- 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.
- 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.
- 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 $3 million in financing.
- Continued our preparation for the anticipated launch of FlutiCare™ in the second quarter of 2017 if approved by the FDA by the end of 2016.
|Condensed Consolidated Statements of Operations|
|Three months ended||Nine months ended|
|September 30,||September 30,|
|Product sales, net||$||1,882,129||$||179,744||$||3,126,112||$||555,069|
|Total net revenues||1,882,129||179,744||3,127,112||560,069|
|Cost of product sales||331,227||102,359||714,284||242,808|
|Research & development||43,775||-||47,667||-|
|Sales & marketing||1,972,155||80,682||2,257,166||132,778|
|General & administrative||1,779,048||650,539||4,012,357||2,948,413|
|Total operating expenses||4,126,205||833,580||7,031,474||3,323,999|
|Loss from operations||(2,244,076||)||(653,836||)||(3,904,362||)||(2,763,930||)|
|Other Income and (Expenses)|
|Loss on extinguishment of debt||-||-||-||(32,500||)|
|Other income, net||194,744||-||196,620||-|
|Change in fair value of derivative liabilities||1,350,688||268,449||(632,627||)||316,378|
|Total other expense, net||(2,181,736||)||(204,911||)||(6,436,759||)||(460,848||)|
|Net loss per share of common stock - basic and diluted:||$||(0.04||)||$||(0.02||)||$||(0.12||)||$||(0.06||)|
|Weighted average number of shares of common stock outstanding - basic and diluted||104,972,645||55,076,819||86,498,234||59,486,501|
|Condensed Consolidated Balance Sheet Data|
|September 30, 2016||December 31, 2015 1|
|Accounts receivable, net||30,875||83,097|
|Prepaid expenses & other current assets||1,179,212||53,278|
|Intangible assets & other non-current assets||5,998,132||5,900,286|
|Liabilities & Stockholders' Deficit|
|Accounts payable & accrued liabilities||$||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.|
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.