Theralase(R) Release's 4Q2023 Interim Financial Statements

TORONTO, ON / ACCESSWIRE / March 27, 2024 / Theralase Technologies Inc. ("Theralase" or the "Company") (TSXV:TLT)(OTCQB:TLTFF), a clinical stage pharmaceutical company dedicated to the research and development of light and/or radiation activated Photo Dynamic Compounds ("PDCs") for the safe and effective destruction of various cancers, bacteria and viruses has released the Company's audited annual consolidated 2023 financial statements ("Financial Statements").

Theralase will be hosting a conference call on Wednesday April 3^rd, 2024 at 11:00 am ET, which will include a presentation of the financial and operational results for the fiscal year ending December 31^st , 2023. Questions are welcome; to ensure we have time to review and answer them during the call, please send them in advance to [e-mail].

Zoom Meeting Link: https://us02web.zoom.us/j/86038122827
Conference Call in: 1-647-558-0588 (Canada) / 1-646-558-8656 (US) - not required for those attending by Zoom.

An archived version will be available on the website following the conference call.

Financial Summary:

For the year ended December 31^st :

Foto: Accesswire

¹ Other represents foreign exchange, interest accretion on lease liabilities and / or interest income

Financial Highlights

For the year ended December 31, 2023;

• Total revenue decreased 6%, year over year.
• Cost of sales was $508,173 (47% of revenue) resulting in a gross margin of $562,134 (53% of revenue). In comparison, the cost of sales for the same period in 2022 was $510,395 (45% of revenue) resulting in a gross margin of $628,174 (55% of revenue). The gross margin decrease as a percentage of sales, year over year, is attributed to an increase in material costs and a write-down of obsolete inventory of $89,325 (2022 - $4,799).
• Selling expenses decreased to $278,866, from $301,359 for the same period in 2022, a 7% decrease. The decrease in selling expenses is a result of reduced spending in advertising (18%), and salaries (16%).
• Administrative expenses increased to $1,895,460 from $1,277,253 for the same period in 2022, a 48% increase. The increase in administrative expenses is attributed to increased spending on general and administrative expenses (80%) and director and advisory fees (34%).
• Stock based compensation expense increased 392% in 2022, due to the cumulative effect of accounting for the vesting of stock options granted in the current and previous years.
• Net research and development expenses for the Drug Division decreased to $2,938,245 from $4,113,741 for the same period in 2022, a 29% decrease. The decrease is primarily attributed to a decrease in the costs related to the manufacture of the Study Device and expenses for Study II patient enrollment and treatment.
• Net research and development expenses for the Device Division decreased to $43,828 from $167,365 for the same period in 2022, a 74% decrease.
• Net loss was $4,570,879, which included $933,790 of net non-cash expenses (i.e.: amortization, stock-based compensation expense and foreign exchange gain/loss). This compared to a net loss in 2022 of $5,235,302 which included $554,298 of net non-cash expenses, a 13% decrease. The Drug Division represented $4,058,764 of this loss (89%) in 2023. The decrease in net loss is attributed to decreased spending on research and development expenses in Study II.

Operational Highlights: