Competitive Tech Reports First Quarter 2014 Results - KPTV - FOX 12

Competitive Tech Reports First Quarter 2014 Results

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SOURCE Competitive Technologies, Inc.

Quarterly Revenues Up $221,000 | G&A Down 52% | Loss Per Share Down 20%

Investor Conference Call: Wednesday, May 21, 2014 at 1:30 p.m. EDT

Dial-in: (866) 952-1906 (U.S.) +1 (785) 424-1825 (Int'l) | Code: CTI

FAIRFIELD, Conn., May 19, 2014 /PRNewswire/ -- Competitive Technologies, Inc., (OTCQX: CTTC) (CTI), a pain mitigation biotechnology company, reported results for the quarter ended March 31, 2014.

Unlocking the Potential of Innovation(R).

Net loss for the quarter ended March 31, 2014 decreased to $726,000 or $0.04 per basic and diluted share as compared with a net loss of $782,000 or $0.05 per basic and diluted share for the quarter ended March 31, 2013. The net loss for the quarter ended March 31, 2014 includes a non-recurring expense of $132,000 related to the settlement of the Tonaquint note and warrant.

Revenue from the sale and shipment of the Calmare® pain therapy devices (Device) for the quarter ended March 31, 2014 increased to $221,000 as compared with $0 for the quarter ended March 31, 2013.

Device sales for the quarter ended March 31, 2014 were three (3) as compared with 0 for the comparable quarter ended March 31, 2014 and as compared with three (3) for the sequential quarter ended December 31, 2013. Due to the relatively long sales cycle for a Device in effect, Device sales may and can vary significantly from quarter to quarter.

Total expenses for the quarter ended March 31, 2014 increased 7% or $59,000 to $884,000 as compared with $825,000 for the quarter ended March 31, 2013. Total expenses for the quarter ended March 31, 2014 include a non-recurring expense of $132,000 related to the settlement of the Tonaquint note and warrant.

Personnel and consulting expenses for the quarter ended March 31, 2014 increased 16% or $54,000 to $395,000 as compared with $341,000 for the quarter ended March 31, 2013.

General and administrative expenses for the quarter ended March 31, 2014 decreased 52% or $207,000 to $194,000 as compared with $401,000 for the quarter ended March 31, 2014.

Interest expense for the quarter ended March 31, 2014 increased $72,000 to $105,000 as compared with $33,000 for the quarter ended March 31, 2013. The increase is due to an increase in the use of debt financing.

Cash-on-hand at March 31, 2014 increased $287,000 to $344,000 from $57,000 at December 31, 2013.

Total assets at March 31, 2014 increased $184,000 to $4,750,000 as compared with $4,566,000 at December 31, 2013.

Total liabilities at March 31, 2014 increased $232,000 to $10,743,000 as compared with $10,511,000 at December 31, 2013. This increase is due to an increase in the use of debt financing.

Total capital raised over the past two quarters was $861,000 and consisted of: $361,000 of hybrid debt and $500,000 of equity.

"Results for the first quarter of 2014 were a clear testament to CTI's ability to overcome adversity," said CTI President & CEO Conrad Mir. "We had several device sales and a host of new prospects; a dynamic the Company has not had in well over two years. Although some projected sales closed after the quarter-end, Management believes this may make for an even better than expected second quarter 2014."

Conference Call
CTI will host an earnings conference call on Wednesday, May 21, 2014 at 1:30 p.m. EDT. To participate in the conference call, please dial the following telephone numbers and appropriate call code a few minutes before the start time: (866) 952-1906 (U.S.) or +1 (785) 424-1825 (Int'l) | Call Code: CTI.

As participation is limited, please RSVP via email to: yperalta@competitivetech.net or FAX: (203) 368-5399 by 10:00 a.m. EDT, Wednesday, May 21, 2014 with "Earnings Call 2014" in the subject line.

About the Company
Competitive Technologies Inc., the pain mitigation company, develops and commercializes innovative wound and pain management products and technologies. CTI holds the 510k clearance on its flagship product, the non-invasive Calmare® Pain Therapy Device, which grants it an exclusive right to sell, market, research and develop the medical device. The Company is the exclusive licensed global distributor of Calmare.

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.

Contacts:

Competitive Technologies, Inc.   

JV Public Relations

Conrad Mir                                

Janet Vasquez

President and CEO   

Managing Director

cmir@competitivetech.net   

jvasquez@jvprny.com

973.798.8882   

212.645.5498


www.competitivetech.net

 

COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY

 

Condensed Consolidated Balance Sheets




March 31,
2014



December 31,
2013




(Unaudited)





Assets









Current Assets:









Cash


$

343,748



$

57,009


Receivables, net of allowance of $101,154 at March 31, 2014 and December 31, 2013



86,317




143,330


Inventory



4,248,220




4,278,220


Prepaid expenses and other current assets



48,095




65,167


Total current assets



4,726,380




4,543,726











Property and equipment, net



8,860




7,606


Security deposits



15,000




15,000


TOTAL ASSETS


$

4,750,240



$

4,566,332











Liabilities and Shareholders' Deficit









Current Liabilities:









Accounts payable


$

650,254



$

692,251


Liabilities under claims purchase agreement



2,013,320




2,093,303


Accounts payable, GEOMC



4,183,535




4,183,535


Accrued expenses and other liabilities



803,678




582,987


Notes payable



2,596,746




2,488,691


Deferred revenue



19,687




6,400


Warrant liability



-




8,227


Series C convertible preferred stock derivative liability



66,176




80,408


Series C convertible preferred stock liability



375,000




375,000


Total current liabilities



10,708,396




10,510,802











Note payable – long-term



34,272




-











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, 40,000,000 shares authorized, 22,463,532 shares issued and outstanding at March 31, 2014 and 19,952,907 shares issued and outstanding at December 31, 2013



224,635




199,529


Capital in excess of par value



46,730,636




46,077,394


Accumulated deficit



(53,008,374)




(52,282,068)


Total shareholders' deficit



(5,992,428)




(5,944,470)











TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT


$

4,750,240



$

4,566,332


  


COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY


Condensed Consolidated Statements of Operations

(Unaudited)




Three
months
ended



Three
 months
ended




March 31,
2014



March 31,
2013


Revenue









Product sales


$

221,080



$

-


Cost of product sales



70,218




19,348


Gross profit from product sales



150,862




(19,348)











Other Revenue









Retained royalties



2,604




13,376


Other income



3,821




48,679


Total other revenue



6,425




62,055











Expenses


















Selling expenses



71,994




68,175


Personnel and consulting expenses



395,023




341,007


General and administrative expenses



193,721




400,759


Interest expense



104,786




32,767


Loss on settlement of note and warrant



132,301




-


Unrealized gain on derivative instruments



(14,232)




(18,167)


Total Expenses



883,593




824,541











Loss before income taxes



(726,306)




(781,834)


Provision (benefit) for income taxes



-




-











Net loss


$

(726,306)



$

(781,834)











Basic loss per share


$

(0.04)



$

(0.05)











Basic weighted average number of common shares outstanding:



20,036,240




15,588,693











Diluted loss per share


$

(0.04)



$

(0.05)











Diluted weighted average number of common shares outstanding:



20,036,240




15,588,693


 

COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY


Condensed Consolidated Statement of Changes in Shareholders' Deficit

For the Three Months Ended March 31, 2014

(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, 2014


 

2,427


$

60,675


 

19,952,907


$

199,529


$

46,077,394


$

(52,282,068)


$

(5,944,470)





















Net loss


 

-



-


 

-



-



-



(726,306)



(726,306)

Common stock issued to directors


 

-



-


 

10,625



106



3,932



-



4,038

Stock option compensation expense


 

-



-


 

-



-



14,328



-



14,328

Private offering of common stock and warrants


 

-



-


 

2,500,000



25,000



475,000



-



500,000

Warrant and beneficial conversion feature on notes payable


 

-



-


 

-



-



53,338



-



53,338

Liabilities settled under Liability Purchase Agreement













106,644






106,644

Balance March 31, 2014


 

2,427


$

60,675


 

22,463,532


$

224,635


$

46,730,636


$

(53,008,374)


$

(5,992,428)

 

COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Three months
ended



Three months
ended




March 31, 
2014



March 31, 
2013


Cash flows from operating activities:


















Net loss


$

(726,306)



$

(781,834)


Adjustments to reconcile net loss to net cash used in operating activities:









Depreciation and amortization



1,824




2,336


Stock option compensation expense



14,328




111,437


Share-based compensation – common stock



4,038




7,000


Bad debt expense



-




5,000


Debt discount amortization



61,364




-


Noncash finance charges



18,434




-


Unrealized gain on derivative instruments



(14,232)




(18,167)


Loss on settlement of note and warrant



132,301




-


Changes in assets and liabilities:









     Receivables



57,013




132,747


     Prepaid expenses and other current assets



17,072




56,188


     Inventory



30,000




-


     Accounts payable, accrued expenses and other liabilities



178,694




(32,745)


     Deferred revenue



13,287




(1,600)


Net cash used in operating activities



(212,183)




(519,638)











Cash flows from investing activities:









Purchase of property and equipment



(3,078)




-


Cash used in investing activities



(3,078)




-











Cash flows from financing activities:









Proceeds from note payable



120,000




505,000


Repayment of note and warrant settlement



(118,000)




-


Proceeds from common stock and warrants



500,000




-


Net cash provided by financing activities



502,000




505,000











Net increase (decrease) in cash



286,739




(14,638)











Cash at beginning of period



57,009




74,322











Cash at end of period


$

343,748



$

59,684


  

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