Business
Theralase Releases 2019 Financial Results
TORONTO, ON / ACCESSWIRE / April 29, 2020 / Theralase ® Technologies Inc. (" Theralase...
About this update from Theralase Technologies Inc.
[{"type":"text","content":"Theralase Releases 2019 Financial ResultsTORONTO, ON / ACCESSWIRE / April 29, 2020 / Theralase® Technologies Inc. (\"Theralase\" or \"Company\") (TSXV:TLT) (OTCQB:TLTFF), a clinical stage pharmaceutical company focused on the research and development of light activated Photo Dynamic Compounds (\"PDCs\") and their associated drug formulations intended to safely and effectively destroy various cancers, releases the audited annual consolidated financial statements for the year ended December 31, 2019.Financial Highlights:Total revenue for the year ended December 31, 2019 decreased $964,051 from $1,734,073 for the same period in 2018, a 44% decrease. The TLC-2000 represented 66% of sales in 2019 and 70% of sales in 2018.In Canada, revenue decreased 31% to $835,403 from $1,205,312. In the US, revenue decreased 68% to $96,574 from $304,785 and international revenue decreased 86% to $32,074 from $223,975. The decrease in total revenue in 2019 is due to the restructuring of the sales and marketing departments resulting in the resignation and/or termination of certain sales and marketing personnel.Cost of sales for the year ended December 31, 2019 was $903,296 which included a one-time provision for inventory of $277,896 resulting in an adjusted cost of sales of $625,400 (65% of revenue) with an adjusted gross margin of $338,651 (35% of revenue), compared to a cost of sales of $786,433 (45% of revenue) in 2018, resulting in a gross margin of $947,639 or 55% of revenue. The gross margin decrease, year over year, is attributed to decreased revenues and fixed production salaries for the TLC-1000 and TLC-2000 product lines.For the year ended December 31, 2019, selling expenses decreased to $716,343 (74% of revenues), from $871,405 (50% of revenues) in 2018, an 18% decrease. The decrease in selling expenses is primarily due to the restructuring of the Canadian and US sales and marketing departments, resulting in the resignation and/or termination of certain sales and marketing personnel.Administrative expenses for the year ended December 31, 2019 increased to $2,604,808 from $1,739,665 in 2018, representing a 50% increase.The increase in administrative expenses is attributed to increased spending on administrative salaries (70%), director and advisory fees (198%) and stock based compensation (137%).Net research and development expenses f...