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Nephros Reports Third Quarter 2011 Financial Results
Date:11/14/2011

me period in 2010.   The increase is primarily due to $78,000 of recruiting fees during the three months ended September 30, 2011 and an increase of approximately $11,000 of compensation expense related to stock options during the three months ended September 30, 2011 compared to the same period in 2010. These increases were partially offset by a reduction in legal and other professional service fees in the U.S. of approximately $29,000 during the three months ended September 30, 2011 compared to the same period in 2010.

Research and development expenses increased by approximately $15,000 or 13% primarily due to an increase in research and development outside testing, and computer hardware costs of approximately $41,000, partially offset by a decrease in research and development personnel costs of approximately $10,000 and a decrease in military materials expense of approximately $16,000 during the three months ended September 30, 2011 compared to the same period in 2010.

Depreciation expense decreased by approximately $7,000 in the third quarter of 2011 compared to the same period in 2011.

Other income approximated $10,000 in the third quarter of 2011 compared to $18,000 of other income in the same period in 2010.  Interest income approximated $2,000 during the third quarter of 2011. There was no interest income in the same period in 2010.

Nephros' net loss was approximately $413,000 or $0.04 per basic and diluted common share for the third quarter of 2011 versus a net loss of approximately $375,000 or $0.18 per basic and diluted common share in the third quarter of 2010. Nephros' net loss increased $38,000 or 10% in the current year's third quarter primarily due to the  increase in operating expenses in the third quarter of 2011 compared to the same period in 2010.

As of September 30, 2011, Nephros had cash and cash equivalents in the amount of $2,117,000.  This amount reflects cash of euro 500,000 (approxi
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SOURCE Nephros, Inc.
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