Toronto, Ontario / ACCESSWIRE / November 27, 2015 / Theralase Technologies Inc. ("Theralase" or the "Company") (TLT:TSXV) (TLTFF:OTC), a leading biotechnology manufacturer focused on commercializing medical technologies to eliminate pain and destroy cancer, released its third quarter 2015 financial results today.
Revenue for the three month period ended September 30, 2015 increased 186% from $134,036 to $383,791 from the same period in 2014.
In Canada, revenue increased 43% to $885,562 from $621,435, while US revenue decreased 42% from $234,167 to $136,382 and international revenue decreased 71% from $138,871 to $39,665.
The significant increase in Canadian revenue in 3Q2015 and the corresponding decrease in US and international revenue is attributable to the Company building its sales and marketing teams from scratch commencing with the Canadian market, in anticipation of the launch of the next generation TLC-2000 therapeutic medical laser system. Prior to the recently received Food and Drug Administration (“FDA”) approval of the TLC-2000, and the pending Health Canada approval, the sales and marketing teams successfully executed on closing sales for the existing TLC-1000 therapeutic laser technology platform.
Now that the TLC-2000 is FDA approved, Theralase will commence building its sales and marketing teams in the US with the mandate of dramatically increasing sales of the TLC-2000 across the United States in 2016. Once Health Canada approval is obtained, Theralase will be well positioned to dramatically increase sales of the TLC-2000, both in Canada and in the US. Once these markets have been established and running independently, Theralase will focus on growing its international revenues through international partnerships and distribution agreements.
The cost of sales for the nine month period ended September 30, 2015 was $357,750 resulting in a gross margin of $703,858 (66% of revenue), compared to a cost of sales of $311,455 in 2014, resulting in a gross margin of $683,018 (69% of revenue).
Sales and marketing expenses for the nine month period ended September 30, 2015 were $750,098 (71% of revenue), compared with $421,401 (42% of revenue) in 2014. The increase represents investment in the sales and marketing teams, preparing for launch of the next generation therapeutic laser system, which will augment sales commencing in 2016.
Administrative expenses for the nine month period ended September 30, 2015 were $1,619,210 (66% increase) from $976,568 in 2014. Increases in administrative expenses for the nine month period ended September 30, 2015 were attributable to the following:
- General and administrative expenses increased 55% due to increased spending on investor relations and research scientist activities
- Professional fees increased 155% due to increased legal fees for additional trademark and intellectual property patents to protect the Company’s latest technological advances in both its therapeutic laser and anti-cancer divisions.
- Stock based compensation increased by 168% as a result of granting and vesting of stock options to certain employees, directors and officers of the Company in 3Q2015.
Research and development expenses totaled $2,629,163 for the nine month period ended September 30, 2015 compared to $1,021,717 in 2014 (157% increase). Research and development expenses represented 53% of the Company’s operating expenses for the period and represent direct investment into commercialization efforts of the next generation TLC-2000 therapeutic medical laser technology and research and development expenses of the TLC-3000 anti-cancer technology.
The net loss for the nine month period ended September 30, 2015 was $4,253,079, which included $438,539 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 2014 of $1,737,759, which included $157,748 of net non-cash expenses. The Photo Dynamic Therapy ("PDT") division represented $2,804,991 of this loss (66%). The increase in net loss is primarily due to increased investment in research and development for the anti-cancer technology, preparing for a Phase Ib clinical study for Non-Muscle Invasive Bladder Cancer ("NMIBC") in 4Q2015, and the addition of sales, marketing and administrative personnel related to the launch of the next generation TLC-2000 therapeutic medical laser system in 4Q2015.
Roger Dumoulin-White, President and CEO, Theralase stated that, “Theralase’s mandate is to invest in the next generation technologies, both in healing pain and destroying cancer, through strategic investment in research, development, personnel and infrastructure, in order to dramatically increase sales from a traditional sales base in the $2 million range to many millions of dollars, commencing in 2016.
Now that the TLC-2000 has been FDA approved, and as we await Health Canada approval, the Company will focus its energy and resources on successfully launching, increasing sales and growing market share of the next generation TLC-2000 laser technology in the US and eventually Canada, in 2016.
In the anti-cancer division, the Company is awaiting Health Canada, Research Ethics Board and FDA pre-Investigational New Drug Application approval in 4Q2015 to commence enrolling patients in a Phase Ib human clinical trial for the treatment of NMIBC in 4Q2015.
Mr. Dumoulin-White concluded that, "The Company is confident that the successful execution of these strategic initiatives will dramatically increase shareholder value."
About Theralase Technologies Inc.
Theralase Technologies Inc. ("Theralase(R)") (TSXV: TLT) (TLTFF: OTC) in its Therapeutic Laser Technology Division designs, manufactures and markets patented super-pulsed laser technology indicated for the: elimination of pain, reduction of inflammation and dramatic acceleration of tissue healing for numerous nerve, muscle and joint conditions. Theralase’s Photo Dynamic Therapy Division researches and develops specially designed molecules called Photo Dynamic Compounds, which are able to localize to cancer cells and then when laser light activated, effectively destroy them.
Additional information is available at www.theralase.com and www.sedar.com .
Theralase Technologies Inc. was recognized as a TSX Venture 50® company in 2015. TSX Venture 50 is a trademark of TSX Inc. and is used under license.
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.