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Boston Therapeutics, Inc. Reports Second Quarter and Six Months 2012 Financial Results


8/14/2012 1:25:11 PM

MANCHESTER, NH--(Marketwire - August 14, 2012) - Boston Therapeutics, Inc. (OTCQB: BTHE) (OTCBB: BTHE) ("Boston Therapeutics" or "the Company"), a developer of complex carbohydrate therapeutics to treat diabetes and inflammatory diseases, today announced financial results for the three and six months ended June 30, 2012. These results are included in the Company's Quarterly Report on Form 10-Q, which has been filed with the SEC.

"We are pleased with the recent progress in our businesses," said David Platt, Ph.D., Chairman and Chief Executive Officer of Boston Therapeutics. "The additional financing we received from an affiliate of our Hong Kong based distribution partner, Advance Pharmaceutical, provides us with capital to help fund our research and development efforts while we build our sales pipeline for SUGARDOWN® both domestically and internationally. The Phase II clinical trials for PAZ320 are on schedule and the results are promising. With additional testing, we believe that PAZ320 will be an effective treatment for millions of people who have high blood sugar and diabetes."

Three and Six Months ended June 30, 2012 Financial Results

Revenue for the three and six month periods ended June 30, 2012 totaled $2,376 and $21,230, respectively, compared to $1,767 and $2,247, respectively, for the same periods in the prior year, an increase of $609 and $18,983, respectively. Revenues for both periods were generated from the sale of SUGARDOWN® while the increase was primarily attributable to increased distribution through a new reseller.

Cost of goods sold for the three and six month periods ended June 30, 2012 were $4,162 and $31,757, respectively, compared to $1,287 and $2,250, respectively, for the same period in the prior year, an increase of $2,875 and $29,507, respectively. The increases were primarily attributable to higher labor, shipping, fulfillment and materials costs to manufacture SUGARDOWN® in addition to costs associated with scaling production for additional sales.

Research and development expense for the three and six month periods ended June 30, 2012 was $67,924 and $119,552, respectively, compared to $16,072 and $33,211, respectively, for the same period in the prior year, an increase of $51,852 and $86,341, respectively. Costs associated with the clinical trial of PAZ320 accounted for approximately $52,000 of the increase, with the remainder being attributable to ongoing development of SUGARDOWN®.

Sales and marketing expenses were $66,898 and $134,078, respectively, for the three and six month periods ended June 30, 2012 compared to $1,542 and $1,997, respectively, for the same periods in the prior year, an increase of $65,356 and $132,081, respectively. The increase was primarily attributable to higher advertising and promotion expenses related to SUGARDOWN®.

General and administrative expense for the three and six month periods ended June 30, 2012 was $139,435 and $263,971, respectively, compared to $75,459 and $150,295, respectively, for the same periods in the prior year, an increase of $63,976 and $113,676, respectively. These increases were primarily attributable to increased legal and accounting fees associated with SEC filings and quarterly financial statement preparation for the Company in addition to increased payroll and stock based compensation expenses.

The Company had a net loss of $281,989, or $0.02 per share, for the three months ended June 30, 2012 and a net loss of $539,394, or $0.03 per share, for the six months ended June 30, 2012. The weighted average diluted shares outstanding for the three and six month periods ended June 30, 2012 were 16,287,381 and 16,255,293, respectively.

Boston Therapeutics had a cash balance of $417,510 at June 30, 2012, compared to $225,995 as of December 31, 2011, primarily attributable to a private placement of common stock totaling $500,000 completed in June 2012. Shareholders' equity totaled $549,167 at June 30, 2012, compared to $424,695 at December 31, 2011, an increase of $124,472.

Business Highlights

In late June, the Company initiated the launch of SUGARDOWN®, a non-systemic, chewable tablet to moderate post-meal blood glucose, at the Endocrinology Annual Meeting and Expo in Houston on June 23rd to 26th. Chairman and CEO Dr. David Platt discussed the details of the science and the benefits of SUGARDOWN®. The Company has started to ship initial orders of SUGARDOWN®.

The Company completed enrollment of patients with Type 2 diabetes for its Phase II PAZ320 clinical trial in June 2012. PAZ320 is a non-systemic chewable complex carbohydrate-based compound designed to reduce post-meal elevation of blood glucose. Boston Therapeutics announced in April 2012 that interim data analysis of the Phase II clinical trials indicated no serious adverse events from 24 patients with Type II diabetes who took PAZ320. The subsequent tests will evaluate the safety and efficacy of PAZ320 when added to oral agents or insulin in patients with Type 2 diabetes. The Company expects to report Phase II results by September 2012.

About Boston Therapeutics, Inc.

Boston Therapeutics, headquartered in Manchester, NH, (OTCQB: BTHE) (OTCBB: BTHE) is a leader in the field of complex carbohydrates. The Company's initial product pipeline is focused on developing and commercializing therapeutic molecules for diabetes: SUGARDOWN®, a non-systemic chewable complex carbohydrate dietary supplement designed to moderate post-meal blood glucose; PAZ320, a non-systemic chewable therapeutic compound designed to reduce post-meal glucose elevation, and IPOXYN™, an injectable anti-hypoxia drug specifically designed to treat lower limb ischemia associated with diabetes. More information is available at www.bostonti.com.

Forward-Looking Statements

The Company's views as of the date of this press release should not be relied upon to represent the Company's views as of a subsequent date. While the Company anticipates that subsequent events may cause the Company's views to change, the Company disclaims any obligation to update such forward-looking statements.

More information about those risks and uncertainties is contained and discussed in the Company's most recent quarterly or annual report and in the Company's other reports filed with the Securities and Exchange Commission. The forward-looking statements represent the Company's views as of the date of this press release and should not be relied upon to represent the Company's views as of a subsequent date. While the Company anticipates that subsequent events may cause the Company's views to change, the Company disclaims any obligation to update such forward-looking statements.

-Financial tables follow-

                                                                            
                                                                            
Boston Therapeutics, Inc.                                                   
(Formerly Avanyx Therapeutics, Inc.)                                        
(A Development Stage Company)                                               
Balance Sheets (Unaudited)                                                  
June 30, 2012 and December 31, 2011                                         
                                                                            
                                               -------------  ------------- 
                                                 June 30,     December 31,  
                                                    2012           2011     
                                               -------------  ------------- 
ASSETS                                                                      
                                                                            
  Cash                                         $     417,510  $     225,995 
  Prepaid expenses                                     5,495          5,331 
  Inventory, net                                      24,726         23,596 
                                               -------------  ------------- 
      Total current assets                           447,731        254,922 
                                                                            
  Property and equipment, net                          4,297              - 
  Intangible assets                                  792,857        825,000 
  Goodwill                                            69,782         69,782 
  Other assets                                         2,125              - 
                                               -------------  ------------- 
      Total assets                             $   1,316,792  $   1,149,704 
                                               =============  ============= 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities:                                                        
  Accounts payable                             $     335,954  $     341,873 
  Accrued expenses and other current                                        
   liabilities                                       133,851        125,316 
                                               -------------  ------------- 
      Total current liabilities                      469,805        467,189 
                                                                            
Advances - related parties                           297,820        257,820 
                                               -------------  ------------- 
      Total liabilities                              767,625        725,009 
                                               -------------  ------------- 
                                                                            
COMMITMENTS AND CONTINGENCIES                                               
Stockholders' equity:                                                       
  Preferred stock, $0.001 par value, 5,000,000                              
   shares authorized, none issued and                                       
   outstanding                                             -              - 
  Common stock, $0.001 par value, 100,000,000                               
   shares authorized, 17,348,206 and                                        
   16,223,206 shares issued and outstanding at                              
   June 30, 2012 and December 31, 2011                17,348         16,223 
  Additional paid-in capital                       2,284,497      1,621,756 
                                                                            
  Deficit accumulated during the development                                
   stage                                          (1,752,678)    (1,213,284)
                                               -------------  ------------- 
      Total stockholders' equity                     549,167        424,695 
                                               -------------  ------------- 
                                                                            
      Total liabilities and stockholders'                                   
       equity                                  $   1,316,792  $   1,149,704 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            

Boston Therapeutics, Inc.                                                   
(Formerly Avanyx Therapeutics, Inc.)                                        
(A Development Stage Company)                                               
Statements of Operations (Unaudited)                                        
For the Three and Six Month Periods Ended June 30, 2012 and 2011            
and the Period from Inception (August 24, 2009) through June 30, 2012       
                                                                            
                                                                Period from 
                                                                 Inception  
              For the Three Months                              (August 24, 
                      Ended           For the Six Months Ended    2009) to  
             June 30,      June 30,     June 30,     June 30,    June 30,   
                2012         2011         2012         2011         2012    
                                                                            
Revenue     $     2,376  $     1,767  $    21,230  $     2,247  $    25,770 
Cost of                                                                     
 goods sold       4,162        1,287       31,757        2,250       38,530 
            -----------  -----------  -----------  -----------  ----------- 
Gross margin     (1,786)         480      (10,527)          (3)     (12,760)
            -----------  -----------  -----------  -----------  ----------- 
                                                                            
Operating                                                                   
 expenses:                                                                  
 Research                                                                   
  and                                                                                                                        
  development    67,924       16,072      119,552       33,211      324,600 
 Sales and                                                                  
  marketing      66,898        1,542      134,078        1,997      344,271 
 General and                                                                
  administ-                                                                
  rative        139,435       75,459      263,971      150,295    1,036,109 
            -----------  -----------  -----------  -----------  ----------- 
  Total                                                                     
   operating                                                                
   expenses     274,257       93,073      517,601      185,503    1,704,980 
            -----------  -----------  -----------  -----------  ----------- 
Operating                                                                   
 loss          (276,043)     (92,593)    (528,128)    (185,506)  (1,717,740)
 Interest                                                                   
  expense        (4,178)      (4,104)      (8,356)      (7,210)     (32,028)
 Foreign                                                                    
  currency                                                                  
  loss           (1,768)           -       (2,910)           -       (2,910)
            -----------  -----------  -----------  -----------  ----------- 
                                                                            
  Net loss  $  (281,989) $   (96,697) $  (539,394) $  (192,716) $(1,752,678)
            ===========  ===========  ===========  ===========  =========== 
 Net loss                                                                   
  per share                                                                 
  - basic                                                                   
  and                                                                       
  diluted   $     (0.02) $     (0.01) $     (0.03) $     (0.01)             
 Weighted                                                                   
  average                                                                   
  shares                                                                    
  outstanding                                                                
  basic                                                                   
  and                                                                       
  diluted    16,287,381   14,264,914   16,255,293   14,153,075              
                                                                            
                                                                            
                                                                            
Boston Therapeutics, Inc.                                                   
(Formerly Avanyx Therapeutics, Inc.)                                        
(A Development Stage Company)                                               
Statements of Cash Flows (Unaudited)                                        
For the Six Month Periods Ended June 30, 2012 and 2011                      
and the Period from Inception (August 24, 2009) through June 30, 2012       
                                                                            
                                                                Period from 
                                                                 Inception  
                                                                (August 24, 
                                      For the Six Months Ended    2009) to  
                                        June 30,     June 30,     June 30,  
                                          2012         2011         2012    
Cash flows from operating activities:                                       
  Net loss                            $  (539,394) $  (192,716) $(1,752,678)
  Adjustments to reconcile net loss                                         
   to net cash used in operating                                            
   activities:                                                              
    Amortization of intangible assets      32,143       32,143      107,143 
    Stock based compensation              116,866       13,118      266,715 
    Issuance of common stock for                                            
     consulting services                   25,000            -       70,250 
      Changes in:                                                           
        Inventory                          (1,130)     (10,280)     (20,356)
        Prepaid expenses                     (164)          18       (2,578)
        Other assets                       (2,125)           -       (2,125)
        Accounts payable                   (5,919)     157,046      335,954 
        Accrued expenses                    8,535     (154,112)      87,032 
                                                                            
                                      -----------  -----------  ----------- 
          Net cash used in operating                                        
           activities                    (366,188)    (154,783)    (910,643)
                                      -----------  -----------  ----------- 
                                                                            
Cash flows from investing activities:                                       
  Purchase of property and equipment       (4,297)           -       (4,297)
  Net cash acquired in acquisition of                                       
   Boston Therapeutics, Inc.                    -            -        8,397 
                                      -----------  -----------  ----------- 
        Net cash (used in) provided                                         
         by investing activities           (4,297)           -        4,100 
                                      -----------  -----------  ----------- 
                                                                            
Cash flows from financing activities                                        
  Proceeds from advances - related                                          
   parties                                 40,000       80,000      237,820 
  Proceeds from issuance of common                                          
   stock - related parties                      -            -       21,236 
  Proceeds from issuance of common                                          
   stock                                  522,000      500,000    1,064,997 
                                      -----------  -----------  ----------- 
          Net cash provided by                                              
           financing activities           562,000      580,000    1,324,053 
                                      -----------  -----------  ----------- 
Net increase in cash and cash                                               
 equivalents                              191,515      425,217      417,510 
                                                                            
Cash and cash equivalents, beginning                                        
 of period                                225,995       15,193            - 
                                      -----------  -----------  ----------- 
Cash and cash equivalents, end of                                           
 period                               $   417,510  $   440,410  $   417,510 
                                      ===========  ===========  =========== 
                                                                            
                                                                            
Supplemental disclosure of cash flow                                        
 information:                                                               
  Cash paid during the period for:                                          
    Interest                          $         -  $         -  $         - 
                                      ===========  ===========  =========== 
    Income taxes                      $         -  $         -  $         - 
                                      ===========  ===========  =========== 
  Acquisition of Boston Therapeutics,                                       
   Inc.:                                                                    
    Fair value of assets acquired     $         -  $         -  $   985,466 
    Assumed liabilities                         -            -     (106,819)
                                      -----------  -----------  ----------- 
    Fair value of common stock issued $         -  $         -  $   878,647 
                                      ===========  ===========  =========== 
                                                                            
  Subscription receivable             $         -  $     8,867  $     8,867 
                                      ===========  ===========  =========== 

Contact:

Boston Therapeutics, Inc.
Anthony Squeglia
Phone: 603-935-9799
Email anthony.squeglia@bostonti.com
www.bostonti.com

Investor Relations:
MZ Group
Scott Powell
Senior Vice President
Phone: 212-301-7130
Email: scott.powell@mzgroup.us
Web: www.mz-ir.com



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