Perseon Corporation, a provider of medical systems that utilize energy to treat cancer, announced financial results for the second quarter ended June 30, 2015. Total revenues of $952,433 were solely derived from the company’s MicroThermX product line.
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These results represent a 117% increase of MicroThermX sales for the same quarter of a year ago when MicroThermX sales totaled $438,167. For the three months ended June 30, 2014, the company reported total revenues of $1,204,656, which included $766,489 in hyperthermia sales.
This represents a 21% decrease of total revenue year-over-year. Current period results do not include any revenue from the hyperthermia product line, which the company sold on April 1, 2015.
For the three months ended June 30, 2015, total gross margin was $626,727, or approximately 66% of total revenues, compared to $493,642, or approximately 41% of total revenues for the three months ended June 30, 2014.
The increase in gross margin and gross margin percentage during Q2 2015 when compared to Q2 2014 was primarily the result of the discontinuance of hyperthermia sales effective April 1, 2015. The higher gross margins recognized in Q2 2015 is expected to continue as MicroThermX sales volumes increase.
Research and development expenses were $567,930 for the second quarter of fiscal year 2015, compared to $614,395 for the comparable period last year. Selling, general and administrative expenses for the second quarter of fiscal year 2015 were $2,889,795, an increase of $862,662 from $2,027,133 for the comparable period last year.
Approximately $375,000 of the increase resulted from non-recurring expenses related to corporate restructuring, rebranding efforts, professional fees incurred in pursuit of merger and acquisition opportunities, and legal expenses associated with shareholder litigation.
Excluding non-recurring expenses, the company has increased its spending as the company executes on critical strategic initiatives including, but not limited to, clinical studies, new sales and marketing programs and business development efforts reflecting a higher level of activity to increase global sales of MicroThermX products.
For the second quarter of fiscal year 2015, the company reported a net loss of $2,863,534 or $0.72 per share, compared to a net loss of $2,149,290 or $0.63 per share, for the comparable period last year.
The increase in the net loss is primarily attributable to the increase in selling, general and administrative expenses which included the $375,000 of non-recurring expenses and increased spending for critical strategic initiatives as explained above.
As of June 30, 2015, Perseon had cash and cash equivalents of $865,516, total current assets of $2,933,465 and no long-term debt. On April 23, 2015 the company filed a registration statement on Form S-1 with the SEC, as amended on May 13, 2015, to raise additional capital.
No assurance can be given that such offering will be consummated, or if consummated, will raise the maximum amount contemplated thereunder. ■