RIVER EDGE, NJ, August 10, 2015 /PR Newswire-FirstCall/ — Nephros, Inc. (OTCQB:NEPH), a commercial stage medical device company that develops and sells high performance liquid purification ultrafilters and an on-line mid-dilution hemodiafiltration (HDF) system for use with a hemodialysis machine for the treatment of patients with end stage renal disease, announced today financial results for the three months ended June 30, 2015..
“The second quarter maintained the momentum started in the first quarter. Working with our distribution partners, we continued to place our FDA-cleared ultrafilters into new hospitals for evaluation as an aid for infection control in sinks, showers and ice machines,” said Daron Evans, President and Chief Executive Officer of Nephros. “With the approval in June as the guideline on risk management of building water systems by ASHRAE and ANSI, Standard 188-2015 can potentially increase the number of medical and non-medical facilities that may consider filtration as part of a multi-barrier approach to water safety.”
“Our dialysis filter customers continue to respond with favorable biomarker and economic improvements after installing our filters on the water and bicarbonate lines feeding their hemodialysis machines. We were encouraged by the multiple investigator-submitted abstracts relating to the use of our filters that have been submitted for presentation at the America Society of Nephrology (ASN) conference this November.”
“As part of our increased effort to address the needs of our customers in the hospital, dialysis and industrial markets, we intend to expand our product line with the launch of a number of new filter products as early as the first quarter of 2016.”
“Our primary focus for the near term is to grow our filter business. In parallel, we continue to see positive patient results from patients undergoing HDF therapy, and are progressing toward our goal of placing HDF systems in additional clinics by the end of the year. We have begun expanding our employee base and believe that we are now on a clear path to becoming a cash flow positive company. We believe the financing facility we recently put into place will provide us with flexibility and an additional option for funding our continued growth.”
Financial Performance for the Second Quarter Ended June 30, 2015
Total revenue for the quarter ended June 30, 2015, was approximately $567,000 compared to approximately $441,000 for the second quarter of 2014. Product revenue increased by approximately $273,000 primarily due to growth in the hospital filter market, while license and royalty revenue decreased by approximately $147,000 primarily due to a change in the amortization of the Bellco license fee in 2015 versus the second quarter in 2014 after entering into the First Amendment to the Bellco License Agreement. Total operating expenses for the quarter ended June 30, 2015, were approximately $952,000 compared to approximately $935,000 for the second quarter of 2014. Increases in selling, general and administrative expenses were partially offset by decreases in research and development expenses. The loss from operations for the quarter ended June 30, 2015, was approximately $594,000 compared to loss from operations of approximately $636,000 in the second quarter 2014. As of June 30, 2015, Nephros had cash and cash equivalents of approximately $1,037,000.
About Nephros, Inc.
Nephros is a commercial stage medical device company that develops and sells high performance liquid purification filters, as well as a hemodiafiltration system for the treatment of patients with end stage kidney disease. Its filters, which it calls ultrafilters, are primarily used in dialysis centers and hospitals for the removal of biological contaminants from water, bicarbonate concentrate and/or blood.
Nephros was founded in 1997 by healthcare professionals affiliated with Columbia University Medical Center/New York-Presbyterian Hospital to develop and commercialize a hemodiafiltration system, an alternative method to hemodialysis. Since its founding, the company has extended its filtration technologies to meet the demand for liquid purification in other areas, in particular water purification.
For more information about Nephros and its products, please visit the company’s website at www.nephros.com.
This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding our expected financial and operational performance in future financial periods, our plans to expand our product line, our ability to expand patient access to our HDF products, our plan to expand the number of dialysis clinics using our HDF systems, our plan to grow revenues sufficient to generate positive cash flow, our ability to access capital under the equity line of credit that we put into place, and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Nephros Inc.’s reports filed with the U.S. Securities and Exchange Commission, including with respect to Nephros, its Annual Report on Form 10-K for the year ended December 31, 2014. Nephros, Inc. does not undertake any responsibility to update the forward-looking statements in this release.
PCG Advisory Group
Kirin M. Smith, Chief Operating Officer
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