Full Press Release Details
Nephros, Inc. Reports Third Quarter 2004 Financial Results
New York -November 16, 2004 - Nephros, Inc. (AMEX: NEP) announced today
financial results for the third quarter and nine months ended September 30,
Nephros reported net revenue of $46,379 for the three months ended September 30,
2004 compared with no revenue in comparable period of the prior year. The
Company reported net loss of $1,881,849 for three months ended September 30,
2004, as compared to $1,841,086 for the same period in 2003. Nephros reported
net loss applicable to common stockholders of $8,864,795, or $3.89 per share for
the three months ended September 30, 2004, as compared to $2,139,086, or $1.34
per share, for the same period in 2003. The net loss applicable to common
shareholders includes losses attributed to preferred dividends and accretion of
beneficial conversion features and issuance costs in connection with the
issuance of convertible preferred stock. Total preferred dividends and accretion
amounted to $6,982,946 for the three months ended September 30, 2004, compared
to $298,000 for the same period in 2003.
Nephros reported net revenue of $46,379 for the nine months ended September 30,
2004 compared with no revenue in the comparable period of the prior year. For
the nine months ended September 30, 2004, The Company reported net loss of
$5,579,615, as compared to $5,669,593 for the same period in 2003. Nephros
reported net loss applicable to common stockholders of $17,314,148, or $9.49 per
share, as compared to $6,149,593, or $3.86 per share, for the same period in
2003. The net loss applicable to common shareholders includes losses attributed
to preferred dividends and accretion of beneficial conversion features and
issuance costs in connection with the issuance of convertible preferred stock.
Total preferred dividends and accretion amounted to $11,734,533 for the nine
months ended September 30, 2004, compared to $480,000 for the same period in
Norman Barta, chief executive officer of Nephros, commented, "This has been a
very exciting quarter for Nephros; we've achieved several important milestones
for the company. During the quarter we completed our initial public offering. As
expected, we have started to generate revenue from our sales in Europe, and we
have our strategy in place to target measurable sales growth throughout the
region going forward, and ultimately expand into other geographic areas as
The Company reported $13,439,411 in cash and cash equivalents at September 30,
2004, as compared to $4,121,263 at December 31, 2003. Cash and cash equivalents
at September 30, 2004 includes $10,784,586 in net proceeds from the Company's
initial public offering completed on September 24, 2004. The Company sold
2,100,000 shares of common stock in its initial public offering at a price of
Nephros, Inc., headquartered in New York, is a medical device company developing
and marketing products designed to improve the quality of life for the End Stage
Renal Disease (ESRD) patient, while addressing the critical financial and
clinical needs of the care provider. ESRD is a disease state characterized by
the irreversible loss of kidney function. Nephros believes that its products are
designed to remove a range of harmful substances more effectively, and more
cost-effectively, than existing treatment methods; particularly with respect to
substances known collectively as "middle molecules", due to their molecular
weight, that have been found to contribute to such conditions as carpal tunnel
syndrome, dialysis related amyloidosis, degenerative bone disease and
ultimately, to mortality in the ESRD patient.
Except for historical information, this press release includes "forward-looking
statements" within the meaning of the Securities Litigation Reform Act of 1995.
All statements included in this press release that address activities, events or
developments that Nephros expects, believes or anticipates will or may occur in
the future are forward-looking statements. This includes earnings estimates,
future financial performance and other matters. These statements are based on
certain assumptions made by Nephros based on its experience and perception of
historical trends, current conditions, expected future developments and other
factors it believes are appropriate in the circumstances. Such statements are
subject to a number of assumptions, risks and uncertainties, many of which are
beyond the control of Nephros. Actual results may differ materially from the
expectations contained in the forward-looking statements. More detailed
information about Nephros and the risk factors discussed above is set forth in
Nephros's filings with the Securities and Exchange Commission, including
Nephros's Final Prospectus, dated September 20, 2004, with respect to the
registration of 2,100,000 shares of common stock for sale to the public.
Investors and security holders are urged to read such document free of charge at
the Commission's web site at www.sec.com. Nephros does not undertake to publicly
update or revise its forward-looking statements as a result of new information,
future events or otherwise