TIDMAKR
RNS Number : 1626I
Akers Biosciences, Inc.
23 March 2015
For Immediate Release
Akers Biosciences, Inc.
Financial Results for 2014
Revenues Up 24% - Flagship PIFA Heparin/PF4 Rapid Test Sales
Double
Akers Biosciences, Inc. (NASDAQ: AKER) (AIM: AKR.L), ("Akers" or
the "Company"), a medical device company focused on reducing the
cost of healthcare through faster, easier diagnostics, announces
financial results for the fiscal year ended December 31, 2014.
2014 Financial Highlights:
-- 24% increase in revenue for 2014 to $4,427,174 (2013: $3,577,851)
-- EBITDA was a loss of $2,854,723 (2013: loss of $1,172,376)
-- Cash and marketable securities of $9,720,802 (2013: $103,634)
-- Sales of Akers' rapid test to detect a potentially fatal
allergy to the blood thinner Heparin (PIFA Heparin/PF4) more than
doubled in 2014 to $2,241,405
-- First international sales of PIFA Heparin/PF4 products
achieved during 2014 with $1,000,000 initial order from China
2014 Operational Highlights:
-- Completed IPO on NASDAQ Capital Market in January 2014,
raising approximately $15 million in gross proceeds
-- Significant expansion of sales and marketing with senior
managerial appointments in the US and EU; and sales reps placed in
multiple strategic locations throughout US
-- PIFA Heparin/PF4 products are now being marketed in the US by
four leading healthcare product distributors as well as direct
sales force
-- Advancements in international sales strategy with product
distribution agreements signed for territories including India, the
Middle East, Australia, Singapore and multiple countries within
Europe
-- Initial order valued at $864,000 for rapid cholesterol tests
for Australia, Singapore and the Middle East
-- Established Joint Venture in China for marketing and distribution of Akers products
-- Commenced clinical trials for the first rapid finger stick blood test for chlamydia
Chairman's Statement
January 2014's NASDAQ IPO facilitated a significant acceleration
of our commercialization and product development process; and we
are beginning to see the benefits.
The Company has been able to attract multiple experienced sales
and marketing professionals both at the head office and other
strategic locations across the US as well as in the EU. We believe
the benefits are already evident in the growing number of
distribution partnerships formed, the growth in revenues and, in
particular, the more than doubling of sales of our flagship rapid
test for detecting an allergy to the widely used blood thinner
Heparin. We believe this rapid test has the capacity to save an
average US hospital upwards of $1 million per annum while at the
same time accelerating the process of diagnosis and therefore the
speed at which the right treatment is given to the patient. I
believe we are scratching the surface of a very substantial
existing market for Heparin PF4 antibody testing which can be
replaced with Akers' faster and more cost-effective single-use
devices. This proposition is actively being communicated to US
hospitals by the Company's marketing partners and by our internal
sales team.
2014 has seen Akers add new distributors in the Middle East,
Australia, Singapore, India, France, Belgium, the Netherlands,
Luxembourg, Switzerland and Lichtenstein. During the period the
Company entered into a substantial Joint Venture agreement for the
marketing and distribution of all Akers' rapid tests - excluding
PIFA Heparin/PF4 - in China; while our Chinese distributor for PIFA
Heparin/PF4 placed its first order ($1m) for the products in
November 2014. This initial stocking order provides some insight
into just how large a market we believe China can become for Akers.
In fact, we believe China to be the second biggest potential market
in the world for our PIFA Heparin/PF4 tests after the US.
The Company's improving balance sheet and growing sales is also
enabling Akers to fully develop a range of products that serve the
nutraceutical and weight loss marketplaces. These are large
marketplaces in all developed countries but nowhere more so than in
the US where the Company is currently focusing its efforts. Akers'
technology can measure biomarkers present in breath condensate
related to various metabolic processes. As a result, Akers has used
its proprietary, easy-to-use platform to design disposable breath
tubes that measure ketone (acid) production associated with
fat-burning and oxidative stress levels that relate to cellular
damage and the development of many preventable diseases. The
Company is developing a consumer-focused reagent device, and
linking this device to an app for smartphones and tablets that can
not only produce a result, but also track progress over time.
Initial marketing activities have commenced for these products and
the Company is preparing for commercialization.
While the Company's sales and marketing professionals focus on
growing sales of existing product lines, the development team
continues to advance a pipeline of rapid tests designed to improve
the process of diagnosis in large markets such as respiratory
disease, where we are developing breath tests for lung cancer, for
asthma and for chronic obstructive pulmonary disease; in diabetes,
where we are developing a breath test to help diabetics rapidly
evaluate their ketone levels without the need to provide blood or
urine samples; in cardiovascular disease, where we are developing,
on the commission of Konica Minolta, a rapid blood test for heart
attacks; and in infectious diseases, where we are developing -
among other tests - an on-the-spot finger stick blood test for
chlamydia, one of the most prevalent of all STDs.
What each of these areas has in common is that the market for
testing is already established with existing diagnostic procedures
which could be replaced with faster, easier and lower-costing
technology.
Outlook
Akers exited 2014 with an improved balance sheet, higher
revenues, with a more substantial sales and marketing function, new
distribution partners in new markets and with a pipeline of tests
advancing through the developmental process. Among our key goals
for 2015 are the continued acceleration of PIFA Heparin/PF4 sales
in the US; while assisting our international distributors in
establishing these tests in overseas markets. Additionally we will
in the coming months advance the consumer proposition for the
Company's Wellness product line which we believe could be
significant. I look forward to reporting further progress
throughout the year ahead.
Raymond F. Akers, Jr. PhD, Co-founder and Executive Chairman of
the Board
March 23, 2015
Financial Statements
A summary report including the key financial statements for the
fiscal year 2014 appears below. A Form 10-K containing the detailed
financial statements is available for viewing on the Company's
website at www.akersbiosciences.com or www.sec.gov.
Conference Call Information:
Monday, March 23, 2015 at 2.30p.m. GMT
(10:30 a.m. Eastern Time)
International: 1-913-981-4901
US:1-888-271-8595
Conference ID:8825228
Webcast: http://ir.akersbiosciences.com/events.cfm
Replays - Available through April 6,
2015
International:1-858-384-5517
US:1-877-870-5176
Conference ID: 8825228
ABOUT AKERS BIOSCIENCES, INC.
Akers Biosciences develops, manufactures, and supplies rapid
screening and testing products designed to deliver quicker and more
cost-effective healthcare information to healthcare providers and
consumers. The Company has advanced the science of diagnostics
while responding to major shifts in healthcare through the
development of several proprietary platform technologies. The
Company's state-of-the-art rapid diagnostic assays can be performed
virtually anywhere in minutes when time is of the essence. The
Company has aligned with major healthcare companies and high volume
medical product distributors to maximize product offerings, and to
be a major worldwide competitor in diagnostics.
Additional information on the Company and its products can be
found at www.akersbiosciences.com. Follow us on Twitter
@AkersBio
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or
historical fact are forward-looking in nature and constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements reflect the Company's
expectations about its future operating results, performance and
opportunities that involve substantial risks and uncertainties.
These statements include but are not limited to statements
regarding the intended terms of the offering, closing of the
offering and use of any proceeds from the offering. When used
herein, the words "anticipate," "believe," "estimate," "upcoming,"
"plan," "target", "intend" and "expect" and similar expressions, as
they relate to Akers Biosciences, Inc., its subsidiaries, or its
management, are intended to identify such forward-looking
statements. These forward-looking statements are based on
information currently available to the Company and are subject to a
number of risks, uncertainties, and other factors that could cause
the Company's actual results, performance, prospects, and
opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements.
For more information:
Akers Biosciences, Inc.
Raymond F. Akers, Jr. PhD
Executive Chairman of the Board
Tel. +1 856 848 8698
finnCap (UK Nominated Adviser and Broker)
Geoff Nash / Scott Mathieson (Corporate Finance)
Steve Norcross (Broking)
Tel. +44 (0)20 7220 0500
Taglich Brothers, Inc. (US Investor Relations)
Chris Schreiber
Tel. +1 917 445 6207
Vigo Communications (UK Investor Relations)
Ben Simons / Alexandra Roper
Tel. +44 (0)20 7016 9570
Email: akers@vigocomms.com
Summary Report for the Fiscal Year Ended December 31, 2014
At December 31, 2014, The Company had cash of $455,841, working
capital of $11,215,747, stockholders' equity of $99,691,096 and an
accumulated deficit of $84,864,086. The Company believes that its
current working capital position will be sufficient to meet its
estimated cash needs for at least 36 months.
The fair value of the Company's investments in marketable
securities as of December 31, 2014 was $9,264,961 (2013: $-). The
Company restricts its investments to Level I and Level II
securities and maturities generally range up to three years.
Securities are evaluated with an emphasis on minimizing risk while
achieving reasonable rates of return on the investment. These
marketable securities are a key component of the Company's cash
management strategy and as such are monitored regularly.
Revenue
The Company's total revenue for the year ended December 31, 2014
was $4,427,174, a 24% increase over the same period in 2013.
Revenues improved in two of the major product lines, PIFA
Heparin/PF4 Rapid Assay increased by 110% and the sales of Rapid
Enzymatic Assay products which did not exist in 2013. These
increases were offset by decreases in the MPC Product line by 51%,
other products, which includes shipping and handling fees, by 36%
and Licensing revenues by 36%. The Company's MicroParticle
Catalyzed Biosensor ("MPC") product revenues associated with our
breath alcohol products decreased to $918,049 (2013: $1,885,028)
during the year ended December 31, 2014. This is attributable to a
decline in orders from our world-wide distributor of this product,
ChubeWorkx Guernsey Limited. During the year ended December 31,
2014, ChubeWorkx accounted for $766,379 (2013: $1,719,340) of our
MPC product revenue."). The decline of orders from ChubeWorkx is as
a result of the French government's postponement, indefinitely, of
the fine that was to be imposed for drivers failing to possess
breathalyzers in their vehicles. Although drivers are still
required to carry the self-tests, the lack of a monetary fine has
reduced product demand. It is unknown how long this interruption
will continue for, but the Company's distributor of alcohol
breathalyzers believes that it is well positioned to resume large
volume sales of the product should full enforcement resume.
ChubeWorkx accounted for an additional $333,333 in licensing
fees.
Sales of the Company's PIFA Heparin/PF4 Rapid Assay ("PIFA")
products increased by 110% during the year ended December 31, 2014
to $2,241,405 (2013: $1,065,432). The Company's dedicated technical
sales account executives are supporting over 300 sales
representatives of Akers' US distribution partners, Cardinal Health
("Cardinal Health"), Medline Industries, Inc. ("Medline"), Fisher
HealthCare ("Fisher Healthcare") and Typenex Medical, LLC
("Typenex"). The Company's addition of Typenex and Medline during
the second quarter and the relationship-building initiative with
our other partners has already delivered a measureable increase in
product trials and adoptions. Domestic sales for the year ended
December 31, 2014 of our distributors, Cardinal Health and Fisher
Health, accounted for $1,064,733 of the total PIFA Heparin/PF4
Rapid Assay as compared to $849,346 for the same period of 2013 and
individually represented 36% and 11% of such sales. The remaining
$176,672 of domestic sales was generated from Akers' new
distributors and direct customers during 2014 as compared to
$216,086 in 2013.
International sales of the Company's PIFA Heparin/PF4 Rapid
Assay products began in the fourth quarter with the receipt of the
initial stocking order from NovoTek Therapeutics, Inc. ("NovoTek").
This $1,000,000 initial order shipped in December, 2014 and
accounted for 45% of the Company's total PIFA Heparin/PF4 Rapid
Assay product sales for the year ended December 31, 2014.
Revenue from Rapid Enzymatic Assay ("REA") products for the year
ended December 31, 2014 totaled $864,000 (2013: $-). This revenue
is attributable to The Company's new distributor in Australia,
Singapore, Oman and the United Arab Emirates, 36 Strategies General
Trading, LLC ("36S"), a related party, who placed their first order
with the Company during the period. The Company is working with 36S
on a number of product approvals in the territory.
Cost of sales for the year ended December 31, 2014 decreased by
39% to $1,175,232 (2013: $1,913,844). The reduction primarily
reflects the change in emphasis from the production of
Breathalyzers (MPC products) in 2013 to PIFA Heparin/PF4 Rapid
Assay (PIFA products) during 2014. Direct cost of sales declined to
18% (2013: 39%) and indirect cost of sales declined to 11% (2013:
24%) of product revenue for year ended December 31, 2014. Overall,
cost of sales, as a percentage of product revenue, was 29% and 63%
for the years ended December 31, 2014 and 2013.
The change of production emphasis from MPC products to PIFA
products is the primary contributor to the improvement in direct
costs additionally, the Company had removed its REA products from
its active inventory while the Company worked to develop a market
and identify a distributor for the product line. As a result of
this inventory write-down, there was no significant cost of sales
for the REA products reported for the year ended December 31, 2014.
Direct costs associated with the MPC products increased to 44%
(2013: 41%) and PIFA products increased to 15% (2013: 12%) related
to the loss of bulk purchase discounts for MPC components and
higher costs of raw materials for PIFA.
The decrease in indirect cost of sales is attributed to
decreases in shipping expenses, repairs and maintenance of
equipment, and manufacturing supplies due to the reduced levels of
production and improvements to the component inventory handling and
reporting procedures that resulted in a reduction of materials lost
to the production process during the year ended December 31,
2014.
Licensing fee revenue declined to $343,333 (2013: $533,333). The
decline is associated with a one-time restricted licensing fee of
$200,000 received in the first quarter of 2013 from a customer
while they performed a product evaluation project.
Akers' gross profit margin improved to 71% of product revenue
for the year ended December 31, 2014 as compared to 37% in 2013.
The improvement in gross profit margin was derived from events
described above for the year ended December 31, 2014.
General and Administrative Expenses
General and administrative expenses in the year ended December
31, 2014 totaled $3,979,080, which was a 161% increase as compared
to $1,524,626 for the year ended December 31, 2013. The increase
was the result of personnel costs ($663,879 (2013: $139,661)),
professional services ($1,008,508 (2013: $756,078)), stock market
and investor services ($650,559 (2013: $128,069)), travel ($124,611
(2013: $5,987)) and the issuance of stock options to board member,
officers and key employees ($357,276 (2013: $-)). Additionally, an
accrual of $697,300 has been recorded for restricted stock grants
issued to board members on January 9, 2015 as a bonus for services
rendered during the year ended December 31, 2014.
The increase in personnel costs relates to the salaries and
benefits of the Chief Executive Officer and the Vice President of
Finance, positions that were previously contracted. Increases in
professional services and stock market and investor services are
directly related to the maintenance of our stock listings in the
United States (NASDAQ) and Great Britain (London Stock Exchange).
The dual listing requires us to maintain public relations, stock
registrars, nominated advisors and legal counsel for both markets
and requires additional accounting services to insure compliance
with regulators.
Sales and Marketing Expenses
Sales and marketing expenses in the year ended December 31, 2014
totaled $1,302,103, which was a 90% increase as compared to
$684,720 for the year ended 2013. The increase was the result of
the use of market consultants and other professionals ($550,515
(2013: $21,325)) to develop sales and marketing strategies for the
Company's product lines and travel ($72,625 (2013: $24,599)) in
support of technical customer services and market development.
Research and Development
Research and development expenses in the year ended December 31,
2014 totaled $916,308, which was a 9% decrease as compared to
$1,006,800 for the year ended 2013. The decrease was the result of
personnel reassignments which reduced personnel costs ($586,027
(2013: $840,177)), the consumption of raw materials ($10,917 (2013:
$47,979)) and travel ($796 (2013: $13,900)) which was offset by
increases professional services ($85,702 (2013: 7,419)), supplies
($54,157 (2013: $27,216)) and the issuance of stock options to key
employees ($120,203 (2013: $-)). The professional services fees
were related to the significant increase in activities related to
obtaining regulatory approvals and the certification of our Quality
Management System by the International Standards Organization
("ISO") 13485:2003 which was achieved in February 2015.
Other Income and Expense
Other income decreased for the year ended December 31, 2014 over
the same period in 2013, primarily as a result of income from two
notable events. On June 13, 2013, Akers sold its interest in
(en)10, the Company's exclusive CHUBE distributor based in the UK,
to Chubeworkx for $100,000; a realized gain of $99,710,
representing the difference between the sale price and carried
value of the interest. We have determined that the sale of our
interest was an independent transaction, unrelated to the extension
of the licensing agreement to include North America.
In addition, the Company recognized $91,286 in 2013 as compared
to $4,669 as other income from the net proceeds gained from Akers'
insurer demutualizing upon receiving a payment of such amount
representing our share of the demutualization as determined by the
insurer.
Other items, including interest, dividends and other
miscellaneous income amounted to $72,285 for the year ended
December 31, 2014 as compared to $1,037 for the year ended December
31, 2013. During 2013, approximately $91,905 in old trade payables
were reversed and the income recognized as miscellaneous
income.
Income Taxes
As of December 31, 2014 and 2013, the Company had Federal net
operating loss carry forwards of approximately $51,300,000 and
$47,600,000, respectively, expiring through the year ending
December 31, 2034. As of December 31, 2014 and 2013, the Company
had New Jersey state net operating loss carry forwards of
approximately $11,900,000 and $8,100,000, respectively, expiring
the year ending December 31, 2021.
Liquidity and Capital Resources
For the years ended December 31, 2014 and 2013, the Company
generated a net loss attributable to shareholders' of $3,142,960
and $1,526,773, respectively. As of December 31, 2014 and 2013, the
Company has an accumulated deficit of $84,864,086 and $81,721,126
and had cash and cash equivalents totaling $455,841 and $103,634,
respectively.
Currently, our primary focus is to expand the domestic and
international distribution of our PIFA Heparin/PF4 rapid assays.
The Company continues initial commercialization tasks for METRON
and VIVO, as well as development activities for its PIFA PLUSS(R)
Infectious Disease single-use assays, Breath Ketone "Check", and
Breath PulmoHealth "Check" products, including advancement of the
steps required for FDA clearance or CE marking in the EU where
necessary.
We expect to continue to incur losses from operations for the
near-term and these losses could be significant as we incur product
development, clinical and regulatory activities, contract
consulting and other product development and commercialization
related expenses. We believe that our current working capital
position will be sufficient to meet our estimated cash needs for at
least 36 months. We are closely monitoring our cash balances, cash
needs and expense levels. The accompanying financial statements do
not include any adjustments to reflect the possible future effects
on the recoverability and classification of assets or the amounts
and classification of liabilities that might result in the possible
inability of the Company to continue as a going concern.
We expect that our primary expenditures will be to continue
development of PIFA PLUSS(R) Infectious Disease single-use assays,
Breath Ketone "Check" and Breath PulmoHealth "Check" products and
enroll patients in clinical trials to support performance claims,
generate studies in peer-reviewed journals to support product
marketing, and provide data for the FDA 510(k) clearance/CE
certifications processes when required. We will also continue to
support commercialization and marketing activities of in-line
products (PIFA Heparin/PF4 rapid assays, PIFA PLUSS(R) PF4, breath
alcohol detectors, METRON and VIVO) in the US and internationally.
Based upon our experience, clinical trial and related regulatory
expenses can be significant costs. Steps to achieve
commercialization of emerging products will be an ongoing and
evolving process with expected improvements and possible subsequent
generations being evaluated for commercialized and emerging tests.
Should we be unable to achieve FDA clearance for products that
require such regulatory "approval", develop performance
characteristics for rapid tests that satisfy market needs, or
generate sufficient revenue from commercialized products, we would
need to rely on other business or product opportunities to generate
revenue and costs that we have incurred for the patents may be
deemed impaired.
On December 31, 2014 a note of $1,475,766 was issued to the
Company in exchange for the Company's open trade receivables from
ChubeWorkx Guernsey Limited, a major shareholder. It is payable in
sixty equal installments of $27,734 commencing January 1, 2015 and
has an interest rate of 5% per annum. Installments due on the first
of January, February and March 2015 have been settled. In the event
of default, the Company, at its sole discretion, has the right to
redeem any and all Company shares owned by ChubeWorkx Guernsey
Limited to satisfy the monies owed to the Company under this
note.
Operating Activities
The Company's net cash consumed by operating activities totaled
$3,883,929 during the year ended December 31, 2014. Cash was
consumed by the loss of $3,127,167 less non-operating gains of
$26,203 plus non-cash adjustments of $349,398 for depreciation and
amortization of non-current assets and $746,400 for share based
compensation and services. For the year ended December 31, 2014,
decreases in inventory and other assets of $179,306 and an increase
in trade and other payables of $538,017 provided cash, primarily
related to routine changes in operating activities. A net increase
in trade receivables, notes receivables - related party, and other
receivables of $2,203,761, a decrease in other payables - related
party of $6,586 and a net decrease in deferred revenue of $333,333
consumed cash from operating activities.
Key Financial Statements for the Fiscal Year Ended December 31,
2014
Condensed Consolidated Balance Sheets
December 31, 2014 and 2013
2014 2013
$ $
----------------------- -------------------
ASSETS
Current Assets
Cash 455,841 103,634
Marketable Securities 9,264,961 -
Trade Receivables (net) 2,018,290 118,404
Trade Receivables - Related
Party - 1,209,388
Notes Receivable - Related
Party 266,457 -
Other Receivables 41,435 748,962
Inventories (net) 905,116 1,025,104
Other Current Assets 107,633 163,890
Total Current Assets 13,059,733 3,369,382
----------------------- -------------------
Non-Current Assets
Notes Receivable - Related
Party 1,209,309 -
Property, plant and equipment,
net 201,483 267,321
Intangible assets, net 2,176,065 2,434,637
Other Assets 4,282 4,282
Total Non-Current Assets 3,591,139 2,706,240
----------------------- -------------------
Total Assets 16,650,872 6,075,622
======================= ===================
LIABILITIES
Current Liabilities
Trade and Other Payables 1,538,430 1,000,413
Other Payables - Related Party - 6,586
Short-Term Notes Payable -
Related Party - 307,500
Deferred Revenue - Related
Party 305,556 333,333
Total Current Liabilities 1,843,986 1,647,832
----------------------- -------------------
Non-Current Liabilities
Deferred Revenue - Related
Party - 305,556
Total Non-Current Liabilities - 305,556
----------------------- -------------------
Total Liabilities 1,843,986 1,953,388
----------------------- -------------------
EQUITY
Convertible Preferred Stock,
No par value, 50,000,000
shares authorized, no shares
issued and outstanding
as of December 31, 2014 and
December 31, 2013 - -
Common Stock, No par value,
500,000,000 shares authorized,
4,954,837 and 2,167,837 issued
and outstanding as of
December 31, 2014 and December
31, 2013 99,691,096 85,843,360
Accumulated Deficit (84,864,086) (81,721,126)
Accumulated Comprehensive Loss (20,124) -
Total Equity 14,806,886 4,122,234
----------------------- -------------------
Total Liabilities and Equity 16,650,872 6,075,622
======================= ===================
Condensed Consolidated Statements of Operations and
Comprehensive Loss
Years ended
December 31
2014 2013
$ $
-------------------- -----------------------
Revenues:
Product Revenue 3,317,462 1,325,178
Product Revenue - Related party 766,379 1,719,340
License Revenue 10,000 200,000
License Revenue - Related party 333,333 333,333
Total Revenue 4,427,174 3,577,851
Cost of Sales:
Product Cost of Sales (1,175,232) (1,913,844)
-------------------- -----------------------
Gross Profit 3,251,942 1,664,007
Administrative Expenses 3,784,078 1,095,950
Administrative Expenses - Related
parties 195,002 428,676
Sales and Marketing Expenses 1,302,103 684,720
Research and Development Expenses 916,308 1,006,800
Amortization of Non-Current
Assets 258,572 258,572
-------------------- -----------------------
Loss from Operations (3,204,121) (1,810,711)
-------------------- -----------------------
Other (Income)/Expenses
Gain on sale of equity investment
- Related party - (99,710)
Foreign Currency Transaction
(Income)/Expense (2,667) 57
Gain from demutualization of
insurance carrier (4,669) (91,286)
Interest and Dividend Income (69,618) (1,094)
Other Income - (91,905)
Total Other Income (76,954) (283,938)
-------------------- -----------------------
Loss Before Income Taxes (3,127,167) (1,526,773)
Income Tax Benefit - -
-------------------- -----------------------
Preferred Stock Dividend (15,793) -
-------------------- -----------------------
Net Loss Attributable to Common
Stockholders (3,142,960) (1,526,773)
-------------------- -----------------------
Other Comprehensive Loss
Unrealized Losses on Marketable
Securities (20,124) -
Total Other Comprehensive Loss (20,124) -
-------------------- -----------------------
Comprehensive Loss (3,163,084) (1,526,773)
==================== =======================
Basic & diluted loss per common
share (0.66) (0.96)
==================== =======================
Weighted average basic & diluted
common
shares outstanding 4,745,684 1,596,722
==================== =======================
Consolidated Statement of Cash Flow
Years ended December 31, 2014 and 2013
2014 2013
$ $
---------------------------------- ----------------------------------
Cash flows from operating
activities
Net loss for the period (3,127,167) (1,526,773)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Accrued interest and dividends (18,473) -
on marketable securities
Decrease in reserve for inventory (3,061) -
obsolescence
Depreciation and amortization 349,398 354,397
Gain from demutualization
of insurer (4,669) (91,286)
Gain on sale of equity investment - (99,710)
Non-cash share based compensation 549,600 -
Non-cash share based payment 196,800 -
for services
Reversal of old trade payables - (91,905)
Changes in assets and liabilities
Increase in trade receivables (1,899,886) (17,191)
Increase in trade receivables
- related party - (1,199,375)
Increase in notes receivables (266,378) -
- related party
(Increase)/decrease in other
receivables (37,497) 559
Decrease in license fees
receivable - related party - 450,000
(Increase)/decrease in inventories 123,049 (37,251)
(Increase)/decrease in other
assets 56,257 (95,992)
Increase in trade and other
payables 538,017 116,739
Decrease in other payables
- related party (6,586) (51,957)
Decrease in legal settlement
liabilities - (106,924)
Decrease in deferred revenue
- related party (333,333) (333,333)
---------------------------------- ----------------------------------
Net cash used in operating
activities (3,883,929) (2,730,002)
---------------------------------- ----------------------------------
Cash flows from investing
activities
Purchases of property, plant
and equipment (24,988) (123,132)
Purchases of makertable securities (12,551,106) -
Proceeds from demutualization
of insurance carrier 4,669 91,286
Proceeds from sale of equity
investment - 100,000
Proceeds from sale of marketable 3,284,494 -
securities
---------------------------------- ----------------------------------
Net cash (used in)/provided
by investing activities (9,286,931) 68,154
---------------------------------- ----------------------------------
Cash flows from financing
activities
Proceeds from note receivable
- related party for Series
A
Convertible Preferred Stock - 225,000
(Payment)/Proceeds of short-term
note payable - related party (307,500) 307,500
Proceeds from other receivable 745,024 -
for London Private Placement
Proceeds from issuance of
common shares - 1,599,960
Net proceeds from issuance
of common stock in initial
public
offering 13,101,336 -
Dividend distribution on (15,793) -
Series A Convertible Preferred
Stock
---------------------------------- ----------------------------------
Net cash provided by financing
activities 13,523,067 2,132,460
---------------------------------- ----------------------------------
Net increase/(decrease) in
cash 352,207 (529,388)
Cash at beginning of period 103,634 633,022
---------------------------------- ----------------------------------
Cash at end of period 455,841 103,634
================================== ==================================
Supplemental Sechedule of
Non-Cash Financing and Investing
Activities
Unrealized losses on marketable (20,124) -
securities
================================== ==================================
Conversion of trade receivable
- related party as of December
31,
2013 to a note receivable (1,209,388) -
in the year ended December
31, 2014
================================== ==================================
Other receivable for proceeds
of London Private Placement - 745,024
================================== ==================================
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR JJMMTMBITBPA
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