[November 14, 2017] |
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Innovus Pharmaceuticals Reports Nine Month Net Revenue of $6.4 million and Net Loss Decrease of 51.6% Compared to the Same Period in 2016
Innovus Pharmaceuticals, Inc. ("Innovus Pharma" or the "Company")
(OTCQB: INNV) today announced third quarter 2017 net revenue of $2.2
million compared to $1.9 million in net revenue for the same period in
2016. Net revenue for the nine months ended September 30, 2017 was $6.4
million compared to $3.1 million for the same period in 2016.
"We have increased our year-to-date product sales by over 105% when
compared to the prior year without the potential added sales of
FlutiCare™. This demonstrates our continued ability to generate
significant sales growth from new and existing products through our
Beyond Human® Sales and Marketing Platform," stated Bassam Damaj,
President and Chief Executive Officer of Innovus Pharma. "Our first
commercial batch of FlutiCare™ was received in October and we launched
FlutiCare™ today which is one of the largest milestones for the Company.
With the launch, we expect to continue the trend of increasing our net
revenue while decreasing our loss from operations as we work towards our
goal of profitability in 2018," continued Dr. Damaj.
Financial highlights for the three months ended September 30, 2017
included:
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Net revenue totaled $2.2 million for the three months ended September
30, 2017, compared to net revenue of $1.9 million for the three months
ended September 30, 2016.
-
Net revenue during the third quarter of 2017 was impacted by the
natural disasters in Florida and Texas as the Company was unable to
advertise its products for a period of time in those regions as a
result. These two states generate close to 15% of our total net
revenue and have a population of approximately 17 million in our
targeted product demographics*.
-
Total operating expense was $3.4 million for the three months ended
September 30, 2017 or year over year decrease of $0.7 million or 16.7%
when compared to the three months ended September 30, 2016.
-
Loss from operations decreased by $1.0 million or 45.8% to $1.2
million for the three months ended September 30, 2017 compared to the
three months ended September 30, 2016.
-
Net loss totaled $1.3 million, or ($0.01) per common share, for the
three months ended September 30, 2017 representing a 70.0% decrease
year over year. The net loss included $0.5 million in non-cash expense
related to the amortization of debt discounts, stock-based
compensation and depreciation and amortization. Net loss for the three
months ended September 30, 2016 totaled $4.4 million or ($0.04) per
common share.
-
Cash used in operations decreased to approximately $577,000 for the
three months ended September 30, 2017 compared to approximately
$996,000 for the three months ended September 30, 2016.
-
Cash balance totaled $1.3 million at September 30, 2017.
Financial highlights for the nine months ended September 30, 2017
included:
-
Net revenue increased 105.8% to $6.4 million for the nine months ended
September 30, 2017, compared to net revenue of $3.1 million for the
nine months ended September 30, 2016.
-
Gross margin increased to 79.4% for the nine months ended September
30, 2017, higher than gross margin for the nine months ended September
30, 2016 which totaled 77.2%.
-
Total operating expense increased to $10.4 million and included $1.0
million in non-cash share-based compensation and $0.5 million in
non-cash depreciation and amortization for the nine months ended
September 30, 2017.
-
Net loss totaled $5.0 million, or ($0.03) per common share, for the
nine months ended September 30, 2017. The net loss included a non-cash
expense of $0.4 million for the loss on extinguishment of debt as a
result of the prepayment of the remaining 2016 convertible debentures
and settlement of notes payable. The net loss also included interest
expense of $0.8 million, of which $0.7 million was non-cash and
related to the amortization of debt discounts. Net loss for the nine
months ended September 30, 2016 totaled $10.3 million or ($0.12) per
common share.
Third quarter 2017 and recent developments:
-
Received our first commercial batch of 220,000 units of FlutiCare™ in
October and launched FlutiCare™ in the U.S. in November 2017;
-
Moved corporate and company operations into a new 17,000 square-foot
facility in San Diego, CA (News - Alert) in November 2017 that will bring in-house
the Company's product fulfillment and inventory storage process. The
move is designed to lower product fulfillment costs which will
increase our gross product margins and decrease our loss from
operations, as well as, provide the necessary office space to
accommodate our expected revenue growth in 2018;
-
The combination of Apeaz™ cream for arthritis pain relief and
ArthriVarx™, a supplement designed to maximize and support joint
health, launched under the Beyond Human® Sales and Marketing Platform
in July 2017;
-
Entered into an agreement with ACON Laboratories, Inc. to offer
our customers a new FDA cleared urinary tract infection test in
combination with their purchase of UriVarx™ and an FDA cleared glucose
monitoring meter and test strips called the GlucoGorx™ Kit with their
purchase of GlucoGorx™, the Company's upcoming supplement for diabetic
patients;
-
Received approval as a Natural Health Product by Health Canada for
UriVarx™ for the indication to reduce symptoms of overactive bladder
in September 2017 and for Vesele® to help improve nitric oxide
production in symptoms of sexual dysfunction in October 2017;
-
Continued expansion of patent portfolio by receiving first
Notification to Grant a Patent Right for Sensum+® in China in October
2017. Innovus Pharma has currently fourteen (14) issued patents and
eight (8) patent applications covering several of its products and has
licensed in an additional four (4) patents and five (5) patent
applications from third parties covering additional products;
-
Expanded the exclusive license and distribution territory under our
agreement with Densmore to Singapore and Vietnam in July 2017; and
-
Approval notification as a Class I medical device was received to
commercialize Zestra® in Australia in July 2017 and in New Zealand in
September 2017.
The Company will host a conference call at 4:15 p.m. ET/1:15 p.m. PT
today to discuss the financial results and recent business developments.
To participate in the call, please dial 1-877-883-0383 for domestic
callers or 1-412-902-6506 for international callers. Participant Elite
Entry Number: 5606897. A replay of the call will be available for 30
days. To access the replay, dial 1-877-344-7529 domestically or
1-412-317-0088 internationally and reference Conference ID: 10113950.
The replay will be available shortly after the end of the conference
call.
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Consolidated Statements of Operations
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(Unaudited)
For the
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Three Months Ended
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September 30,
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2017
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2016
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Net revenue:
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Product sales, net
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$
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2,218,343
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$
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1,882,129
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License revenue
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2,500
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-
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Net revenue
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2,220,843
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1,882,129
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Operating expense:
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Cost of product sales
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480,076
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331,227
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Research and development
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8,736
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43,775
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Sales and marketing
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1,626,630
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1,972,155
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General and administrative
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1,321,001
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1,779,048
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Total operating expense
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3,436,443
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4,126,205
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Loss from operations
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(1,215,600
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)
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(2,244,076
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)
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Other income and (expense):
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Interest expense
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(104,276
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)
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(3,719,200
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)
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Loss on extinguishment of debt
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(89,341
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)
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-
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Other income (expense), net
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(4,800
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)
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(37
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Fair value adjustment for contingent consideration
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69,305
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186,813
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Change in fair value of derivative liabilities
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16,055
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1,350,688
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Total other expense, net
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(113,057
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)
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(2,181,736
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)
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Loss before provision for income taxes
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(1,328,657
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(4,425,812
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)
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Provision for income taxes
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-
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-
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Net loss
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$
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(1,328,657
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)
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$
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(4,425,812
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)
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Net loss per share of common stock - basic and diluted
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$
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(0.01
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)
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$
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(0.04
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)
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Weighted average number of shares of common stock outstanding -
basic and diluted
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161,587,934
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104,972,645
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(Unaudited)
For the
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Nine Months Ended
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September 30,
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2017
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2016
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Net revenue:
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Product sales, net
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$
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6,426,790
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$
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3,126,112
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License revenue
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10,000
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1,000
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Net revenue
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6,436,790
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3,127,112
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Operating expense:
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Cost of product sales
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1,329,131
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714,284
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Research and development
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26,982
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47,667
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Sales and marketing
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4,869,717
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2,257,166
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General and administrative
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4,207,899
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4,012,357
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Total operating expense
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10,433,729
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7,031,474
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Loss from operations
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(3,996,939
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)
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(3,904,362
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)
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Other income and (expense):
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Interest expense
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(771,885
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)
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(5,970,450
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Loss on extinguishment of debt
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(394,169
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)
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-
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Other income (expense), net
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(5,622
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)
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1,839
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Fair value adjustment for contingent consideration
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195,459
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164,479
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Change in fair value of derivative liabilities
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(32,138
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)
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(632,627
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Total other expense, net
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(1,008,355
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(6,436,759
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Loss before provision for income taxes
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(5,005,294
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(10,341,121
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Provision for income taxes
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3,200
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-
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Net loss
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$
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(5,008,494
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)
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$
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(10,341,121
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)
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Net loss per share of common stock - basic and diluted
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$
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(0.03
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)
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$
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(0.12
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)
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Weighted average number of shares of common stock outstanding -
basic and diluted
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152,325,196
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86,498,234
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Condensed Consolidated Balance Sheet Data
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September 30,
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December 31,
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2017
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2016
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(Unaudited)
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(1)
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Assets
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Cash
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$
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1,315,059
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$
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829,933
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Accounts receivable, net
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27,526
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33,575
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Prepaid expense and other current assets
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265,217
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863,664
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Inventories
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640,055
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599,856
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Intangible assets & other non-current assets
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5,429,548
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5,900,350
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Total assets
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$
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7,677,405
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$
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8,227,378
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Liabilities & Stockholders' Equity
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Accounts payable and accrued expense
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$
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1,356,057
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$
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1,210,050
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Total accrued compensation
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2,733,091
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2,299,593
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Deferred revenue and customer deposits
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-
|
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11,000
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Accrued interest payable
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21,353
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47,782
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Total notes payable and non-convertible debenture, net of discount
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|
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780,056
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681,127
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Total derivative liabilities
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74,151
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483,744
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Total contingent consideration
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|
|
1,490,458
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1,685,917
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Convertible debentures, net of discount
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|
-
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714,192
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Total stockholders' equity
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1,222,239
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|
|
1,093,973
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Total liabilities and stockholders' equity
|
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|
$
|
7,677,405
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|
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$
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8,227,378
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(1) The Condensed Consolidated Balance Sheet Data has been
derived from the audited consolidated financial statements as of
that date.
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About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging OTC consumer
goods and specialty pharmaceutical company engaged in the
commercialization, licensing and development of safe and effective
non-prescription medicine and consumer care products to improve men's
and women's health and vitality and respiratory diseases. Innovus Pharma
delivers innovative and uniquely presented and packaged health solutions
through its (a) OTC medicines and consumer and health products, which we
market directly, (b) commercial partners to primary care physicians,
urologists, gynecologists and therapists, and (c) directly to consumers
through our on-line channels, retailers and wholesalers. The Company is
dedicated to be a leader in developing and marketing new OTC and branded
Abbreviated New Drug Application ("ANDA") products, men's and women's
health supplements, related diagnostics and medical devices. The Company
is actively pursuing opportunities where existing prescription drugs
have recently, or are expected to, change from prescription (or Rx) to
OTC, as well as related products.
For more information, go to www.innovuspharma.com;
www.zestra.com;
www.ejectdelay.com;
www.myvesele.com;
www.urivarx.com;
www.sensumplus.com;
www.myandroferti.com;
www.beyondhumantestosterone.com;
www.getbeyondhuman.com;
www.trybeyondhuman.com;
www.recalmax.com;
www.prostagorx.com;
www.fluticare.com;
www.allervarx.com;
and www.apeaz.com.
* Population data for Florida and Texas gathered from the 2010 Census
Brief from the United States Census Bureau.
Innovus Pharma's Forward-Looking Safe Harbor
Statements under the Private Securities Litigation Reform Act, as
amended: with the exception of the historical information contained in
this release, the matters described herein contain forward-looking
statements that involve risks and uncertainties that may individually or
mutually impact the matters herein described for a variety of reasons
that are outside the control of the Company, including, but not limited
to, its financial results, projected revenues, projected online
subscribers and other customers, estimated markets for its products, and
statements about achieving its other corporate and business development,
growth, commercialization, financial and staffing objectives. Readers
are cautioned not to place undue reliance on these forward-looking
statements as actual results could differ materially from the
forward-looking statements contained herein. Readers are urged to read
the risk factors set forth in the Company's most recent filing on Form
S-1, annual report on Form 10-K, subsequent quarterly reports filed on
Form 10-Q and other filings made with the SEC (News - Alert). Copies of these reports
are available from the SEC's website or without charge from the Company.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171114005469/en/
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