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| 8-K - FORM 8-K - INNOVUS PHARMACEUTICALS, INC. | innv8k_may122017.htm |
Exhibit 99.1
Innovus Pharmaceuticals Reports Quarterly Revenue
for the First Quarter 2017 of $2.2 Million
Company Achieved Year over Year Revenue Growth of 866%
and
Sequential Quarter over Quarter Growth of 29%
SAN
DIEGO, May 12, 2017 – Innovus Pharmaceuticals, Inc.,
(“Innovus Pharma”) (OTCQB: INNV), today announced first
quarter 2017 net revenue of $2.2 million compared to $0.2 million
in net revenues for the same period in 2016.
“We
have not only seen an increase in our net revenue from the most
recent fourth quarter 2016 but our operating loss and cash used in
operations has improved as we continue to work to achieve our goal
of profitability” stated Bassam Damaj, President and Chief
Executive Officer of Innovus Pharma. “With the exciting news
stemming from the commercial supply agreement we entered into with
our new partner for Fluticare(TM) in May 2017 and the recent
completion of our registered public equity offering in March 2017,
we believe we are well on our way to having the necessary resources
to assist us in executing our goals of the expected launch of
FlutiCare(TM) in the fourth quarter of 2017, the continued
expansion of our product lines and achieving
profitability.”
Financial highlights for the three months ended March 31, 2017
included:
●
Net revenue totaled
$2.2 million for the three months ended March 31, 2017, compared to
net revenue of $0.2 million for the three months ended March 31,
2016.
●
Sequential quarter
over quarter net revenue increased by $0.5 million or 29% for the
three months ended March 31, 2017 compared to net revenue of $1.7
million for the three months ended December 31, 2016.
●
Gross margin
increased to 79.8% for the three months ended March 31, 2017,
significantly higher than gross margin for the three months ended
March 31, 2016 which totaled 46.7%.
●
Total operating
expense increased to $3.8 million and included $0.6 million in
non-cash share-based compensation and $0.2 million in non-cash
depreciation and amortization for the three months ended March 31,
2017.
●
Sequential quarter
over quarter loss from operations decreased by $0.3 million or 14%
for the three months ended March 31, 2017 compared to the three
months ended December 31, 2016.
●
Net loss totaled
$2.5 million, or ($0.02) per common share, for the three months
ended March 31, 2017. The net loss included a non-cash expense of
$0.3 million for the loss on extinguishment of debt as a result of
the prepayment of the remaining 2016 convertible debentures. The
net loss also included interest expense of $0.6 million, of which
$0.5 million was non-cash and related to the amortization of debt
discounts. Net loss for the three months ended March 31, 2016
totaled $1.6 million or ($0.02) per common share.
●
Completed a
registered public equity offering which resulted in net cash
proceeds of $3.3 million.
●
Repaid the
remaining debt obligations under the 2016 convertible debentures
totaling $1.3 million.
●
Sequential quarter
over quarter cash used in operations decreased by $0.5 million for
the three months ended March 31, 2017 to $0.5 million compared to
$1.0 million for the three months ended December 31,
2016.
●
Cash balance
totaled $2.4 million at March 31, 2017.
First quarter 2017 and recent developments:
●
Entered into a
major supply agreement in May 2017 with West-Ward which will allow
us to launch FlutiCare(TM) in the fourth quarter of 2017 under
their recently approved OTC ANDA for fluticasone propionate nasal spray USP, 50 mcg per
spray;
●
ProstaGorx(TM), a
clinical strength, multi-response prostate supplement,
scientifically formulated to effectively maintain good prostate
health, was launched under the Beyond Human(R) Sales and Marketing
Platform in May 2017;
●
Notification was
received to commercialize Zestra(R) in all 28 member countries of
the European Union;
●
Notification was
received to commercialize Zestra(R) in South Korea;
●
Notification was
received to commercialize Sensum+ in all 28 member countries of the
European Union; and
●
Notification was
received to commercialize Zestra Glide(R) in all 28 member
countries of the European Union.
The
Company will host a conference call at 4:30 p.m. ET/1:30 p.m. PT
today to discuss the financial results and recent business
developments. To participate in the call, please dial
1-877-883-0383 for domestic callers or 1-412-902-6506 for
international callers. Participant Elite Entry
Number: 2679172. A replay of the call will be available for 30
days. To access the replay, dial 1-877-344-7529 domestically
or 1-412-317-0088 internationally and reference Conference ID:
10106792. The replay will be available shortly after the end of the
conference call.
Consolidated Statements of Operations
|
|
(Unaudited)
For the
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2017
|
2016
|
|
Net
revenue:
|
|
|
|
Product sales, net
|
$2,177,290
|
$224,463
|
|
License revenue
|
-
|
1,000
|
|
Net
revenue
|
2,177,290
|
225,463
|
|
|
|
|
|
Operating
expense:
|
|
|
|
Cost of product sales
|
440,476
|
120,123
|
|
Research and development
|
3,183
|
-
|
|
Sales and marketing
|
1,687,351
|
35,496
|
|
General and administrative
|
1,704,663
|
1,287,737
|
|
Total
operating expense
|
3,835,673
|
1,443,356
|
|
|
|
|
|
Loss
from operations
|
(1,658,383)
|
(1,217,893)
|
|
|
|
|
|
Other
income and (expense):
|
|
|
|
Interest expense
|
(557,479)
|
(390,851)
|
|
Loss on extinguishment of debt
|
(304,828)
|
-
|
|
Other income (expense), net
|
(616)
|
1,765
|
|
Fair value adjustment for contingent consideration
|
27,175
|
(5,584)
|
|
Change in fair value of derivative liabilities
|
(51,656)
|
57,594
|
|
Total
other expense, net
|
(887,404)
|
(337,076)
|
|
|
|
|
|
Net
loss
|
$(2,545,787)
|
$(1,554,969)
|
|
|
|
|
|
Net
loss per share of common stock – basic and
diluted
|
$(0.02)
|
$(0.02)
|
|
|
|
|
|
Weighted
average number of shares of common stock outstanding – basic
and diluted
|
135,099,173
|
68,373,226
|
|
|
|
|
Condensed Consolidated Balance Sheet Data
|
|
March 31,
|
December
31,
|
|
|
2017
|
2016
|
|
|
(Unaudited)
|
(1)
|
|
Assets
|
|
|
|
Cash
|
$2,375,352
|
$829,933
|
|
Accounts receivable, net
|
15,075
|
33,575
|
|
Prepaid expense and other current assets
|
592,644
|
863,664
|
|
Inventories
|
536,640
|
599,856
|
|
Intangible assets & other non-current assets
|
5,742,059
|
5,900,350
|
|
Total
assets
|
$9,261,770
|
$8,227,378
|
|
|
|
|
|
Liabilities & Stockholders' Equity
|
|
|
|
Accounts payable and accrued expense
|
$1,149,752
|
$1,210,050
|
|
Total accrued compensation
|
2,486,511
|
2,299,593
|
|
Deferred revenue and customer deposits
|
11,000
|
11,000
|
|
Accrued interest payable
|
12,289
|
47,782
|
|
Total
notes payable and non-convertible debenture, net of
discount
|
802,048
|
681,127
|
|
Total derivative liabilities
|
93,669
|
483,744
|
|
Total contingent consideration
|
1,658,742
|
1,685,917
|
|
Convertible debentures, net of discount
|
-
|
714,192
|
|
Total stockholders' equity
|
3,047,759
|
1,093,973
|
|
Total liabilities and stockholders’ equity
|
$9,261,770
|
$8,227,378
|
|
|
|
|
(1) The Condensed Consolidated Balance Sheet Data has been
derived from the audited consolidated financial statements as of
that date.
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging
over-the-counter (“OTC”) consumer goods and specialty
pharmaceutical company engaged in the commercialization, licensing
and development of safe and effective non-prescription medicine and
consumer care products to improve men’s and women’s
health and vitality and respiratory diseases. Innovus Pharma delivers innovative and uniquely
presented and packaged health solutions through its (a) OTC
medicines and consumer and health products, which we market
directly, (b) commercial partners to primary care physicians,
urologists, gynecologists and therapists, and (c) directly to
consumers through our on-line channels, retailers and wholesalers.
The Company is dedicated to being a leader in developing and
marketing new OTC and branded Abbreviated New Drug Application
(“ANDA”) products. The Company is actively pursuing
opportunities where existing prescription drugs have recently, or
are expected to, change from prescription (or Rx) to
OTC.
For more information, go to www.innovuspharma.com, www.zestra.com;
www.ejectdelay.com; www.myvesele.com; www.sensumplus.com;
www.myandroferti.com; www.fluticare.com;
www.beyondhumantestosterone.com; www.getbeyondhuman.com;
www.trybeyondhuman.com; www.recalmax.com;
and www.prostagorx.com.
Innovus Pharma’s Forward-Looking Safe Harbor
Statements under the Private Securities Litigation Reform Act, as
amended: with the exception of the historical information contained
in this release, the matters described herein contain
forward-looking statements that involve risks and uncertainties
that may individually or mutually impact the matters herein
described for a variety of reasons that are outside the control of
the Company, including, but not limited to, its financial results,
projected revenues, projected online subscribers and other
customers, estimated markets for its products, and statements about
achieving its other corporate and business development, growth,
commercialization, financial and staffing objectives. Readers are
cautioned not to place undue reliance on these forward-looking
statements as actual results could differ materially from the
forward-looking statements contained herein. Readers are urged to
read the risk factors set forth in the Company's most recent filing
on Form S-1, annual report on Form 10-K, subsequent quarterly
reports filed on Form 10-Q and other filings made with the SEC.
Copies of these reports are available from the SEC's website or
without charge from the Company.
# #
#
Contact:
Kevin
Holmes
Chesapeake
Group
410-825-3930
info@chesapeakegp.com