ULURU Inc. Reports First Quarter 2008 Financial Results
For the quarter ended March 31, 2008, the net loss attributable to commonstockholders was $1,815,000, or $0.03 per share, compared to a net loss of$847,000, or $0.01 per share, for the corresponding period in 2007. The firstquarter 2008 net loss was impacted by non-cash expenses of $497,000, whichincluded stock option expense, amortization, and depreciation of $208,000,$269,000 and $20,000, respectively, whereas the first quarter 2007 net lossincluded non-cash expenses of $385,000, which included stock option expense,amortization, and depreciation of $103,000, $265,000 and $17,000,respectively.
Revenues for the first quarter of 2008 were $256,000, compared with$384,000 for the same period last year. The decrease of $127,000 in revenuesis comprised of a decrease in licensing of $124,000 and a decrease insponsored research of $190,000, as both of the prior year revenue componentswere non-recurring. These two decreases were partially offset by an increaseof $20,000 in royalty income associated with our Zindaclin(R) product and$167,000 in Aphthasol(R) product sales to our domestic distributor.
Total costs and expenses, including amortization and depreciation,increased by $753,000 in the first quarter of 2008 to $2,196,000, comparedwith the corresponding period in 2007 where total costs and expenses,including amortization and depreciation, were $1,443,000. The overall expenseincrease is primarily attributable to increases in Research and Development of$310,000, increases in General and Administrative of $298,000, and Cost ofGoods Sold of $138,000. The increased Research and Development costs werecomprised of increases in direct research costs of $116,000 primarily forAltrazeal(TM), increases for our clinical testing programs of $89,000, andadditional scientific personnel costs, including stock option expense, ofapproximately $96,000. The increased General and Administrative expenses werecomprised of increases in personnel costs of $279,000 that includes $122,000of expense for stock option grants and an increase in our executive staff dueto the hiring of our Executive Vice President of Operations. Other factorsaffecting the increase in General and Administrative expense were costs ofapproximately $95,000 associated with the implementation of our sales andmarketing program for our Altrazeal(TM) wound dressing. These increases werepartially offset by cost decreases for legal and accounting/auditing servicesof $92,000, collectively. The increase in Cost of Sales for 2008 of $138,000is attributable to the fact that we did not manufacture any finished goods inthe first quarter of last year.
Interest and miscellaneous income decreased in the first quarter of 2008to $125,000 as compared with $214,000 for the same period in the previousyear. The decrease of $89,000 is attributable to a decrease in interestincome due to lower cash balances in 2008 versus prior year.
Cash and cash equivalents totaled $13,171,000 at March 31, 2008, adecrease of $809,000 as compared to our cash and cash equivalents at December31, 2007 of $13,980,000. The decrease in net cash for the quarter ended March31, 2008 was due to several factors; the expenditure of $375,000 for thepurchase of manufacturing equipment for commercial scale-up of our OraDisc(TM)and Altrazeal(TM) products and the net cash used for operations ofapproximately $1,081,000. These net cash decreases were partially offset bythe receipt of a $600,000 milestone from our OraDisc(TM) B licensee.
Commenting on the financial results, Kerry P. Gray, President and CEOstated, "The first quarter operating results are in line with our operatingplan. With the launch of Altrazeal(TM), the associated prod
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