Friday, November 30, 2012
Theralase Announces 18% Improvement in Profitability in Q3 Financials
Toronto, Ontario – November 29, 2012 Theralase Technologies Inc. (TSX-V: TLT) announced today its third quarter 2012 financial results reporting that revenue remained relatively constant year over year for the three month period ending September 30, 2012 at $437,060, compared to $453,212 for the same period in 2011.
The net loss for the three month period ended September 30, 2012 was $348,478, which included $71,406 of non-cash expenses (amortization, stock-based compensation expense, foreign exchange gain/loss and lease inducements) as compared to a net loss of $423,929 for the same period last year, demonstrating an improvement of 18% year over year.
Selling expenses decreased for the three month period ending September 30, 2011 to $162,596 compared to $237,409 for the same period the previous year, a decrease of 31.5%, while maintaining essentially the same revenue. The decrease in selling expenses and increase in profitability was directly attributable to efficiencies gained in operations through the elimination of non-essential sales personnel and a decrease in product advertising costs associated with their respective territories.
Administrative expenses remained constant at $287,346 for the three month period ending September 30, 2012 compared to $280,587 for the same period the previous year, with the minor increase primarily due to stock based compensation expense.
Research and development costs were $174,841 for the three month period ending September 30, 2012 compared to $225,439 for the same period in 2011. The expenditures are primarily due to the commercialization costs associated with the anticipated launch of the patented TLC-2000 biofeedback therapeutic laser system, scheduled to be commercially launched in 2013 and costs associated with the research and development of Theralase’s patented Photo Dynamic Compounds (PDCs) being developed for the destruction of cancer, viruses and bacteria.
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 (TLT) Division to profitability in 2013 through the dramatic increase in sales associated with the launch of the TLC-2000 biofeedback therapeutic laser system in early 2013. The Photo Dynamic Therapy (PDT) Division; however, will continue to require equity financings, in order to provide the capital injection required to research and develop the technology through the FDA Phase 1 human clinical approval process 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 quarter, Theralase announced that it has selected bladder cancer as the first clinical target in its Novel Photo Dynamic Compound (PDC) research. Theralase now has a clear direction with which to proceed with FDA clinical trials. Bladder cancer is the fifth most common cancer in North America being the fourth most common in men and the eighth most common in woman. In North America, it is estimated that there will be over 77,000 new cases and over 15,000 deaths annually. With a recurrence rate of nearly 80%, bladder cancer is the most expensive cancer to treat on a per patient basis; as well, the high recurrence rate raises many issues affecting quality of life. Theralase plans to aggressively pursue commercialization of its ground-breaking PDC technology through the 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 its Theralase therapeutic laser system has now been proven clinically effective in the relief of chronic knee pain and for the treatment of osteoarthritis (OA). The company commissioned an independent clinical study (blinded, randomised, controlled clinical study) to clinically evaluate if the Theralase laser system was safe and effective in reducing chronic knee pain and for the treatment of osteoarthritis. The results of the clinical study were dramatic and have proven unequivocally that the Theralase therapeutic laser system is clinically and statistically effective in reducing pain in these debilitating conditions. The efficacy of the study was evaluated by the assessment of subject pain levels via the visual analog scale (VAS) measurement, a validated assessment tool widely accepted by the medical community, especially, neurology and orthopedic specialists. The study has been accepted for publication in an international journal, “Photonics & Lasers in Medicine” renowned for the communication of high-quality peer-reviewed research.
The Company also announced during the quarter that it has expanded the distribution of Theralase products into mainland China by signing an exclusive distribution agreement with an active, established Chinese medical device distributor, Chengdu Disi Industrial Co. Ltd. (Chengdu Disi). Under the terms of an exclusive distribution agreement, Chengdu Disi will market, sell and provide customer support on Theralase therapeutic lasers to government, public and private hospitals, in China, training them in the safe and effective operation of this advanced technology
The complete consolidated financial statements and MD&A for the three and nine months ending September 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. Theralase technology is safe and effective in treating pain, inflammation and for tissue regeneration of neural muscular skeletal conditions and wound healing in both humans and animals. Theralase also develops patented Photo Dynamic Compound (PDC) technology focused at targeting and destroying cancers, bacteria and viruses when light activated by Theralase’s proprietary and patented laser technologies.
For further information please visit www.theralase.com , regulatory filings may be viewed by visiting www.sedar.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, please contact:
President & CEO,
Director of Investor Relations,