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.
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