Innovus Pharma Reports Record Quarterly Revenues for the Third Quarter of 2016, Increasing 947% to $1.9 Million, and Record Nine Months Ended September 2016 Revenues, Increasing 463% to $3.1 Million
Company Affirms Revenue Guidance of $5 Million for Fiscal Year 2016
SAN DIEGO–(BUSINESS WIRE)–Innovus Pharmaceuticals, Inc. (“Innovus Pharma”) (OTCQB: INNV), today
announced a 947% increase in third quarter of 2016 revenues to a record
$1.9 million, compared to $0.2 million in revenues for the same period
in 2015, and a 463% increase in the nine months ended September 30, 2016
revenues to $3.1 million, compared to $0.6 million in revenue for the
same period in 2015.
“Our increase in revenues for the third quarter is a testament to our
Beyond Human marketing platform we acquired in March 2016 and to the
high value products we commercialize,” stated Bassam Damaj, President
and Chief Executive Officer of Innovus Pharma. “During the third quarter
we strengthened our balance sheet by raising $3.0 million from
institutional investors, in-licensed and launched additional products
under our Beyond Human Sales and Marketing Platform, and strengthened
our senior management team. We are on track to meet our 2016 revenue
guidance of $5.0 million and we continue to be focused on executing on
our goals of expanding our product line, making our products
commercially available, and achieving our projected 2017 goals of
profitability and $15 million in revenues.”
Financial highlights for the three months ended September 30, 2016
-
Net revenues totaled $1.9 million for the three months ended September
30, 2016, compared to net revenues of $0.2 million for the three
months ended September 30, 2015. -
Gross margins increased to 82.4% for the three months ended September
30, 2016, nearly 40% higher than gross margins for the three months
ended September 30, 2015, which totaled 43.1%. -
Total operating expenses increased to $4.1 million and included $0.7
million in non-cash, share-based compensation for the three months
ended September 30, 2016. -
Net loss totaled $4.4 million, or $0.04 per common share, for the
three months ended September 30, 2016. The net loss included interest
expense of $3.7 million, of which $3.6 million was non-cash and
related to amortization of debt discounts and the excess initial fair
value of the embedded conversion feature from our 2016 financing. Net
loss for the three months ended September 30, 2015 totaled $0.9
million, or $0.02 per common share. - Cash balance totaled $1.5 million at September 30, 2016.
Financial highlights for the nine months ended September 30, 2016
-
Net revenues totaled $3.1 million for the nine months ended September
30, 2016, compared to net revenues of $0.6 million for the nine months
ended September 30, 2015. -
Gross margins increased to 77.2% for the nine months ended September
30, 2016, compared to gross margins of 56.6% for the nine months ended
September 30, 2015. -
Total operating expenses increased to $7.0 million and included $1.9
million in non-cash, share-based compensation for the nine months
ended September 30, 2016. -
Net loss totaled $10.3 million, or $0.12 per common share, for the
nine months ended September 30, 2016. The net loss included interest
expense of $6.0 million, of which $5.8 million was non-cash and
related to amortization of debt discounts and the excess initial fair
value of the embedded conversion feature from our 2016 financing. Net
loss for the nine months ended September 30, 2015 totaled $3.2
million, or $0.06 per common share.
Third quarter 2016 and recent highlights included:
-
Announced the initiation of a pre-clinical and clinical program
intended to evaluate the safety and efficacy of the combination of its
supplement Vesele® for promoting sexual health with sildenafil
indicated for treating erectile dysfunction. -
Entered into an exclusive licensing agreement with Seipel Group for
the rights to market Urox® Formulation, which has been clinically
proven to reduce urinary urgency, accidents, and both day and night
frequency in Overactive Bladder (OAB) and Urinary Incontinence (UI),
and will be marketed under the name UriVarx™. -
Announced the launch of Sensum+® under the Beyond Human Sales and
Marketing Platform, which is clinically proven to increase penile
sensitivity, in the U.S. -
Announced the launch of its brain health supplement, RecalMax™, under
the Beyond Human Sales and Marketing Platform in the U.S. -
Announced the appointment of Mr. Robert E. Hoffman as Executive Vice
President and Chief Financial Officer. - Closed on $3 million in financing.
-
Continued our preparation for the anticipated launch of FlutiCare™ in
the second quarter of 2017 if approved by the FDA by the end of 2016.
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: 3007123. 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: 10096488.
The replay will be available shortly after the end of the conference
call.
|
Condensed Consolidated Statements of Operations |
|||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Product sales, net | $ | 1,882,129 |
$ |
179,744 |
$ | 3,126,112 |
$ |
555,069 |
|||||||||||||||
| License revenue | – | – | 1,000 | 5,000 | |||||||||||||||||||
| Total net revenues | 1,882,129 | 179,744 | 3,127,112 | 560,069 | |||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Cost of product sales | 331,227 | 102,359 | 714,284 | 242,808 | |||||||||||||||||||
| Research & development | 43,775 | – | 47,667 | – | |||||||||||||||||||
| Sales & marketing | 1,972,155 | 80,682 | 2,257,166 | 132,778 | |||||||||||||||||||
| General & administrative | 1,779,048 | 650,539 | 4,012,357 | 2,948,413 | |||||||||||||||||||
| Total operating expenses | 4,126,205 | 833,580 | 7,031,474 | 3,323,999 | |||||||||||||||||||
| Loss from operations | (2,244,076 | ) | (653,836 | ) | (3,904,362 | ) | (2,763,930 | ) | |||||||||||||||
| Other Income and (Expenses) | |||||||||||||||||||||||
| Interest expense | (3,727,168 | ) | (473,360 | ) | (6,000,752 | ) | (744,726 | ) | |||||||||||||||
| Loss on extinguishment of debt | – | – | – | (32,500 | ) | ||||||||||||||||||
| Other income, net | 194,744 | – | 196,620 | – | |||||||||||||||||||
| Change in fair value of derivative liabilities | 1,350,688 | 268,449 | (632,627 | ) | 316,378 | ||||||||||||||||||
| Total other expense, net | (2,181,736 | ) | (204,911 | ) | (6,436,759 | ) | (460,848 | ) | |||||||||||||||
| Net loss | $ |
(4,425,812 |
) |
$ |
(858,747 |
) |
$ | (10,341,121 | ) |
$ |
(3,224,778 |
) | |||||||||||
| Net loss per share of common stock – basic and diluted: |
$ |
(0.04 |
) |
$ |
(0.02 |
) |
$ |
(0.12 |
) |
$ |
(0.06 |
) |
|||||||||||
|
Weighted average number of shares of common stock outstanding – basic and diluted |
104,972,645 |
55,076,819 |
86,498,234 |
59,486,501 |
|||||||||||||||||||
| Condensed Consolidated Balance Sheet Data | |||||||||||||||||||
| September 30, 2016 |
December 31, 20151 |
||||||||||||||||||
| (unaudited) |
|
||||||||||||||||||
| Assets | |||||||||||||||||||
| Cash | $ | 1,454,545 | $ | 55,901 | |||||||||||||||
| Accounts receivable, net | 30,875 | 83,097 | |||||||||||||||||
| Prepaid expenses & other current assets | 1,179,212 | 53,278 | |||||||||||||||||
| Inventories | 396,772 | 254,443 | |||||||||||||||||
| Intangible assets & other non-current assets | 5,998,132 | 5,900,286 | |||||||||||||||||
| Total assets | $ | 9,059,536 | $ | 6,347,005 | |||||||||||||||
| Liabilities & Stockholders’ Deficit | |||||||||||||||||||
| Accounts payable & accrued liabilities | $ | 1,623,547 | $ | 258,695 | |||||||||||||||
| Total accrued compensation | 2,023,856 | 1,442,790 | |||||||||||||||||
| Deferred revenue & customer deposits | 11,000 | 24,079 | |||||||||||||||||
| Accrued interest payable | 30,656 | 79,113 | |||||||||||||||||
| Total notes payable and non-convertible debentures | 407,129 | 303,551 | |||||||||||||||||
| Total derivative liabilities | 1,330,593 | 734,572 | |||||||||||||||||
| Total contingent consideration | 3,229,804 | 3,229,804 | |||||||||||||||||
|
Total line of credit convertible debenture and non-convertible debenture – related party, net of discount |
– | 416,472 | |||||||||||||||||
| Convertible debentures, net of discount | 410,580 | 407,459 | |||||||||||||||||
| Total stockholders’ deficit |
(7,629 |
) |
|
(446,338 | ) | ||||||||||||||
| Total liabilities & stockholders’ deficit | $ | 9,059,536 | $ | 6,347,005 | |||||||||||||||
| 1 |
The Condensed Consolidated Balance Sheet Data has been derived from the audited financial statements as of that date. |
|
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging commercial
stage pharmaceutical company delivering over-the-counter medicines and
consumer care products for men’s and women’s health and respiratory
diseases. The Company generates revenues from its lead products (a) BTH®
Testosterone Booster, (b) BTH® Human Growth Agent, (c) Zestra® for
female arousal, and (d) EjectDelay® for premature ejaculation, and has
an additional five marketed products in this space, including (e)
Sensum+® to help with reduced penile sensitivity, (f) Zestra Glide®,
(g)Vesele® for promoting sexual health, (h) RecalMax™ for promoting
brain and cognitive health, (i) Androferti® (in the US and Canada) to
support overall male reproductive health and sperm quality, (j) BTH
Vision Formula, and (k) BTH Blood Sugar, among others, and FlutiCare™
OTC for allergic rhinitis, if its ANDA is approved by the U.S. FDA.
For more information, go to www.innovuspharma.com,
www.zestra.com,
www.ejectdelay.com,
www.myvesele.com,
www.sensumplus.com,
www.myandroferti.com,
www.beyondhumantestosterone.com,
www.getbeyondhuman.com,
www.trybeyondhuman.com,
www.recalmax.com,
www.urivarx.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, receiving patent protection for any of its products, receiving
approval or to be compliant with the requirements of any relevant
regulatory authority, to successfully commercialize its products and to
achieve its other development, commercialization, meeting its sales
projections, 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 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.
Contacts
Chesapeake Group
Kevin Holmes, 410-825-3930
info@chesapeakegp.com
