DGAP-News: Competitive Technologies Announces Transitional Financial Report for Period Ended December 31, 2010
ID: 353742
23.02.2011 00:27
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FAIRFIELD, Conn., 2011-02-23 00:26 CET (GLOBE NEWSWIRE) --Competitive Technologies, Inc. (OTCQX:CTTC) today announced that it has changed
to calendar year financial reporting and has issued the financial report for
the transitional period November and December 2010. This transitional report
reflects that the Company has (a) negotiated an exit from the 11,000 square
foot office space including paying all back rents, (b) moved the headquarters
office to a new 2,700 square foot location in Fairfield, CT, (c) brought
current all outstanding payables, (d) reviewed for collection or write-off all
receivables, (e) raised additional capital, and (f) completed a review and
replacement of International distribution contracts. These actions provide the
Company a lower cost base for 2011 operations.
The Company issued a $750,000 convertible preferred stock to replenish the
Company's operating cash which had been drawn down by the $750,000 cash
collateral previously posted in a prejudgment remedy action brought by a former
CEO. Because of the convertible feature of this preferred stock, it is treated
in the financial statements as a derivative liability under GAAP reporting.
The results for the two-month transitional period show total expenses of $1.4
million, including bad debt expenses of $0.4 million and restructuring charges
of $0.3 million, and an accrued preferred stock dividend of $0.1 million.
Revenue for the period was $0.1 million and the net loss for shareholders of
the common stock was $1.4 million. The expenses for the three-month period
ending January 31, 2010 were $1.0 million and revenue was $0.3 million
producing a net loss of $0.7 million.
'We believe the active sales program and lower expenses will produce
profitability throughout 2011. At the same time the restructuring changes were
being made, the sales and marketing teams were successful in establishing a
series of Calmare(r) medical device sales in the US for the first quarter 2011.
Also, new international customers have purchased ten devices in the first
quarter of 2011. Progress is being made toward obtaining insurance
reimbursement codes. The sales activity for the military programs has been
accelerated into seven military locations. This Company is moving forward with
a great Calmare(r) medical device from Professor Marineo, manufactured by GEOMC
and a dedicated staff of employees, consultants and the sales group,' said
Johnnie D. Johnson, CEO.
About Competitive Technologies
Competitive Technologies, established in 1968, provides distribution, patent
and technology transfer, sales and licensing services focused on the needs of
its customers and matching those requirements with commercially viable product
or technology solutions. CTTC is a global leader in identifying, developing and
commercializing innovative products and technologies. CTTC's principal
technology is the non-invasive Calmare(r) pain therapy medical device, which uses
the biophysical 'Scrambler Therapy' technology, and was developed in Italy by
CTTC's client, Professor Giuseppe Marineo. The Calmare(r) device is currently
being manufactured for sale by CTTC's partner, GEOMC Co., Ltd. of Seoul, Korea.
For more information on the device, visit www.calmarett.com. Visit CTTC's
website: www.competitivetech.net
Statements made about our future expectations are forward-looking statements
and subject to risks and uncertainties as described in our most recent Annual
Report on Form 10-K for the year ended July 31, 2010, filed with the SEC on
October 27, 2010, and other filings with the SEC, and are subject to change at
any time. Our actual results could differ materially from these forward-looking
statements. We undertake no obligation to update publicly any forward-looking
statement.
COMPETITIVE TECHNOLOGIES, INC.
TWO AND FIVE MONTHS ENDED DECEMBER 31, 2010
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts) (unaudited)
Two months Three months Five months Six months
ended ended ended ended
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December 31, January 31, December 31, January 31,
2010 2010 2010 2010
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Revenue $ 68 $ 268 $ 188 $ 412
Operating expenses 1,381 1,013 2,595 1,913
Provision for income -- -- -- --
tax
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Net (loss) $ (1,313) $ (745) $ (2,407) $ (1,501)
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Preferred stock 132 -- 132 --
dividend
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Net (loss) attributable $ (1,445) $ (745) $ (2,540) $ (1,501)
to common shareholders:
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Net (loss) per share $ (0.11) $ (0.07) $ (0.18) $ (0.15)
Basic and diluted
========================================================
Weighted average number
of
common shares
outstanding:
Basic and diluted (000) 13,825 10,526 13,825
10,206Other Financial Data At December At July 31,
31, 2010
2010
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Cash and cash $ 557 $ 907
equivalents
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Restricted cash $ 750 $ --
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Total Assets $ 3,196 $
4,950
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Total liabilities $ 2,544 $
2,341
============================
Shareholders' equity $ 651 $
2,609
============================
CONTACT: Direct inquiries to: Jean Wilczynski,
IR Services, LLC (860.434.2465/info@corpirservices.com)
News Source: NASDAQ OMX
23.02.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Competitive Technologies, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US2045121074
WKN:
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