Monday, November 28, 2011
Theralase Announces Q3 2011 Financials
Toronto, Ontario – November 28, 2011 Theralase Technologies Inc. (TSX-V: TLT) announced its third quarter 2011 financials today.
Revenue remained relatively constant year over year with total revenue for the three month period ending September 30, 2011 at $453,212, compared to $424,879 for the same period in 2010, an increase of 6.7%.
Selling expenses increased for the three month period ending September 30, 2011 to $237,409 compared to $177,944 for the same period the previous year, an increase of 33.4%. The increase is primarily due to increases in the sales and marketing costs associated with the new Territory Sales Managers (TSMs) hired for the United States sales and market expansion.
Administrative expenses remained constant at $280,587 for the three month period ending September 30, 2011 compared to $283,908 for the same period the previous year, with the minor reduction primarily due to decreased expenditures on administrative staff.
Research and development costs remained relatively constant at $225,439 for the three month period ending September 30, 2011 compared to $228,720 for the same period in 2010. The expenditures are primarily due to the development costs associated with the patented TLC-2000 biofeedback therapeutic laser system, scheduled to be commercially launched in 2012 and costs associated with the research and development of Theralase’s patented Photo Dynamic Compounds (PDCs) being developed for cancer, virus and bacteria destruction.
Roger Dumoulin‐White, President and CEO of Theralase Technologies Inc. stated, “The net loss for the three month period ended September 30, 2011 was $423,929 which included $16,122 of non-cash expenses (amortization, stock-based compensation expense, foreign exchange gain/loss and lease inducements). The company expenses the future product development costs of the patented TLC‐2000 biofeedback therapeutic laser system and TLC‐3000 Photo Dynamic Compound (PDC) technology from existing TLC‐1000 therapeutic laser product sales, resulting in the overall net loss. This investment in our future will secure our position as an international leader in medical laser technology both in the therapeutic tissue healing space as well as the tissue destruction space for decades to come.”
During the quarter, Theralase announced that its patented PDCs have shown an ability to destroy listeria monocytogenes bacteria in-vitro when light activated, in new research performed at the Princess Margaret Hospital, University Health Network. Future applications of the PDC technology in bacteria destruction may involve: food safety through food processing equipment sterilization, hospital treatment room sterilization, medical equipment sterilization, bacterial load elimination in wounds and other bacteria destruction applications. Theralase in developing and commercializing this new application of our PDC technology plans to work with a variety of organizations, including: food processing organizations, academic institutions, hospitals, practitioners and medical equipment manufacturers interested in bacterial destruction applications.
As well, during the quarter, Theralase announced it has successfully expanded its cancer destruction applications. This new research expands the application of Theralase’s patented PDC technology in the cancer field and introduces the potential for a successful impact on two devastating forms of cancer; specifically, brain and colon cancer. Theralase’s research has demonstrated a significant kill rate of greater than 99% in specific human brain and colon cancer cells lines. These results now lay the groundwork for further preclinical trials, which if proven successful may lead to human clinical trials. Theralase plans to aggressively pursue commercialization of its ground-breaking PDC technology through the accelerated FDA regulatory approval process. Theralase also plans to continue its research and development to optimize its PDCs, from the same platform, to destroy a variety of life threatening cancers.
Theralase also recently announced the launch of a new version of the high performance Theralase TLC-1000 therapeutic medical laser series, known as the Theralase TLC-900 series, which effectively eliminates the controller and allows the practitioner to operate the laser probes independently. This TLC-900 system allows the practitioner the ability to benefit from the high performance Theralase laser system technology, albeit with less features and versatility than the TLC-1000 series, but at an overall cost savings.
Subsequent to the end of the quarter, Theralase completed a non‐brokered private placement which raised gross proceeds of $420,000 by issuing 1,050,000 Units to investors at a price of $0.40 per Unit. Each Unit consists of one common share in the capital of the Company and one‐half of one non‐transferable common share purchase warrant. Each whole Warrant entitles the purchaser to purchase one additional common share in the capital of the Company until October25, 2013 at a price of $0.60 per Warrant Share. The securities issued under the Private Placement including any shares issued upon exercise of the Warrants are subject to a mandatory four month hold period, imposed by the TSX Venture Exchange, expiring February 25, 2012.
The company intends to utilize the proceeds of the offering to provide additional working capital to further develop the Company’s prospects in a number of areas; specifically:
· Support of small animal cancer trials at the Ontario Cancer Institute, Princess Margaret Hospital, University Health Network
· Research and development of Photo Dynamic Compounds used in conjunction with the patented Theralase laser technology in the destruction of bacteria in the area of food safety
· TLC‐1000 therapeutic medical laser USA sales and marketing expansion
· TLC‐2000 therapeutic medical biofeedback laser commercialization
Theralase is preparing for significant growth in the 4th quarter of 2011 and in 2012 as the Company expands its sales and marketing efforts in the US and internationally, launches its new controllerless laser series and prepares for the launch of its patented TLC‐2000 biofeedback therapeutic laser in 2012.
The complete consolidated financial statements and MD&A for the three and nine months ending September 30, 2011 can be found at www.theralase.com and www.sedar.com.
There is an earnings conference call and corporate update scheduled for November 30th, 2011 at 9:00am ET. The call in number is 1-866-440-8936, the conference ID is 8791351#. The call will be hosted by Roger Dumoulin-White, President & CEO of Theralase Technologies Inc.
About Theralase Technologies Inc.
Theralase Technologies Inc. founded in 1995, designs, develops, manufactures and markets patented, superpulsed laser technology utilized in biostimulation and biodestruction applications. The technology is safe and effective in the treatment of chronic pain, neural muscular-skeletal conditions and wound healing. When combined with its patented, light-sensitive Photo Dynamic Compounds, Theralase laser technology is able to specifically target and destroy cancers, bacteria and viruses, as well as microbial pathogens associated with food contamination. For further information please visit www.theralase.com
This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Company disclaims any obligation to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchanges) accepts responsibility for the adequacy or accuracy of this release.
For More Information
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