Competitive Tech Reports Third Quarter 2013 Results

Investor Conference Call: Monday, November 25, 2013 at 12:30 PM EST Dial-in: (267) 507-0204 | Code: 530509

PR Newswire

FAIRFIELD, Conn., Nov. 20, 2013 /PRNewswire/ -- Competitive Technologies, Inc., (CTTC) (CTI), a pain mitigation biotechnology company, reported results for three months and nine months ended September 30, 2013.

Three Months Ended September 30, 2013

Revenue from the sale and shipment of Calmare® pain therapy medical devices (Devices), in the three months ended September 30, 2013 decreased 7% or $21,000 to $290,000 as compared with $311,000 for the comparable quarter of 2012.

Total expenses for the three months ended September 30, 2013 decreased 3% or $21,000 to $809,000 as compared with $830,000 in the three months ended September 30, 2012.

Personnel and consulting expenses in the three months ended September 30, 2013 decreased 21% or $58,000 to $219,000 as compared with $277,000 in the three months ended September 30, 2012.

General and administrative expenses in the three months ended September 30, 2013 increased 15% or $57,000 to $450,000 as compared with $393,000 in the three months ended September 30, 2012.

Interest expense in the three months ended September 30, 2013 increased 253% or $48,000 to $67,000 as compared with $19,000 in the three months ended September 30, 2012. This large increase is due to an increase in the use of debt financing.

Unrealized loss on derivative instrument for three months ended September 30, 2013 was $50,000, as compared with the $15,000 loss recorded in the three months ended September 30, 2012.

Net loss for the quarter ended September 30, 2013 increased marginally to $602,000 or $0.04 per basic and diluted share for the three months ended September 30, 2013 as compared with a net loss of $597,000 or $0.04 per basic and diluted share for the comparable quarter of 2012.

Basic and diluted weighted average number of common shares outstanding, for three months ended September 30, 2013, increased 11% or 1.683,206 to 16,867,971 as compared with 15,184,765 for the comparable period of 2012.

Nine Months Ended September 30, 2013

Revenue from the sale and shipment of Devices in the nine months ended September 30, 2013 decreased 39% or $277,000 to $426,000 as compared with $703,000 in the similar period of 2012.

Total expenses in the nine months ended September 30, 2013 decreased 15% or $437,000 to $2,415,000 as compared with $2,852,000 in the nine months ended September 30, 2012.

Selling expenses in nine months ended September 30, 2013 decreased 59% or $180,000 to $127,000 compared with $307,000 in the similar period ended September 30, 2012.  

Personnel and consulting expenses in the nine months ended September 30, 2013 decreased 24% or $272,000 to $839,000 as compared with $1,111,000 in the similar period of 2012.  

General and administrative expenses in the nine months ended September 30, 2013, decreased 8% or $105,000 to $1,264,000 from $1,369,000 in the similar period of 2012.  

Interest expense in the nine months ended September 30, 2013 increased 251% or $103,000 to $144,000 as compared with $41,000 in the similar period of 2012. This increase is due to an increase in the use of debt financing.

Unrealized loss on derivative instruments in nine months ended September 30, 2013 was $41,000 as compared with the $24,000 loss recorded in the similar period of 2012.   

Net loss for the nine months ended September 30, 2013 decreased 12% or $273,000 to $2,061,000 or $0.13 per basic and diluted share as compared with a net loss of $2,334,000 or $0.16 per basic and diluted share for the nine months ended September 30, 2012.

Basic and diluted weighted average number of common shares outstanding, for nine months ended September 30, 2013, increased 11% or 1,274,769 to 16,205,578 as compared with 14930,809 for the comparable period of 2012.

Cash-on-hand for the nine months ended September 30, 2013 substantively increased $89,486 to $89,986 from $500 for the comparable quarter of 2012.

Total assets for the nine months ended September 30, 2013 marginally decreased by $63,041 to $4,708,346 as compared with $4,771.387 for the corresponding period in 2012.

Total liabilities for the nine months ended September 30, 2013 increased 18% or $1,626,767 to $10,427,224 as compared with $8,800,457 for the corresponding period in 2012.

"Third quarter 2013 results were a testament to CTI's ability to overcome adversity," said CTI President & CEO Conrad Mir. "There were a host of new sales prospects; but, due to a lengthy sales cycle, most are expected to close in the fourth quarter. Management believes that the re-engineering effort, announced in early October of 2013, may prove promising to our fourth quarter and year-end results."

Conference Call
CTI will host an earnings conference call on Monday, November 25, 2013 at 12:30 PM EST.  To participate in the conference call, please dial the following telephone numbers and appropriate call code a few minutes before the start time: U.S.: +1 (267) 507-0240 | Call Code: 530509

As participation is limited to ensure a bridge line, please RSVP via email to: cmir@competitivetech.net or FAX: (203) 368-5399 by 9:00 AM EST, Monday, November 25, 2013 with "Earnings Call 2013" in the subject line.

About the Company
Competitive Technologies Inc., (CTI) is a biotechnology company developing and commercializing innovative products and technologies. CTI is the licensed distributor of the non-invasive Calmare® pain therapy medical device, which incorporates the biophysical "Scrambler Therapy"® technology developed to treat neuropathic and cancer-derived pain by Professor Giuseppe Marineo.

Forward-Looking Statements
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








Scrambler Therapy®: www.scramblertherapy.org/english.htm

Calmare®: www.calmarett.com








www.competitivetech.net

 

[FINANCIAL TABLES TO FOLLOW]

 

COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets







September 30,

2013



December 31,

2012




(Unaudited)





Assets







Current Assets:







Cash


$

89,986



$

74,322


Receivables, net of allowance of $101,154 at September 30, 2013, and December 31, 2012



61,658




216,365


Inventory, finished goods



4,308,220




4,360,156


Prepaid expenses and other current assets



223,139




78,727


Total current assets



4,683,003




4,729,570











Property and equipment, net



10,343




26,817


Security deposits



15,000




15,000


TOTAL ASSETS


$

4,708,346



$

4,771,387











Liabilities and Shareholders' Interest (Deficit)









Current Liabilities:









Accounts payable, general


$

537,129



$

1,806,346


Liabilities under claims purchase agreement



2,093,303




-


Accounts payable, GEOMC



4,182,380




4,181,225


Accrued expenses and other liabilities



635,868




773,364


Notes payable



2,354,175




1,310,000


Conversion feature derivative liability



47,250




-


Deferred Revenue



8,000




9,600


Warrant liability



61,286




-


Series C convertible preferred stock derivative liability



132,833




119,922


Preferred stock liability



375,000




375,000


Total current liabilities



10,427,224




8,575,457











Long Term Notes Payable



-




225,000


Total Liabilities



10,427,224




8,800,457











Commitments and Contingencies









Shareholders' interest (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, 19,176,789 shares issued and outstanding at
               September 30, 2013 and 15,237,304 shares issued and outstanding at December 31, 2012 (see Note 12)



191,767




152,373


Capital in excess of par value



45,699,672




45,367,796


Accumulated deficit



(51,670,992)




(49,609,914)


Total shareholders' interest (deficit)



(5,718,878)




(4,029,070)











TOTAL LIABILITIES AND SHAREHOLDERS' INTEREST (DEFICIT)


$

4,708,346



$

4,771,387


 

 

COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY




Condensed Consolidated Statements of Operations
(Unaudited)






Three months ended



Three months ended




September 30, 2013



September 30, 2012


Revenue







Product sales


$

290,042



$

310,867


Cost of product sales



119,939




100,134


Gross profit from product sales



170,103




210,733











Other Revenue









Retained royalties



22,332




5,955


Other income



14,499




16,634


Total other revenue



36,831




22,589











Expenses


















Selling expenses



22,569




125,633


Personnel and consulting expenses



219,379




277,493


General and administrative expenses



450,272




393,023


Interest expense



67,058




18,628


Unrealized loss on derivative instruments



49,865




15,434


Total Expenses



809,143




830,211











Income (loss) before income taxes



(602,209)




(596,889)


Provision (benefit) for income taxes



-




-











Net income (loss)


$

(602,209)



$

(596,889)











Basic income (loss) per share


$

(0.04)



$

(0.04)











Basic weighted average number of common shares outstanding:



16,867,971




15,184,765











Diluted income (loss) per share


$

(0.04)



$

(0.04)











Diluted weighted average number of common shares outstanding:



16,867,971




15,184,765


 

 

PART I. FINANCIAL INFORMATION (Continued)









COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY









Condensed Consolidated Statements of Operations
(Unaudited)











Nine months ended



Nine months ended




September 30, 2013



September 30, 2012


Revenue







Product sales


$

426,142



$

703,113


Cost of product sales



185,132




295,925


Gross profit from product sales



241,010




407,188











Other Revenue









Retained royalties



40,092




70,337


Interest income



-




1,496


Other income



72,821




39,327


Total other revenue



112,913




111,160











Expenses


















Selling expenses



126,502




306,889


Personnel and consulting expenses



839,118




1,111,058


General and administrative expenses



1,264,448




1,369,128


Interest expense



143,796




40,923


Unrealized loss on derivative instruments



41,137




24,317


Total Expenses



2,415,001




2,852,315











Income (loss) before income taxes



(2,061,078)




(2,333,967)


Provision (benefit) for income taxes



-




-











Net income (loss)


$

(2,061,078)



$

(2,333,967)











Basic income (loss) per share


$

(0.13)



$

(0.16)











Basic weighted average number of common shares outstanding:



16,205,578




14,930,809











Diluted income (loss) per share


$

(0.13)



$

(0.16)











Diluted weighted average number of common shares outstanding:



16,205,578




14,930,809


 

 

PART I. FINANCIAL INFORMATION (Continued)


COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY
Condensed Consolidated Statement of Changes in Shareholders' Interest (Deficit)
For the Nine Months Ended September 30, 2013
(Unaudited)




Preferred Stock



Common Stock



Capital

in excess






Total

shareholders'




Shares

outstanding



Amount



Shares

outstanding



Amount



of par

value



Accumulated

deficit



interest

(deficit)
























Balance January 1, 2013



2,427



$

60,675




15,237,304



$

152,373



$

45,367,796



$

(49,609,914)



$

(4,029,070)































Net income (loss)



-




-




-




-




-




(2,061,078)




(2,061,078)


Common shares issued into escrow (Note 12)



-




-




1,000,000




10,000




(10,000)




-




-


Common shares issued to settle accounts payable, general and accrued expenses



-




-




1,300,000




13,000




250,000




-




263,000


Common stock issued to directors



-




-




21,250




212




7,443




-




7,655


Stock option compensation expense



-




-




-




-




100,615








100,615


Common Stock issued in accordance with liability purchase agreement



-




-




1,618,235




16,182




(16,182)




-




-































Balance September 30, 2013



2,427



$

60,675




19,176,789



$

191,767



$

45,699,672



$

(51,670,992)



$

(5,718,878)


 

 

PART I. FINANCIAL INFORMATION (Continued)




COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARY




Condensed Consolidated Statements of Cash Flows
(Unaudited)






Nine months

ended



Nine months

ended




September 30,

2013



September 30,

2012


Cash flows from operating activities:














Net income (loss)


$

(2,061,078)



$

(2,333,967)


 Adjustments to reconcile net income (loss) to net cash used in operating activities:









Depreciation



8,410




10,995


Stock option compensation expense



100,615




138,630


Share-based compensation – common stock



7,655




-


Share-based consulting fees – common stock



-




35,000


Loss on disposal of property and equipment



-




4,817


Bad debt expense



5,000




-


 Warrant amortization



13,775




-


 Noncash finance charges



102,710




-


Unrealized loss on derivative instrument



41,137




24,317


Changes in assets and liabilities:









Receivables



149,707




(124,501)


Restricted cash



-




750,000


Prepaid expenses and other current assets



118,588




40,358


Inventory



60,000




(180,000)


Accounts payable, accrued expenses and other liabilities



182,745




764,091


Deferred revenue



(1,600)




-


Net cash used in operating activities



(1,272,336)




(870,260)











Cash flows from investing activities:









Purchase of property and equipment



-




(20,000)


Decrease in security deposits



-




2,275


Cash used in investing activities



-




(17,725)











Cash flows from financing activities:









Proceeds from note payable



1,288,500




1,125,000


Repayment of note payable



-




(265,000)


Cash provided by financing activities



1,288,500




860,000











Net increase (decrease) in cash



15,664




(27,985)











Cash at beginning of period



74,322




28,485











Cash at end of period


$

89,986



$

500











Supplemental Cash Flow Information:









Cash paid for interest


$

15,096




4,559


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