TORONTO, ON / ACCESSWIRE / April 29, 2020 / Theralase® Technologies Inc. (“Theralase” or “Company“) (TSXV:TLT) (OTCQB:TLTFF), a clinical stage pharmaceutical company focused on the research and development of light activated Photo Dynamic Compounds (“PDCs“) and their associated drug formulations intended to safely and effectively destroy various cancers, releases the audited annual consolidated financial statements for the year ended December 31, 2019.
Financial Highlights:
Total revenue for the year ended December 31, 2019 decreased $964,051 from $1,734,073 for the same period in 2018, a 44% decrease. The TLC-2000 represented 66% of sales in 2019 and 70% of sales in 2018.
In Canada, revenue decreased 31% to $835,403 from $1,205,312. In the US, revenue decreased 68% to $96,574 from $304,785 and international revenue decreased 86% to $32,074 from $223,975. The decrease in total revenue in 2019 is due to the restructuring of the sales and marketing departments resulting in the resignation and/or termination of certain sales and marketing personnel.
Cost of sales for the year ended December 31, 2019 was $903,296 which included a one-time provision for inventory of $277,896 resulting in an adjusted cost of sales of $625,400 (65% of revenue) with an adjusted gross margin of $338,651 (35% of revenue), compared to a cost of sales of $786,433 (45% of revenue) in 2018, resulting in a gross margin of $947,639 or 55% of revenue. The gross margin decrease, year over year, is attributed to decreased revenues and fixed production salaries for the TLC-1000 and TLC-2000 product lines.
For the year ended December 31, 2019, selling expenses decreased to $716,343 (74% of revenues), from $871,405 (50% of revenues) in 2018, an 18% decrease. The decrease in selling expenses is primarily due to the restructuring of the Canadian and US sales and marketing departments, resulting in the resignation and/or termination of certain sales and marketing personnel.
Administrative expenses for the year ended December 31, 2019 increased to $2,604,808 from $1,739,665 in 2018, representing a 50% increase.The increase in administrative expenses is attributed to increased spending on administrative salaries (70%), director and advisory fees (198%) and stock based compensation (137%).
Net research and development expenses for the year ended December 31, 2019 increased to $4,159,724 from $1,703,803 in 2018, a 144% increase.
Increases in research and development expenses are primarily due to:
Research and development expenses represented 56% of the Company’s operating expenses for the year ended December 31, 2019 and represent investment into the research and development of the Company’s Photo Dynamic Therapy (“PDT“) technology.
The net loss for the year ended December 31, 2019 was $7,413,914 which included $677,224 of net non-cash expenses (i.e.: amortization, stock-based compensation expense and foreign exchange gain/loss). This compared to a net loss for the same period in 2018 of $3,356,877, which included $409,816 of net non-cash expenses. The PDT division represented $4,579,855 of this loss (62%) for the year ended December 31, 2019.
The increase in net loss is primarily attributed to:
Operational Highlights:
About Theralase® Technologies Inc.
Theralase® is a clinical stage pharmaceutical company dedicated to the research and development of light activated Photo Dynamic Compounds and their associated drug formulations intended to safely and effectively destroy various cancers.
Additional information is available at www.theralase.com and www.sedar.com
Forward-Looking Information
This news release contains “forward-looking statements” which reflect the current expectations of the Company’s management for: future growth, results of operations, performance, business prospects and opportunities. Such statements include, but are not limited to, statements regarding the Company’s proposed development plans with respect to Photo Dynamic Compounds and their drug formulations. Wherever possible, words such as “may“, “would“, “could“, “should“, “will“, “anticipate“, “believe“, “plan“, “expect“, “intend“, “estimate“, “potential for” and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions including with respect to the ability of the Company to: adequately fund, secure the requisite regulatory approvals to commence and successfully complete a Phase II NMIBC clinical study in a timely fashion and implement its development plans. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements; including, without limitation, those listed in the filings made by the Company with the Canadian securities regulatory authorities (which may be viewed at www.sedar.com). Should one or more of these risks or uncertainties materialize or should assumptions underlying the forward looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this news release. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. The Company disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise except as required by law. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchanges) accepts responsibility for the adequacy or accuracy of this release.
For More Information:
1.866.THE.LASE (843-5273)
416.699.LASE (5273)
www.theralase.com
Kristina Hachey, Chief Financial Officer
khachey@theralase.com
SOURCE: Theralase Technologies Inc.
View source version on accesswire.com:
https://www.accesswire.com/587656/Theralase-Releases-2019-Financial-Results
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