Full Press Release Details
Substantially Increases
with the American Stock Exchange Continued Listing
YORK, January 16, 2008 - Nephros, Inc. (AMEX: NEP) announced today that,
as a result of the issuance of notes in the third quarter of 2007, representing
an aggregate principal amount of $18 million, and the subsequent conversion
those notes into equity on November 14, 2007, the stockholders' equity of the
Company increased to $10.2 million. As a result, notwithstanding the Company's
anticipated loss during the fourth quarter of 2007, the Company's stockholders'
equity, at December 31, 2007, is anticipated to be well in excess of the
$6,000,000 required by the continued listing standards of the American Stock
previously reported, the Company was notified by the AMEX in July 2006 that
Company was not in compliance with the AMEX's continued listing standards with
respect to stockholders' equity. The AMEX rules require that issuers
with net losses in their five most recent fiscal years have stockholders' equity
of at least $6,000,000. The Company incurred net losses in each of its five
recent fiscal years.
Company submitted a business plan
in August 2006 to advise the AMEX of the steps the Company had taken, and
planned to take, to regain compliance with the applicable listing standards.
previously reported, the AMEX staff agreed, based upon such plan of compliance,
to extend the time period for the Company to regain compliance until January
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
the irreversible loss of kidney function. The Nephros HDF system is designed
remove a range of harmful substances more effectively, and more
cost-effectively, than existing ESRD treatment methods; particularly with
respect to substances known collectively as "middle molecules." These molecules
have been found to contribute to such conditions as dialysis-related
amyloidosis, carpal tunnel syndrome, degenerative bone disease and, ultimately,
mortality in the ESRD patient. Nephros products are sold and distributed
throughout Europe and are currently being used in over fifty clinics in
also markets a line of water filtration products, the Dual Stage Ultrafilter
(DSU). The Company's patented dual stage cold sterilization ultrafilter has
capability to filter out bacteria and, due to its exceptional filtration levels,
filter out many viruses and parasites. The DSU proprietary design provides
dual-stage filtration which reduces the risk of filtration failure. With an
initial focus on health care, the DSU is in a pilot-use program at a major
medical center and has been selected for further development by the U.S. Marine
information on Nephros please visit the Company's website,
release contains certain "forward-looking statements" within the meaning of
Private Securities Litigation Reform Act of 1995, as amended. Such statements
include statements regarding the efficacy and intended use of the Company's
technologies under development, the timelines for bringing such products to
market and the availability of funding sources for continued development of
products and other statements that are not historical facts, including
statements which may be preceded by the words "intends," "may," "will," "plans,"
"expects," "anticipates," "projects," "predicts," "estimates," "aims,"
"believes," "hopes," "potential" or similar words. For such statements, the
Company claims the protection of the Private Securities Litigation Reform Act
statements are not guarantees of future performance, are based on certain
assumptions and are subject to various known and unknown risks and
uncertainties, many of which are beyond the Company's control. Actual results
may differ materially from the expectations contained in the forward-looking
statements. Factors that may cause such differences include the risks that:
Nephros may not be able to satisfy its obligations when they become due and
payable and meet its anticipated cash needs and may not be able to obtain
funding if and when needed or on terms favorable to it in order to continue
operations or fund its clinical trials; (ii) Nephros may not be able to continue
as a going concern; (iii) Nephros may be unable to show progress consistent
its plan of compliance to meet the American Stock Exchange's continued listing
standards or may be otherwise unable to timely regain compliance with the AMEX
listing standards; (iv) products that appeared promising to Nephros in research
or clinical trials may not demonstrate anticipated efficacy, safety or cost
savings in subsequent pre-clinical or clinical trials; (v) Nephros may not
obtain appropriate or necessary governmental approvals to achieve its business
plan or effectively market its products; (vi) Nephros may encounter
unanticipated internal control deficiencies or weaknesses or ineffective
disclosure controls and procedures; (vii) HDF therapy may not be accepted in
United States and/or Nephros' technology and products may not be accepted in
current or future target markets, which could lead to failure to achieve market
penetration of Nephros' products; (viii) Nephros may not be able to sell its
ESRD therapy or water filtration products at competitive prices or profitably;
(ix) Nephros may not be able to secure or enforce adequate legal protection,
including patent protection, for its products; (x) FDA approval relating to
Nephros' OLp r HD190
may not facilitate or have any effect on the regulatory approval process for
other products; and (xi) Nephros may not be able to achieve sales growth in
Europe or expand into other key geographic markets. More detailed information
about Nephros and the risk factors that may affect the realization of
forward-looking statements is set forth in Nephros' filings with the Securities
and Exchange Commission, including Nephros' Annual Report on Form 10-KSB filed
with the SEC for the fiscal year ended December 31, 2006 and Nephros' Quarterly
Reports filed with the SEC on Form 10-QSB for the quarters ended September
2007, June 30, 2007 and March 31, 2007. Investors and security holders are
to read these documents free of charge on the SEC's web site at www.sec.gov.
Nephros does not undertake to publicly update or revise its forward-looking
statements as a result of new information, future events or