- Net revenue totaled $8.8 million for the year ended December 31, 2017 compared to net revenue of $4.8 million for the year ended December 31, 2016 representing an increase of 83.0%.
- Net revenue during 2017 was impacted by the natural disasters in Florida, Texas as well as major holidays as the Company was unable to advertise its products for a period of time in those regions and periods as a result. These two states generate close to 15% of our total net revenue and have a population of approximately 17 million in our targeted product demographics*.
- Gross margins increased to 79.0% for the year ended December 31, 2017, compared to 77.5% for the year ended December 31, 2016.
- Total operating expense increased to $13.9 million and included $1.1 million in non-cash share-based compensation for the year ended December 31, 2017.
- Net loss totaled $6.5 million, or $0.04 per common share, for the year ended December 31, 2017 compared to a net loss of $13.7 million, or $0.15 per common share, for the year ended December 31, 2016 representing a decrease of 52.5%. The net loss in 2017 included interest expense of $0.9 million, of which $0.8 million was non-cash and related to amortization of debt discounts. The net loss also included a non-cash expense of $0.7 million for the loss on debt extinguishment.
- Cash balance totaled $1.6 million at December 31, 2017 and current total cash on hand is $4.7 million.
- Net revenues totaled $2.4 million for the three months ended December 31, 2017 compared to net revenues of $1.7 million for the three months ended December 31, 2016 representing a 40.7% increase.
- Sequential quarter over quarter revenue increase of 7.1% in the fourth quarter 2017 compared to a decrease of 10.1% in the fourth quarter 2016.
- Gross margins remained consistent at 78.2% for the three months ended December 31, 2017 and 2016.
- Total operating expenses increased to $3.5 million and included $0.1 million in non-cash share-based compensation for the three months ended December 31, 2017.
- Loss from operations decreased to $1.1 million during the three months ended December 31, 2017 compared to $1.9 million during the three months ended December 31, 2016 representing a 42.9% decrease.
- Net loss totaled $1.5 million, or $0.01 per common share, for the three months ended December 31, 2017 compared to $3.4 million, or $0.03 per common share, for the three months ended December 31, 2016 representing a decrease of 55.5%. The net loss in 2017 included a non-cash expense of $0.3 million for the loss on debt extinguishment. The net loss also included interest expense of $0.1 million which was non-cash and related to amortization of debt discounts.
- Received our first commercial batch of 220,000 units of FlutiCare® in October 2017 and launched FlutiCare® in the U.S. in November 2017;
- Moved corporate and company operations into a new 17,000 square-foot facility in San Diego, CA in November 2017 that brought in-house the Company's product fulfillment and inventory storage process. The move was designed to lower product fulfillment costs which will increase our gross product margins and decrease our loss from operations, as well as, provide the necessary office space to accommodate our expected revenue growth in 2018;
- Received net cash proceeds of $2.7 million from the exercise of warrants to purchase shares of the Company's common stock, raised net cash proceeds of $1.9 million from the issuance of notes payable during the first quarter of 2018 and current total cash on hand is $4.7 million;
- Entered into an exclusive license and distribution agreement with Acerus Pharmaceuticals in January 2018 granting them exclusive rights to market and sell UriVarx® in Canada;
- Entered into an exclusive license and distribution agreement with Lavasta Pharma in January 2018 granting them exclusive rights to market and sell ProstaGorx® in various countries in the Middle East and North Africa;
- Launched six new products; and
- Received multiple product approvals in Canada.
|Consolidated Statements of Operations|
|Three months ended||Year ended|
|December 31,||December 31,|
|Product sales, net||$2,379,510||$1,691,491||$8,806,300||$4,817,603|
|Total net revenue||2,379,510||1,691,491||8,816,300||4,818,603|
|Cost of product sales||519,194||368,810||1,848,325||1,083,094|
|Research and development||11,829||30,137||38,811||77,804|
|Sales and marketing||1,983,842||1,363,879||6,853,559||3,621,045|
|General and administrative||966,928||1,858,215||5,174,827||5,870,572|
|Total operating expense||3,481,793||3,621,041||13,915,522||10,652,515|
|Loss from operations||(1,102,283||)||(1,929,550||)||(5,099,222||)||(5,833,912||)|
|Other income and (expense):|
|Loss on extinguishment of debt||(305,891||)||-||(700,060||)||-|
|Other income (expense), net||(1,256||)||(190||)||(6,878||)||1,649|
|Fair value adjustment for contingent consideration||(1,425||)||(1,464,638||)||194,034||(1,269,857||)|
|Change in fair value of derivative liabilities||15,542||697,687||(16,596||)||65,060|
|Total other expense, net||(393,311||)||(1,428,083||)||(1,401,666||)||(7,864,842||)|
|Loss before provision for income taxes||(1,495,594||)||(3,357,633||)||(6,500,888||)||(13,698,754||)|
|Provision for income taxes||-||2,400||3,200||2,400|
|Net loss per share of common stock - basic and diluted:||$ (0.01||)||$ (0.03||)||$ (0.04||)||$ (0.15||)|
|Weighted average number of shares of common stock outstanding - basic and diluted||174,575,366||116,765,431||157,933,458||94,106,382|
|Condensed Consolidated Balance Sheet Data|
|December 31, 2017||December 31, 2016|
|Accounts receivable, net||68,259||33,575|
|Prepaid expenses and other current assets||363,080||863,664|
|Intangible assets and other non-current assets||5,309,010||5,900,350|
|Total assets||$ 9,030,906||$||8,227,378|
|Liabilities & Stockholders' Equity|
|Accounts payable & accrued liabilities||$ 2,607,121||$||1,210,050|
|Total accrued compensation||2,650,197||2,299,593|
|Deferred revenue and customer deposits||24,690||11,000|
|Accrued interest payable||3,648||47,782|
|Short-term loans payable||65,399||-|
|Notes payable and non-convertible debenture, net of discount||1,239,296||681,127|
|Total derivative liabilities||58,609||483,744|
|Total contingent consideration||1,479,003||1,685,917|
|Convertible debentures, net of discount||-||714,192|
|Total stockholders' equity||902,943||1,093,973|
|Total liabilities & stockholders' equity||$ 9,030,906||$||8,227,378|
For more information, go to www.innovuspharma.com; www.zestra.com; www.ejectdelay.com; www.myvesele.com; www.urivarx.com; www.sensumplus.com; www.myandroferti.com; www.beyondhumantestosterone.com; www.getbeyondhuman.com; www.trybeyondhuman.com; www.recalmax.com; www.prostagorx.com; www.fluticare.com; www.allervarx.com; and www.apeaz.com.* Population data for Florida and Texas gathered from the 2010 Census Brief from the United States Census Bureau. 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, its financial results, projected revenues, projected online subscribers and other customers, estimated markets for its products, and statements about achieving its other corporate and business development, growth, commercialization, 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 filing on Form S-1, 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.