ADDISON, Texas, Nov. 17, 2014 /PRNewswire/ -- ULURU Inc. (OTCQB: ULUR) today announced its financial results for the third quarter ended September 30, 2014 and provided a review of its operating activities. During the past 90 days significant progress has been made, including:
- Expansion of our international marketing network by 18 countries including Germany, the largest European market;
- Marketing and distribution agreements are now in place for over 60 international markets;
- Significant expansion in the number of markets Altrazeal® is available which now exceeds 20;
- Continued progress has been made optimizing the production process with benefits to be derived in 2015; and,
- Remaining debt has been eliminated from the balance sheet through the conversion to equity of the outstanding convertible notes.
Commenting on the business activities, Kerry P. Gray, President and CEO, stated, “Commercial activities, both in term of product introductions and signing marketing and distribution agreements, have significantly expanded in the third quarter. We believe this has positioned us for exciting growth in 2015. Prior to year end, it is anticipated that Altrazeal® will be shipped to more new markets and additional marketing and distribution agreements will be signed. Progress has also been made during the quarter to resolve production scale-up issues which should favourably impact product profitability commencing in 2015. With the expansion of our international activities Altrazeal® is receiving greater exposure and the data supporting the overall benefits are becoming more widely understood and accepted.”
For the third quarter of 2014, the Company reported a net loss of $679,000, or $0.03 per share, as compared with a net loss of $743,000, or $0.05 per share, for the same period last year. For the nine months ended September 30, 2014, the reported net loss was $2.08 million, or $0.09 per share, as compared with a net loss of $2.22 million, or $0.16 per share, for the same period last year.
Commenting on the financial results Mr. Gray added, “Revenue increased significantly in the third quarter as production issues previously reported were resolved. We again reduced our net loss compared to prior year; however, this reduction was lower than projected due to litigation and production scale up costs. We are working to resolve our outstanding litigation issues, some of which have already been favorably resolved. Once we have used the more expensive scale up production materials particularly our Altrazeal bulk powder, which we anticipate will occur in the fourth quarter of 2014, our manufacturing margins will significantly improve. This will be further improved as volume increases over the course of 2015.”
Operating Results
Revenues
Revenues for the third quarter of 2014 were $323,000, as compared to $111,000 for the third quarter of 2013. The increase of approximately $212,000 in revenues is attributable to an increase in total revenue from Altrazeal, including product sales, royalties and license fees.
Revenues for the nine months ended September 30, 2014 were $634,000, as compared to $242,000 for the comparative period of 2013. The increase of approximately $392,000 in revenues is as noted above.
Research and Development
Research and development expenses for the third quarter of 2014 were $173,000, including $6,000 in share-based compensation, as compared to $201,000 for the third quarter of 2013, which included $5,000 in share-based compensation. The decrease of approximately $28,000 in research and development expenses was primarily due to a decrease of $22,000 in regulatory costs and a decrease of $19,000 in direct research costs primarily related to Altrazeal®. These expense decreases were partially offset by an increase of $13,000 in scientific compensation related primarily to a higher head count.
Research and development expenses were $545,000 for the nine months ended September 30, 2014, including $17,000 in share-based compensation, as compared to $578,000 for the nine months ended September 30, 2013, which included $12,000 in share-based compensation. The decrease of approximately $33,000 in research and development expenses was primarily due to a decrease of $69,000 in regulatory costs and a decrease of $49,000 in direct research costs primarily related to Altrazeal®. These expense decreases were partially offset by an increase of $77,000 in scientific compensation related to share-based compensation and a higher head count and an increase of $20,000 in clinical study costs related to Altrazeal®.
Selling, General and Administrative
Selling, general and administrative expenses for the third quarter of 2014 were $390,000, including $18,000 in share-based compensation, as compared to $302,000, which included $20,000 in share-based compensation, for the third quarter of 2013. The increase of approximately $88,000 in selling, general and administrative expenses was primarily due to an increase of $93,000 in legal expenses related to a licensing agreement dispute and an increase of $44,000 in sales and marketing expenses. These expense increases were partially offset by a decrease of $66,000 in investor relations consulting related to share-based compensation.
Selling, general and administrative expenses were $1,270,000 for the nine months ended September 30, 2014, including $54,000 in share-based compensation, as compared to $915,000 for the nine months ended September 30, 2013, which included $45,000 in share-based compensation. The increase of approximately $355,000 in selling, general and administrative expenses was primarily due to an increase of $160,000 in legal expenses related to a licensing agreement dispute, an increase of $90,000 in sales and marketing expenses and an increase of $75,000 in investor relations consulting related to share-based compensation.
Other Income and Other Expenses
Interest and miscellaneous income for the third quarter declined $15,000 primarily due to the offset in January 2014 of the outstanding notes receivable.
Interest and miscellaneous income was $5,000 for the nine months ended September 30, 2014 as compared to $56,000 for the nine months ended September 30, 2013. The decrease of approximately $51,000 in interest income is primarily attributable to the offset in January 2014 of the outstanding notes receivable.
Interest expense for the third quarter of 2014 was $27,000 as compared to $126,000 for the third quarter of 2013.
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