SOURCE: Boston Therapeutics

Boston Therapeutics

May 15, 2013 16:10 ET

Boston Therapeutics Reports First Quarter 2013 Results

Clinical Development of PAZ320 and IPOYXN Continues to Progress

MANCHESTER, NH--(Marketwired - May 15, 2013) - Boston Therapeutics, Inc. (OTCQB: BTHE) ("Boston Therapeutics" or "the Company"), a pharmaceutical company developing and commercializing complex carbohydrate-based drugs to treat diabetes and inflammatory diseases, announced its financial results for the three months ended March 31, 2013. These results are included in the Company's Quarterly Report on Form 10-Q, which has been filed with the SEC.

Highlights for the first quarter include the focus of the Company's pipeline to accelerate the commercialization of its pharmaceutical drugs to address diabetes and inflammatory disease; the positive results from the Phase ll clinical study with PAZ320 at Dartmouth Medical Center; the appointment of Peter Sheehan, M.D., an internationally respected specialist in the field of diabetes, as Consulting Medical Director; the request to the U.S. Food and Drug Administration for an Investigational New Drug (IND) meeting for PAZ320 to reduce the elevation of postprandial glucose (PPG) or post meal blood sugar in patients with Type 2 diabetes, and the publication of four news articles concerning the Company's drug development programs: InformationAboutDiabetes.com, the New Hampshire Union Leader, Western Pennsylvania Healthcare News and Examiner.com.

"During this quarter, we continued our growth as a drug discovery, development and commercialization company, and built on the momentum gained from our previously announced positive results from the clinical study at Dartmouth Medical Center for PAZ320 in Type 2 diabetes," said David Platt, Ph.D., Chief Executive Officer of Boston Therapeutics. "The addition of Dr. Sheehan to our team has given us a tremendous boost in this direction. Going forward, as I have indicated previously, we intend to focus our pipeline on commercializing PAZ320 and IPOXYN, which will enable the Company to advance its status as a premier developer of complex carbohydrate-based new chemical entities. Achieving these goals will also enable us to address the rapidly expanding global diabetes market."

Financial Results for the First Quarter 2013

Revenue for the three month period ended March 31, 2013 was $23,336 compared with $18,854 for the same period in the prior year, an increase of $4,482. Revenue for both periods were generated from the sale of SUGARDOWN®. The increase was the result of a shipment of SUGARDOWN® to one customer in the amount of $20,687 during the three months ended March 31, 2013.

Cost of goods sold for the three months ended March 31, 2013 was $47,937 compared with $27,595, for the same period in the prior year, an increase of $20,342. The increase in cost of goods sold relates to the shipment of product to the customer described above. The Company's negative gross profit is attributable to cost of goods sold outpacing sales as a result of additional fixed costs related to the outsourced fulfillment operation, and manufacturing scale-up from small to production-grade equipment. 

Research and development expense was $28,661 for the three months ended March 31, 2013 compared with $51,628 for the same period in the prior year, a decrease of $22,967. The decrease is primarily the result of less research and development activity during the three months ended March 31, 2013 compared to the same period in 2012. 

Sales and marketing expense for the three months ended March 31, 2013 was $81,226 compared with $67,180 for the same period in the prior year, an increase of $14,046. This expense category consists primarily of costs incurred with third parties for product marketing, and redesigning the SUGARDOWN® website in 2013 and 2012. 

General and administrative expense for the three months ended March 31, 2013 was $528,170 compared with $124,536 for the same period in the prior year, an increase of $403,634. The increase is primarily the result of the addition of three employees during the fourth quarter of 2012 and the first quarter of 2013 resulting in payroll related expenses of approximately $45,000, cost of a consultant in the first quarter of 2013 to increase the Company's visibility in the global securities marketplace totaling $50,000, increased professional fees of $30,000, increased consulting fees of $44,000, increased office, rent and administrative expenses of $37,000, increased legal expense of $30,000 and increased stock based compensation of approximately $147,000.

The Company had a net loss of $667,422, or ($0.04) per share, for the quarter ended March 31, 2013 compared with a net loss of $257,405 or ($0.02) for the same period in the prior year. The Company's cash balance at March 31, 2013 was $384,674. 

About Boston Therapeutics, Inc.
Boston Therapeutics, headquartered in Manchester, NH, (OTCQB: BTHE) is a leader in the field of complex carbohydrate chemistry. The Company's product pipeline is focused on developing and commercializing therapeutic molecules for diabetes, including PAZ320, a non-systemic chewable therapeutic compound designed to reduce the elevation of post-prandial glucose (PPG) or post-meal blood sugar, and IPOXYN, an injectable anti-necrosis drug specifically designed to treat lower limb ischemia associated with diabetes. More information is available at www.bostonti.com.

Forward Looking Statements

Any statements in this news release about future expectations, plans and prospects for the Company constitute forward-looking statements as defined in the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in such statements.

More information about those risks and uncertainties is contained and discussed in the Company's most recent quarterly or annual report and in the Company's other reports filed with the Securities and Exchange Commission. The forward-looking statements represent the Company's views as of the date of this news release and should not be relied upon to represent the Company's views as of a subsequent date. While the Company anticipates that subsequent events may cause the Company's views to change, the Company disclaims any obligation to update such forward-looking statements.

   
Boston Therapeutics, Inc.  
Balance Sheets (Unaudited)  
March 31, 2013 and December 31, 2012  
             
    March 31, 2013     December 31, 2012  
ASSETS                
                 
  Cash   $ 384,674     $ 552,315  
  Accounts receivable     20,686       17,351  
  Prepaid expenses     45,266       9,073  
  Inventory, net     25,379       16,809  
    Total current assets     476,005       595,548  
                   
  Property and equipment, net     9,097       7,075  
  Intangible assets     744,643       760,714  
  Goodwill     69,782       69,782  
  Other assets     2,125       2,125  
    Total assets   $ 1,301,652     $ 1,435,244  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current liabilities:                
  Accounts payable   $ 355,660     $ 294,187  
  Accrued expenses and other current liabilities     157,716       146,774  
    Total current liabilities     513,376       440,961  
                 
Advances - related parties     297,820       297,820  
    Total liabilities     811,196       738,781  
                 
COMMITMENTS AND CONTINGENCIES                
Stockholders' equity:                
  Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding     -       -  
  Common stock, $0.001 par value, 200,000,000 and 100,000,000 shares authorized and 19,291,539 and 18,745,706 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively     19,291       18,746  
  Additional paid-in capital     3,835,986       3,375,116  
                   
  Accumulated deficit     (3,364,821 )     (2,697,399 )
    Total stockholders' equity     490,456       696,463  
                   
    Total liabilities and stockholders' equity   $ 1,301,652     $ 1,435,244  
                     
                     
   
Boston Therapeutics, Inc.
Statement of Operations (Unaudited) For the Three Month Periods Ended March 31, 2013 and 2012
 
   
   
    For the Three Months Ended  
    March 31,
2013
    March 31, 2012  
             
Revenue   $ 23,336     $ 18,854  
Cost of goods sold     47,937       27,595  
Gross margin     (24,601 )     (8,741 )
                 
Operating expenses:                
  Research and development     28,661       51,628  
  Sales and marketing     81,226       67,180  
  General and administrative     528,170       124,536  
    Total operating expenses     638,057       243,344  
Operating loss     (662,658 )     (252,085 )
  Interest expense     4,764       4,178  
  Foreign currency loss     -       1,142  
    Net loss   $ (667,422 )   $ (257,405 )
                   
Net loss per share - basic and diluted   $ (0.04 $ (0.02
  Weighted average shares outstanding basic and diluted     18,880,845       16,223,206  
   
   

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