Calmare Therapeutics Reports First Quarter 2016 Results

Revenues UP 86% | Expenses DOWN 9% | Net Loss per Share DOWN 25%

Conference Call

CTI will host an earnings conference call on Monday, May 23, 2016 at 11:30 A.M. EDT. On the call, Management will discuss the first quarter 2016 results and recent company developments.

To participate in the conference call: Dial-in: 888.632.3384 and 785.424.1675 | ID: CALMARE. Please dial-in at least 5 minutes before the scheduled start time. Investor participation is limited.

RSVP via email to: IR@calmaretherapeutics.com by 9:00 A.M. EDT, Monday, May 23, 2016 with “1Q2016” in the subject line.

FAIRFIELD, Conn.--()--Calmare Therapeutics Incorporated, (OTC:CTTC) (CTI), the pain mitigation company, reported results for the first quarter ended March 31, 2016.

Revenues from the commercial sale and shipment of Calmare® pain therapy devices (Devices) for the three months ended March 31, 2016 were $56,000 as compared with $8,000 for the three months ended March 31, 2015.

Device sales for the three months ended March 31, 2016 were one (1) Device as compared with zero (0) Devices for the three months ended March 31, 2015. This sale was to the U.S. military, which has been the focus of the Company’s sales efforts for the past several quarters.

Total expenses for the three months ended March 31, 2016 were $923,000 as compared with $1,012,000 for the three months ended March 31, 2015. This decrease in total expenses was largely due to decreases in consulting costs and general & administrative expense offset by increases in personnel and interest expense.

General and administrative expenses for the three months ended March 31, 2016 were $175,000 as compared with $324,000 for the three months ended March 31, 2015. This decrease is primarily attributable to a significant decline in legal expense from the first quarter of 2015.

Net loss for the three months ended March 31, 2016 was $878,000 or $0.03 per basic and diluted share as compared with a net loss of $1,004,000 or $0.04 for the three months ended March 31, 2015.

Total capital raised over the past ten quarters was $3,717,000 and consisted of: $2,323,000 of hybrid debt and $1,394,000 of equity.

Cash-on-hand at March 31, 2016 was $126,000 as compared with $1,000 at March 31, 2015.

“CTI is moving forward,” said CTI President & CEO Conrad Mir. “This quarter’s results show modest progress. We continue to reduce our expenses and begin our corporate expansion with the help from our new Government contracts. Management is confident in the prospects the next few quarters of 2016 may bring.”

About the Company

Calmare Therapeutics Incorporated, the Calmare Pain Mitigation Therapy™ company, researches, develops and commercializes chronic, neuropathic pain and wound affliction devices. Our flagship medical device – the Calmare® Pain Therapy Device – is the world’s only non-invasive and non-addictive modality that can successfully treat chronic, neuropathic pain. The Company holds a U.S. Food & Drug Administration 510k clearance designation (K081255) on its flagship device, which grants it the exclusive right to sell, market, research and develop the medical device in the United States. Calmare Devices are commercially sold to medical practices throughout the world. They are also found in U.S. military hospitals, clinics and on installations via CTI’s General Services Administration (GSA) military contract (V797P-4300B).

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.

 
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
 

Consolidated Balance Sheets

(Unaudited)

 
       

March 31,
2016

   

December
31, 2015

(Unaudited)
Assets
Current Assets:
Cash $ 125,931 $ 49,801
Receivables, net of allowance of $317,659 at March 31, 2016 and December 31, 2015 74,327 33,081
Inventory 4,018,220 4,028,220
Prepaid expenses and other current assets   39,537   58,034

Total current assets

4,258,015 4,169,136
 
Property and equipment, net 19,594 23,726
Security deposits   15,000   15,000
TOTAL ASSETS $ 4,292,609 $ 4,207,862
 
Liabilities and Shareholders' Deficit
Current Liabilities:
Accounts payable $ 1,929,063 $ 1,895,382
Liabilities under claims purchase agreement 1,995,320 1,995,320
Accounts payable, GEOMC 4,182,380 4,182,380
Accrued expenses and other liabilities 2,423,262 2,248,024
Notes payable 4,381,458 3,785,063
Deferred revenue 6,400 6,400
Series C convertible preferred stock derivative liability 66,177 66,177
Series C convertible preferred stock liability   375,000   375,000
Total current liabilities 15,359,060 14,553,746
 
Note payable – long-term 70,734 67,919
 
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, 100,000,000 shares authorized, 28,525,888 shares
  issued and outstanding at March 31, 2016 and 25,515,888 shares issued and
  outstanding at December 31, 2015

285,258 285,158
Capital in excess of par value 48,765,848 48,611,413
Accumulated deficit   (60,248,966 )   (59,371,049 )
Total shareholders’ deficit   (11,137,185 )   (10,413,803 )
 
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 4,292,609 $ 4,207,862
 
 
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
 

Consolidated Statements of Operations

(Unaudited)

 
        Three months     Three months
ended
March
31, 2016
ended
March 31,
2015
Revenue
Product sales $ 56,250 $ 7,950
Cost of product sales   24,446   2,297
Gross profit from product sales 31,804 5,653
 
Other Revenue
Retained royalties 69 2,392
Other income   13,287   8,507
Total other revenue 13,356 10,899
 
Operating expenses
Selling expenses 6,557 1,236
Personnel and consulting expenses 449,056 507,478
General and administrative expenses   174,898   323,639
Total operating expenses 630,511 832,353
 
Operating loss   (585,351 )   (815,801 )
 
Other expense
Interest expense 292,566 185,862
Loss on conversion of notes - 2,588
       
Total other expense 292,566 188,450
 
Loss before income taxes (877,917 ) (1,004,251 )
Provision (benefit) for income taxes   -   -
 
Net loss $ (877,917 ) $ (1,004,251 )
 
Basic and diluted loss per share $ (0.03 ) $ (0.04 )
 
Basic and diluted weighted average number of common shares outstanding: 28,525,558 26,767,978
 
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
 

Consolidated Statements of Changes in Shareholders' Deficit

For the Three Months Ended March 31, 2016

(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, 2016   2,427 $ 60,675   28,515,888 $   285,158 $   48,611,413 $   (59,371,049 ) $   (10,413,803 )
 
Net loss - - - - - (877,917 ) (877,917 )
Common stock issued to directors - - 10,000 100 1,800 - 1,900
Stock option compensation expense - - - - 7,180 - 7,180
Warrant and beneficial conversion feature on notes payable   -   -   -     -     145,455     -     145,455
 
Balance March 31, 2016   2,427 $ 60,675 28,525,888 $   285,258 $   48,765,848 $   (60,248,966 ) $   (11,137,185 )
 
CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY
 

Consolidated Statements of Cash Flows

(Unaudited)

 
        Three months ended     Three months ended
March 31, 2016 March 31, 2015
Cash flows from operating activities:
 
Net loss $ (877,917 ) $ (1,004,251 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 4,132 4,459
Stock option compensation expense 7,180 16,069
Share-based compensation – common stock 1,900 2,125
Common stock and warrants issued to consultants - 182,600
 
Debt discount amortization 144,665 49,720
Loss on conversion of notes - 2,588
 
Changes in assets and liabilities:
Receivables (41,246 ) (1,072 )
Prepaid expenses and other current assets 18,497 73,466
Inventory 10,000 -
Accounts payable, accrued expenses and other liabilities 208,919 385,457
Deferred revenue   -   (5,905 )
Net cash used in operating activities (523,870 ) (294,744 )
 
Cash flows from financing activities:
Proceeds from note payable 600,000 257,000
Repayment of note and warrant settlement - (42,500 )
Proceeds from common stock and warrants   -   75,000
Net cash provided by financing activities 600,000 289,500
 
Net increase (decrease) in cash 76,130 (5,244 )
 
Cash at beginning of period   49,801   5,742
 
Cash at end of period $ 125,931 $ 501
 
 

Contacts

Calmare Therapeutics Incorporated
Conrad Mir, 203-368-6044
President and CEO
cmir@calmaretherapeutics.com
or
Catalyst Research Management
Marc Robins, CFA, 503-445-2850
President
marc@catalystresearch.com
or
JV Public Relations
Janet Vasquez, 212-645-5498
Managing Director
jvasquez@jvprny.com
or
www.calmaretherapeutics.com

Contacts

Calmare Therapeutics Incorporated
Conrad Mir, 203-368-6044
President and CEO
cmir@calmaretherapeutics.com
or
Catalyst Research Management
Marc Robins, CFA, 503-445-2850
President
marc@catalystresearch.com
or
JV Public Relations
Janet Vasquez, 212-645-5498
Managing Director
jvasquez@jvprny.com
or
www.calmaretherapeutics.com