Competitive Tech Reports Third Quarter 2013 Results

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