FAIRFIELD, Conn., Nov. 20, 2013 /PRNewswire/
-- Competitive Technologies, Inc., (OTCQX:
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
|
|
SOURCE Competitive Technologies, Inc.