2015 Q3 Form 10-Q Financial Statement

#000114420415049003 Filed on August 13, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2015 Q2 2014 Q2
Revenue $1.344M $963.9K $1.025M
YoY Change 15.6% -5.93% 251.53%
Cost Of Revenue $638.8K $465.4K $666.2K
YoY Change 34.24% -30.13% 233.82%
Gross Profit $704.8K $498.5K $358.5K
YoY Change 2.67% 39.05% 289.98%
Gross Profit Margin 52.45% 51.72% 34.99%
Selling, General & Admin $1.700M $1.626M $1.209M
YoY Change 37.04% 34.53% 101.21%
% of Gross Profit 241.21% 326.25% 337.21%
Research & Development $866.3K $801.7K $347.0K
YoY Change -1.59% 131.03% -51.0%
% of Gross Profit 122.92% 160.81% 96.79%
Depreciation & Amortization $40.00K $20.00K $30.00K
YoY Change 100.0% -33.33% 50.0%
% of Gross Profit 5.68% 4.01% 8.37%
Operating Expenses $2.855M $2.726M $1.722M
YoY Change 31.57% 58.31% 14.89%
Operating Profit -$2.150M -$2.227M -$1.363M
YoY Change 44.94% 63.38% -3.09%
Interest Expense $3.190K $3.039K -$127.8K
YoY Change -106.85% -102.38% 1468.3%
% of Operating Profit
Other Income/Expense, Net -$697.1K $3.662M -$490.2K
YoY Change 4611.39% -846.98% 5917.1%
Pretax Income -$2.847M $1.434M -$1.854M
YoY Change 90.04% -177.38% 31.0%
Income Tax $0.00 $0.00
% Of Pretax Income 0.0%
Net Earnings -$2.847M $1.434M -$1.854M
YoY Change 90.04% -177.38% 31.0%
Net Earnings / Revenue -211.92% 148.8% -180.9%
Basic Earnings Per Share -$0.11 $0.06 -$0.27
Diluted Earnings Per Share -$0.11 $0.05 -$0.27
COMMON SHARES
Basic Shares Outstanding 25.05M shares 24.77M shares 12.05M shares
Diluted Shares Outstanding 28.83M shares 12.05M shares

Balance Sheet

Concept 2015 Q3 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.300M $11.20M $9.600M
YoY Change 19.23% 16.67% 405.26%
Cash & Equivalents $7.386M $8.017M $4.878M
Short-Term Investments $1.900M $3.200M $4.700M
Other Short-Term Assets $400.0K $300.0K $400.0K
YoY Change 100.0% -25.0% 100.0%
Inventory $1.300M $1.060M $303.7K
Prepaid Expenses
Receivables $553.4K $500.0K $300.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $11.60M $13.04M $10.62M
YoY Change 29.54% 22.77% 310.62%
LONG-TERM ASSETS
Property, Plant & Equipment $500.0K $402.8K $172.0K
YoY Change 161.61% 134.21% 20.54%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $700.0K $655.2K $462.6K
YoY Change 45.53% 41.63% 83.98%
Total Long-Term Assets $1.200M $1.058M $634.6K
YoY Change 78.53% 66.72% 61.02%
TOTAL ASSETS
Total Short-Term Assets $11.60M $13.04M $10.62M
Total Long-Term Assets $1.200M $1.058M $634.6K
Total Assets $12.80M $14.10M $11.26M
YoY Change 32.96% 25.25% 277.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $500.0K $417.7K $526.0K
YoY Change 12.07% -20.58% -27.01%
Accrued Expenses $800.0K $700.0K $600.0K
YoY Change 100.0% 16.67% 20.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $700.0K
YoY Change -22.22%
Total Short-Term Liabilities $3.400M $2.528M $2.769M
YoY Change 119.43% -8.72% 31.62%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $3.400M $2.528M $2.769M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $3.400M $2.500M $2.800M
YoY Change 126.67% -10.71% 33.08%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $310.4K
YoY Change 32.42%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.400M $11.60M -$9.230M
YoY Change
Total Liabilities & Shareholders Equity $12.80M $14.10M $11.26M
YoY Change 32.96% 25.26% 277.62%

Cashflow Statement

Concept 2015 Q3 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income -$2.847M $1.434M -$1.854M
YoY Change 90.04% -177.38% 31.0%
Depreciation, Depletion And Amortization $40.00K $20.00K $30.00K
YoY Change 100.0% -33.33% 50.0%
Cash From Operating Activities -$2.260M -$2.600M -$1.460M
YoY Change 17.1% 78.08% 43.14%
INVESTING ACTIVITIES
Capital Expenditures -$180.0K -$100.0K -$90.00K
YoY Change 200.0% 11.11% 125.0%
Acquisitions
YoY Change
Other Investing Activities $1.240M -$250.0K $0.00
YoY Change -147.69%
Cash From Investing Activities $1.060M -$350.0K -$90.00K
YoY Change -139.7% 288.89% 125.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 560.0K 470.0K 10.00K
YoY Change 1766.67% 4600.0% -99.36%
NET CHANGE
Cash From Operating Activities -2.260M -2.600M -1.460M
Cash From Investing Activities 1.060M -350.0K -90.00K
Cash From Financing Activities 560.0K 470.0K 10.00K
Net Change In Cash -640.0K -2.480M -1.540M
YoY Change -86.0% 61.04% -408.0%
FREE CASH FLOW
Cash From Operating Activities -$2.260M -$2.600M -$1.460M
Capital Expenditures -$180.0K -$100.0K -$90.00K
Free Cash Flow -$2.080M -$2.500M -$1.370M
YoY Change 11.23% 82.48% 39.8%

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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Proceeds From Warrant Exercises
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Foreign Currency Transaction Gain Loss Unrealized
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us-gaap Debt Conversion Converted Instrument Amount1
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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <div class="CursorPointer"> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px">&#160;</td> <td style="width: 24px"><font style="font-size: 10pt"><b>1.</b></font></td> <td style="text-align: justify"><font style="font-size: 10pt"><b>BASIS OF PRESENTATION</b></font></td></tr> </table> </div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company's interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (&#147;U.S. GAAP&#148;). In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair statement of the Company's financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 10-K. 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The Company intends to continue to conduct significant additional research, development, and clinical study activities which, together with expenses incurred for the establishment of manufacturing arrangements and a marketing and distribution presence and other selling, general and administrative expenses, are expected to result in continuing operating losses for the foreseeable future. The amount of future losses and when, if ever, the Company will achieve profitability are uncertain. The Company's ability to achieve profitability will depend, among other things, on successfully completing the development of the Company's technology and commercial products, obtaining additional requisite regulatory approvals in markets not covered by the CE Mark and for potential label extensions of the Company's current CE Mark, establishing manufacturing and sales and marketing arrangements with third parties, and raising sufficient funds to finance the Company's activities. No assurance can be given that the Company's product development efforts will be successful, that the Company's current CE Mark will enable us to achieve profitability, that additional regulatory approvals in other countries will be obtained, that any of the Company's products will be manufactured at a competitive cost and will be of acceptable quality, or that the Company will be able to achieve profitability or that profitability, if achieved, can be sustained. These matters raise substantial doubt about the Company's ability to continue as a going concern. These consolidated financial statements do not include any adjustments related to the outcome of this uncertainty.</font></p> </div>
CY2014Q4 us-gaap Stockholders Equity Note Stock Split Conversion Ratio1
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25 pure
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CY2014Q4 us-gaap Inventory Work In Process
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us-gaap Advertising Expense
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us-gaap Freight Costs
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67000 USD
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CY2015Q1 ctso Underwriters Expenses
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85000 USD
us-gaap Allocated Share Based Compensation Expense
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146000 USD
us-gaap Concentration Risk Credit Risk
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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><b>Concentration of Credit Risk</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company maintains cash balances, at times, with financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions in an effort to minimize its collection risk of these balances.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">As of June 30, 2015, <font>three</font> distributors accounted for approximately <font>61</font>% of outstanding grant and accounts receivable. At December 31, 2014, <font>three</font> distributors accounted for approximately <font>53</font>% of outstanding grant and accounts receivable. For the six months ended June 30, 2015, approximately <font>12</font>% of revenues was from <font>one</font>&#160;<font style="color: #000000; font-family: 'Times New Roman', Times, serif; font-size: 13.3333330154419px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: inline !important; float: none;">U.S. government grant agency</font>. No other agency, distributor, or direct customer represented more than 10% of the Company's revenue. For the six months ended June 30, 2014, approximately <font>12</font>% of revenues were from <font>one</font> U.S. government grant agency, and no other agency, distributor, or direct customer represented more than 10% of the Company's revenue.</p> </div>
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2302187 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.37
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y1M6D
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><b>Reclassifications</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">Certain reclassifications have been made to the June 30, 2014 financial statements in order to conform to the June 30, 2015 financial statement presentation. There was no change in the reported amount of the accumulated deficit as a result of these reclassifications.</p> </div>
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
626000 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
7.98
ctso Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Granted In Period Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingGrantedInPeriodWeightedAverageRemainingContractualTerm
P9Y7M6D
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
150779 shares
ctso Share Based Compensation Arrangement By Share Based Payment Award Options Cancelled In Period Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsCancelledInPeriodWeightedAverageRemainingContractualTerm
P8Y9M18D
CY2015Q2 us-gaap Advertising Expense
AdvertisingExpense
66000 USD
CY2014Q2 us-gaap Advertising Expense
AdvertisingExpense
53000 USD
CY2015Q2 us-gaap Freight Costs
FreightCosts
26000 USD
CY2014Q2 us-gaap Freight Costs
FreightCosts
25000 USD
us-gaap Dividends Preferred Stock Stock
DividendsPreferredStockStock
2488761 USD
CY2015Q1 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
1250000 shares
CY2015Q1 us-gaap Share Price
SharePrice
8.25
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
138034 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
2.22
ctso Share Based Compensation Arrangement By Share Based Payment Award Options Exercised In Period Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisedInPeriodWeightedAverageRemainingContractualTerm
P3Y10M24D
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2639374 shares
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
6.18
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y4M24D
CY2014Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
874530 shares
CY2014Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
1.37
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
626000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
3.26
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares
150779 shares
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue
0.06
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
424326 shares
CY2015Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
925425 shares
CY2015Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
2.22
CY2015Q2 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
406000 USD
CY2015Q2 ctso Share Based Compensation Arrangement By Share Based Payment Award Non Vested Options Vested Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonVestedOptionsVestedNumber
566000 shares
CY2015Q2 ctso Share Based Compensation Arrangement By Sharebased Payment Award Nonvested Options Grant Date Fair Value
ShareBasedCompensationArrangementBySharebasedPaymentAwardNonvestedOptionsGrantDateFairValue
1388000 USD
CY2015Q2 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
1418145 shares
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
1713949 shares
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
5.82
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P5Y2M12D
CY2015Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
83000 USD
CY2014Q1 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
816000 shares
CY2014Q1 ctso Fair Value Warrant Liability Upon Issuance
FairValueWarrantLiabilityUponIssuance
862920 USD
CY2014Q1 us-gaap Share Price
SharePrice
6.00
CY2015Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
736000 shares
CY2014Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
816000 shares
CY2015Q2 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
4058000 shares
dei Entity Registrant Name
EntityRegistrantName
Cytosorbents Corp
dei Entity Central Index Key
EntityCentralIndexKey
0001175151
dei Document Type
DocumentType
10-Q
dei Document Period End Date
DocumentPeriodEndDate
2015-06-30
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
CY2015Q3 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
25046990 shares
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2015
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Trading Symbol
TradingSymbol
ctso

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