HOUSTON, TX / ACCESSWIRE / March 31, 2015 / Alonzo Pierce, CEO of Top Shelf Brands Holdings, Inc. (a Nevada Corporation) (PINKSHEETS:DKTS), is pleased to announce that the company has reached an accord with all of the DKTS debt holders to extend the terms of the notes without any additional consideration.  Under the revised agreement, the debt holders cannot convert debt into equity for at least one year or until there is a registration statement.

“The two most important things to take away from this agreement are that every single debt holder unequivocally supports the direction of the company by their agreement to the term extension and secondly, they agreed to do so at no peril to the company,” said Alonzo Pierce, CEO of Top Shelf Brands. “This truly is a united group of investors who believe that the company is on the verge of a bright future and that they will be rewarded for their patience.”

Pierce would like to thank the lenders for their unwavering support and understanding. Pierce also noted that he is quite aware that the extended period of time that it has taken to acquire label approval and has put enormous pressure on shareholders but sees it all coming together for the common shareholder.

“Relatively speaking, we have very little convertible debt but the added financial support from these folks has helped the company weather some very interesting storms along the way,” Pierce said. “I look forward to all the supporters of Top Shelf Brands being rewarded for their investments.”

About TSB: www.drinktopshelf.com

Top Shelf Brands Holdings incubates, creates, markets and supplies branded alcoholic beverages with an initial offering of Tequila, Liqueur and Bourbon. Being a federally licensed importer and supplier of alcoholic beverages gives us a competitive edge. Top Shelf Brands is dedicated to “Incubating and Creating Brands People Talk About.” Top Shelf Brands is positioned to capitalize on the $1 trillion spirits industry. Strong growth in the industry is anticipated primarily in the premium category.

This news release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, words such as “estimate,” “expect,” “anticipate,” “projected,” “planned,” “forecasted” and similar expressions are intended to identify forward-looking statements, which are, by their very nature, no guarantees of Top Shelf Brands Holdings, Inc.’s future operational or financial performance, and are subject to risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Due to the risks and uncertainties, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: 
700 Louisiana St
Suite 3950
Houston, TX, 77002
832-390-2782
lou@seraphimstrategies.com

SOURCE: Top Shelf Brands Holdings, Inc. 

ReleaseID: 427368

SAINT LAURENT, QUEBEC / ACCESSWIRE / March 31, 2015 / IntelGenx Technologies Corp. (TSX VENTURE:IGX) (OTCQX:IGXT) (the “Company” or “IntelGenx”) today announced financial results for its fiscal year ended December 31, 2014 and provided an update on operational developments. All amounts are in U.S. Dollars, unless otherwise stated.

“IntelGenx closed fiscal 2014 with a very healthy bank balance, continuing strong sales growth of Forfivo XL(R), and excellent R&D progress on our most promising VersaFilm(TM) projects,” said Dr. Horst G. Zerbe, President and CEO of IntelGenx. “We also made significant progress towards establishing a manufacturing facility for our growing portfolio of VersaFilm(TM) projects. We finalized negotiations for a new lease agreement for 17,000ft² facilities, and we negotiated a construction agreement for the build-out of these new premises. In addition, we executed on a credit facility of up to CAD$3.5 million with BMO Bank of Montreal, and we ordered packaging equipment to complete our VersaFilm(TM) manufacturing line. We are looking forward to moving into our new premises in the third quarter of 2015 and to taking the next steps to position IntelGenx as the film development partner of choice, offering our pharmaceutical partners complete support from concept, through research and development, regulatory affairs, and commercial supply of our VersaFilm(TM) products. We have, with all of these undertakings, many challenges ahead. However, Management believes that we have both the financial and the human resource capacity to successfully execute on all of these activities.”

Financial Results:

Cash on hand at December 31, 2014 was $4.4 million compared with cash of $5.0 million as at December 31, 2013. The decrease of $0.6 million in cash relates to the net effect of cash used in operating activities of $1.4 million (2013: $1.2 million), cash used in investing activities of $0.4 million (2013: $0.3 million), and an unrealized foreign exchange loss of $0.4 million (2013: $0.1 million), partly offset by cash provided by financing activities of $1.6 million (2013: $4.5 million). The net cash provided by financing activities in 2014 is attributable to proceeds received from the exercise of warrants, whereas the cash provided in 2013 consists of approximately $3.0 million from a registered public offering that we completed in December 2013, together with approximately $1.5 million in proceeds received from the exercise of warrants and stock options.

Accounts receivable totaled $0.7 million as at December 31, 2014 compared with $0.1 million at December 31, 2013. The accounts receivable balance at December 31, 2014 included an amount of $0.6 million that was invoiced to our commercialization partner for Forfivo XL(R), Edgemont Pharmaceuticals LLP (“Edgemont”), in the fourth quarter of 2014. Payment against the invoice was received in February 2015.

Revenue for the year ended December 31, 2014 increased by 75% to $1.7 million, up from $0.9 million in the previous year. Revenue recorded in the year ended December 31, 2014 includes $1.1 million (2013 – $0.5 million) related to Forfivo XL(R), our first FDA approved product launched in October 2012 under a licensing partnership with Edgemont. Revenue for the year ended December 31, 2014 also includes $0.6 million (2013: $0.5 million) in payments received for successfully achieving R&D development milestones for certain R&D development projects currently under development.

Total costs and expenses increased from $2.6 million in fiscal 2013 to $3.4 million in 2014, primarily as a result of an increase of $0.5 million in R&D expenses incurred in the development of our second Par project, which is progressing according to plan, expenses for the completion of a pilot biostudy with our proprietary VersaFilm(TM) tadalafil product for erectile dysfunction, and successful completion of a pilot clinical study for our VersaFilm(TM) product, indicated for the treatment of schizophrenia. In addition, selling, general and administration costs increased by $0.3 million due to an increase in directors’ fees, legal expenses related to our Paragraph IV litigation with Wockhardt that was settled in November 2014, and fees for investor relations services.

The net loss increased from $1.6 million in fiscal 2013 to a loss of $1.7 million in 2014, and the loss per share was $0.03 (2013: $0.03).

Corporate Development Update

Product-related

Anti-depressant tablet, Forfivo XL(R)

Forfivo XL(R), our first FDA approved product, was launched in October 2012 and is being marketed in the United States under the terms of a license agreement between us and Edgemont Pharmaceuticals. Forfivo XL(R) is indicated for the treatment of Major Depressive Disorder (“MDD”) and is the only extended-release bupropion HCl product to provide a once-daily, 450mg dose in a single tablet. The active ingredient in Forfivo XL(R) is bupropion, the same active ingredient used in the well-known antidepressant product Wellbutrin XL(R). Prior to the launch of Forfivo XL(R), most patients in the US requiring a 450mg dose of bupropion had been taking multiple tablets to achieve their 450mg dose requirement.

In August 2013 we announced receipt of a Paragraph IV Certification Letter from Wockhardt Bio AG, advising of the submission of an ANDA to the FDA requesting authorization to manufacture and market generic versions of Forfivo XL(R) 450 mg capsules in the United States. In November 2014 we announced that the Paragraph IV litigation with Wockhardt had been settled and that, under the terms of the settlement, Wockhardt has been granted the rights, with effect from January 15, 2018, to be the exclusive marketer and distributor of an authorized generic of Forfivo XL(R) in the U.S.

In December 2014 we announced that Edgemont had exercised its right to extend the license for the exclusive marketing of Forfivo XL(R) 450 mg tablets. In exchange, we received milestone payments of $0.65 million in December 2014 and $0.6 million in February 2015. All other financial obligations contained in the license agreement entered into by Edgemont and IntelGenx in February 2012, specifically launch-related and sales milestones, together with the contractual royalty rates on net sales of the product, remain in effect.

The commercialization of Forfivo XL(R) triggered launch-related milestone payments to us of up to $4.0 million, of which $1 million was received following commercial launch in October 2012. Based on current trends, Management expects that the remaining $3 million will be earned in fiscal 2015.

We recorded total revenue for Forfivo XL(R) in 2014 of approximately $1.1 million, compared with $0.5 million in 2013.

The level of sales achieved for Forfivo XL(R) in 2014 improved significantly when compared to the previous year. According to Symphony Health Solutions, a recognized market research firm, gross sales of Forfivo XL(R) totaled $8.9 million in the year ending December 31st, 2014 representing an increase of 230% compared with sales of $2.7 million in the preceding year. The number of Forfivo XL(R) prescriptions filled increased by 123% from approximately 16,761 in 2013 to 30,378 in 2014. The average month-on-month growth rate of Forfivo XL(R) throughout 2014 exceeded 9%. Management anticipates this trend to continue throughout 2015 and expects significantly higher revenue from the sales of Forfivo XL(R) in 2015.

Anti-migraine VersaFilm(TM)

In March 2013 we submitted a 505(b)(2) NDA to the FDA for our novel oral thin-film formulation of Rizatriptan, the active drug in Maxalt-MLT(R) orally disintegrating tablets. Maxalt-MLT(R) is a leading branded anti-migraine product manufactured by Merck & Co. The thin-film formulation of Rizatriptan was developed in accordance with the co-development and commercialization agreement with RedHill using our proprietary immediate release VersaFilm(TM) oral drug delivery technology.

In June 2013 the FDA assigned a PDUFA action date of February 3, 2014 for the review of the NDA for marketing approval and in February 2014 we received a Complete Response Letter (“CRL”) from the FDA informing us that certain questions and deficiencies remain that preclude the approval of the application in its present form.

In March 2014 we submitted our response to the FDA’s CRL and in April, 2014 the FDA requested additional Chemistry, Manufacturing and Controls data. We also reported that the supplier of the Active Pharmaceutical Ingredient (“API”) of the product has been issued with an “Import Alert” by the FDA. The Import Alert bans the import into the USA of all raw materials from the supplier’s manufacturing facility, which therefore prohibits the import of any products using these raw materials, and effectively prevents our VersaFilm(TM) product from being approved by the FDA at this time. We continue to work together with RedHill, our development partner, on a variety of options to ensure continued supply of the raw material regardless of the result of these compliance issues and have already identified and audited an alternative API supplier. However, changing suppliers is financially expensive and is a time-consuming process. As a result, we believe that FDA approval of this product for the US market will be delayed until 2016.

In October 2014 we announced the submission of a Marketing Authorization Application (“MAA”) to the German Federal Institute for Drugs and Medical Devices (“BfArM”) seeking European marketing approval of our oral thin film formulation of rizatriptan for acute migraines, under the brand name RIZAPORT(R). The brand name RIZAPORT(R) was also conditionally approved by the FDA as part of the NDA review process in the U.S. The MAA was submitted under the European Mutual Recognition Procedure with Germany as the reference member state. The submission is supported by several studies, including a comparative bioavailability study which successfully established the bioequivalence between RIZAPORT(R) and the European reference drug. BfArM validated the MAA and initiated the formal review process of the application on November 25, 2014. BfArM’s potential feedback regarding the MAA is expected during the second half of 2015.

It should be noted that BfArM is satisfied with the compliance status of the API and that therefore the Import Alert issued by the FDA has no effect upon the MAA submission in Europe.

Two new (undisclosed) projects

In January 2014 we announced the signing of another development and commercialization agreement with Par Pharmaceutical, Inc. for two new products.

Under the terms of the agreement, Par has obtained certain exclusive rights to market and sell our products in the USA. In exchange we will receive upfront and milestone payments, together with a share of the profits upon commercialization. In accordance with confidentiality clauses contained in the agreement, the specifics of the product descriptions, platform technologies and financial terms remain confidential.

Erectile Dysfunction VersaFilm(TM)

In February 2014 we announced the completion of a pilot biostudy with our proprietary VersaFilm(TM) tadalafil product for erectile dysfunction that indicated bioequivalence with the brand product, Cialis(R) tablets. The company plans to submit a 505(b)(2) NDA in 2016 and have the product ready for commercialization upon expiry of the substance patent in 2017..

Schizophrenia VersaFilm(TM)

In April 2014 we announced financial support from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP). In addition to advisory services and technological expertise, the funding provided by NRC-IRAP will support further development of a product for the treatment of central nervous system (CNS) diseases and disorders, based upon our proprietary, oral thin film, VersaFilm(TM), technology.

In November 2014 we announced the successful completion of a pilot clinical study for our INT0036 VersaFilm(TM) product, which is intended for the treatment of schizophrenia-related disorders. INT0036 showed a significantly improved pharmacokinetic profile against the reference product. Therapeutically relevant plasma concentrations are reached significantly faster with our VersaFilm(TM) product compared to conventional tablets and confirm the suitability of the film product for the intended indication.

According to a Datamonitor Healthcare schizophrenia forecast published July 13, 2012, sales of schizophrenia drugs across the seven major markets (the US, Japan, France, Germany, Italy, Spain, and the UK) were estimated at $5.2 billion in 2012 and by 2021, the market is forecast to grow to $6.9 billion at a compound annual growth rate (“CAGR”) of 3.3%. The introduction of additional atypical antipsychotic depot injections, price increases in the US, and the use of pipeline drugs targeted against negative and cognitive symptoms alongside current antipsychotic treatments, are some of the catalysts for this growth. US sales were approximately $3.7 billion in 2012 and are forecast to grow at a CAGR of 4.7% until 2021.

In order to maintain our competitive advantage, we are unable to disclose further details related to this project at this time.

Proprietary Technology

In February 2014 we announced receipt of a Notice of Allowance (“NOA”) from the United States Patent and Trademark Office (“USPTO”) for U.S. Patent Application Serial No. 11/647,033 entitled “Multilayer tablet” which covers the technology used in our hypertension product currently under development. We also announced that a second NOA has been received for U.S. Patent Application Serial No. 11/782,838 entitled “Controlled-release pharmaceutical tablets” which is related to the drug delivery technology used in Forfivo XL(R), our first FDA-approved product currently commercialized in the U.S.

In April 2014 we announced receipt of a third NOA from the USPTO for U.S. Patent Application Serial No. 12/836,810 entitled “Oral mucoadhesive dosage form” which covers our proprietary AdVersa(TM) mucoadhesive drug delivery technology.

These three NOA’s conclude the examination of each U.S. patent application and resulted in the issuance of three U.S. patents that significantly strengthen our patent portfolio and provide further protection for our proprietary technologies.

Corporate

Leadership succession

In July 2014 we announced the resignation of Dr. Rajiv Khosla as President and Chief Executive Officer (“CEO”), and as a member of the Board, effective immediately.

Concurrently, our Board of Directors appointed Dr. Horst G. Zerbe, our Chairman of the Board, founder, and former President and CEO, to the positions of President and CEO.

New Facility

Subsequent to the end of the year, in March 2015 we finalized negotiations on various agreements in support of our plans to construct and relocate our current operations into a state-of-the-art facility that will allow the Company to establish manufacturing capabilities for its growing platform of VersaFilm(TM) products. The new facility will also increase the Company’s pharmaceutical R&D and formulation capabilities.

The property is located at 6420 Abrams, St-Laurent, Quebec, and comprises approximately 17,000ft². Renovation of the new facility is expected to commence in the coming weeks and is anticipated to be completed within 6 months, enabling the Company to occupy the premises sometime in Q3, 2015.

We finalized negotiations for an agreement to lease approximately 17,000 square feet in a property located at 6420 Abrams, St-Laurent, Quebec (the “Lease”), which we expect to execute in the coming weeks. The Lease has a 10 year and 6 month term commencing on September 1, 2015 and IntelGenx retained two options to extend the Lease, with each option being for an additional five years. Under the terms of the Lease IntelGenx will be required to pay base rent of approximately CAD$110 thousand (approximately $95 thousand) per year, which will increase at a rate of CAD$0.25 ($0.22) per square foot every two years. The Company plans to use the newly leased space to manufacture its oral film VersaFilm(TM) products, to enlarge research and development capabilities, and for administration purposes.

We also finalized negotiations for an agreement for the construction of manufacturing facilities, laboratories, and offices within the property located at 6420 Abrams, St-Laurent, Quebec, at an aggregate cost of CAD$2.9 million (approximately $2.5 million), which we expect to execute in the coming weeks. The construction agreement will be awarded to BTL Construction Inc. (“BTL”) in Quebec following a tender process that was completed in December 2014. BTL specializes in the renovation of existing buildings for pharmaceutical use and has completed projects for various major pharmaceutical companies. IntelGenx plans to fund this project from cash on hand. Construction is anticipated to be completed in Q3, 2015.

In March 2015 IntelGenx received CAD$500 thousand (approximately $430 thousand) in cash as part of a credit facility of up to CAD$3.5 million (approximately $3.0 million) negotiated with BMO Bank of Montreal (“BMO”). The credit facility is supported by a 50% guarantee under the Export Guarantee Program from Export Development Canada, Canada’s export credit agency. Management expects disbursement of the remaining CAD$3.0 million ($2.6 million) to follow after BMO has reviewed (in August 2015) the Company’s operating results for the first 6 months of 2015. The credit facility may be drawn down in multiple disbursements over 12 months and, after a 6 month moratorium on the capital, has a repayment term of up to 60 months. The financial covenants of the credit facility require the Company to maintain a Minimum Debt Service Coverage ratio of 1.25:1, and a Maximum Total Debt to Tangible Net Worth ratio of 2.5:1. Based upon Management’s business forecasts and projections, Management believes that we will be able to fully comply with these financial covenants. As part of securing the credit facility, IntelGenx will maintain its operating bank account with BMO and will conduct all future banking transactions related to its business operations through BMO. IntelGenx intends to use the funds for the purchase and installation of new equipment for its new, state-of the-art, manufacturing facility.

In March 2015 IntelGenx placed an order for 2 packaging machines to be manufactured by Harro Höfliger Verpackungsmaschinen GmbH (“Harro Höfliger”) and installed in its new, state-of the-art, manufacturing facility. Harro Hofliger is widely recognized as a high end supplier of production and packaging equipment, primarily to the pharmaceutical and medical device industries, and is noted for providing innovative, custom equipment to meet the needs of customers. IntelGenx’ purchase order consists of one commercial grade packaging machine for the commercial packaging of its VersaFilm(TM) products, and one smaller machine for its R&D laboratories to be used for clinical trials, submission batches and manufacturing scale up. The purchase order, in the aggregate amount of approximately €1.5 million (approximately $1.6 million), requires immediate payment of a 20% deposit with a further 70% to be paid upon delivery of each machine and the balance of 10% to be paid upon satisfactory completion of a Site Acceptance Test of each machine. The laboratory packaging machine is expected to be delivered in Q3, 2015 and the commercial packaging machine is expected to be delivered in Q4, 2015. We intend to finance the acquisition of these 2 machines with the credit facility negotiated with BMO, as discussed above.

About IntelGenx:

IntelGenx is a drug delivery company focused on the development of oral controlled-release products as well as novel rapidly disintegrating delivery systems. IntelGenx uses its unique multiple layer delivery system to provide zero-order release of active drugs in the gastrointestinal tract. IntelGenx has also developed novel delivery technologies for the rapid delivery of pharmaceutically active substances in the oral cavity based on its experience with rapidly disintegrating films. IntelGenx’ development pipeline includes products for the treatment of indications such as severe depression, hypertension, erectile dysfunction, migraine, insomnia, CNS indications, idiopathic pulmonary fibrosis, oncology and pain, as well as animal health products. More information is available about the company at www.intelgenx.com.

Forward Looking Statements:

This document may contain forward-looking information about IntelGenx’ operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about IntelGenx’ plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words “may,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “could,” “would,” and similar expressions. All forward looking statements are expressly qualified in their entirety by this cautionary statement. Because these forward-looking statements are subject to a number of risks and uncertainties, IntelGenx’ actual results could differ materially from those expressed or implied by these forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading “Risk Factors” in IntelGenx’ annual report on Form 10-K for the fiscal year ended December 31, 2014, filed with the United States Securities and Exchange Commission and available at www.sec.gov, and also filed with Canadian securities regulatory authorities and www.sedar.com. IntelGenx assumes no obligation to update any such forward-looking statements.

Each of the TSX Venture Exchange and OTCQX has neither approved nor disapproved the contents of this press release.

CONTACT:

Paul A. Simmons
Chief Financial Officer
IntelGenx Technologies Corp.
T: +1 514-331-7440
F: +1 514-331-0436
www.intelgenx.com

SOURCE: IntelGenx Technologies Corp.

ReleaseID: 427367

CALGARY, ALBERTA / ACCESSWIRE / March 31, 2015 / Sunora Foods Inc. (“Sunora” or the “Corporation”) (TSX Venture:SNF) is pleased to announce an expansion of its portfolio of canola based products for some of its key Asian markets. The focus of these new products will be China, Indonesia and Pakistan, which are increasingly recognizing the health benefits of Canadian produced food oils including canola oil. Additional prospective markets for these Sunora products include South Korea, Burma and Vietnam. Sunora is a global leader in the delivery of packaged canola oils and utilizes its global network of agents in over 30 countries to introduce new food oil products on a regular basis.

With the recent establishment of the China-Canada Economic and Financial Strategic Dialogue, the Canadian government looks to expand bilateral and investment ties between China and Canada, with a focus on the export of agricultural products including canola oil. Sunora is well positioned to meet demand from China and is developing a Chinese language component on its corporate website to better inform Chinese customers of the benefits of canola oil.

Sunora is also pleased to announce the posting of corporate information on the Canola Council of Canada website as a Canola Oil Exporter and Canola Oil Packager. Further information can be viewed on their website at: http://www.canolacouncil.org/markets-stats/industry-contacts/.

About Sunora Foods

Sunora Foods is a Calgary, Alberta based food oil entity trading and supplying canola oil, corn oil, soybean oil, olive oil, and specialty oils in Canada and internationally under the “Sunora”, “Sunera” and numerous private label brands.

For further information

Dean Stuart

Investor Relations

T: 403 517 2270

E: dean@boardmarker.net

Steve Bank

Chief Executive Officer and President

T: 403 247 8300

E: steve.bank@sunora.com

Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Sunora Foods Inc.

ReleaseID: 427366

Teleconference and Webcast to be Held Today at 4:30 PM ET

MILWAUKEE, WI / ACCESSWIRE / March 31, 2015 / Telkonet, Inc. (OTCQB:TKOI), creator of the EcoSmart platform of in-room automation solutions integrated to optimize energy efficiency, comfort and data collection in support of the emerging Internet of Things (IoT) today announced financial results for fiscal year ended December 31, 2014. Telkonet management will hold a teleconference and webcast to discuss these results with the financial community today, March 31st at 4:30 PM ET/3:30 PM CT.

Commenting on the 2014 financial results, Jason Tienor, Telkonet’s CEO stated, “We’re very pleased to report both top line revenue growth and profitability for fiscal 2014. For two of the last three years we’ve demonstrated our ability to achieve profitability while expanding Telkonet’s product and business. Through execution of our strategic plan and effective expense management, we continue to achieve gross margin goals while reducing year-over-year SG&A and operating expenses.”

“With the full release of the EcoSmart Platform completed in 2014, 2015 will mark the first full year of sales for the EcoSmart offering. And while we continue in our technology development with the upcoming release of 2 new products this year and several additional mobile developments, we are seeing enormous growth in the energy management and Internet of Things markets where our platform contributes the most. We look forward to continuing our product penetration and market expansion in this growing billion dollar global industry.”

Financial Highlights for the Twelve Months Ended December 31, 2014:

– Total revenue for fiscal 2014 was $14.8 million, up 7% from fiscal 2013.
– Gross Margin increased by $0.5 million or 7% for fiscal 2014.
– The Company reported operating income of $0.3 for fiscal 2014 compared to an operating loss of $3.7 million in fiscal 2013.
– The Company reported adjusted EBITDA of $0.6 million for fiscal 2014 compared to a negative $0.5 million in fiscal 2013.
– Fiscal 2014 non-recurring revenue increased by 8% compared to fiscal 2013.
– Excluding the non-cash goodwill impairment charge on Smart Systems International of $2.8 million in 2013, fiscal 2014 operating expenses decreased by $0.7 million or 9%. R&D costs included in operating expenses increased 12% compared to fiscal 2013.
– Sales and use tax liability decreased from $1.1 million at December 31, 2013 to $0.4 million at December 31, 2014. The Company continued to execute Voluntary Disclosure Agreements, settling with twelve more states.

Mr. Tienor continued, “Through continued retirement of legacy payables and liabilities as is demonstrated in the reduction in accounts payable and accrued liabilities and expenses of approximately $1.1 million from December 31, 2013, we’ve comprehensibly improved the Company’s financial position.”

Teleconference and Webcast

The Company will host a teleconference and webcast today at 4:30 PM ET to discuss these results with the financial community.

Date: Tuesday, March 31, 2015

Time: 4:30 p.m. Eastern Time (3:30 pm CT, 1:30 pm PT)

Investor Dial-In (Toll Free): 877-407-0781
Investor Dial-In (International): 201-689-8568
Live Web Cast: http://www.investorcalendar.com/IC/CEPage.asp?ID=173746

A replay of the teleconference will be available until April 14, 2015, which can be accessed by dialing (877) 660-6853 if calling within the United States or (201) 612-7415, if calling internationally. Please enter conference ID #13604544 to access the replay.

NON-GAAP Financial Measures

Telkonet will post to the Company’s investor relations web site (www.telkonet.com) any reconciliation of differences between non-GAAP financial information that may be required in connection with issuing the Company’s financial results.

The Company, as is common in its industry, uses adjusted EBITDA, a non-GAAP measurement gauge to demonstrate earnings exclusive of interest and non-cash events. The Company manages its business based on its cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses adjusted EBITDA as its primary management guide. Adjusted EBITDA is not, and should not be considered, an alternative to net income (loss), income (loss) from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). In assessing the overall health of its business for the years ended December 31, 2014 and 2013, the Company excluded items in the following general categories, each of which are described below:

– Stock-based compensation: The Company believes that because of the variety of equity awards used by companies, varying methodologies for determining stock-based compensation and the assumptions and estimates involved in those determinations, the exclusion of non-cash stock-based compensation enhances the ability of management and investors to understand the impact of non-cash stock-based compensation on our operating results. Further, the Company believes that excluding stock-based compensation expense allows for a more transparent comparison of its financial results to the previous year.

– Gain on sale of product line: In the first quarter of 2011, the Company sold its Series 5 Power Line Carrier product line and related business assets under an Asset Purchase Agreement (“APA”). Per the APA, the Company signed an unsecured promissory note due to the purchaser. The note contains certain earn-out provisions that encompass both the Company’s and the purchaser’s revenue volumes. In the second quarter 2013, the Company recorded a gain associated with the earn-out provision. The Company does not consider these ongoing transactions, and it is not an indication of current or future operating performance. Therefore, the Company does not consider the inclusion of these transactions helpful in assessing its current financial performance compared to previous periods as well as prospects for the future.

– Impairment of goodwill: In the fourth quarter of 2013, the Company recorded a non-cash charge of $2.8 million based upon management’s assessment of the carrying value of the Company’s goodwill at December 31, 2013. The Company does not consider the non-cash impairment charge to be indicative of operating performance. Therefore the Company does not consider the inclusion of this charge to be useful in assessing its current financial performance compared to previous periods as well as prospects for the future.

Adjusted EBITDA and other non-GAAP financial measures should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of the non-GAAP financial measure as an analytical tool. In particular, the non-GAAP financial measure is not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measure reflect the exclusion of items that are recurring and will be reflected in the Company’s financial results for the foreseeable future. The Company compensates for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measure.

ABOUT TELKONET

Telkonet is a leading provider of intelligent automation solutions throughout commercial markets worldwide. The Internet of Things (IoT), offers considerable energy cost reductions, staff productivity enhancements and carbon footprint reductions through intelligent networked communications, improved asset utilization and data analytics. IoT platforms like Telkonet’s EcoSmart enable users to achieve savings, value and service through networked connectivity providing monitoring, control, analytics, convenience and the ability to participate with the emerging Smart Grid through automated demand response initiatives. Telkonet serves vertical markets that have established the company as a leading networking, efficiency and energy management technology provider. Those markets consist of Hospitality, Education, Military, Government, Healthcare and Public Housing. Telkonet’s business divisions include EcoSmart, a networked automation platform featuring Recovery Time technology offering cost savings, energy reductions, optimized asset utilization and improved comfort, and EthoStream(R), one of the largest hospitality High-Speed Internet Access networks in the world providing public Internet access to more than 8 million monthly users.

For more information, visit www.telkonet.com.
For news updates as they happen, follow @Telkonet on Twitter.
To receive updates on all of Telkonet’s developments, sign up for our email alerts HERE.
www.telkonet.com

FORWARD LOOKING STATEMENTS

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company’s ability to obtain new contracts and accurately estimate net revenue due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company’s financial results, can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and in its Reports on Forms 8-K filed with the Securities and Exchange Commission (SEC).

Media Contacts:

Telkonet Investor Relations
414.721.7988
ir@telkonet.com

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
FOR THE YEARS ENDED DECEMBER 31,
(Unaudited)

TELKONET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

SOURCE: Telkonet, Inc.

ReleaseID: 427069

Intends to Provide Ongoing Coverage of the Biotech ETF Sector; Report Available here: http://www.lifescicapital.com/equity-research/etf-coverage/

NEW YORK, NY / ACCESSWIRE / March 31, 2015 / LifeSci Capital, LLC, a research-driven investment bank with deep domain expertise in the life sciences sector, today announced that it has initiated coverage of the biotechnology exchange trade fund (ETF) sector. ETFs included in our sector analysis include the iShares Nasdaq Biotechnology Index Fund (IBB), the First Trust NYSE Arca Biotech ETF (FBT), the SPDR S&P Biotech ETF (XBI), the Market Vectors Biotech ETF (BBH), the PowerShares Dynamic Biotech & Genome ETF (PBE), the BioShares Biotechnology Clinical Trials Index Fund (NASDAQ:BBC), and the BioShares Biotechnology Products Fund (NASDAQ:BBP). LifeSci Capital intends to provide ongoing research coverage of these ETFs, including tracking relevant catalysts for the ETF component companies.

“With the continued strength of the biotech sector, biotechnology ETFs have become increasingly popular investment vehicles,” said Jerry Isaacson, Ph.D., LifeSci Capital’s Director of Research. “Considering this popularity, and the introduction of innovate new biotech ETFs, our research will strive to provide investors coverage of the funds themselves, major topics in the space, and important clinical and regulatory events.”

In the ETF Sector Initiation Report LifeSci Capital explains the composition of each biotech ETF and the differences in investment methodology. We explore the different types of companies in each ETF and discuss the type of investment strategy that each fund offers. The current biotech ETFs provide a variety of different weighting and selection strategies, and we examine the particular aspects of each.

LifeSci Index Partners, an affiliate of LifeSci Capital, is the sub-adviser to the BioShares ETFs.

Dr. Isaacson’s full Initiation Report, including important disclosures, is available to download at no cost at the LifeSci Capital website, www.lifescicapital.com/equity-research/. In addition to this Initiation Report, LifeSci Capital intends to provide ongoing coverage and event-based research updates on the Biotech ETF Sector as developments occur.

The LifeSci Capital research team is led by Dr. Jerry Isaacson, an industry veteran with broad experience in biotechnology, having worked in both public and private biotech companies in areas ranging from medicinal chemistry and analytical chemistry to patents and investor/public relations. Dr. Isaacson holds a Bachelor of Arts degree in Chemistry from Harvard University and received his Ph.D. in Organic Chemistry from the University of California in San Diego.

About LifeSci Capital:

LifeSci Capital (Member: FINRA/SIPC) is a research-driven investment bank with deep domain expertise in the life sciences. Our service model as a boutique investment bank is unique in that we exclusively serve emerging life science companies that discover, develop, and commercialize innovative products. We view our clients as our partners, and we work closely with them to establish and execute their capital markets strategies. Our broadly-distributed equity research product is differentiated and provides a deep understanding of our clients’ businesses and the opportunities they are addressing. To learn more about LifeSci Capital, visit the company’s website, www.lifescicapital.com.

Analyst Contact:

Jerry Isaacson, Ph.D.
Phone: (646) 597-6991
Email: jisaacson@lifescicapital.com

SOURCE: LifeSci Capital, LLC

ReleaseID: 427359