Wednesday, August 29, 2012

Theralase Announces 44% Improvement in Profitability in Q2 Financials


Toronto, Ontario – August 28, 2012 Theralase Technologies Inc. (“Theralase”) (TSX‐V: TLT) announced its second quarter 2012 financials reporting that revenue remained relatively constant year over year at $670,537 for the three month period ended June 30, 2012, as compared to $688,606 for the same period in 2011.
The net loss for the three month period ended June 30, 2012 was $199,284 which included $77,765 of non-cash expenses (amortization, stock-based compensation expense, foreign exchange gain/loss and lease inducements), as compared to a net loss of $357,262 for the same period last year ($20,597 of non-cash expenses), demonstrating an improvement of 44% year over year.
Selling expenses decreased for the three month period ended June 30, 2012 to $148,526, compared to $327,216 for the same period the previous year, a decrease of 54.6%. The decrease was the direct result of the elimination of non-essential sales personnel and a decrease in product advertising costs associated with their respective territories.
Administrative expenses decreased to $305,693 for the three month period ended June 30, 2012 compared to $319,972 for the same period the previous year, a decrease of 4.5%, as a result of elimination of non-essential administrative personnel.
Research and development costs increased to $241,105 for the three month period ending June 30, 2012 compared to $176,623 for the same period in 2011, a 36.5% increase. The increase is due to the research and development costs associated with the patented TLC-2000 biofeedback therapeutic laser system, scheduled to be commercially launched Q1 2013 and Theralase’s patented Photo Dynamic Compounds (PDCs) under systematic development for clinical evaluation in the destruction of bladder cancer via a FDA Phase 1 human clinical study in 2013.
Roger Dumoulin‐White, President and CEO of Theralase Technologies Inc. stated, “As Theralase expands its presence internationally and maintains its established stronghold in the Canadian market, the Company is committed to bringing its newly designated Therapeutic Laser Therapy Division to profitability in the latter half of 2012 and then to dramatically increase sales with the launch of the TLC‐2000 biofeedback therapeutic laser system in early 2013. The Photo Dynamic Therapy Division; however, will continue to require equity financings, in order to provide the capital injection required to research and develop the technology for a FDA Phase 1 human clinical study in 2013. By investing in  future technology, Theralase will secure the coveted position of an international leader in both divisions of medical laser technology for decades to come.”
During the second quarter, Theralase announced that it has selected bladder cancer as the first clinical target in its Photo Dynamic Compound (PDC) research. Theralase now has a clear direction and mandate with which to prepare for a FDA Phase 1 human clinical study. The Theralase light activated PDC drug has been proven superior to any currently approved FDA PDC drug on the market that has been  tested in the company’s lab. Theralase plans to aggressively pursue commercialization of the ground-breaking PDC technology through an accelerated FDA regulatory approval process. This FDA process is able to "fast-track" approval when a treatment is shown, through proven success rate, to have a positive impact on a serious, life-threatening medical conditions for which no other drug or treatment exists or is as effective.
In addition, during the quarter, Theralase announced that it has entered into an exclusive distribution agreement with Jordan based medical device distributor MediQu to market and sell the Theralase line of therapeutic laser products into 16 countries in the Middle East region, branded as Theralase Arabia.
Theralase is preparing for significant growth in the 2nd half of 2012 and in 2013 as the Company expands its sales and marketing efforts in the US and internationally and prepares for the launch of its patented TLC‐2000 biofeedback therapeutic laser in Q1 2013.
The complete consolidated financial statements and MD&A for the three and six months ending June 30, 2012 can be found at www.theralase.com and www.sedar.com.
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
Roger Dumoulin-White                                                                        
President & CEO,                          
416-447-8455 ext. 225                               

Kristina Hachey
CFO
416-447-8455 x224

Greg Bewsh
Director of Investor Relations,
416-447-8455 ext. 262

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