Calmare Therapeutics Reports Third Quarter 2016 Results

Quarterly Revenues Double | Expenses Down 15% | Net Loss Per Share Cut in Half

FAIRFIELD, CT / ACCESSWIRE / January 3, 2017 / Calmare Therapeutics Incorporated (OTCQB: CTTC) (CTI), the pain mitigation company, reported results for the three-months and nine-months ended September 30, 2016.

Conference Call

CTI will host an earnings conference call on Wednesday, January 4, 2017 at 11:00 A.M. EST. On the call, Management will discuss the Third Quarter 2016 results and recent company developments.

To participate in the conference call: Dial-in: 877.876.9176 and 785.424.1667 | ID: CALMARE. Please dial-in at least 5 minutes before the scheduled start time. Investor participation is limited.

RSVP via email to: IR@calmaretherapeutics.com by 5:00 P.M. EST, Tuesday, January 3, 2017 with “3Q2016” in the subject line.

Three Months Ended September 30, 2016

Revenues from the commercial sale and shipment of Calmare® pain therapy devices (Devices) for the three months ended September 30, 2016 were $465,000, as compared with $197,000 for the three months ended September 30, 2015.

Device sales for the three months ended September 30, 2016 were Five (5) Devices, as compared with Two (2) Devices for the three months ended September 30, 2015. All Five sales were to the U.S. private sector.

Total expenses for the three months ended September 30, 2016 were $1,023,000, as compared with $1,216,000 for the three months ended September 30, 2015. This decrease in total expenses was largely due to decreases in selling, personnel, consulting, and general and administrative expenses offset by an increase in interest expense.

General and administrative expenses for the three months ended September 30, 2016 were $168,000, as compared with $362,000 for the three months ended September 30, 2015. This decrease is primarily attributable to a significant decline in legal expense from the second quarter of 2015.

Net loss for the three months ended September 30, 2016 was $648,000 or $0.02 per basic and diluted share, as compared with a net loss of $1,063,000 or $0.04 for the three months ended September 30, 2015.

Nine Months Ended September 30, 2016

Revenues from the commercial sale and shipment of Calmare® pain therapy devices (Devices) for the nine months ended September 30, 2016 were $716,000, as compared with $405,000 for the nine months ended September 30, 2015.

Device sales for the nine months ended September 30, 2016 were Eight (8) Devices, as compared with Four (4) Devices for the nine months ended September 30, 2015. Seven (7) Devices were sold to the U.S. private sector while the other was sold to the U.S. military.

Total expenses for the nine months ended September 30, 2016 were $3,224,000, as compared with $3,189,000 for the nine months ended September 30, 2015. This slight increase in total expenses was largely due to increases in personnel and interest expense offset by decreases in consulting costs and general and administrative expense.

General and administrative expenses for the nine months ended September 30, 2016 were $654,000, as compared with $1,012,000 for the nine months ended September 30, 2015. This decrease is primarily attributable to a significant decline in legal expense from the first nine months of 2015.

Net loss for the nine months ended September 30, 2016 was $2,638,000 or $0.09 per basic and diluted share, as compared with a net loss of $2,846,000 or $0.10 for the nine months ended September 30, 2015.

Total capital raised over the past twelve quarters was $4,317,000 and consisted of: $2,923,000 of hybrid debt and $1,394,000 of equity.

“We had a good quarter,” said CTI President & CEO Conrad Mir. “We were successful in cutting our loss per share in half and doubling sales, as compared with the third quarter of last year. We look forward to ending our year on a positive note.”

About the Company

Calmare Therapeutics Incorporated, the Calmare Pain Mitigation Therapy™ company, researches, develops, and commercializes chronic, neuropathic pain and wound affliction devices. Our flagship medical device – the Calmare® Pain Therapy Device – is the world’s only non-invasive and non-addictive modality that can successfully treat chronic, neuropathic pain. The Company holds a U.S. Food & Drug Administration 510k clearance designation (K081255) on its flagship device, which grants it the exclusive right to sell, market, research, and develop the medical device in the United States. Calmare Devices are commercially sold to medical practices throughout the world. They are also found in U.S. military hospitals, clinics, and on installations via CTI’s General Services Administration (GSA) military contract (V797P-4300B).

Forward-Looking Statement

Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements deal with the Company’s current plans, intentions, beliefs and expectations and statements of future economic performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to differ materially from what is currently anticipated. Factors that could cause or contribute to such differences include those discussed from time to time in reports filed by the Company with the Securities and Exchange Commission. The Company cannot guarantee its future results, levels of activity, performance, or achievements.

Contacts:

Calmare Therapeutics Incorporated
Conrad Mir
President and CEO
cmir@calmaretherapeutics.com
203.368.6044

JV Public Relations
Janet Vasquez
Managing Director
jvasquez@jvprny.com
212.645.5498

www.calmaretherapeutics.com

CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY

Condensed Consolidated Balance Sheets

September 30, 2016

December 31, 2015

(Unaudited)

Assets

Current Assets:

Cash

6,872

49,801

Receivables, net of allowance of $317,659 at both September 30, 2016 and December 31, 2015

2,751

33,081

Inventory

3,948,220

4,028,220

Prepaid expenses and other current assets

5,510

58,034

Total current assets

3,963,353

4,169,136

Property and equipment, net

11,331

23,726

Security deposits

15,000

TOTAL ASSETS

3,989,684

4,207,862

Liabilities and Shareholders’ Deficit

Current Liabilities:

Accounts payable

1,690,860

1,895,382

Liabilities under claims purchase agreement

1,995,320

Accounts payable, GEOMC

4,182,380

Accrued expenses and other liabilities

2,889,400

2,248,024

Notes payable

5,422,458

3,785,063

Deferred revenue

6,400

Series C convertible preferred stock derivative liability

83,591

66,177

Series C convertible preferred stock liability

375,000

Total current liabilities

16,645,409

14,553,746

Note payable – long-term

–

67,919

Commitments and Contingencies

Shareholders’ deficit:

5% preferred stock, $25 par value, 35,920 shares authorized, 2,427 shares issued and outstanding

60,675

Series B preferred stock, $0.001 par value, 20,000 shares authorized, no shares issued and outstanding

–

Series C convertible preferred stock, $1,000 par value, 750 shares authorized, 375 shares issued and outstanding

–

Common stock, $.01 par value, 100,000,000 shares authorized, 28,787,831 shares issued and outstanding at September 30, 2016 and 28,515,888 shares issued and outstanding at December 31, 2015

287,877

285,158

Capital in excess of par value

49,004,905

48,611,413

Accumulated deficit

(62,009,182

)

(59,371,049

)

Total shareholders’ deficit

(12,655,725

)

(10,413,803

)

TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT

3,989,684

4,207,862

CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY

Condensed Consolidated Statements of Operations
(Unaudited)

Three months ended

September 30, 2016

September 30, 2015

Revenue

Product sales

465,000

197,204

Cost of product sales

125,719

59,830

Gross profit from product sales

339,281

137,374

Other Revenue

Retained royalties

4,647

2,389

Other income

30,954

13,673

Total other revenue

35,601

16,062

Operating expenses

Selling expenses

22,718

67,791

Personnel and consulting expenses

444,082

455,087

General and administrative expenses

167,996

362,208

Total operating expenses

634,796

885,086

Operating loss

(259,914

)

(731,650

)

Other expense

Interest expense

393,867

300,361

Unrealized (gain) loss on derivative instruments

(5,388

)

30,791

Total other expense

388,479

331,152

Loss before income taxes

(648,393

)

(1,062,802

)

Provision (benefit) for income taxes

–

Net loss

(648,393

)

(1,062,802

)

Basic and diluted loss per share

(0.02

)

(0.04

)

Basic and diluted weighted average number of common shares outstanding:

28,787,831

28,370,953

CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY

Condensed Consolidated Statements of Operations
(Unaudited)

Nine months ended

September 30, 2016

September 30, 2015

Revenue

Product sales

716,250

405,154

Cost of product sales

199,704

108,070

Gross profit from product sales

516,546

297,084

Other Revenue

Retained royalties

13,973

7,037

Other income

55,175

39,206

Total other revenue

69,148

46,243

Operating expenses

Selling expenses

85,537

112,131

Personnel and consulting expenses

1,310,139

1,329,466

General and administrative expenses

653,940

1,012,369

Total operating expenses

2,049,616

2,453,966

Operating loss

(1,463,922

)

(2,110,639

)

Other expense

Interest expense

1,156,797

690,892

Loss on conversion of notes

–

2,588

Unrealized loss on derivative instruments

17,414

41,694

Total other expense

1,174,211

735,174

Loss before income taxes

(2,638,133

)

(2,845,813

)

Provision (benefit) for income taxes

–

Net loss

(2,638,133

)

(2,845,813

)

Basic and diluted loss per share

(0.09

)

(0.10

)

Basic and diluted weighted average number of common shares outstanding:

28,689,254

27,673,151

CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY

Condensed Consolidated Statement of Changes in Shareholders’ Deficit
For the Nine Months Ended September 30, 2016
(Unaudited)

Preferred Stock

Common Stock

Capital

Total

outstanding

Amount

outstanding

Amount

In excess

of par value

Accumulated

deficit

shareholders’

deficit

Balance January 1, 2016

2,427

60,675

28,515,888

285,158

48,611,413

(59,371,049

)

(10,413,803

)

Net loss

–

(2,638,133

)

(2,638,133

)

Common stock issued to directors

–

10,000

100

1,800

–

1,900

Stock option compensation expense

–

8,260

–

8,260

Stock grant to employee

261,943

2,619

47,150

49,769

Warrant and beneficial conversion feature on notes payable

–

336,282

–

336,282

Balance September 30, 2016

2,427

60,675

28,787,831

287,877

49,004,905

(62,009,182

)

(12,655,725

)

CALMARE THERAPEUTICS INCORPORATED AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows
(Unaudited)

Nine months ended

September 30, 2016

September 30, 2015

Cash flows from operating activities:

Net loss

(2,638,133

)

(2,845,813

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

12,395

12,267

Stock option compensation expense

8,260

49,181

Share-based compensation – common stock

1,900

2,125

Common stock and warrants issued to consultants

–

182,600

Debt discount amortization

705,758

265,358

Unrealized loss on derivative instruments

17,414

41,694

Loss on conversion of notes

–

2,588

Changes in assets and liabilities:

Receivables

30,330

(183

)

Prepaid expenses and other current assets

52,524

191,249

Inventory

80,000

40,000

Accounts payable, accrued expenses and other liabilities

486,623

936,494

Deferred revenue

–

(13,286)

Net cash used in operating activities

(1,242,929

)

(1,135,726

)

Cash flows from investing activities:

Purchase of property and equipment

–

(4,700)

Net cash used in investing activities

–

(4,700)

Cash flows from financing activities:

Proceeds from notes payable

1,200,000

857,000

Repayment of note and warrant settlement

–

(42,500

)

Proceeds from common stock and warrants

–

365,000

Net cash provided by financing activities

1,200,000

1,179,500

Net increase (decrease) in cash

(42,929

)

39,074

Cash at beginning of period

49,801

5,745

Cash at end of period

6,872

44,819

SOURCE: Calmare Therapeutics Incorporated

ReleaseID: 452083

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