Boston Therapeutics reported its financial results for the fourth quarter and fiscal year ended December 31, 2014. Revenue for Q4 was $12,871 compared to revenue of $80,438 for Q4 ended December 31, 2013.
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Revenue for fiscal 2014 was $199,582 compared to revenue of $323,412 for fiscal 2013. The decrease for fiscal 2014 is primarily due to decreased shipments of SUGARDOWN to the company's one significant customer, APC. In addition, through its collaboration with Benchworks, Boston Therapeutics plans to expand market awareness and sales of SUGARDOWN in North America in fiscal 2015.
Gross margin for the fourth quarter ended December 31, 2014 was a deficit of $4,353 compared to a gross margin deficit of $23,343 for the fourth quarter ended December 31, 2013. For fiscal 2014, gross margin was $23,753 as compared to gross margin of $45,207 for fiscal 2013. The decrease in gross margin for fiscal 2014 is primarily due to the reduction in revenue and continued fixed fulfillment charges.
Research and development expense for the fourth quarter ended December 31, 2014 was $232,348 as compared to $342,064 for the fourth quarter ended December 31, 2013. For fiscal 2014, research and development expenses was $1,432,669 as compared to $542,492 in fiscal 2013.
The increase is primarily the result of expenses associated with the Phase IIb clinical trial for BTI-320 in patients with type 2 diabetes conducted in the U.S. that concluded in fiscal 2014 as well as an ongoing Phase IIb clinical trial in France.
Sales and marketing expense for the fourth quarter ended December 31, 2014 was $32,711 compared to $77,982 for the fourth quarter ended December 31, 2013. For fiscal 2014, sales and marketing expense was $320,353 compared to $329,218 for fiscal 2013. The decrease is primarily related to non-cash, stock-based compensation recorded in fiscal 2013 for options previously granted which are now fully vested.
General and administrative expense for the fourth quarter ended December 31, 2014 was $487,442 as compared to $1,849,734 for the fourth quarter ended December 31, 2013. For fiscal 2014, general and administrative expenses were $2,945,078 as compared to $3,753,742 for fiscal 2013.
The reduction for fiscal 2014 is primarily due to a reduction in stock-based compensation expense of $624,000 recorded in the fourth quarter of fiscal 2013 per a terminated employee's employment agreement. Additionally, consulting and professional fees decreased $558,000 due to transitions in company's business development, public relations and investor relations activities.
These decreases were partially offset by an increase in accounting, financial and legal fees of $189,000 related to increased legal activities and the engagement of a finance professional to manage its accounting and financial reporting matters, as well as an increase in payroll and payroll related expenses of $188,000 primarily due to salary increases, severance costs associated with the resignation of the Company's former President in fiscal 2014 and the institution of an employee medical benefit program.
Net loss for the fourth quarter ended December 31, 2014 was $762,495 or $0.02 per share, compared with a net loss of $2,297,972 or $0.06 per share in the prior year's fourth quarter. For the fourth quarter of 2014 there were 38.5 million shares outstanding compared to 37.3 million shares outstanding for the fourth quarter ended December 31, 2013.
Net loss for fiscal 2014 was $4,699,939 or $0.12 cents per share, compared with a net loss of $4,601,503 or $0.18 per share for fiscal 2014. For the year ended December 31, 2014 there were 38.2 million shares outstanding compared with 25.4 million for the year ended December 31, 2013.
In March 2015, Boston Therapeutics entered into four different convertible promissory note agreements with an aggregate proceeds balance of $432,000, net of discounts and fees. The company anticipates that its cash resources will be sufficient to fund planned operations through the second quarter of 2015. ■