WILMINGTON, Mass., May 14, 2015 /PRNewswire/ -- Implant
Sciences Corporation (OTCQB: IMSC), a leading manufacturer of
explosives trace detection (ETD) and drugs trace detection
solutions for homeland security applications, today announced
financial results for the three and nine months ended March 31, 2015.
Revenues for the three months ended March
31, 2015 increased 22.0%, to $3.3
million, from $2.7 million for
the comparable prior year period. Our net loss for the three
months ended March 31, 2015 was
$5.7 million as compared with a net
loss of $4.9 million for the
comparable prior year period, an increase of $0.8 million.
Revenues for the nine months ended March
31, 2015 increased 4.2%, to $7.3
million, from $7.0 million for
the comparable prior year period. Our net loss for the nine
months ended March 31, 2015 was
$17.4 million as compared with a net
loss of $15.3 million for the
comparable prior year period, an increase of $2.1 million.
Earnings before interest, taxes, depreciation and amortization,
stock-based compensation, warrants issued to non-employees and
common stock issued to consultants ("Adjusted EBITDA"), which is
reconciled to net loss in this press release, was a loss of
$2,266,000 in the three months ended
March 31, 2015, compared to a loss of
$2,299,000 in the comparable prior
year period and for the nine months ended March 31, 2015, a loss of $8,109,000 compared to a loss of $6,897,000 in the comparable prior year
period.
Dr. William McGann, President and
CEO of Implant Sciences, commented, "During the recently concluded
quarter, we received notice that the bid protest filed with the
General Accountability Office regarding our recent award for 1,170
QS-B220s with the TSA had been denied and the order will now ship
according to TSA's delivery schedule.
In the past few months, we announced the receipt of several
significant orders from European countries for aviation security.
First and perhaps most notably, we received an order for 75 QS-B220
systems in the Netherlands.
Further, we received an order to supply 66 QS-B220 systems to
Norway and we also announced an
order for 25 QS-B220 systems for a major airport in France.
These systems will be deployed to fulfill the recent European
security regulations for screening passengers and checked
bags.
Asia has long been a key market
for us and during the quarter, we shipped a mix of our QS-H150 and
QS-B220 systems to several customers for use in aviation security
and critical infrastructure protection. In the Americas, we
received a sizable follow on order for our QS-B220, which systems
will be deployed for air cargo screening in the U.S. and an order
from a major international airline in Latin America."
Dr. McGann, continued, "We successfully extended our secured
credit agreements with DMRJ Group, LLC and the group of investors
represented by BAM Administrative Services, LLC, to March 31, 2016 and have taken several actions to
better align our costs with current and future geographic sources.
We have taken important steps to broaden the markets we serve,
increase our revenue opportunities, and improve our financial
stability."
Details for the three and nine months ended March 31, 2015 follow below.
Three months Ended March 31,
2015 vs. March 31,
2014
- Revenues for the three months ended March 31, 2015 were $3,305,000 as compared with $2,708,000 for the comparable prior year period,
an increase of $597,000, or 22.0%.
The increase in revenue is due primarily to: a 182.6% increase in
the number of QS-B220 desktop units sold in the three months ended
March 31, 2015, due to increased
shipments to European, Latin American and U.S. air cargo screening
facilities in the current three month period, offset partially by a
4.0% decrease in the average unit sales prices, which resulted in a
171.4% increase in QS-B220 revenues. The increased revenues
achieved on our sales of the QS-B220 were partially offset by a
40.9% decrease in the number of QS-H150 handheld units sold in the
three months ended March 31, 2015,
compared to the prior period, due to decreased shipments to
Mexico, which is partially offset
by a 5.6% increase in the average unit sales prices, which resulted
in a 37.6% decrease in QS-H150 revenues. Sales of parts and
supplies decreased 1.3% in the three months ended March 31, 2015. Sales of QS-B220 were favorably
impacted in the comparable prior period due to the acceptance of
the QS-B220 into the "Qualified" section of the TSA's Air Cargo
Screening Technology List and achieving ECAC's Common Evaluation
Process of Security Equipment for airport checkpoint screening of
passengers and baggage.
- Gross margin for the three months ended March 31, 2015 was $1,176,000 or 35.6% of revenues as compared with
$806,000 or 29.8% of revenues for the
comparable prior year period. The increase in gross margin as a
percent of revenues is primarily due to increased manufacturing
overhead absorption due to increased QS-B220 unit volume and a 5.6%
increase in the average unit sell price on sales of our QS-H150
units, partially offset by a decrease in the average unit sell
price on sales of our QS-B220 units of 4.0% and by a $51,000 increase in stock-based
compensation.
- Research and development expense for the three months ended
March 31, 2015 was $1,347,000 as compared with $1,179,000 for the comparable prior year period,
an increase of $168,000 or 14.2%. The
increase in research and development expense is due primarily to
$110,000 of costs incurred to
relocate the San Diego, CA
advanced technology office, a $51,000
increase in stock-based compensation, due primarily to the
accelerated vesting of certain options issued on July 2, 2014, offset partially by a $9,000 decrease in engineering consulting
fees.
- Selling, general and administrative expenses for the three
months ended March 31, 2015 were
$3,318,000 as compared with
$2,845,000 for the comparable prior
year period, an increase of $473,000,
or 16.6%. The increase in selling, general and administrative
expenses is due primarily to an increase $489,000 in stock-based compensation, due
primarily to additional stock-based compensation expense resulting
from the amendments to our former CEO's existing vested stock
options and to the accelerated vesting of certain options issued on
July 2, 2014, $274,000 of charges incurred pursuant to our
Letter Agreement with Luveti and a $104,000 increase in legal expenses. Partially
offsetting these increases are a $222,000 decrease in stock-based compensation
expense on non-employee warrants, an $80,000 decrease in variable selling expenses,
and a $75,000 decrease in travel
expenses.
- For the three months ended March 31,
2015, other expense was $2,242,000 as compared with other expense of
$1,721,000, for the comparable prior
year period, an increase of $521,000.
The increase is due to increased interest expense on higher
borrowings under our credit facility with DMRJ and our credit
facility with BAM.
- Our net loss for the three months ended March 31, 2015 was $5,731,000 as compared with a net loss of
$4,939,000 for the comparable prior
year period, an increase of $792,000,
or 16.0%. The increase in the net loss is primarily due to
increased operating expenses and an increase in interest
expense.
Nine months Ended March 31,
2015 vs. March 31,
2014
- Revenues for the nine months ended March
31, 2015 were $7,315,000 as
compared with $7,023,000 for the
comparable prior year period, an increase of $292,000, or 4.2%. The increase in revenue is due
primarily to a 23.3% increase in the number of QS-B220 desktop
units sold in the nine months ended March
31, 2015, due to increased shipments to European, Latin
American and U.S. air cargo screening facilities in the current
nine month period, offset partially by a 4.9% decrease in the
average unit sales prices, which resulted in a 17.2% increase in
QS-B220 revenue. The increased revenues achieved on our sales
of the QS-B220, were partially offset by a 7.8% decrease in the
number of QS-H150 handheld units sold in the nine months ended
March 31, 2015, compared to the prior
period, due to decreased shipments to Mexico, and a 4.5% decrease in the average
unit sales prices, which resulted in an 11.8% decrease in QS-H150
revenues. Sales of parts and supplies increased 24.7% in the
nine months ended March 31, 2015.
Sales of QS-B220 were favorably impacted in the comparable prior
period due to the acceptance of the QS-B220 into the "Qualified"
section of the TSA's Air Cargo Screening Technology List and
achieving ECAC's Common Evaluation Process of Security Equipment
for airport checkpoint screening of passengers and baggage.
Competitive market conditions are expected to continue to have a
negative impact on our average unit sales prices for the
foreseeable future.
- Gross margin for the nine months ended March 31, 2015 was $2,158,000 or 29.5% of revenues as compared with
$2,189,000 or 31.2% of revenues for
the comparable prior year period. The decrease in gross margin as a
percent of revenues is primarily the result of a decrease in the
average unit sell price on sales of our QS-B220 units and QS-H150
units of 4.9% and 4.5%, respectively and by a $42,000 increase in stock-based compensation,
offset partially by increased manufacturing overhead absorption due
to increased QS-B220 unit volume.
- Research and development expense for the nine months ended
March 31, 2015 was $3,919,000 as compared with $3,601,000 for the comparable prior year period,
an increase of $318,000 or 8.8%. The
increase in research and development expense is due primarily to
$110,000 of costs incurred to
relocate the San Diego, CA
advanced technology office to a $97,000 increase in payroll and related benefit
costs, a $95,000 increase in
prototype expense and materials, a $33,000 increase in travel expenses incurred in
support of our government qualifications and a $47,000 increase in stock-based compensation, due
primarily to the accelerated vesting of certain options issued on
July 2, 2014, offset partially by a
$70,000 decrease in engineering
consulting fees.
- Selling, general and administrative expenses for the nine
months ended March 31, 2015 were
$9,188,000 as compared with
$8,939,000 for the comparable prior
year period, a increase of $249,000,
or 2.8%. The increase in selling, general and administrative
expenses is due primarily $725,000
increase in payroll and related benefit due to the resignation of
our former CEO, $274,000 of charges
incurred pursuant to our Letter Agreement with Luveti, a
$149,000 increase in legal expenses,
and a $46,000 increase in bad debt
expenses. Partially offsetting these increases are a $475,000 decrease in stock-based compensation
expense on non-employee warrants, a $104,000 decrease in variable selling expenses, a
$101,000 decrease in travel expenses,
a $96,000 decrease in stock-based
compensation, a $74,000 decrease in
occupancy costs due to the relocation of our corporate offices in
July 2013, a $60,000 decrease in consulting expense and the
$41,000 loss on the disposal of
machinery and equipment recorded in the prior year period.
- For the nine months ended March 31,
2015, other expense was $6,401,000 as compared with other expense of
$4,990,000, for the comparable prior
year period, an increase of $1,411,000. The increase is due to increased
interest expense on higher borrowings under our credit facility
with DMRJ and our credit facility with BAM.
- Our net loss for the nine months ended March 31, 2015 was $17,350,000 as compared with a net loss of
$15,341,000 for the comparable prior
year period, an increase of $2,009,000, or 13.1%. The increase in the net
loss is primarily due to an increase in interest expense and
increased operating expenses, primarily due to costs associated
with the resignation of our former CEO.
Company Webcast and Conference Call
The Company will host a webcast and conference call on
Thursday, May 14, 2015 at
4:15 PM Eastern time to review
financial results for the quarter ended March 31, 2015. Following the Company's prepared
remarks, there will be a Q&A session. The call can be
accessed by dialing: 866-700-6067 within the U.S. or 617-213-8834
outside the U.S. and entering passcode 45591997. Participants
are asked to call the assigned number approximately 5 minutes
before the conference call begins. A replay of the conference
call will be available approximately two hours after the call for
one month by dialing: 888-286-8010 within the U.S. or 617-801-6888
outside the U.S. and entering passcode 60617341. The
conference call will also be available live over the Internet at
the "Webcasts" page of the Investor Relations section of Implant
Sciences' website at www.implantsciences.com. A replay of the
webcast will be available for one month after the call.
About Implant Sciences
Implant Sciences is a leader in developing and manufacturing
advanced detection capabilities to counter and eliminate the
ever-evolving threats from explosives and drugs. The company's team
of dedicated trace detection experts has developed proprietary
technologies used in its commercial products, thousands of which
have been sold across more than 60 countries worldwide. The
company's ETDs have received approvals and certifications from
several international regulatory agencies including the TSA in the
U.S., ECAC in Europe, CAAC and the
Ministry of Public Safety in China, Russia FSB, STAC in France, and the German Ministry of the
Interior. It has also received the GSN Homeland Security Award for
"Best Explosives Detection Solution" two years in a row (2013 and
2014). All Implant Sciences products are recognized as
Qualified Anti-Terrorism Technologies by the Department of Homeland
Security. For further details on the Company and its products,
please visit the Company's website at www.implantsciences.com.
Cautionary Note Regarding Forward-Looking Statements
This press release and any statements of employees,
representatives and partners of Implant Sciences Corporation (the
"Company") related thereto contain or may contain certain
"forward-looking statements," as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such
statements may include, without limitation, statements with respect
to the Company's plans, objectives, projections, expectations and
intentions and other statements identified by words such as
"projects," "may," "will," "could," "would," "should," "believes,"
"expects," "anticipates," "estimates," "intends," "plans,"
"potential" or similar expressions. Such statements are
based on management's current expectations and are subject to
significant risks and uncertainties (many of which are beyond the
Company's control) that could cause the Company's actual results to
differ materially from the forward-looking statements. Such risks
and uncertainties include, but are not limited to, the risks that
we will be required to repay all of our indebtedness to our secured
lenders by March 31, 2016; if we are
unable to satisfy our obligations to our secured lenders and to
raise additional capital to fund operations, our lenders may seize
our assets and our business may fail; we continue to incur
substantial operating losses and may never be profitable; our
independent registered public accounting firm has expressed
substantial doubt as to our ability to continue as a going concern;
there is no guaranty that the Transportation Security
Administration (TSA) or any other U.S. or foreign government and
law enforcement agencies or commercial consumers will purchase any
of our explosives detection products or that any new products we
may develop will be accepted by the TSA or by such other
governments, agencies or consumers; economic, political and other
risks associated with international sales and operations could
adversely affect our sales; liability claims related to our
products or our handling of hazardous materials could damage our
reputation and have a material adverse effect on our financial
results; our business is subject to intense competition; our
markets are subject to rapid technology change and our ability to
generate revenue and profit will depend on our ability to develop
and introduce new products; we may not be able to retain our
management and key employees or identify, hire and retain
additional personnel as needed; we may not be able to enforce our
patent and other intellectual property rights or operate without
infringing on the proprietary rights of others; and other risks and
uncertainties described in our filings with the Securities and
Exchange Commission, including our most recent Forms 10-K, 10-Q and
8-K. In light of these risks and uncertainties, readers are
cautioned that actual results may differ significantly from those
described or anticipated in the forward-looking statements.
The Company undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future presentations or otherwise, except as required by applicable
law.
Contact:
Implant Sciences Corporation
Company Contact:
Robert Liscouski
978-752-1700 x 116
Implant Sciences
Corporation
|
Condensed
Consolidated Balance Sheets
|
(In thousand
except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
June
30,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,914
|
|
$
391
|
Restricted cash and
investments
|
312
|
|
312
|
Accounts
receivable-trade, net
|
1,300
|
|
545
|
Inventories,
net
|
3,336
|
|
2,868
|
Prepaid expenses and
other current assets
|
626
|
|
315
|
Total
current assets
|
7,488
|
|
4,431
|
Property and
equipment, net
|
834
|
|
619
|
Restricted cash and
investments
|
312
|
|
312
|
Other non-current
assets
|
104
|
|
117
|
Total
assets
|
$
8,738
|
|
$
5,479
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Senior secured
promissory note - BAM
|
$
20,000
|
|
$
20,000
|
Senior secured
convertible promissory note
|
3,184
|
|
3,184
|
Senior secured
promissory note - DMRJ
|
1,000
|
|
1,000
|
Second senior secured
convertible promissory note
|
12,000
|
|
12,000
|
Third senior secured
convertible promissory note
|
12,000
|
|
12,000
|
Line of
credit
|
13,912
|
|
2,995
|
Current maturities of
obligations under capital lease
|
50
|
|
45
|
Accrued
expenses
|
16,105
|
|
11,094
|
Accounts
payable
|
3,060
|
|
3,675
|
Deferred
revenue
|
1,740
|
|
483
|
Total
current liabilities
|
83,051
|
|
66,476
|
Long-term
liabilities:
|
|
|
|
Long-term obligations
under capital lease, net of current maturities
|
27
|
|
66
|
Accrued expenses, net
of current
|
214
|
|
-
|
Deferred revenue, net
of current
|
202
|
|
142
|
Total
long-term liabilities
|
443
|
|
208
|
Total
liabilities
|
83,494
|
|
66,684
|
Commitments and
contingencies
|
|
|
|
Stockholders'
deficit:
|
|
|
|
Common stock; $0.001
par value; 200,000,000 shares authorized; 74,313,665 and
74,303,120
shares issued and outstanding at December 31, 2014 and
63,634,171 and 63,623,626 shares
|
|
|
|
issued and
outstanding at June 30, 2014
|
74
|
|
64
|
Preferred stock; no
stated value; 5,000,000 shares authorized
|
|
|
|
Series G Convertible
Preferred Stock, no stated value; 650,000 shares authorized,
no
|
|
|
|
shares issued and
outstanding
|
-
|
|
-
|
Series H Convertible
Preferred Stock, no stated value; 15,000 shares
authorized,
|
|
|
|
no shares issued and
outstanding
|
-
|
|
-
|
Series I Convertible
Preferred Stock, no stated value; 15,000 shares
authorized,
|
|
|
|
no shares issued and
outstanding
|
-
|
|
-
|
Series J Convertible
Preferred Stock, no stated value; 6,000 shares
authorized,
|
|
|
|
no shares issued and
outstanding
|
-
|
|
-
|
Additional paid-in
capital
|
110,629
|
|
107,055
|
Accumulated
deficit
|
(185,236)
|
|
(167,886)
|
Deferred
compensation
|
(153)
|
|
(367)
|
Other comprehensive
income
|
3
|
|
2
|
Treasury stock,
10,545 common shares, at cost
|
(73)
|
|
(73)
|
Total stockholders'
deficit
|
(74,756)
|
|
(61,205)
|
Total liabilities and
stockholders' deficit
|
$
8,738
|
|
$
5,479
|
Implant Sciences
Corporation
|
Condensed
Consolidated Statements of Operations and Comprehensive
Loss
|
(In thousands
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
March
31
|
|
March
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
$
3,305
|
|
$
2,708
|
|
$
7,315
|
|
$
7,023
|
Cost of
revenues
|
2,129
|
|
1,902
|
|
5,157
|
|
4,834
|
Gross
margin
|
1,176
|
|
806
|
|
2,158
|
|
2,189
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
1,347
|
|
1,179
|
|
3,919
|
|
3,601
|
Selling, general and
administrative
|
3,318
|
|
2,845
|
|
9,188
|
|
8,939
|
Total operating
expenses
|
4,665
|
|
4,024
|
|
13,107
|
|
12,540
|
Loss from
operations
|
(3,489)
|
|
(3,218)
|
|
(10,949)
|
|
(10,351)
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
Interest
income
|
1
|
|
-
|
|
1
|
|
1
|
Interest
expense
|
(2,243)
|
|
(1,721)
|
|
(6,402)
|
|
(4,991)
|
Total other expense,
net
|
(2,242)
|
|
(1,721)
|
|
(6,401)
|
|
(4,990)
|
Net
loss
|
(5,731)
|
|
(4,939)
|
|
(17,350)
|
|
(15,341)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(1)
|
|
4
|
|
1
|
|
3
|
Other comprehensive
income (loss)
|
(1)
|
|
4
|
|
1
|
|
3
|
Comprehensive
loss
|
$
(5,732)
|
|
$
(4,935)
|
|
$
(17,349)
|
|
$
(15,338)
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.08)
|
|
$
(0.08)
|
|
$
(0.25)
|
|
$
(0.26)
|
Weighted average
shares used in computing net loss
|
|
|
|
|
|
|
|
per common share,
basic and diluted
|
72,677,287
|
|
61,860,726
|
|
69,454,343
|
|
59,804,307
|
Implant Sciences
Corporation
|
Consolidated Sales
by Product
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
|
|
|
|
March 31,
2015
|
|
March 31,
2014
|
|
|
|
|
Amount
|
|
Mix
|
|
Amount
|
|
Mix
|
|
Change
%
|
|
|
|
|
|
|
|
|
|
|
|
QS-H150
|
$
1,088
|
|
32.9%
|
|
$
1,744
|
|
64.4%
|
|
(37.6)
|
%
|
QS-B220
|
1,989
|
|
60.2%
|
|
733
|
|
27.1%
|
|
171.4
|
%
|
Parts &
supplies
|
228
|
|
6.9%
|
|
231
|
|
8.5%
|
|
(1.3)
|
%
|
|
$
3,305
|
|
100.0%
|
|
$
2,708
|
|
100.0%
|
|
22.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
For the Nine
Months Ended
|
|
|
|
|
March 31,
2015
|
|
March 31,
2014
|
|
|
|
|
Amount
|
|
Mix
|
|
Amount
|
|
Mix
|
|
Change
%
|
|
|
|
|
|
|
|
|
|
|
|
QS-H150
|
$
2,879
|
|
39.4%
|
|
$
3,266
|
|
46.5%
|
|
(11.8)
|
%
|
QS-B220
|
3,906
|
|
53.4%
|
|
3,332
|
|
47.4%
|
|
17.2
|
%
|
Parts &
supplies
|
530
|
|
7.2%
|
|
425
|
|
6.1%
|
|
24.7
|
%
|
|
$
7,315
|
|
100.0%
|
|
$
7,023
|
|
100.0%
|
|
4.2
|
%
|
Implant Sciences
Corporation
|
|
Earnings Before
Interest, Taxes, Depreciation and Stock-Based Compensation
("Adjusted EBITDA")
|
|
(In thousands
except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
March
31,
|
|
March
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net
loss
|
$
(5,731)
|
|
$
(4,939)
|
|
$
(17,350)
|
|
$
(15,341)
|
Interest expense,
net
|
2,242
|
|
1,721
|
|
6,401
|
|
4,990
|
Income
taxes
|
-
|
|
-
|
|
-
|
|
-
|
Depreciation
|
45
|
|
40
|
|
126
|
|
114
|
Stock-based
compensation
|
1,154
|
|
563
|
|
2,381
|
|
2,388
|
Warrants issued to
non-employees
|
24
|
|
246
|
|
265
|
|
740
|
Common stock issued
to consultants
|
-
|
|
70
|
|
68
|
|
212
|
Adjusted EBITDA
(1)
|
$
(2,266)
|
|
$
(2,299)
|
|
$
(8,109)
|
|
$
(6,897)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA
is defined as net loss plus interest expense, net of interest
income, income taxes, depreciation and amortization, stock-based
compensation, fair value of warrants issued to non-employees and
the fair value of common stock issued to consultants. EBITDA
is commonly used in the technology industry, and we present
Adjusted EBITDA to enhance your understanding of our financial
performance. We use Adjusted EBITDA as an internal
performance measurement and believe that it provides investors and
analysts with a measure of operating results unaffected by
differences in capital structures and capital investment among
otherwise comparable companies and improves comparability of
results of operations. Management uses this supplemental measure to
evaluate performance over a period of time and to analyze
underlying trends in the Company's business and to establish
operational goals and forecast that are used in allocating
resources. We expect to compute our non-GAAP financial
measure, using the same consistent method from quarter to quarter
and year to
year.
|
|
|
|
|
|
|
|
|
While we believe that
Adjusted EBITDA is a useful measure for investors, it is not a
measurement presented in accordance with United States generally
accepted accounting principles, or GAAP. You should not
consider Adjusted EBITDA in isolation or as a substitute for net
income, cash flows from operations, or any other performance
measures calculated in accordance with GAAP. In addition,
Adjusted EBITDA has inherent material limitations as a performance
measure. It does not include interest expense, but because we
have borrowed money, interest expense is a necessary element of our
costs. In addition, Adjusted EBITDA does not include
depreciation. Since we have capital assets, depreciation
expense is a necessary element of our costs. Adjusted EBITDA
does not include stock-based compensation, which is a necessary
element of our costs since we issue stock awards to employees as an
important incentive to maximize overall company performance and as
a benefit of employment with the company. Adjusted EBITDA
does not include the fair value of warrants issued to
non-employees, which is a necessary element of our costs since we
have issued warrants to non-employees and as part of our financing
strategy. Finally, Adjusted EBITDA does not include the fair value
of common stock issued to consultants, which is a necessary element
of our costs since we have issued shares of our common stock in
lieu of cash payments to consultants we have retained. Because not
all companies use identical calculations, our presentation of
Adjusted EDITDA may not be comparable to other similarly titled
measures of other companies.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/implant-sciences-reports-third-quarter-fiscal-2015-financial-results-300083811.html
SOURCE Implant Sciences Corporation