Revenue growth of 2.7x compared to Fiscal 2017 Revenues
SAN DIEGO–(BUSINESS WIRE)–Innovus Pharmaceuticals, Inc. (“Innovus Pharma” or the “Company”)
(OTCQB: INNV), an emerging commercial-stage pharmaceutical company that
delivers safe, innovative and effective over-the-counter medicine
and consumer care products to improve men’s and women’s health and
respiratory diseases, announced today its reported results for the
fiscal year 2018.
Recent Corporate Highlights
-
Acquired assets of SupplementHunt.com adding another revenue channel
with recent historical annual revenues of $1.2 million; -
Acquired assets of PrimeSavingsClub.com adding another revenue channel
with recent historical annual revenues of $2.5 million; -
Acquired assets of Boston Topicals, LLC which adds four products:
HealthiFeet®, ThermoMax® (two strengths), and BreastLift™ to the
Company’s product portfolio; -
Completed $3.17 million private placement for working capital purposes
along with the placement of warrants for up to $7 million; and -
Completed reverse stock split with an intention to eventually up list
to Nasdaq.
Financial highlights for the year ended December 31, 2018 compared to
December 31, 2017 included:
-
Revenues of approximately $24.0 million, highest annual gross revenue
in Company’s history and 2.7x year-over-year growth; -
Product gross margin for the year of 81.1% compared to 79.0% in the
prior year; -
Annual product subscription net revenue of $3.1 million compared to
$1.6 million in the prior year or a 94.0% increase; -
Sales and marketing expenses as a percentage of revenue declines to
71.7% from prior year of 77.7%; -
General and administrative expenses as a percentage of revenue
decreased to 33.3% from prior year of 58.7%; and -
Extended our Beyond Human® marketing and sales platform to Canada
resulting in 19.3% of total net sales for the fiscal, increasing our
country diversification away from a reliance on the U.S. market.
Financial highlights for the three months ended December 31, 2018
compared to three months ended September 30, 2018 and from the three
months ended December 31, 2017 respectively included:
-
Revenues of approximately $4.8 million, an increase of 100% compared
to the three months ended December 31, 2017; -
Reduced sales & marketing expense as a percentage of total revenue to
64.6% compared with 71.3% in the three months ended September 30, 2018
and 83.2% from the three months ended December 31, 2017; and -
Quarterly subscription revenue recognized of $1.1 million an increase
of 22.3% from $0.9 million reported in the three months ended
September 30, 2018 and an increase of 104.2% from $0.5 million
reported in the three months ended December 31, 2017.
“2018 was a year of significant growth for Innovus Pharma. We closed our
most successful year in business with continued strong revenue growth,
achieving record high gross margins year over year and we look forward
to continuing strong performance this year and beyond,” stated Bassam
Damaj, President and Chief Executive Officer of Innovus Pharma.
“Ultimately, Innovus is being positioned and is progressing to continue
to unlock value of its sales and marketing platform to release not just
growth but also profit in the near future.”
The Company will host a conference call at 4:15 p.m. ET/1:15 p.m. PT
today to discuss the financial results and recent business developments.
To participate in the call, please dial 1-877-883-0383 for domestic
callers or 1-412-902-6506 for international callers or 1-877-885-0477
for Canadian callers. Participant Elite Entry Number: 7875805. A replay
of the call will be available for 30 days. To access the replay, dial
1-877-344-7529 domestically or 1-412-317-0088 internationally or
1-855-669-9658 for Canada and reference Replay Access Code: 10129968.
The replay will be available shortly after the end of the conference
call.
|
Consolidated Statements of Operations (amounts in thousands except weighted average share and per share amounts) |
||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Net revenue: | ||||||||||||||||
| Product sales, net | $ | 4,410 | $ | 2,380 | $ | 22,879 | $ | 8,806 | ||||||||
| License revenue | 3 | – | 9 | 10 | ||||||||||||
| License revenue | 164 | – | 509 | – | ||||||||||||
| License revenue | 176 | – | 593 | – | ||||||||||||
| Total net revenue | 4,753 | 2,380 | 23,990 | 8,816 | ||||||||||||
| Cost of product sales | 585 | 519 | 4,325 | 1,848 | ||||||||||||
| Gross profit | 4,168 | 1,861 | 19,665 | 6,968 | ||||||||||||
| Operating expense: | ||||||||||||||||
| Research and development | 67 | 12 | 160 | 39 | ||||||||||||
| Sales and marketing | 3,112 | 1,984 | 17,206 | 6,853 | ||||||||||||
| General and administrative | 2,353 | 967 | 7,991 | 5,175 | ||||||||||||
| Total operating expense | 5,532 | 2,963 | 25,357 | 12,067 | ||||||||||||
| Loss from operations |
(1,364 |
) |
(1,102 | ) | (5,692 | ) | (5,099 | ) | ||||||||
| Other income and (expense): | ||||||||||||||||
| Interest expense | (496 | ) | (100 | ) | (1,446 | ) | (872 | ) | ||||||||
| Loss on extinguishment of debt | (292 | ) | (306 | ) | (1,332 | ) | (700 | ) | ||||||||
| Other income (expense), net | (14 | ) | (1 | ) | (13 | ) | (7 | ) | ||||||||
| Fair value adjustment for contingent consideration | 6 | (1 | ) | 204 | 194 | |||||||||||
| Change in fair value of derivative liabilities | – | 15 | – | (17 | ) | |||||||||||
| Total other expense, net | (796 | ) | (393 | ) | (2,587 | ) | (1,402 | ) | ||||||||
| Loss before provision for income taxes | (2,160 | ) | (1,495 | ) | (8,279 | ) | (6,501 | ) | ||||||||
| Provision for income taxes | – | – | – | 3 | ||||||||||||
| Net loss | $ | (2,160 | ) | $ | (1,495 | ) | $ | (8,279 | ) | $ | (6,504 | ) | ||||
| Net loss per share of common stock – basic and diluted: |
$ |
(0.99 |
) |
$ |
(0.90 |
) |
$ |
(4.16 |
) |
$ |
(4.32 |
) |
||||
|
Weighted average number of shares of common stock outstanding – basic and diluted |
2,175,026 |
1,662,623 |
1,989,134 |
1,504,135 |
||||||||||||
|
Condensed Consolidated Balance Sheet Data (in thousands) |
||||||||
| December 31, | December 31, | |||||||
| 2018 | 2017 | |||||||
|
1 |
1 |
|||||||
| Assets | ||||||||
| Cash | $ | 1,248 | $ | 1,565 | ||||
| Accounts receivable, net | 282 | 68 | ||||||
| Prepaid expenses and other current assets | 1,116 | 363 | ||||||
| Inventories | 2,370 | 1,726 | ||||||
| Intangible assets and other non-current assets | 5,111 | 5,309 | ||||||
| Total assets | $ | 10,127 | $ | 9,031 | ||||
| Liabilities & Stockholders’ Equity | ||||||||
| Accounts payable & accrued liabilities | $ | 2,622 | $ | 2,607 | ||||
| Total accrued compensation | 2,480 | 2,650 | ||||||
| Deferred revenue and customer deposits | 108 | 25 | ||||||
| Accrued interest payable | 32 | 4 | ||||||
| Short-term loans payable | 266 | 65 | ||||||
| Notes payable and non-convertible debenture, net of discount | 3,073 | 1,239 | ||||||
| Total derivative liabilities | – | 59 | ||||||
| Total contingent consideration | 1,256 | 1,479 | ||||||
| Deferred rent | 181 | – | ||||||
| Total stockholders’ equity | 109 | 903 | ||||||
| Total liabilities & stockholders’ equity | $ | 10,127 | $ | 9,031 | ||||
1 The Condensed Consolidated Balance Sheet Data has
been derived from the audited consolidated financial statements as of
that date.
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging OTC consumer
goods and specialty pharmaceutical company engaged in the
commercialization, licensing and development of safe and effective
non-prescription medicine and consumer care products to improve men’s
and women’s health and vitality and respiratory diseases. Innovus Pharma
delivers innovative and uniquely presented and packaged health solutions
through its (a) OTC medicines and consumer and health products, which we
market directly, (b) commercial partners to primary care physicians,
urologists, gynecologists and therapists, and (c) directly to consumers
through our on-line channels, retailers and wholesalers. The Company is
dedicated to being a leader in developing and marketing new OTC and
branded Abbreviated New Drug Application (“ANDA”) products. The Company
is actively pursuing opportunities where existing prescription drugs
have recently, or are expected to, change from prescription (or Rx) to
OTC.
For more information, go to www.innovuspharma.com;
www.zestra.com;
www.ejectdelay.com;
www.myvesele.com;
www.urivarx.com;
www.sensumplus.com;
www.myandroferti.com;
www.beyondhumantestosterone.com;
www.getbeyondhuman.com;
www.trybeyondhuman.com;
www.recalmax.com;
www.prostagorx.com;
www.xyralid.com;
www.fluticare.com;
www.allervarx.com;
and www.apeaz.com;
www.mzssleepingaid.com;
www.novalere.com;
and www.diabasens.com.
Innovus Pharma’s Forward-Looking Safe Harbor
Statements under the Private Securities Litigation Reform Act, as
amended: with the exception of the historical information contained in
this release, the matters described herein contain forward-looking
statements that involve risks and uncertainties that may individually or
mutually impact the matters herein described for a variety of reasons
that are outside the control of the Company, including, but not limited
to, its financial results, projected revenues, projected online
subscribers and other customers, estimated markets for its products, and
statements about achieving its other corporate and business development,
growth, commercialization, financial and staffing objectives. Readers
are cautioned not to place undue reliance on these forward-looking
statements as actual results could differ materially from the
forward-looking statements contained herein. Readers are urged to read
the risk factors set forth in the Company’s most recent filing on Form
S-1, annual report on Form 10-K, subsequent quarterly reports filed on
Form 10-Q and other filings made with the SEC. Copies of these reports
are available from the SEC’s website or without charge from the Company.
Contacts
Randy Berholtz
Innovus Pharma Investor Relations
Tel: +1 858
249 7865
ir@innovuspharma.com