TherapeuticsMD Reports First Quarter 2013 Financial Results

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TherapeuticsMD Reports First Quarter 2013 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)-- TherapeuticsMD, Inc. (NYSE MKT:TXMD), a women's healthcare company focused on developing and commercializing products targeted exclusively for women, today announced financial results for the three months ended March 31, 2013.

First Quarter and Subsequent Highlights:

  • Net revenue for the quarter ended March 31, 2013 was $1.5 million compared with approximately $722,000 in the first quarter of 2012;
  • Net loss improved to $6.4 million for the quarter ended March 31, 2013 compared with a net loss of $13.3 million in the first quarter of 2012;
  • Cash and cash equivalents were $38.8 million at March 31, 2013, compared with $1.6 million at December 31, 2012;
  • The Company generated approximately $48.5 million in net proceeds through the issuance and sale of approximately 31.4 million shares of TXMD common stock in an underwritten public offering, which includes net proceeds of approximately $3.1 million from the issuance and sale of approximately 2.0 million shares to cover over-allotments; and
  • TXMD common stock commenced trading on the NYSE MKT on April 23, 2013.

"With our newly strengthened balance sheet, NYSE MKT listing, and strong portfolio of bioidentical hormone therapy product candidates, we believe TherapeuticsMD is well positioned for success as we execute our strategy to become a leader in the women's healthcare field," said Robert G. Finizio, Chief Executive Officer.

"We look forward to initiating pivotal Phase III clinical trials with two of our bioidentical hormone therapy product candidates, 17β estradiol/ progesterone combination and lower dose oral progesterone, which we believe can achieve equivalent efficacy at lower doses of active compound and lower cost to patients versus currently available products. We expect to file an IND application for an additional hormone therapy candidate, a novel estradiol suppository, later this year."

First Quarter Results

Net revenue for the first quarter of 2013 totaled $1.5 million, compared with net revenue of approximately $722,000 for the year ago quarter. The increase of approximately $815,000, or 113%, was directly attributable to an increase in sales territories, sales people and new prescription products. Cost of goods sold increased by approximately $44,000, or 13%, for the three months ended March 31, 2013 compared with the prior year quarter. Research and development expenses increased to $1.6 million during the first quarter of 2013 compared with approximately $400,000 in the first quarter of 2012, due to costs incurred for the development of our new hormone replacement therapy and prescription prenatal products. Selling, general and administrative expenses increased to $4.5 million during the first quarter of 2013 compared with $2.8 million in the first quarter of 2012. As a result, our operating loss was $4.9 million in the first quarter of 2013 compared with $2.9 million in the first quarter of 2012.

Other non-operating expenses decreased by approximately $9.0 million for the first quarter of 2013 compared with the comparable quarter in 2012. This decrease resulted primarily from a loss on extinguishment of debt incurred during 2012, partially offset by an increase in amortization of debt discount of approximately $1.0 million and amortization of financing costs of approximately $300,000.

As a result, net loss for the first quarter of 2013 was $6.4 million, or $0.06 per basic and diluted share, compared with a net loss of $13.3 million, or $0.16 per basic and diluted share, in the first quarter of 2012.

Cash and cash equivalents increased to $38.8 million at March 31, 2013.

About Hormone Therapy

Hormone therapy (HT) is the administration of hormones to supplement a lack of naturally occurring hormones. HT options include natural, bioidentical, and non-bioidentical (conjugated) hormones. HT is projected to be the largest growth segment in the overall women's health market. The potential market for pharmacy-compounded, bioidentical hormone therapy products is estimated to be approximately $1.5 billion per year.

About TherapeuticsMD, INC.

TherapeuticsMD, Inc. is a women's healthcare company focused on developing and commercializing products targeted exclusively for women. We manufacture and distribute branded and generic prescription prenatal vitamins, as well as over-the-counter (OTC) vitamins and cosmetics, under our vitaMedMD® and BocaGreenMD™ brands. We are currently developing advanced hormone therapy pharmaceutical products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. We are also evaluating various other potential indications for our hormone technology, including oral contraception, preterm birth, vulvar and vaginal atrophy, and premature ovarian failure. More information is available at the following websites: www.therapeuticsmd.com, www.vitamedmd.com, www.vitamedmdrx.com, and www.bocagreenmd.com.

vitaMedMD® is a registered trademark and TherapeuticsMD™ and BocaGreenMD™ are trademarks of TherapeuticsMD, Inc.

Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the Company's belief that it is well positioned for success as it executes its strategy to become a leader in the women's healthcare field, the Company's expectations with respect to the timing of the Company's planned clinical trials, the Company's belief that it can achieve equivalent efficacy at lower doses of active compound and lower cost to patients versus currently available products, and the Company's expectations with respect to the timing of filing an IND application, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including but not limited to: timely and successful completion of clinical studies and the results thereof; challenges and costs inherent in product marketing; the risks and uncertainties associated with economic and market conditions; risks and uncertainties associated with TherapeuticsMD's business and finances in general; and other risks detailed in TherapeuticsMD's filings with the U.S. Securities and Exchange Commission including its annual report on Form 10-K filed on March 12, 2013, reports on Form 10-Q and Form 8-K, and other such filings. These forward-looking statements are based on current information that may change. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and TherapeuticsMD undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.

THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
  March 31, 2013 December 31, 2012
(Unaudited)
ASSETS
Current Assets:
Cash$38,779,563$1,553,474
Accounts receivable, net of allowance for doubtful accounts
of $63,843 and $42,048, respectively602,824606,641
Inventory1,337,8701,615,210
Other current assets 2,175,520  751,938 
Total current assets 42,895,777  4,527,263 
 
Fixed assets, net 83,875  65,673 
 
Other Assets:
Prepaid consulting expense863,523953,655
Intangible assets317,250239,555
Security deposit 31,949  31,949 
Total other assets 1,212,722  1,225,159 
 
Total assets$44,192,374 $5,818,095 
 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable$1,840,811$1,641,366
Deferred revenue1,142,3731,144,752
Other current liabilities1,144,918725,870
Line of credit100,000-
Accrued interest 21,595  - 
Total current liabilities 4,249,697  3,511,988 
 
Long-Term Liabilities:
Notes payable, net of debt discount of $0 and $1,102,680, respectively-3,589,167
Accrued interest -  150,068 
Total long-term liabilities -  3,739,235 
 
Total liabilities 4,249,697  7,251,223 
 
Commitments and Contingencies
 
Stockholders' Equity (Deficit):
Preferred stock - par value $0.001; 10,000,000 shares authorized;
no shares issued and outstanding--
Common stock - par value $0.001; 250,000,000 shares authorized;
129,196,747 and 99,784,982 issued and outstanding, respectively129,19699,785
Additional paid-in capital98,302,44750,580,400
Accumulated deficit (58,488,966) (52,113,313)
Total stockholders' equity (deficit) 39,942,677  (1,433,128)
 
Total liabilities and stockholders' equity (deficit)$44,192,374 $5,818,095 
 
THERAPEUTICSMD, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
   
Three Months Ended
March 31,
20132012
(Unaudited)(Unaudited)
 
Revenues, net$1,537,195$721,692
 
Cost of goods sold 380,346  336,124 
 
Gross profit 1,156,849  385,568 
 
Operating expenses:
Sales, general, and administration4,526,5822,827,050
Research and development1,565,201411,961
Depreciation and amortization 7,957  14,578 
Total operating expense 6,099,740  3,253,589 
 
Operating loss (4,942,891) (2,868,021)
 
Other income (expense)
Interest expense(1,165,831)(101,973)
Financing costs(263,987)-
Loan guaranty costs(2,944)(11,745)
Loss on extinguishment of debt -  (10,307,864)
Total other income (expense) (1,432,762) (10,421,582)
 
Loss before taxes(6,375,653)(13,289,603)
 
Provision for income taxes -  - 
 
Net loss$(6,375,653)$(13,289,603)
 
Loss per share, basic and diluted:
 
Net loss per share, basic and diluted$(0.06)$(0.16)
 
Weighted average number of common
shares outstanding 103,052,956  84,556,216 
 
THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  Three Months Ended
March 31,
2013 2012
(Unaudited)(Unaudited)
 
CASH FLOWS FROM OPERATING ACTIVITES
Net loss$(6,375,653)$(13,289,603)
Adjustments to reconcile net loss to net cash flows used in
operating activities:
Depreciation4,7037,008
Amortization of intangible assets3,2547,570
Provision for doubtful accounts21,795-
Amortization of debt discount1,102,68053,292
Stock based compensation609,03088,585
Amortization of deferred financing costs263,987-
Stock based expense for services112,30655,371
Loan guaranty costs2,94411,745
Loss on debt extinguishment-10,307,864
Changes in operating assets and liabilities:
Accounts receivable(17,978)(85,332)
Inventory277,34045,410
Other current assets(731)51,970
Accounts payable199,445301,246
Accrued interest(128,473)45,749
Accrued expenses and other current liabilities419,048(52,860)
Deferred revenue (2,379) - 
 
Net cash flows used in operating activities (3,508,682) (2,451,985)
 
CASH FLOWS FROM INVESTING ACTIVITIES
Patent costs, net of abandoned costs(80,949)(12,101)
Purchase of property and equipment (22,905) (32,386)
 
Net cash flows used in investing activities (103,854) (44,487)
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit note400,000-
Repayment of revolving credit note(400,000)-
Proceeds from sale of common stock, net45,430,472-
Proceeds from notes and loans payable100,0002,400,000
Repayment of notes payable(4,691,847)(779)
Proceeds from exercise of warrants -  165,999 
 
Net cash flows provided by financing activities 40,838,625  2,565,220 
 
Increase in cash37,226,08968,748
Cash, beginning of period 1,553,474  126,421 
Cash, end of period$38,779,563 $195,169 
 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 
Cash paid for interest$191,258 $2,112 
 
Cash paid for income taxes Read Full Story

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