Full Press Release Details
TherapeuticsMD, Inc. 8-K
| Contacts: | |
| Dan Cartwright | Investor Relations: |
| Chief Financial Officer | Lisa M. Wilson |
| Tel: (561) 961-1930 | In-Site Communications |
| Dan.Cartwright@TherapeuticsMD.com | Tel: (917) 543-9932 |
| lwilson@insitecony.com |
reports THIRD quarter 2013 financial results
Management to Host Conference Call at 4:30
Boca Raton, FL, November 4, 2013
- TherapeuticsMD, Inc. (NYSE MKT: TXMD), a women's healthcare company, today announced financial results for the
three- and nine-month periods ended September 30, 2013.
Third Quarter 2013 Highlights:
Co-Founder and Chief Executive Officer, stated, "We are pleased with the progress of our clinical initiatives for our three
hormone-candidate products and look forward to making continued headway to support our goal of bringing innovative women's
healthcare products to market. The recognition that we received by NAMS for our innovative poster, underscoring the potential
benefits of our combination product, the significant hire of Dr. Sebastian Mirkin and a solid balance sheet creates strong, positive
Third Quarter Results
Net revenue for the third quarter of 2013 totaled
$2.3 million compared with net revenue of $1.0 million for the year ago quarter. The increase of approximately $1.3 million, or
121%, was directly attributable to an increase in the number of physicians writing prescriptions for our prenatal products, the
increased productivity of our sales force, an increase in the average net sales price of our product, and new prescription products
introduced in March, April, May and November 2012. Cost of goods sold increased by $342 thousand, or 111%, for the three months
ended September 30, 2013 compared with the prior year quarter. Research and development expenses increased to $4.1 million for
the third quarter of 2013 compared with $1.7 million for the third quarter of 2012, due to costs incurred in the development of
our new hormone replacement therapy and prescription prenatal products. Sales, general and administrative expenses increased to
$4.8 million for the third quarter of 2013 compared with $2.9 million for the third quarter of 2012. As a result, our operating
loss was $7.2 million for the third quarter of 2013 compared with $3.9 million for the third quarter of 2012.
Other non-operating expenses increased by approximately
$93,000 for the third quarter of 2013 compared with the comparable quarter in 2012. This increase was primarily a result of non-cash
financing costs incurred during the current period totaling approximately $448,000, partially offset by a decrease in interest
expense of approximately $134,000 and loss on extinguishment of debt of approximately $197,000.
As a result, net loss for the third quarter
of 2013 was $7.7 million, or $0.06 per basic and diluted share, compared with a net loss of $4.3 million, or $0.04 per basic and
diluted share, for the third quarter of 2012.
Net revenue for the nine months ended September
30, 2013 totaled $5.9 million compared with net revenue of approximately $2.6 million for the year ago period. The increase of
approximately $3.3 million, or 129%, was directly attributable to an increase in the number of physicians writing prescriptions
for our prenatal products, the increased productivity of our sales force, an increase in the average net sales price of our product,
and new prescription products introduced in March, April, May and November 2012. Cost of goods sold increased by $477 thousand,
or 47%, for the nine months ended September 30, 2013 compared with the prior year period. Research and development expenses increased
to $7.7 million for the nine months ended September 30, 2013 compared with $3.1 million for the comparable period in 2012, because
of costs incurred in the development of our new hormone replacement therapy and prescription prenatal products. Sales, general
and administrative expenses increased to $14.5 million for the nine months ended September 30, 2013 compared with $9.1 million
for the prior year period. As a result, our operating loss was $17.8 million for the nine months ended September 30, 2013 compared
with $10.8 million for the comparable period in 2012.
Other non-operating expenses decreased by $16.4
million for the nine months ended September 30, 2013 compared with the comparable period in 2012. This decrease resulted primarily
from a loss on extinguishment of debt, the beneficial conversion of debt and interest expense incurred during 2012, partially offset
by an increase in amortization of financing costs of $1.1 million.
As a result, net loss for the nine months ended September 30, 2013
was $20.0 million, or $0.16 per basic and diluted share, compared with a net loss of $29.4 million, or $0.33 per basic and diluted
share, for the comparable period in 2012.
Cash and cash equivalents increased to $59.6
million at September 30, 2013.
As previously announced, Robert G.
Finizio, Co-Founder and Chief Executive Officer, and Dan Cartwright, Chief Financial Officer, will host a conference call
today to review the results as follows:
| Date | November 4, 2013 |
| Time | 4:30 p.m. (Eastern Standard Time) |
| Telephone access | 800-619-2686 (U.S. and Canada) |
| 303-223-4363 (International) | |
| Access code | 21682427 |
| Live webcast | www.therapeuticsmd.com , under the Investor tab |
An audio replay will be available on-demand
shortly after the completion of the call until November 18, 2013 at 11:59 pm EST at the aforementioned URL, or by dialing 800-633-8284
in the U.S. and Canada, or 402-977-9140 from abroad. The access code for all callers is 21682427.
About Hormone Therapy
(HT) is the administration of hormones to supplement a lack of naturally occurring hormones.
HT options include natural, bioidentical, and non-bioidentical (conjugated) hormones. HT is projected to be the largest growth
segment in the overall women's health market. The potential market for pharmacy-compounded, bioidentical HT products is estimated
to be approximately $1.5 billion per year.
About TherapeuticsMD, Inc.
TherapeuticsMD, Inc. is a women's
healthcare company focused on developing and commercializing products targeted exclusively for women. We manufacture and
distribute branded and generic prescription prenatal vitamins, as well as over-the-counter vitamins and cosmetics, under our
vitaMedMD and BocaGreenMD brands. We are currently developing advanced hormone therapy pharmaceutical
products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone
deficiencies. We are also evaluating various other potential indications for our hormone technology, including oral
contraception, preterm birth, vulvar and vaginal atrophy, and premature ovarian failure. More information is available at the
and www.bocagreenmd.com.
vitaMedMD and TherapeuticsMD
are registered trademarks of TherapeuticsMD, Inc. and BocaGreenMD is a trademark of TherapeuticsMD, Inc.
Except for the historical information contained
herein, the matters set forth in this press release, including statements relating to future events or performance, including statements
regarding the company's performance; the results of the phase 1 clinical study of TX 12-004-HR; the possibility that TX 12-001-HR
may have overcome the well-recognized difficulties of achieving good bioavailability with oral administration in combination; the
REPLENISH trial; the company's plans for the clinical initiatives of its three hormone-candidate products; the company's
goal of bringing innovative women's healthcare products to market; the impact of the recognition the company received at
the NAMS annual meeting; the impact of the appointment of Dr. Mirkin; the impact of the increase in sales territories, sales people,
and new prescription products; the impact of development of the company's new hormone replacement therapy and prescription
prenatal products; projected growth and the size of the potential market for pharmacy-compounded, bioidentical HT products; the
company's current product pipeline and hormone technology that the company is evaluating are forward-looking statements within
the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause actual results to differ materially, including but not limited
to: timely and successful completion of clinical studies and the results thereof; challenges and costs inherent in product marketing;
the risks and uncertainties associated with economic and market conditions; risks and uncertainties associated with the Company's
business and finances in general; and other risks detailed in the Company's filings with the U.S. Securities and Exchange
Commission including its annual report on Form 10-K filed on March 12, 2013, reports on Form 10-Q and Form 8-K, and other such
filings. These forward-looking statements are based on current information that may change. Investors are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or
update any forward-looking statement to reflect events or circumstances after the issuance of this press release.
| THERAPEUTICSMD, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| September 30, 2013 | December 31, 2012 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 59,572,347 | $ | 1,553,474 | ||||
| Accounts receivable, net of allowances of $90,403 and $42,048, respectively | 1,793,719 | 606,641 | ||||||
| Inventory | 1,147,586 | 1,615,210 | ||||||
| Other current assets | 3,419,704 | 751,938 | ||||||
| Total current assets | 65,933,356 | 4,527,263 | ||||||
| Fixed assets, net | 47,392 | 65,673 | ||||||
| Other Assets: | ||||||||
| Prepaid expense | 1,870,003 | 953,655 | ||||||
| Intangible assets | 488,274 | 239,555 | ||||||
| Security deposit | 138,307 | 31,949 | ||||||
| Total other assets | 2,496,584 | 1,225,159 | ||||||
| Total assets | $ | 68,477,332 | $ | 5,818,095 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,471,951 | $ | 1,641,366 | ||||
| Deferred revenue | 1,852,272 | 1,144,752 | ||||||
| Other current liabilities | 2,066,116 | 725,870 | ||||||
| Total current liabilities | 6,390,339 | 3,511,988 | ||||||
| Long-Term Liabilities: | ||||||||
| Notes payable, net of debt discount of $0 and $1,102,680, respectively | - | 3,589,167 | ||||||
| Accrued interest | - | 150,068 | ||||||
| Total long-term liabilities | - | 3,739,235 | ||||||
| Total liabilities | 6,390,339 | 7,251,223 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity (Deficit): | ||||||||
| Preferred stock - par value $0.001; 10,000,000 shares authorized; no shares issued and outstanding | - | - | ||||||
| Common stock - par value $0.001; 250,000,000 shares authorized;144,962,706 and 99,784,982 issued and outstanding, respectively | 144,963 | 99,785 | ||||||
| Additional paid-in capital | 134,095,517 | 50,580,400 | ||||||
| Accumulated deficit | (72,153,487 | ) | (52,113,313 | ) | ||||
| Total stockholder' equity (deficit) | 62,086,993 | (1,433,128 | ) | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 68,477,332 | $ | 5,818,095 |
accompanying Notes to Condensed Consolidated Financial Statements.
| THERAPEUTICSMD, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenues, net | $ | 2,294,720 | $ | 1,036,456 | $ | 5,912,800 | $ | 2,577,298 | ||||||||
| Cost of goods sold | 648,403 | 306,843 | 1,492,355 | 1,015,337 | ||||||||||||
| Gross profit | 1,646,317 | 729,613 | 4,420,445 | 1,561,961 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales, general, and administration | 4,752,062 | 2,923,242 | 14,455,839 | 9,139,894 | ||||||||||||
| Research and development | 4,098,903 | 1,702,120 | 7,710,546 | 3,131,306 | ||||||||||||
| Depreciation and amortization | 32,356 | 14,839 | 50,949 | 43,952 | ||||||||||||
| Total operating expense | 8,883,321 | 4,640,201 | 22,217,334 | 12,315,152 | ||||||||||||
| Operating loss | (7,237,004 | ) | (3,910,588 | ) | (17,796,889 | ) | (10,753,191 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Miscellaneous income | 11,965 | 932 | 15,444 | 2,486 | ||||||||||||
| Interest income | - | - | 18,133 | - | ||||||||||||
| Interest expense | - | (134,475 | ) | (1,165,981 | ) | (1,385,209 | ) | |||||||||
| Financing costs | (447,969 | ) | - | (1,107,937 | ) | - | ||||||||||
| Loan guaranty costs | - | (11,745 | ) | (2,944 | ) | (35,235 | ) | |||||||||
| Beneficial conversion feature | - | - | - | (6,716,504 | ) | |||||||||||
| Loss on extinguishment of debt | - | (197,383 | ) | - | (10,505,247 | ) | ||||||||||
| Total other income (expense) | (436,004 | ) | (342,671 | ) | (2,243,285 | ) | (18,639,709 | ) | ||||||||
| Loss before taxes | (7,673,008 | ) | (4,253,259 | ) | (20,040,174 | ) | (29,392,900 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (7,673,008 | ) | $ | (4,253,259 | ) | $ | (20,040,174 | ) | $ | (29,392,900 | ) | ||||
| Loss per share, basic and diluted: | ||||||||||||||||
| Net loss per share, basic and diluted | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.16 | ) | $ | (0.33 | ) | ||||
| Weighted average number of common shares outstanding | 131,212,706 | 95,895,677 | 121,701,292 | 88,892,757 |
accompanying Notes to Condensed Consolidated Financial Statements.
THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS