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
