Full Press Release Details
Provides Information Regarding Auditor's Going Concern Report and
May 3, 2007 - Nephros, Inc. (AMEX: NEP) announced today that its consolidated
financial statements for the year ended December 31, 2006, which were included
in its Annual Report on Form 10-KSB filed with the Securities and Exchange
Commission on April 10, 2007, contained a going concern qualification from
independent auditors, Deloitte & Touche LLP. This announcement is being made
to comply with AMEX Company Guide Section 610(b) requiring a public announcement
of the receipt of an audit report that contains a going concern qualification.
Further information regarding the going concern qualification is contained
Nephros' Annual Report on Form 10-KSB for the year ended December 31, 2006,
which is available free of charge on the Securities and Exchange Commission's
web site at www.sec.gov.
used $7,299,597 of cash in operating activities for the year ended December
2006 compared to $5,103,948 used in operating activities for the year ended
year ended December 31, 2006, Nephros reported net revenue of $793,489,
primarily attributable to sales of its OLp r
products in Europe, compared to $2,424,483 in the corresponding period of 2005,
which included contract revenue of a
one-time, upfront fee of $1,750,000 resulting from Nephros' license agreement
with Asahi Kasei Medical Co., Ltd., the largest filter provider in
reported a net loss attributable to common stockholders in the year ended
December 31, 2006 of $8,012,911, or $0.65 loss per basic and diluted share,
compared to a loss of $5,468,177, or $0.45 loss per basic and diluted
share, for the same period last year. The average number of basic and
diluted common shares for the year ended December 31, 2006 was 12,317,080,
compared to 12,269,054 for the year ended December 31, 2005.
information disclosed in this announcement does not represent any change or
amendment to Nephros' financial statements or to its Annual Report on Form
10-KSB as filed with the Securities and Exchange Commission.
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. Nephros believes that its products,
particularly its Mid-Dilution Hemodiafiltration therapy, are designed to remove
a range of harmful substances more effectively, and more cost-effectively,
existing ESRD treatment methods; particularly with respect to substances known
collectively as "middle molecules," due to their molecular weight, that have
contribute to such conditions as dialysis-related amyloidosis, carpal tunnel
syndrome, degenerative bone disease and, ultimately, mortality in the ESRD
patient. Nephros products are currently being used in over fifty clinics in
Europe, and are distributed in Italy, France and Belgium.
also markets a line of water filtration products, the Dual Stage Ultrafilter
(DSU). Nephros' patented dual stage cold sterilization Ultrafilter has the
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 reducing the risk of filtration failure. With 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 Corps.
Nephros considers the DSU a significant breakthrough in providing affordable
reliable water filtration. The DSU is based on Nephros' proprietary water
filtration technology originally designed for medical use in its H2H machine,
and is a complimentary product line to Nephros' main focus, the
ESRD therapy business.
information on Nephros please visit the company's website, www.nephros.com.
news release contains certain "forward-looking statements" within the meaning
the Private Securities Litigation Reform Act of 1995, as amended. Such
statements may include statements regarding the efficacy and intended use of
Nephros' technologies, the timelines for bringing such products to market and
the availability of funding sources for continued development of such 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, Nephros claims the protection
of the Private Securities Litigation Reform Act of 1995.
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 control of Nephros. Actual results
may differ materially from the expectations contained in the forward-looking
statements. Factors that may cause such differences include the risks that:
products that appeared promising to Nephros in research or clinical trials
not demonstrate anticipated efficacy, safety or cost savings in subsequent
pre-clinical or clinical trials; (ii) Nephros may not obtain appropriate or
necessary governmental approvals to achieve its business plan or effectively
market its products; (iii) Nephros may not to satisfy its debt obligations
they become due and payable and meet our anticipated cash needs and may not
successful in obtaining additional funding in order to continue operations
fund its clinical trials; and (iv) Nephros may be unable to show progress
consistent with 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. 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
for the fiscal year ended December 31, 2006. Investors and security holders
urged to read this document free of charge on the SEC's web site at
Nephros does not undertake to publicly update or revise its forward-looking
statements as a result of new information, future events or