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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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