FORT WORTH, Texas, May 18, 2011 /PRNewswire/ -- Wound Management Technologies, Inc., (OTCQB: WNDM | WNDM.PK) a leader in advanced wound care solutions, announced financial results for its first quarter of 2011. For the three-month period ending March 31, 2011, revenue was $935,412, a 1,303% increase over first quarter 2010 net revenue of $66,960. The increase in revenue was primarily attributable to enhanced sales efforts in 2010, which continued into the first quarter of 2011. The Company had a loss of $2,743,921 for the first quarter of 2011, as compared to a loss of $1,244,507 for the first quarter of 2010. The loss in the first quarter of 2011 included a non-cash loss of $1,950,882 related to the conversion of certain debt of the Company into equity. Cash flow from operations at 3/31/11 was positive for the first time in the Company’s history, $124,278 as compared to a negative cash flow from operations of $284,810 at 3/31/10.
Key Financial Comparisons between Q1 2011 & Q1 2010:
Scott Haire, Wound Management Technologies CEO, commented, " We are very pleased with our first quarter results as well as with the Company’s outlook. During the first quarter, Wound Management achieved several key milestones: a record high in quarterly revenues equal to roughly all of the Company’s 2010 revenues, a significantly improved balance sheet, our first positive cash flow from operations, and the completion of financing that left the company with more than $1M in cash.”
"The Company is executing extremely well. We expect revenues to continue to increase throughout the remainder of 2011 driven primarily by sales from our existing distributors as well as the opening of new markets for CellerateRx® worldwide."
Deborah Jenkins Hutchinson, President of Wound Management Technologies, stated, "We have met the initial goals of our 2011 business plan. The Company has reached milestone revenue targets, rolled out direct-to-consumer sales, and closed an agreement with a major channel partner in Juventus. In Q2, the Company should continue to execute on the business initiatives stated in the Letter to the Shareholders dated April 20, 2011. Some of the progress investors can anticipate includes increasing sales, an agreement for CellerateRx® to go on formulary at a major healthcare system, and entry into the government healthcare market."
The unaudited condensed financial statements of the Company as of March 31, 2011 follow. These should be read in conjunction with the accompanying notes included in the Company's quarterly report on form 10-Q filed with the Securities and Exchange Commission on May 16, 2011, and the Company's December 31, 2010 audited financial statements included in its annual report on form 10-K filed with the Securities and Exchange Commission on April 14, 2011.
PART I – FINANCIAL INFORMATIONWOUND MANAGEMENT TECHNOLOGIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETSMARCH 31, 2011 (UNAUDITED) and DECEMBER 31, 2010 (AUDITED)ASSETSMarch 31, 2011December 31, 2010CURRENT ASSETS:Cash$
50,835Accounts Receivable, net197,698450,142Inventory, net341,927290,034Notes Receivable - Related Parties669,42513,782Accrued Interest
- Related Parties57,96445,299Total Current Assets2,288,521850,092LONG-TERM ASSETS:Property and Equipment, net100,534806Intangible Assets3,993,4064,110,859Deferred Loan Costs80,68489,170Prepaid and Other Assets183,995107,150Note Receivable1,500,0001,500,000Accrued Interest159,000125,250Total Long Term Assets6,017,6195,933,235TOTAL ASSETS$
6,783,327LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES:Accounts Payable$
321,352Accrued Royalties69,915428,238Accrued Liabilities638,289458,218Accrued Interest - Related Parties110,955101,815Accrued Interest58,53523,945Notes Payable - Related Parties170,1361,818,561Notes Payable, net of discount1,092,689327,060Stock Subscription Payable53,500-Total Current Liabilities2,468,8693,479,189LONG-TERM LIABILITIESDebentures, net of discount459,915435,346TOTAL LIABILITIES2,928,7843,914,535STOCKHOLDERS' EQUITYSeries B Preferred Stock, $10 par value, 75,000 shares authorized
issued and outstanding--Common Stock: $.001 par value; 100,000,000 shares authorized; 55,456,772 issued and 55,452,683 outstanding as of March 31, 2011 and 41,316,930 issued and 41,312,841 outstanding as of December 31, 201055,45741,317Additional Paid-in Capital31,294,75326,056,408Stock Subscription Receivable(292,074)(292,074)Treasury Stock(12,039)(12,039)Accumulated Deficit(25,668,741)(22,924,820)Total Stockholders' Equity5,377,3562,868,792TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY$
6,783,327WOUND MANAGEMENT TECHNOLOGIES, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010THREE MONTHSTHREE MONTHSENDEDENDEDMarch 31, 2011March 31, 2010REVENUES$
66,690COST OF GOODS SOLD94,41820,397GROSS PROFIT840,99446,293GENERAL AND ADMINISTRATIVE EXPENSES:General and Administrative Expenses1,057,943387,843Depreciation / Amortization259,110117,940INCOME (LOSS) FROM CONTINUING OPERATIONS:(476,059)(459,490)OTHER INCOME (EXPENSES):Loss on Debt Settlement(1,950,882)(720,657)Interest Income49,44125,994Interest Expense(366,421)(90,354)LOSS BEFORE INCOME TAXES(2,743,921)(1,244,507)Current tax expense--Deferred tax expense--NET LOSS$
(1,244,507)Basic and diluted loss per share of common stock$
(0.04)Weighted average number of common shares outstanding46,423,39533,948,681WOUND MANAGEMENT TECHNOLOGIES, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE THREE MONTHS ENDED MARCH 31, 2011 and 201020112010Cash flows from operating activities:Net loss from continuing operations$
(1,244,507)Adjustments to reconcile net loss to net cash provided (used) inoperating activities:Depreciation and amortization259,110117,940 Amortization of discounts and deferred costs194,01413,655 Stock issued for debt related costs405,580- Stock issued as payment for services112,00070,050 Loss on debt settlement1,950,882720,657Non-cash expenses50,34721,019Changes in assets and liabilities:(Increase) decrease in accounts receivable252,444(2,435)(Increase) decrease in inventory(51,893)379(Increase) decrease in accrued interest receivable - related parties(15,690)(15,820)(Increase) decrease in accrued interest receivable(33,750)(22,125)(Increase) decrease in prepaids and other assets107,15027,549Increase (decrease) in accrued royalties(358,323)2,125Increase (decrease) in accounts payable(230,498)(29,638)Increase (decrease) in accrued liabilities180,071(746)Increase (decrease) in accrued interest payable - related parties12,16550,437Increase (decrease) in accrued interest payable34,5906,650Net cash flows provided (used) in operating activities124,278(284,810)Cash flows from investing activities:Cash paid in acquisitions-(100,000)Purchase of notes receivable - related parties(2,231,658)(103,950)Proceeds from notes receivable - related parties1,546,12041,413Net cash flows used in investing activities(685,538)(162,537)Cash flows from financing activities:Net change in overdraft-(4,363)Proceeds from notes payable - related parties61,500512,587Payments on notes payable - related parties(952,268)(7,050)Proceeds from notes payable2,060,000102,500Payments on notes payable(537,000)(153,775)Proceeds from sale of stock868,700-Proceeds from stock subscriptions payable31,000-Net cash flows provided by financing activities1,531,932449,899Increase in cash970,6722,552Cash and cash equivalents, beginning of period50,835-Cash and cash equivalents, end of period$
2,552About Wound Management Technologies, Inc.
Wound Management Technologies, Inc. is an emerging commercial stage company with its primary products in the $5B worldwide advanced wound care market. Wound Management's primary focus is the distribution of its unique, patented collagen product, CellerateRX®, which is FDA cleared and reimbursable under Medicare Part B. Wound Management has other advanced biotech products in development including a patented resorbable bone wax line that is in late stages of development, as well as a subsidiary focused on technology for secure healthcare data collaboration and storage. More information can be found on the company's web sites: http://www.wmgtech.com and http://www.celleraterx.com.
Safe Harbor Statement:
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
For Wound Management Technologies Shareholder Information please call (917) 974-9872 or visit http://www.wmgtech.com
|SOURCE Wound Management Technologies, Inc.|
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