Attached files
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| 8-K - CURRENT REPORT - INNOVUS PHARMACEUTICALS, INC. | innv8k_may142018.htm |
Exhibit
99.1
Innovus Pharmaceuticals Reports Record Quarterly Revenue for the
First Quarter 2018 of $4.5 million, Beating Previous Estimate and
Net Loss Decrease of 28% Compared to the Same Quarterly Period in
2017
Quarterly Net Revenue Increase of
109% When Compared to the First Quarter of 2017
SAN
DIEGO, May 14, 2018 – Innovus Pharmaceuticals, Inc.,
(“Innovus Pharma” or the “Company”) (OTCQB:
INNV), today announced first quarter 2018 net revenue of $4.5
million compared to $2.2 million in net revenue for the same period
in 2017.
“We
are delighted with our first quarter net revenues of $4.5 million,
which beat our previously announced first quarter
expectations,” stated Bassam Damaj, President and Chief
Executive Officer of Innovus Pharma. “We are very confident
in our business strategy and in our ability to grow our sales
revenue through our continuously expanding and proprietary Beyond
Human™ sales and marketing channels and to develop new
products that satisfy the needs of our growing customer base. With
a strong cash position of close to $5 million in cash at the end of
the first quarter, we are committed and aggressively working
towards our goal of profitability as we continue to strengthen and
advance our pipeline, which is as strong as it's ever been
and expand the sales channels of our Beyond
Human™ sales and marketing platform both in the US and
abroad,” continued Dr. Damaj.
Financial highlights for the three months ended March 31, 2018
included:
●
Net revenues
totaled $4.5 million for the three months ended March 31, 2018
compared to net revenues of $2.2 million for the three months ended
March 31, 2017 representing a 108.7% increase.
●
Sequential quarter
over quarter revenue increase of 91.0% in the first quarter 2018
compared to an increase of 28.7% in the first quarter
2017.
●
Gross margins
increased to 81% for the three months ended March 31, 2018 compared
to 80% the same three-month period in 2017.
●
Total cash on hand
close to $5 million at March 31, 2018
●
Total non-product
operating expenses increased to $5.0 million and included $0.1
million in non-cash share-based compensation, $0.5 million of
non-cash debt related expense, and $0.2 million in non-cash
depreciation and amortization for the three months ended March 31,
2018.
●
Loss from
operations decreased to $1.3 million during the three months ended
March 31, 2018 compared to $1.7 million during the three months
ended March 31, 2017 representing a 19.9% decrease.
●
Net loss totaled
$1.8 million, or $0.01 per common share, for the three months ended
March 31, 2018 compared to $2.5 million, or $0.02 per common share,
for the three months ended March 31, 2017 representing a decrease
of 28.2%. The net loss in 2018 included a non-cash expense of $0.3
million for the loss on debt extinguishment. The net loss also
included interest expense of $0.2 million which was non-cash and
related to amortization of debt discounts.
First quarter 2018 and recent developments:
●
Received net cash
proceeds of $2.8 million from the exercise of warrants to purchase
shares of the Company’s common stock, raised net cash
proceeds of $1.9 million from the issuance of notes payable during
the first quarter of 2018 and current total cash on hand as of
March 31, 2018 is $4.9 million;
●
Entered into an
exclusive license and distribution agreement with Acerus
Pharmaceuticals in January 2018 granting them exclusive rights to
market and sell UriVarx® in Canada;
●
Entered into an
exclusive license and distribution agreement with Lavasta Pharma in
January 2018 granting them exclusive rights to market and sell
ProstaGorx® in various countries in the Middle East and North
Africa;
●
Launched seven new
products in the U.S.;
●
Received multiple
product approvals in Canada; and
●
Expanded our Beyond
Human™ sales and marketing platform to Canada and launched
three products there.
The
Company will host a conference call at 4:15 p.m. ET/1:15 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: 9576665. 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:
10118224. The replay will be available shortly after the end of the
conference call.
-1-
Consolidated
Statements of Operations
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
2017
|
|
|
(Unaudited)
|
|
|
Net
revenue:
|
|
|
|
Product sales, net
|
$4,542,026
|
$2,177,290
|
|
License revenue
|
2,578
|
-
|
|
Net
revenue
|
4,544,604
|
2,177,290
|
|
|
|
|
|
Operating
expense:
|
|
|
|
Cost of product sales
|
864,095
|
440,476
|
|
Research and development
|
11,287
|
3,183
|
|
Sales and marketing
|
3,301,784
|
1,687,351
|
|
General and administrative
|
1,696,021
|
1,704,663
|
|
Total
operating expense
|
5,873,187
|
3,835,673
|
|
|
|
|
|
Loss
from operations
|
(1,328,583)
|
(1,658,383)
|
|
|
|
|
|
Other
income and (expense):
|
|
|
|
Interest expense
|
(241,888)
|
(557,479)
|
|
Loss on extinguishment of debt
|
(255,685)
|
(304,828)
|
|
Other income (expense), net
|
109
|
(616)
|
|
Fair value adjustment for contingent consideration
|
(2,845)
|
27,175
|
|
Change in fair value of derivative liabilities
|
-
|
(51,656)
|
|
Total
other expense, net
|
(500,309)
|
(887,404)
|
|
|
|
|
|
Net
loss
|
$(1,828,892)
|
$(2,545,787)
|
|
|
|
|
|
Net
loss per share of common stock – basic and
diluted
|
$(0.01)
|
$(0.02)
|
|
|
|
|
|
Weighted
average number of shares of common stock outstanding – basic
and diluted
|
186,933,622
|
135,099,173
|
-2-
Condensed Consolidated Balance Sheet Data
|
|
March 31, 2018
|
|
|
1
|
|
Assets
|
|
|
Cash
|
$4,923,796
|
|
Accounts receivable, net
|
195,242
|
|
Prepaid expenses and other current assets
|
333,136
|
|
Inventories
|
1,648,730
|
|
Intangible assets and other non-current assets
|
5,292,466
|
|
Total assets
|
$12,393,370
|
|
Liabilities & Stockholders' Equity
|
|
|
Accounts payable & accrued expenses
|
2,910,282
|
|
Accrued compensation
|
2,820,113
|
|
Deferred revenue and customer deposits
|
142,769
|
|
Accrued interest payable
|
11,671
|
|
Short-term loan payable
|
32,775
|
|
Notes payable and non-convertible debenture, net of
discount
|
2,288,876
|
|
Total contingent consideration
|
1,481,848
|
|
Total stockholders' equity
|
2,705,036
|
|
Total
liabilities & stockholders' equity
|
$12,393,370
|
1
The
Condensed Consolidated Balance Sheet Data has been derived from the
audited consolidated financial statements as of that
date.
-3-
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging
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.urivarx.com;
www.sensumplus.com;
www.myandroferti.com;
www.beyondhumantestosterone.com;
www.getbeyondhuman.com;
www.trybeyondhuman.com;
www.recalmax.com;
www.prostagorx.com;
www.fluticare.com;
www.allervarx.com;
www.apeaz.com
and
www.diabasens.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.
# #
#
For more information, please contact:
Randy
Berholtz
Innovus
Pharma Investor Relations
Tel: +1
858 249 7865
ir@innovuspharma.com
-4-