FAIRFIELD, Conn., May 19, 2014 /PRNewswire/ -- Competitive
Technologies, Inc., (OTCQX: CTTC) (CTI), a pain
mitigation biotechnology company, reported results for the quarter
ended March 31, 2014.
Net loss for the quarter ended March 31, 2014 decreased to $726,000 or $0.04
per basic and diluted share as compared with a net loss of
$782,000 or $0.05 per basic and diluted share for the quarter
ended March 31, 2013. The net loss
for the quarter ended March 31, 2014
includes a non-recurring expense of $132,000 related to the settlement of the
Tonaquint note and warrant.
Revenue from the sale and shipment of the
Calmare® pain therapy devices (Device) for the quarter
ended March 31, 2014 increased to
$221,000 as compared with
$0 for the quarter ended March 31, 2013.
Device sales for the quarter ended March 31, 2014 were three (3) as compared with 0
for the comparable quarter ended March 31,
2014 and as compared with three (3) for the sequential
quarter ended December 31, 2013. Due
to the relatively long sales cycle for a Device in effect, Device
sales may and can vary significantly from quarter to quarter.
Total expenses for the quarter ended March 31, 2014 increased 7% or $59,000 to $884,000 as compared with $825,000 for the quarter ended March 31, 2013. Total expenses for the quarter
ended March 31, 2014 include a
non-recurring expense of $132,000
related to the settlement of the Tonaquint note and warrant.
Personnel and consulting expenses for the quarter ended
March 31, 2014 increased 16% or
$54,000 to $395,000 as compared with
$341,000 for the quarter ended
March 31, 2013.
General and administrative expenses for the quarter ended
March 31, 2014 decreased 52% or
$207,000 to $194,000 as compared with
$401,000 for the quarter ended
March 31, 2014.
Interest expense for the quarter ended March 31, 2014 increased $72,000 to $105,000 as compared with $33,000 for the quarter ended March 31, 2013. The increase is due to an
increase in the use of debt financing.
Cash-on-hand at March 31,
2014 increased $287,000 to
$344,000 from $57,000 at
December 31, 2013.
Total assets at March 31,
2014 increased $184,000 to
$4,750,000 as compared with
$4,566,000 at December 31, 2013.
Total liabilities at March 31,
2014 increased $232,000 to
$10,743,000 as compared with
$10,511,000 at December 31, 2013. This increase is due to an
increase in the use of debt financing.
Total capital raised over the past two quarters was
$861,000 and consisted of:
$361,000 of hybrid debt and
$500,000 of equity.
"Results for the first quarter of 2014 were a clear testament to
CTI's ability to overcome adversity," said CTI President & CEO
Conrad Mir. "We had several device
sales and a host of new prospects; a dynamic the Company has not
had in well over two years. Although some projected sales closed
after the quarter-end, Management believes this may make for an
even better than expected second quarter 2014."
Conference Call
CTI will host an earnings conference
call on Wednesday, May 21, 2014 at
1:30 p.m. EDT. To participate in
the conference call, please dial the following telephone numbers
and appropriate call code a few minutes before the start time:
(866) 952-1906 (U.S.) or +1 (785) 424-1825 (Int'l) | Call Code:
CTI.
As participation is limited, please RSVP via email to:
yperalta@competitivetech.net or FAX: (203) 368-5399 by 10:00 a.m. EDT, Wednesday, May 21, 2014 with "Earnings
Call 2014" in the subject line.
About the Company
Competitive Technologies Inc., the
pain mitigation company, develops and commercializes innovative
wound and pain management products and technologies. CTI holds the
510k clearance on its flagship product, the non-invasive
Calmare® Pain Therapy Device, which grants it an
exclusive right to sell, market, research and develop the medical
device. The Company is the exclusive licensed global distributor of
Calmare.
Forward-Looking Statement
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
|
|
|
www.competitivetech.net
|
|
COMPETITIVE
TECHNOLOGIES, INC. AND SUBSIDIARY
Condensed
Consolidated Balance Sheets
|
|
|
|
March 31,
2014
|
|
|
December 31,
2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
343,748
|
|
|
$
|
57,009
|
|
|
Receivables, net of
allowance of $101,154 at March 31, 2014 and December 31,
2013
|
|
|
86,317
|
|
|
|
143,330
|
|
|
Inventory
|
|
|
4,248,220
|
|
|
|
4,278,220
|
|
|
Prepaid expenses and
other current assets
|
|
|
48,095
|
|
|
|
65,167
|
|
|
Total current
assets
|
|
|
4,726,380
|
|
|
|
4,543,726
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
8,860
|
|
|
|
7,606
|
|
|
Security
deposits
|
|
|
15,000
|
|
|
|
15,000
|
|
|
TOTAL
ASSETS
|
|
$
|
4,750,240
|
|
|
$
|
4,566,332
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Deficit
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
650,254
|
|
|
$
|
692,251
|
|
|
Liabilities under
claims purchase agreement
|
|
|
2,013,320
|
|
|
|
2,093,303
|
|
|
Accounts payable,
GEOMC
|
|
|
4,183,535
|
|
|
|
4,183,535
|
|
|
Accrued expenses and
other liabilities
|
|
|
803,678
|
|
|
|
582,987
|
|
|
Notes
payable
|
|
|
2,596,746
|
|
|
|
2,488,691
|
|
|
Deferred
revenue
|
|
|
19,687
|
|
|
|
6,400
|
|
|
Warrant
liability
|
|
|
-
|
|
|
|
8,227
|
|
|
Series C convertible
preferred stock derivative liability
|
|
|
66,176
|
|
|
|
80,408
|
|
|
Series C convertible
preferred stock liability
|
|
|
375,000
|
|
|
|
375,000
|
|
|
Total current
liabilities
|
|
|
10,708,396
|
|
|
|
10,510,802
|
|
|
|
|
|
|
|
|
|
|
|
Note payable –
long-term
|
|
|
34,272
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
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, 22,463,532 shares issued
and outstanding at March 31, 2014 and 19,952,907 shares issued and
outstanding at December 31, 2013
|
|
|
224,635
|
|
|
|
199,529
|
|
|
Capital in excess of
par value
|
|
|
46,730,636
|
|
|
|
46,077,394
|
|
|
Accumulated
deficit
|
|
|
(53,008,374)
|
|
|
|
(52,282,068)
|
|
|
Total shareholders'
deficit
|
|
|
(5,992,428)
|
|
|
|
(5,944,470)
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' DEFICIT
|
|
$
|
4,750,240
|
|
|
$
|
4,566,332
|
|
|
COMPETITIVE
TECHNOLOGIES, INC. AND SUBSIDIARY
|
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
|
Three
months
ended
|
|
|
Three
months
ended
|
|
|
|
March 31,
2014
|
|
|
March 31,
2013
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
|
221,080
|
|
|
$
|
-
|
|
|
Cost of product
sales
|
|
|
70,218
|
|
|
|
19,348
|
|
|
Gross profit from
product sales
|
|
|
150,862
|
|
|
|
(19,348)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Revenue
|
|
|
|
|
|
|
|
|
|
Retained
royalties
|
|
|
2,604
|
|
|
|
13,376
|
|
|
Other
income
|
|
|
3,821
|
|
|
|
48,679
|
|
|
Total other
revenue
|
|
|
6,425
|
|
|
|
62,055
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
71,994
|
|
|
|
68,175
|
|
|
Personnel and
consulting expenses
|
|
|
395,023
|
|
|
|
341,007
|
|
|
General and
administrative expenses
|
|
|
193,721
|
|
|
|
400,759
|
|
|
Interest
expense
|
|
|
104,786
|
|
|
|
32,767
|
|
|
Loss on settlement of
note and warrant
|
|
|
132,301
|
|
|
|
-
|
|
|
Unrealized gain on
derivative instruments
|
|
|
(14,232)
|
|
|
|
(18,167)
|
|
|
Total
Expenses
|
|
|
883,593
|
|
|
|
824,541
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(726,306)
|
|
|
|
(781,834)
|
|
|
Provision (benefit)
for income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(726,306)
|
|
|
$
|
(781,834)
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
share
|
|
$
|
(0.04)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of common shares outstanding:
|
|
|
20,036,240
|
|
|
|
15,588,693
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
|
$
|
(0.04)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of common shares outstanding:
|
|
|
20,036,240
|
|
|
|
15,588,693
|
|
|
COMPETITIVE
TECHNOLOGIES, INC. AND SUBSIDIARY
|
|
|
Condensed
Consolidated Statement of Changes in Shareholders'
Deficit
|
|
For the Three Months
Ended March 31, 2014
|
|
(Unaudited)
|
|
|
|
Preferred Stock
|
|
Common Stock
|
|
Capital
|
|
|
|
Total
|
|
|
Shares
outstanding
|
|
Amount
|
|
Shares
outstanding
|
|
Amount
|
|
in excess
of par
value
|
|
Accumulated
deficit
|
|
shareholders'
deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance January 1,
2014
|
|
2,427
|
|
$
|
60,675
|
|
19,952,907
|
|
$
|
199,529
|
|
$
|
46,077,394
|
|
$
|
(52,282,068)
|
|
$
|
(5,944,470)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(726,306)
|
|
|
(726,306)
|
|
Common stock
issued to directors
|
|
-
|
|
|
-
|
|
10,625
|
|
|
106
|
|
|
3,932
|
|
|
-
|
|
|
4,038
|
|
Stock option
compensation expense
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
14,328
|
|
|
-
|
|
|
14,328
|
|
Private offering
of common stock and warrants
|
|
-
|
|
|
-
|
|
2,500,000
|
|
|
25,000
|
|
|
475,000
|
|
|
-
|
|
|
500,000
|
|
Warrant and
beneficial conversion feature on notes payable
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
53,338
|
|
|
-
|
|
|
53,338
|
|
Liabilities
settled under Liability Purchase Agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
106,644
|
|
|
|
|
|
106,644
|
|
Balance March 31,
2014
|
|
2,427
|
|
$
|
60,675
|
|
22,463,532
|
|
$
|
224,635
|
|
$
|
46,730,636
|
|
$
|
(53,008,374)
|
|
$
|
(5,992,428)
|
|
COMPETITIVE
TECHNOLOGIES, INC. AND SUBSIDIARY
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
Three months
ended
|
|
|
Three months
ended
|
|
|
|
March 31,
2014
|
|
|
March 31,
2013
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(726,306)
|
|
|
$
|
(781,834)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,824
|
|
|
|
2,336
|
|
|
Stock option
compensation expense
|
|
|
14,328
|
|
|
|
111,437
|
|
|
Share-based
compensation – common stock
|
|
|
4,038
|
|
|
|
7,000
|
|
|
Bad debt
expense
|
|
|
-
|
|
|
|
5,000
|
|
|
Debt discount
amortization
|
|
|
61,364
|
|
|
|
-
|
|
|
Noncash finance
charges
|
|
|
18,434
|
|
|
|
-
|
|
|
Unrealized gain on
derivative instruments
|
|
|
(14,232)
|
|
|
|
(18,167)
|
|
|
Loss on settlement of
note and warrant
|
|
|
132,301
|
|
|
|
-
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
57,013
|
|
|
|
132,747
|
|
|
Prepaid expenses and
other current assets
|
|
|
17,072
|
|
|
|
56,188
|
|
|
Inventory
|
|
|
30,000
|
|
|
|
-
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
|
|
178,694
|
|
|
|
(32,745)
|
|
|
Deferred
revenue
|
|
|
13,287
|
|
|
|
(1,600)
|
|
|
Net cash used in
operating activities
|
|
|
(212,183)
|
|
|
|
(519,638)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(3,078)
|
|
|
|
-
|
|
|
Cash used in
investing activities
|
|
|
(3,078)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from note
payable
|
|
|
120,000
|
|
|
|
505,000
|
|
|
Repayment of note and
warrant settlement
|
|
|
(118,000)
|
|
|
|
-
|
|
|
Proceeds from common
stock and warrants
|
|
|
500,000
|
|
|
|
-
|
|
|
Net cash provided
by financing activities
|
|
|
502,000
|
|
|
|
505,000
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
286,739
|
|
|
|
(14,638)
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning
of period
|
|
|
57,009
|
|
|
|
74,322
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of
period
|
|
$
|
343,748
|
|
|
$
|
59,684
|
|
Logo -
http://photos.prnewswire.com/prnh/20131015/NY97852LOGO
SOURCE Competitive Technologies, Inc.