Nephros, Inc., a commercial stage medical device company that develops and sells high performance liquid purification ultrafilters, announced financial results for the three and six months ended June 30.
In a release on August 13, the company noted earnings details:
-196 percent increase in water filter sales Q2 2013 versus Q2 2012
-Completed Rights Offering and Temporary Reduction in Exercise Price for March 2011 Warrants
-Complete range of Nephros ultrafilters added to GSA Schedule and listed on GSA Advantage!
-Nephros Point of Use filters were selected for use in three Veterans Affairs Medical Centers
-Signed agreements with W.S. Darley & Company and Source One Distribution Inc. to assist with the distribution and marketing of our Individual Water Purification Device (IWPD) to the U.S. military
"The second quarter of 2013 showed further growth in our water filtration business, particularly in the Hospital segment," said John C. Houghton, President and CEO of Nephros. "Our continued effort to make products available to Federal and other Government customers has been improved by the inclusion of our full product range on a GSA schedule. This has already resulted in successful awards with three Veterans Affairs Medical Centers."
Financial Performance for the Second Quarter Ended June 30
Total revenues for the quarter ended June 30, were $575,000 as compared with $302,000 for the quarter ended June 30, 2012. The increase in revenues was primarily driven by increased revenue of approximately $259,000 related to water filter sales. Licensing revenue of approximately $184,000 was recognized during the second quarter of 2013, which represented an increase of approximately $14,000 over the same period in 2012.
Total operating expenses for the quarter ended June 30, were $977,000 compared with $1,079,000 for the quarter ended June 30, 2012. The decrease was primarily driven by legal, accounting and professional services fees incurred during the quarter ended June 30, relating to the Rights Offering and, therefore, such expenses were recorded in equity. This decrease was partially offset by an increase in expenses related to research projects and an increase in amortization expense due to the amortization of the long-term asset related to the long-term supply agreement with Medica signed in April, 2012.
Net loss for the quarter ended June 30, was $671,000, or $0.05 per share (based on 14.5 million weighted average shares outstanding) compared to $754,000, or $0.07 per share (based on 11.0 million shares outstanding) for the quarter ended June 30, 2012. As of June 30, the Company had approximately 18.0 million shares outstanding.
Nephros ended the second quarter of 2013 with cash and cash equivalents of $298,000.