Theralase Releases 3Q2014 Financials
November 28, 2014 (Source: Accesswire) — Theralase Technologies Inc. (“Theralase”) (TLT: TSXV) (TLTFF: OTC Link(R)) released its third quarter 2014 financial results today, demonstrating a decrease in revenue for the three month period ended September 30, 2014 of 57% and a decrease in revenue of 15% for the nine month period ended September 30, 2014, while making dramatic progress in both its patented next generation Therapeutic Laser Technology (“TLT“) division and its Photo Dynamic Therapy (“PDT“) anti-cancer division.
Total revenue for the nine-month period ended September 30, 2014 decreased 15% from $1,165,215 to $994,473 for the same period in 2013.
In Canada, revenue decreased 10% to $621,435 from $690,451, in the US, revenue remained flat to $234,167 from $234,128 and internationally revenue decreased 42% to $138,871 from $240,637. The decrease in revenue is mainly attributable to Theralase launching a new sales team and also prospective customers preferring to wait for the introduction of the new TLC-2000 technology, which is scheduled to launch in Canada at the end of 4Q2014.
In 1Q2015, the Company will expand its sales and marketing initiatives in Canada and then proceed to expand its sales and marketing initiatives in the US in 3Q2015, while maintaining its dominant position in Canada.
The net loss for the nine-month period ended September 30, 2014 was $1,737,761, which included $157,748 of net non-cash expenses (amortization, stock-based compensation expense, foreign exchange gain/loss and lease inducements). This compared to a net loss for the same period in 2013 of $596,873, which included $137,888 of net non-cash expenses. The increase in net loss is predominantly due to increases in TLC-2000 Biofeedback Research and Development expenditures, TLC-3000 scientific and preclinical research expenditures and increased spending in advertising, sales and administrative personnel.
The net loss reflects the ongoing commitment of Theralase to invest in the next generation of therapeutic laser and cancer destruction technologies, from existing therapeutic laser sales.
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Selling and marketing expenses for the nine-month period ended September 30, 2014 were $421,401 representing 35% of sales, compared with $344,136 or 28% in 2013, due to increased spending on advertising and travel related costs, positioning the Company for increased revenues in subsequent quarters.
Administrative expenses for the nine-month period ended September 30, 2014 were $976,568 representing a 35% increase from $722,485 in 2013, due to increased spending on investor relations activities.
Gross research and development costs expensed totaled $1,021,717 for the nine-month period ended September 30, 2014 compared to $364,189 in 2013. This represents a 181% increase attributable to increased expenditures and investment into the commercialization of the TLC-2000 therapeutic laser technology and scientific and preclinical research into the development of the TLC-3000 anti-cancer technology.
Roger Dumoulin-White, President and CEO of Theralase stated that, “The Company is on track to launch the next generation TLC-2000 therapeutic laser technology in Canada at the end of 4Q2014. This technology is patented in Canada, the United States and the major economies of Europe and will undoubtedly revolutionize the therapeutic laser industry by providing patient optimized treatments that automatically adapt to a patient’s physical characteristics delivering the highest efficacy achievable in the elimination of pain, reduction in inflammation and acceleration of tissue healing. The medical community and the patients who suffer from chronic pain will appreciate the efficacy and pain relief that a technology of this performance will deliver.”
Mr. Dumoulin-White stated that, “Theralase has been working with its Key Opinion Leaders (“KOLs“) throughout 3Q2014 and pending Canadian Standards Association (“CSA“) and Health Canada regulatory approvals, Theralase will supply pre-commercial prototypes to its Canadian Territory Sales Managers (“TSMs“) in 4Q2014 to solicit orders and provide “trade-up” allowances to existing TLC-1000 customers. Theralase intends to utilize a recurring revenue sales model; whereby, Theralase will partner with practitioners and participate in the revenue stream generated through the use of the therapeutic laser technology for patient treatments. ”
Mr. Dumoulin-White went on to say, “Our patented anti-cancer technology has demonstrated significant success in preclinical research and is on track for completion of preclinical evaluation in late 2014 / early 2015. Theralase is anticipating enrollment of patients into a Phase I / II a clinical trial for bladder cancer in 2015, pending Health Canada and the United States Food and Drug Administration (“FDA“) of a Clinical Trial Application (“CTA“) and Investigational New Drug (“IND“) application, respectively. If our PDC technology, with its recent advances, that have been validated three times, provides an immune-mediated “memory response” in the destruction and prevention of cancer in human cancer patients, the implications of this discovery would be immense for Theralase and more importantly for the cancer patients who are inflicted with this deadly disease. The ability to destroy the primary tumour and program the immune system to prevent micro metastasis to prevent recurrence, after a single treatment, is startling. Theralase is fully dedicated to commercializing this anti-cancer PDC technology in the shortest possible time in order to help heal cancer patients, who need our help the most.”
About Theralase Technologies Inc.
Founded in 1994, Theralase Technologies Inc. (“Theralase(R)“) (TSXV: TLT) (TLTFF: OTC Link(R)) designs, manufactures and markets patented super-pulsed laser technology used for the elimination of pain, reduction of inflammation and dramatic acceleration of tissue healing. Theralase has sold over 1,200 systems to licensed healthcare practitioners, including: medical doctors, chiropractors, physical therapists and athletic therapists. Theralase has been so successful in healing nerve, muscle and joint conditions in clinical practice that Theralase’s scientists and clinicians have now turned their attention to investigating the application of its lasers in the destruction of cancer, using specially designed molecules called Photo Dynamic Compounds (“PDCs“), which are able to localize to the DNA of cancer cells and when light activated, destroy the cancer cells.
This press release contains forward-looking statements, which reflect the Company’s current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Company disclaims any obligation to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchanges) accepts responsibility for the adequacy or accuracy of this release.
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