[May 19, 2016] |
|
Calmare Therapeutics Reports First Quarter 2016 Results
Calmare
Therapeutics Incorporated, (OTC:CTTC) (CTI (News - Alert)), the pain
mitigation company, reported results for the first quarter ended March
31, 2016.
Revenues from the commercial sale and shipment of Calmare®
pain therapy devices (Devices) for the three months ended March
31, 2016 were $56,000 as compared with $8,000 for the three months ended
March 31, 2015.
Device sales for the three months ended March 31, 2016 were one
(1) Device as compared with zero (0) Devices for the three months ended
March 31, 2015. This sale was to the U.S. military, which has been the
focus of the Company's sales efforts for the past several quarters.
Total expenses for the three months ended March 31, 2016
were $923,000 as compared with $1,012,000 for the three months ended
March 31, 2015. This decrease in total expenses was largely due to
decreases in consulting costs and general & administrative expense
offset by increases in personnel and interest expense.
General and administrative expenses for the three months
ended March 31, 2016 were $175,000 as compared with $324,000 for the
three months ended March 31, 2015. This decrease is primarily
attributable to a significant decline in legal expense from the first
quarter of 2015.
Net loss for the three months ended March 31, 2016 was $878,000
or $0.03 per basic and diluted share as compared with a net loss of
$1,004,000 or $0.04 for the three months ended March 31, 2015.
Total capital raised over the past ten quarters was $3,717,000
and consisted of: $2,323,000 of hybrid debt and $1,394,000 of equity.
Cash-on-hand at March 31, 2016 was $126,000 as compared with
$1,000 at March 31, 2015.
"CTI is moving forward," said CTI President & CEO Conrad Mir. "This
quarter's results show modest progress. We continue to reduce our
expenses and begin our corporate expansion with the help from our new
Government contracts. Management is confident in the prospects the next
few quarters of 2016 may bring."
About the Company
Calmare Therapeutics Incorporated, the Calmare Pain Mitigation Therapy™
company, researches, develops and commercializes chronic, neuropathic
pain and wound affliction devices. Our flagship medical device - the
Calmare® Pain Therapy Device - is the world's only
non-invasive and non-addictive modality that can successfully treat
chronic, neuropathic pain. The Company holds a U.S. Food & Drug
Administration 510k clearance designation (K081255) on its flagship
device, which grants it the exclusive right to sell, market, research
and develop the medical device in the United States. Calmare Devices are
commercially sold to medical practices throughout the world. They are
also found in U.S. military hospitals, clinics and on installations via
CTI's General
Services Administration (GSA (News - Alert)) military contract (V797P-4300B).
Forward-Looking Statement
Certain statements contained in this press release are
forward-looking statements that involve risks and uncertainties. The
statements contained herein that are not purely historical are forward
looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements deal with the Company's
current plans, intentions, beliefs and expectations and statements of
future economic performance. Forward-looking statements involve known
and unknown risks and uncertainties that may cause the Company's actual
results in future periods to differ materially from what is currently
anticipated. Factors that could cause or contribute to such differences
include those discussed from time to time in reports filed by the
Company with the Securities and Exchange Commission. The Company cannot
guarantee its future results, levels of activity, performance or
achievements.
|
|
|
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
$
|
125,931
|
|
|
|
$
|
49,801
|
|
|
Receivables, net of allowance of $317,659 at March 31, 2016 and
December 31, 2015
|
|
|
|
|
|
74,327
|
|
|
|
|
33,081
|
|
|
Inventory
|
|
|
|
|
|
4,018,220
|
|
|
|
|
4,028,220
|
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
39,537
|
|
|
|
|
58,034
|
|
|
Total current assets
|
|
|
|
|
|
4,258,015
|
|
|
|
|
4,169,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
19,594
|
|
|
|
|
23,726
|
|
|
Security deposits
|
|
|
|
|
|
15,000
|
|
|
|
|
15,000
|
|
|
TOTAL ASSETS
|
|
|
|
|
$
|
4,292,609
|
|
|
|
$
|
4,207,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
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Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
1,929,063
|
|
|
|
$
|
1,895,382
|
|
|
Liabilities under claims purchase agreement
|
|
|
|
|
|
1,995,320
|
|
|
|
|
1,995,320
|
|
|
Accounts payable, GEOMC
|
|
|
|
|
|
4,182,380
|
|
|
|
|
4,182,380
|
|
|
Accrued expenses and other liabilities
|
|
|
|
|
|
2,423,262
|
|
|
|
|
2,248,024
|
|
|
Notes payable
|
|
|
|
|
|
4,381,458
|
|
|
|
|
3,785,063
|
|
|
Deferred revenue
|
|
|
|
|
|
6,400
|
|
|
|
|
6,400
|
|
|
Series C convertible preferred stock derivative liability
|
|
|
|
|
|
66,177
|
|
|
|
|
66,177
|
|
|
Series C convertible preferred stock liability
|
|
|
|
|
|
375,000
|
|
|
|
|
375,000
|
|
|
Total current liabilities
|
|
|
|
|
|
15,359,060
|
|
|
|
|
14,553,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note payable - long-term
|
|
|
|
|
|
70,734
|
|
|
|
|
67,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' deficit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5% preferred stock, $25 par value, 35,920 shares authorized, 2,427
shares issued and outstanding
|
|
|
|
|
|
60,675
|
|
|
|
|
60,675
|
|
|
Series B preferred stock, $0.001 par value, 20,000 shares
authorized, no shares issued and outstanding
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Series C convertible preferred stock, $1,000 par value, 750 shares
authorized, 375 shares issued and outstanding
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Common stock, $.01 par value, 100,000,000 shares authorized,
28,525,888 shares issued and outstanding at March 31, 2016
and 25,515,888 shares issued and outstanding at December
31, 2015
|
|
|
|
|
|
285,258
|
|
|
|
|
285,158
|
|
|
Capital in excess of par value
|
|
|
|
|
|
48,765,848
|
|
|
|
|
48,611,413
|
|
|
Accumulated deficit
|
|
|
|
|
|
(60,248,966
|
)
|
|
|
|
(59,371,049
|
)
|
|
Total shareholders' deficit
|
|
|
|
|
|
(11,137,185
|
)
|
|
|
|
(10,413,803
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
$
|
4,292,609
|
|
|
|
$
|
4,207,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
|
|
|
|
|
|
Consolidated Statements of Operations
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
|
|
Three months
|
|
|
|
|
|
|
|
ended March 31, 2016
|
|
|
|
ended March 31, 2015
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales
|
|
|
|
|
$
|
56,250
|
|
|
|
$
|
7,950
|
|
|
Cost of product sales
|
|
|
|
|
|
24,446
|
|
|
|
|
2,297
|
|
|
Gross profit from product sales
|
|
|
|
|
|
31,804
|
|
|
|
|
5,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained royalties
|
|
|
|
|
|
69
|
|
|
|
|
2,392
|
|
|
Other income
|
|
|
|
|
|
13,287
|
|
|
|
|
8,507
|
|
|
Total other revenue
|
|
|
|
|
|
13,356
|
|
|
|
|
10,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
|
|
|
6,557
|
|
|
|
|
1,236
|
|
|
Personnel and consulting expenses
|
|
|
|
|
|
449,056
|
|
|
|
|
507,478
|
|
|
General and administrative expenses
|
|
|
|
|
|
174,898
|
|
|
|
|
323,639
|
|
|
Total operating expenses
|
|
|
|
|
|
630,511
|
|
|
|
|
832,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
|
|
|
(585,351
|
)
|
|
|
|
(815,801
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
292,566
|
|
|
|
|
185,862
|
|
|
Loss on conversion of notes
|
|
|
|
|
|
-
|
|
|
|
|
2,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense
|
|
|
|
|
|
292,566
|
|
|
|
|
188,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
|
|
|
(877,917
|
)
|
|
|
|
(1,004,251
|
)
|
|
Provision (benefit) for income taxes
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
$
|
(877,917
|
)
|
|
|
$
|
(1,004,251
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share
|
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average number of common shares
outstanding:
|
|
|
|
|
|
28,525,558
|
|
|
|
|
26,767,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
|
|
|
|
|
|
Consolidated Statements of Changes in Shareholders' Deficit
|
|
|
For the Three Months Ended March 31, 2016
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Preferred Stock
|
|
|
|
Common Stock
|
|
|
|
Capital
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
Shares outstanding
|
|
|
|
Amount
|
|
|
|
Shares outstanding
|
|
|
|
Amount
|
|
|
|
in excess of
par value
|
|
|
|
Accumulated deficit
|
|
|
|
shareholders' deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance January 1, 2016
|
|
|
|
|
2,427
|
|
|
|
$
|
60,675
|
|
|
|
|
28,515,888
|
|
|
|
$
|
|
285,158
|
|
|
|
$
|
|
48,611,413
|
|
|
|
$
|
|
(59,371,049
|
)
|
|
|
$
|
|
(10,413,803
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(877,917
|
)
|
|
|
|
|
(877,917
|
)
|
|
Common stock issued to directors
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
10,000
|
|
|
|
|
|
100
|
|
|
|
|
|
1,800
|
|
|
|
|
|
-
|
|
|
|
|
|
1,900
|
|
|
Stock option compensation expense
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
7,180
|
|
|
|
|
|
-
|
|
|
|
|
|
7,180
|
|
|
Warrant and beneficial conversion feature on notes payable
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
145,455
|
|
|
|
|
|
-
|
|
|
|
|
|
145,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance March 31, 2016
|
|
|
|
|
2,427
|
|
|
|
$
|
60,675
|
|
|
|
|
28,525,888
|
|
|
|
$
|
|
285,258
|
|
|
|
$
|
|
48,765,848
|
|
|
|
$
|
|
(60,248,966
|
)
|
|
|
$
|
|
(11,137,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
March 31, 2015
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
$
|
(877,917
|
)
|
|
|
$
|
(1,004,251
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
4,132
|
|
|
|
|
4,459
|
|
|
Stock option compensation expense
|
|
|
|
|
|
7,180
|
|
|
|
|
16,069
|
|
|
Share-based compensation - common stock
|
|
|
|
|
|
1,900
|
|
|
|
|
2,125
|
|
|
Common stock and warrants issued to consultants
|
|
|
|
|
|
-
|
|
|
|
|
182,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt discount amortization
|
|
|
|
|
|
144,665
|
|
|
|
|
49,720
|
|
|
Loss on conversion of notes
|
|
|
|
|
|
-
|
|
|
|
|
2,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
|
|
(41,246
|
)
|
|
|
|
(1,072
|
)
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
18,497
|
|
|
|
|
73,466
|
|
|
Inventory
|
|
|
|
|
|
10,000
|
|
|
|
|
-
|
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
|
|
|
208,919
|
|
|
|
|
385,457
|
|
|
Deferred revenue
|
|
|
|
|
|
-
|
|
|
|
|
(5,905
|
)
|
|
Net cash used in operating activities
|
|
|
|
|
|
(523,870
|
)
|
|
|
|
(294,744
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from note payable
|
|
|
|
|
|
600,000
|
|
|
|
|
257,000
|
|
|
Repayment of note and warrant settlement
|
|
|
|
|
|
-
|
|
|
|
|
(42,500
|
)
|
|
Proceeds from common stock and warrants
|
|
|
|
|
|
-
|
|
|
|
|
75,000
|
|
|
Net cash provided by financing activities
|
|
|
|
|
|
600,000
|
|
|
|
|
289,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
|
|
|
|
76,130
|
|
|
|
|
(5,244
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of period
|
|
|
|
|
|
49,801
|
|
|
|
|
5,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of period
|
|
|
|
|
$
|
125,931
|
|
|
|
$
|
501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160519006544/en/
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