ULURU Inc. Reports Fourth Quarter and Year End 2007 Financial Results
For the quarter ended December 31, 2007, the net loss attributable tocommon stockholders was $857,000, or $0.01 per share, compared to a net lossof $3,185,000, or $0.11 per share, for the corresponding period in 2006. Forthe year ended December 31, 2007, the net loss attributable to commonstockholders was $4,153,000, or $0.07 per share, compared to a net loss of$11,709,000, or $0.71 per share, for the year ended December 31, 2006. The2007 net loss was impacted by non-cash expenses related to stock optionsaccounted for in accordance with SFAS 123(R) "Share Based Payment" of $221,000and $583,000, for the quarter and year ended December 31, 2007, respectively,compared with $16,000 for the quarter and for the year ended December 31, 2006and by the amortization of our intangible assets of $272,000 and $1,078,000for the quarter and year ended December 31, 2007, respectively, similar to theexpenses incurred in 2006.
Revenues for the fourth quarter of 2007 were $834,000, compared with$842,000 for the same period last year. The decrease of $8,000 is comprisedof a decrease in sales of our Aphthasol(R) product of $80,000 due to ordertiming by our distributor. The decrease was partially offset by increases of$41,000 in royalty income associated with our Zindaclin(R) and Aphthasol(R)products and $26,000 in sponsored research.
Total costs and expenses increased by $108,000 in the fourth quarter of2007 to $1,865,000, compared with the corresponding period in 2006 where totalcosts and expenses were $1,757,000. General and administrative expenses wereprimarily responsible for the increase, as these expenses increased from$782,000 in the fourth quarter of 2006 to $935,000 in the fourth quarter of2007, a $153,000 increase. Increased costs include professional fees forauditing and legal of $109,000, expenses of $108,000 related to being a publiccompany, including director fees, increased corporate travel of $43,000,increased insurance costs of $28,000, and compensation related expenses of$72,000 due to personnel additions. These general and administrative increaseswere partially offset by a $250,000 decrease in royalty expense. Research anddevelopment costs increased from $608,000 in the fourth quarter of 2006 to$638,000 in 2007. The $30,000 increase is primarily due to: fees payable tothe Food and Drug Administration of $23,000, increased clinic expenses of$4,000, and increased compensation expense of $62,000. These increases werepartially offset by a decrease of $65,000 in direct research costs.
Interest and miscellaneous income increased significantly in the fourthquarter of 2007 to $175,000 as compared with $51,000 for the same period inthe previous year. The increase of $124,000 is attributable to an increase ininterest income due to higher cash balances in 2007 as a result of thefinancing and recapitalization of the Company in December 2006.
There was no interest expense for the three months ended December 31, 2007as compared to an expense of $3,823,000 for the same period last year. Thedecrease in interest expense relates to our payoff in December 2006 of ouroutstanding secured convertible debentures. Additionally, we did not incurany other income or expense items for the three months ended December 31, 2007as compared to the same period last year where other income and expense itemsincluded income of $1,885,000 from the reversal of costs booked in the thirdquarter of 2006 for liquidated damages relating to the delay in theeffectiveness of a registration statement and an expense of $383,000 from aloss on the early extinguishment of a debenture.
Cash and cash equivalents totaled $13,980,000 at December 31, 2007, adecrease of $2,940,00
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