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ULURU Inc. Reports First Quarter 2013 Financial Results
Date:5/16/2013

se of $42,000 in revenues is primarily attributable to an increase of $55,000 in Altrazeal® product sales.  These revenue increases were partially offset by a decrease of $16,000 in royalties related to the domestic sale of Aphthasol®.

Cost of Goods Sold
Cost of goods sold for the first quarter of 2013 was $41,000, as compared to $17,000 for the first quarter of 2012 as a result of sales volume.

Research and Development
Research and development expenses for the first quarter of 2013 were $165,000, including $1,000 in share-based compensation, as compared to $193,000, which included $8,000 in share-based compensation, for the first quarter of 2012.  The decrease of $28,000 in research and development expenses was primarily due to a $61,000 decrease in scientific compensation principally due to a lower head count, a decrease of $20,000 in clinical study costs, and a $6,000 decrease in regulatory costs.  These expense decreases were partially offset by an increase of $59,000 in direct research costs related to Altrazeal®.

Selling, General and Administrative
Selling, general and administrative expenses for the first quarter of 2013 were $261,000, including $9,000 in share-based compensation, as compared to $476,000, which included $17,000 in share-based compensation, for the first quarter of 2012.

The decrease of approximately $215,000 in selling, general and administrative expenses was primarily due to a $111,000 decrease in sales & marketing costs due to our revised sales and marketing plan, a $28,000 decrease in bad debt expenses, a $21,000 decrease in insurance costs, a $21,000 decrease in investor relations consulting and a $19,000 decrease in consulting costs related to XBRL reporting.

Other income and Other expenses
Interest expense for the first quarter of 2013 was $132,000 as compared to $25,000 for the first quarter of 2
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