ADDISON, Texas, March 31, 2016 /PRNewswire/ -- ULURU
Inc. (OTCQB: ULUR) today announced its financial results for
the fourth quarter and year ended December
31, 2015 and provided a review of its operating
activities.
Commenting on the Company's business activities and the outlook
for 2016, Helmut Kerschbaumer,
Interim President and CEO of ULURU stated, "For the past five
months, we have been engaged in the process of re-directing the
Company's business plan that includes changes to our Board of
Directors, our senior management, our commercialization efforts,
and, most importantly, our financial foundation."
"In November 2015, Bradley J. Sacks was appointed to serve as the
Chairman of our Board of Directors and Helmut Kerschbaumer was appointed to serve as
the Company's Interim President and Chief Executive
Officer."
"We have also endeavored to consolidate our product distribution
system, as we have acquired the Altrazeal® licensing rights to
territories previously held by third party licensees. This
acquisition will allow us to do a number of things, including (i)
dramatically increase the price we recognize for the Altrazeal®
product we sell, (this should then translate to increased
revenues), (ii) more effectively enter new markets and conclude
relationships with reputable distributors, (iii) more effectively
comply with local market regulatory registration requirements (and
thereby expedite product sales in markets where distributors have
agreed to distribute our product) and (iv) more effectively
stimulate demand and share "lessons learned" across markets.
We have distribution relationships in place in more than 60
markets, although we have only been able to ship product to 16
markets to date and achieved registration and reimbursement as a
condition for ongoing sales in 5 markets. We are hopeful that
these and additional markets will be eligible for shipping in the
coming quarters."
"We have also implemented an austerity program for controlling
our operating costs to include compensation savings (both in
headcount and in compensation levels), decreases in consulting
expenses, improvements in manufacturing efficiencies, and targeted
marketing expenditures. This has been a big task but we are
confident the framework for further success is now in
place."
"We are also excited about the prospects for our OraDisc™
erodible film technology and the inclusion of various active
ingredients which will allow us to introduce new products to treat
migraine, erectile dysfunction, neurological conditions, and
asthma. We are in discussions with potential collaborators to
commercialize these new products using our technology."
"Lastly, the recent closing of a private placement has provided
us with working capital of approximately $1,800,000. This was an extremely time
consuming exercise and a critical milestone in our turn-around
strategy. This gives the Company some of the resources that
we will need to implement our business plans, including the further
consolidation of the global distribution rights for Altrazeal® and
OraDisc™. We will continue to explore additional sources of capital
to further solidify our balance sheet and allow us to execute on
our plans."
FINANCIAL RESULTS
For the fourth quarter of 2015, the
Company reported a net loss of $0.37
million, or $0.01 per share,
compared with a net profit of $0.32
million, or $0.01 per share,
for the same period last year. For the year ending
December 31, 2015, the Company
reported a net loss of $2.70 million,
or $0.10 per share, compared with a
net loss of $1.94 million, or
$0.08 per share, for the same period
of 2014.
Revenues
Revenues for the fourth quarter of 2015 were
$357,000, as compared to $230,000 for the fourth quarter of 2014.
The increase of approximately $127,000 in revenues from the fourth quarter of
2015 compared to the fourth quarter of 2014 was primarily due to an
increase of $146,000 in licensing
fees related to our international distributors. This increase
in revenues was partially offset by a decrease of $10,000 in royalties related to Altrazeal® from
our international distributors and a decrease of $9,000 in Altrazeal® product sales by
our international distributors.
For the year ended December 31,
2015, revenues were $936,000,
as compared to $864,000 for the same
period in 2014. The increase of approximately $72,000 in revenues was due primarily to an
increase of $149,000 in licensing
fees related to our international distributors. This increase
in revenues was partially offset by a decrease of $51,000 in royalties related to Altrazeal® from
our international distributors and a decrease of $26,000 in Altrazeal® product sales by
our international distributors.
Research and Development
Research and development
expenses for the fourth quarter of 2015 were $168,000, including $13,000 of share-based compensation, as compared
to $226,000, including $19,000 of share-based compensation, for the
fourth quarter of 2014. The decrease of approximately
$58,000 in research and development
expenses was primarily due to a decrease of $68,000 in direct research costs primarily
related to Altrazeal® and a decrease of $23,000 in compensation due to staffing
reductions. These expense decreases were partially offset by
an increase $33,000 in regulatory
consulting as the prior year included a one-time adjustment of
consulting costs.
For the year ended December 31,
2015, research and development expenses were $764,000, including $69,000 of share-based compensation, as compared
to $771,000, including $36,000 of share-based compensation, for the same
period in 2014. The decrease of approximately $7,000 in research and development expenses was
primarily due to a decrease of $63,000 in direct research costs primarily
related to Altrazeal®. This expense decrease were partially
offset by an increase of $31,000 in
scientific compensation primarily related to share-based
compensation, an increase of $18,000
in regulatory consulting as the prior year included a one-time
adjustment of consulting costs, and an increase of $7,000 in miscellaneous operating
costs.
Selling, general and administrative
Selling, general
and administrative expenses for the fourth quarter of 2015 were
$237,000, including $(76,000) in share-based compensation, as
compared to $503,000, including
$59,000 in share-based compensation,
for the fourth quarter of 2014. The decrease of approximately
$266,000 in selling, general and
administrative expenses was primarily due to a decrease of
$144,000 in legal expenses related to
a licensing agreement dispute and a warrant exercise dispute from
2014, a decrease of $96,000 in
payroll taxes related to an accrual adjustment, a decrease of
$31,000 in consulting costs related
to investor relations, a decrease of $158,000 in director fees related to share-based
compensation, and a decrease in compensation of $16,000 related to staffing reductions, and a
decrease in processing costs of $6,000 related to XBRL reporting. These expense
decreases were partially offset by an increase of $114,000 in bad debt expense, an increase of
$50,000 related to accrual
adjustments that were recognized in 2014 for estimated merger costs
that originally occurred in 2008, and an increase of $21,000 in sales and marketing expenses related
to international product activities.
For the year ended December 31,
2015, selling, general and administrative expenses were
$1,681,000, including $84,000 of share-based compensation, as compared
to $1,774,000, including $113,000 of share-based compensation, for the
same period in 2014. The decrease of approximately
$93,000 in selling, general and
administrative expenses was primarily due to a decrease of
$311,000 in legal expenses related to
a licensing agreement dispute and a warrant exercise dispute from
2014, a decrease of $96,000 in
payroll taxes related to an accrual adjustment, a decrease of
$89,000 in consulting costs related
to investor relations, a decrease of $60,000 in director fees related to share-based
compensation, a decrease of $25,000
in commission costs relating to product licensing, and a decrease
of $17,000 in other corporate
costs. These expense decreases were partially offset by an
increase of $281,000 in sales and
marketing expenses related to international product activities, an
increase of $113,000 in bad debt
expense, an increase of $50,000
related to accrual adjustments that were recognized in 2014 for
estimated merger costs that originally occurred in 2008, an
increase of $20,000 in shareholder
presentations, an increase of $19,000
in costs associated with financing activities, an increase of
$12,000 in insurance costs, and an
increase of $10,000 in accounting
fees related to our public filings.
Amortization of Intangible Assets
Amortization expense
for the fourth quarter of 2015 was $126,000 as compared to $120,000 for the fourth quarter of 2014.
The increase of approximately $6,000
in amortization expense relates to our acquisition of certain
licensing rights in December
2015.
For the year ended December 31,
2015, amortization of intangible assets was $481,000 as compared to $475,000 for the same period in 2014. The
expense for each period consists of amortization associated with
our acquired patents and acquired licensing rights. The
increase of approximately $6,000 in
amortization expense relates to our acquisition of certain
licensing rights in December 2015. There were no purchases of
patents or licensing rights during the year ended December 31, 2014.
Depreciation
Depreciation expense for the fourth
quarter of 2015 was $34,000 as
compared to $59,000 for the fourth
quarter of 2014. The decrease of approximately
$25,000 is attributable to certain
equipment being fully depreciated.
For the year ended December 31,
2015, depreciation expense was $180,000 as compared to $237,000 for the same period in 2014. The
decrease of approximately $57,000 is
attributable to certain equipment being fully depreciated.
Interest Expense
Interest expense for the fourth
quarter of 2015 was $51,000 as
compared to $27,000 for the fourth
quarter of 2014. The increase of approximately $24,000 is primarily attributable to interest
costs associated with our promissory note issued in April 2015.
For the year ended December 31,
2015, interest expense was $179,000 as compared to $51,000 for the same period of 2014. The increase
of approximately $128,000 is
primarily attributable to interest costs associated with the
promissory note with Inter-Mountain Capital Corp.
Foreign Currency transaction Gain (Loss)
Foreign
currency transaction loss for the fourth quarter of 2015 was
$23,000 as compared to $44,000 for the fourth quarter of 2014. The
decrease of $21,000 is related to
fluctuations in the Euro exchange rate experienced during the
fourth quarter of 2015 as the pricing of Altrazeal® to our
international distributors was denominated in Euros.
For the year ending December 31,
2015, foreign currency transaction loss was $80,000 as compared to $54,000 for the same period of 2014. The
increase of $26,000 is related to
fluctuations in the Euro exchange rate experienced during 2014 and
2015 as the pricing of Altrazeal® to our international distributors
was denominated in Euros. The average US$ / Euro exchange
rate in 2015 was 1.17 compared to 1.33 in 2014.
Loss on Early Extinguishment of Convertible Note
For
the year ended December 31, 2015, the
loss on early extinguishment of convertible note was zero as
compared to approximately $135,000
for the same period of 2014. The loss on early extinguishment
of convertible note is a result of our election to exercise our
rights under the June 2012 Note and
to offset amounts we owed to Inter-Mountain against amounts it owed
to us under the Investor Notes.
Proceeds from Litigation Settlement
For the year
ending December 31, 2015, proceeds
from litigation settlement was zero as compared to $1,200,000 for the same period of 2014.
Commenting on the Company's financial results Mr. Kerschbaumer
continued, "The operating results for 2015 reflect an improvement
in revenues primarily due to an increase in licensing fees
associated with the acquisition of licensing rights from Altrazeal
Trading GmbH that occurred in December 2015. Product sales
were slightly behind last year's level as the pace of product
registration in new countries was a little slower than expected but
we feel this should improve during the coming year. Our
decreased operating costs in 2015 continues to reflect our emphasis
on cost controls despite the significant increase in activities to
support Altrazeal® and now OraDisc™ development work.
Our operating loss for 2015 shows an improvement of approximately
$560,000 versus the prior year."
About ULURU Inc.:
ULURU Inc. is a specialty
pharmaceutical company focused on the development of a portfolio of
wound management and oral care products to provide patients and
consumers improved clinical outcomes through controlled delivery
utilizing its innovative Nanoflex® Aggregate technology
and OraDisc™ transmucosal delivery system. For further
information about ULURU Inc., please visit our website at
www.uluruinc.com. For further information about
Altrazeal®, please visit our website at
www.altrazeal.com.
ULURU Inc. (OTCQB: ULUR) trades on the OTCQB Venture stage
marketplace for early stage and developing U.S. and international
companies. Companies are current in their reporting and undergo an
annual verification and management certification process. Investors
can find Real-Time quotes and market information for the company on
www.otcmarkets.com.
This press release contains certain statements that are
forward-looking within the meaning of Section 27a of the Securities
Act of 1933, as amended, including but not limited to statements
made relating to future financial performance of ULURU Inc., (the
"Company"). The progress of our technology development,
clinical and regulatory results for our products, clinical
advantages of our products, the success of our cost saving
programs, our ability to consolidate our distribution network,
realizing price increases and revenue increases from the sale of
Altrazeal®, our ability to stimulate demand for our products,
anticipated product launches and regulatory filings, near term
revenue opportunities, our ability find additional sources of
capital, and anticipated extensions of product lines. When used in
this press release, the words "may," "targets," "goal," "could,"
"should," "would," "believe," "feel," "hope," "expects,"
"confident," "anticipate," "estimate," "intend," "plan,"
"potential" and similar expressions may be indicative of
forward-looking statements. These statements by their nature
involve substantial risks and uncertainties, certain of which are
beyond the Company's control. Any forward-looking statement speaks
only as of the date on which such statement is made, and the
Company undertakes no obligation to update any forward-looking
statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of an unanticipated event. Further, management cannot
assess the impact of each such factor on the business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements. These statements are
subject to numerous risks and uncertainties, including but not
limited to the risk factors detailed in the Company's Annual Report
on Form 10-K for the year ending December
31, 2015 and other reports filed by us with the Securities
and Exchange Commission.
ULURU
Inc.
|
SUMMARY OF
RESULTS
|
|
STATEMENTS OF
OPERATIONS DATA
|
|
|
(Unaudited)
|
|
(Audited)
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
License
fees
|
$ 161,157
|
|
$ 14,861
|
|
$ 207,832
|
|
$ 58,959
|
|
Royalty
income
|
12,046
|
|
21,514
|
|
12,046
|
|
62,966
|
|
Product
sales
|
184,092
|
|
193,424
|
|
715,861
|
|
741,932
|
|
Total
Revenues
|
357,295
|
|
229,799
|
|
935,739
|
|
863,857
|
|
|
|
|
|
|
|
|
Cost and
Expenses
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
84,248
|
|
134,164
|
|
271,310
|
|
511,943
|
|
Research and
development
|
167,884
|
|
225,968
|
|
763,547
|
|
770,542
|
|
Selling, general and
administrative
|
237,294
|
|
503,312
|
|
1,680,650
|
|
1,773,540
|
|
Amortization of
intangible assets
|
126,034
|
|
119,763
|
|
481,419
|
|
475,148
|
|
Depreciation
|
33,980
|
|
58,579
|
|
180,480
|
|
237,388
|
|
Total Costs and
Expenses
|
649,440
|
|
1,041,786
|
|
3,377,406
|
|
3,768,561
|
Operating
(Loss)
|
(292,145)
|
|
(811,987)
|
|
(2,441,667)
|
|
(2,904,704)
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
|
Interest and
miscellaneous income
|
70
|
|
128
|
|
281
|
|
5,386
|
|
Interest
expense
|
(50,995)
|
|
(26,513)
|
|
(178,914)
|
|
(50,574)
|
|
Equity in earnings
(loss) of unconsolidated subsidiary
|
---
|
|
---
|
|
---
|
|
---
|
|
Foreign currency
transaction (loss)
|
(23,142)
|
|
(43,600)
|
|
(79,654)
|
|
(53,867)
|
|
Loss on early
extinguishment of convertible debt
|
---
|
|
---
|
|
---
|
|
(135,078)
|
|
Proceeds from
litigation settlement
|
---
|
|
1,200,000
|
|
---
|
|
1,200,000
|
(Loss) Before
Income Taxes
|
(366,212)
|
|
318,028
|
|
(2,699,954)
|
|
(1,938,837)
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
---
|
|
---
|
|
---
|
|
---
|
Net
(Loss)
|
$ (366,212)
|
|
$ 318,028
|
|
$ (2,699,954)
|
|
$ (1,938,837)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
(loss) per common share
|
$ (0.01)
|
|
$ 0.01
|
|
$ (0.10)
|
|
$ (0.08)
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
29,359,041
|
|
24,458,018
|
|
25,899,240
|
|
23,639,427
|
|
|
|
|
|
|
|
|
ULURU
Inc.
|
SELECTED
CONSOLIDATED BALANCE SHEET DATA
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
|
|
|
Cash and cash
equivalents
|
$
180,000
|
|
$
550,458
|
Current
assets
|
926,805
|
|
1,815,999
|
Property and
equipment, net
|
257,417
|
|
432,110
|
Other
assets
|
6,244,845
|
|
3,213,758
|
Total
assets
|
7,429,067
|
|
5,461,867
|
|
|
|
|
Current
liabilities
|
2,540,403
|
|
1,868,772
|
Long term
liabilities – deferred revenue
|
685,287
|
|
839,174
|
Total
liabilities
|
3,225,690
|
|
2,707,946
|
Total
stockholders' equity
|
4,203,377
|
|
2,753,921
|
Contact: Company
Helmut Kerschbaumer
Interim President & CEO
Terrance K. Wallberg
Vice President & CFO
(214) 905-5145
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/uluru-inc-reports-financial-results-for-fourth-quarter-and-year-ending-december-31-2015-300244392.html
SOURCE ULURU Inc.