|
---
|
|
---
|
|
(135,078)
|
(Loss) Before
Income Taxes
|
(866,090)
|
|
(678,859)
|
|
(2,333,742)
|
|
(2,256,865)
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
---
|
|
---
|
|
---
|
|
---
|
Net
(Loss)
|
$(866,090)
|
|
$(678,859)
|
|
$(2,333,742)
|
|
$(2,256,865)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
(loss) per common share
|
$ (0.03)
|
|
$ (0.03)
|
|
$ (0.09)
|
|
$ (0.10)
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
24,968,383
|
|
24,518,208
|
|
24,733,299
|
|
23,363,579
|
|
|
|
|
|
|
|
|
ULURU
Inc.
|
|
SELECTED CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
Cash and cash
equivalents
|
$
2,289
|
|
$
550,458
|
Current
assets
|
1,971,855
|
|
1,815,999
|
Property and
equipment, net
|
286,397
|
|
432,110
|
Other
assets
|
2,858,373
|
|
3,213,758
|
Total
assets
|
5,116,625
|
|
5,461,867
|
|
|
|
|
Current
liabilities
|
3,475,899
|
|
1,868,772
|
Long term
liabilities – promissory note payable
|
---
|
|
---
|
Long term
liabilities – deferred revenue
|
825,278
|
|
839,174
|
Total
liabilities
|
4,301,177
|
|
2,707,946
|
Total
stockholders' equity
|
815,448
|
|
2,753,921
|
Contact: Company
Kerry P. Gray
President & CEO
Terry K. Wallberg
Vice President & CFO
(214) 905-5145
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/uluru-inc-reports-third-quarter-2015-financial-results-300179788.html
SOURCE ULURU Inc.