Business
Theralase Releases Third Quarter 2019 Financial Results and Company Update
TORONTO, ON / ACCESSWIRE / November 29, 2019 / Theralase ® Technologies Inc. (" Theral...
About this update from Theralase Technologies Inc.
[{"type":"text","content":"Theralase Releases Third Quarter 2019 Financial Results and Company UpdateTORONTO, ON / ACCESSWIRE / November 29, 2019 / 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, today released financial results for the nine-month period ended September 30, 2019.Financial Highlights:Condensed Consolidated Statements of Operations (Unaudited) Three-Month Ended Sep 30Nine-Month Ended Sep 30In Canadian Dollars2019201820192018Total Revenues$144,455$365,940$514,891$1,276,630Cost of sales$106,396$126,975$374,040$559,296Gross margin $38,059$238,965$140,851$717,334As percentage of revenue26%65%27%56%Net loss($1,786,777)($722,817)($4,399,045)($2,612,168)Loss per share($0.01)($0.006)($0.03)($0.02)Total revenue for the nine-month period ended September 30, 2019 decreased to $514,891 from $1,276,630 for the same period in 2018, a 60% decrease. In Canada, revenue decreased 44% to $477,502 from $847,870. In the US, revenue decreased 91% to $23,926 from $253,742 and international revenue decreased 92% to $13,463 from $175,018. The decrease in total revenue in 2019 is primarily due to the restructuring of the sales and marketing departments, resulting in the termination of certain sales and marketing personnel.Cost of sales for the nine-month period ended September 30, 2019 was $374,040 (73% of revenue) resulting in a gross margin of $140,851 or 27% of revenue, compared to a cost of sales of $559,296 (44% of revenue) in 2018, resulting in a gross margin of $717,334 or 56% of revenue. Cost of sales is represented by the following costs: raw materials, subcontracting, direct and indirect labour and the applicable share of manufacturing overhead. The Cost of sales decrease, year over year, is attributed to decreased sales and fixed production salaries for the TLC-1000 and TLC-2000 product lines.For the nine-month period ended September 30, 2019, selling and marketing expenses decreased to $505,914 or 98% of sales, from $673,814 or 53% of sales in 2018, a 25% decrease. The decrease in selling and marketing expenses is primarily due to the restructuring of the sales and marketing departmen...