Summary of Financial Results As evidenced by a reduction in expenses as detailed below, LabStyle's management is working to focus the company's resources on activities aimed at driving stockholder value.
LabStyle commenced its initial "soft" commercial launch of the Dario™ Smart Meter in late March 2014 with first shipments occurring during April 2014. However, no revenues could be recognized for the second quarter of 2014 since not all revenue recognition criteria according to US-GAAP were met.
As of June 30, 2014, LabStyle had approximately $1,819,000 in cash on hand. The company forecasts such funds will be sufficient to continue its activities into October 2014, and additional funding will be required to meet the company's anticipated milestones.
Ramp up of manufacturing costs for the second quarter of 2014 were approximately $605,000 compared with none for the second quarter of 2013, and for the first half of 2014 were approximately $1,026,000 compared with none for the first half of 2013. The increase was due to the commencement of our initial commercial sales during March 2014 with first shipments occurring during April 2014.
Research and development expenses for the second quarter of 2014 were approximately $1,333,000 compared with approximately $1,416,000 for the second quarter of 2013, and for the first half of 2014 were approximately $2,440,000 compared with $2,091,000 for the first half of 2013. The increase was largely due to recruitment of new employees and progress in product development which resulted in our initial "soft" commercial launch.
Marketing and pre-production expenses were approx
|SOURCE LabStyle Innovations Corp.|
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