Breaking News

Tweet TWEET

CytoSorbents Updates Corporate Progress and Third Quarter 2012

CytoSorbents Updates Corporate Progress and Third Quarter 2012
Financial Results 
MONMOUTH JUNCTION, NJ -- (Marketwire) -- 11/21/12 --  CytoSorbents
Corporation (OTCBB: CTSO), a critical care-focused company using
blood purification to reduce inflammation as a means to prevent or
treat organ failure caused by life-threatening illnesses, announced a
corporate update and its financial results for the three months and
nine months ended September 30, 2012. 
Key recent accomplishments include: 


 
--  Revenue of $605K in Q3 2012 consisting predominantly of our first
    DARPA milestone payment, with modest product sales from a transitional
    third quarter where our sales team completed its training and began a
    direct sales effort. Q4 2012 product sales are nearly $70K to date
--  Expansion to more than 60 key opinion leaders throughout Germany,
    Austria and Switzerland who are interested in using or are currently
    using CytoSorb(R)
--  Active discussion and planning of at least 6 new
    investigator-initiated human pilot studies in a growing list of
    critical care applications
--  Accelerated development and achievement of initial milestones under
    our recently announced $3.8 million DARPA multi-year agreement for the
    treatment of sepsis, coinciding with receipt of the first milestone
    payment
--  Award of an up to $1 million U.S. Army Phase II SBIR for trauma and
    burn injury research, currently in contract negotiations
--  Showcase of our technology at five major international medical
    conferences including two formal scientific presentations, and two key
    investor conferences

  
Dr. Phillip Chan, Chief Executive Officer, commented, "We are very
pleased with our recent progress. From a commercialization
standpoint, the third quarter of 2012 was a transitional period
marking the beginning of our formal direct sales effort in Germany,
Austria and Switzerland. Our sales force came together in August
2012, and in the span of only a few months, the Company has generated
cumulative sales of approximately $83K. With many key opinion leaders
enthusiastic about working with us, our focus in the near future will
be to harness this interest to drive broader awareness and usage
amongst like-minded colleagues at their in
stitutions. We are grateful
for the continued positive reception of CytoSorb(R) amongst an
increasing number of critical care physicians, as well as new studies
that many of them are proposing. In addition, we are encouraged by
positive CytoSorb(R) treatment case reports demonstrating benefit in
patients with a number of different critical illnesses such as
sepsis, pancreatitis, liver disease, lung injury, and others. 
"To further augment sales generated by our direct sales force, we are
in the process of establishing relationships with certain critical
care focused distributors. The goal is to create multiple revenue
drivers that, when layered together, can potentially accelerate our
growth."  
Dr. Chan continued, "In terms of our research and development
initiatives, we are thankful that DARPA and the U.S. Army have
recognized the potential of our technology for the treatment of
sepsis, trauma, and burn and smoke inhalation injury, with the total
award of approximately $5 million in non-dilutive funding to the
Company during the third quarter. These awards are intended to help
advance our technologies and are milestone-based, with the majority
of the funds expected to be earned over the course of the next
several years. Because they cover both direct and indirect (e.g.
fixed overhead) costs, they have the ability to significantly offset
our cash needs." 
Dr. Chan concluded, "We continue to be very excited about this unique
potential opportunity to revolutionize the future of critical care
medicine with CytoSorb(R) -- hopefully saving lives while reducing
exorbitant healthcare costs. We plan to issue a more in depth
shareholder update in January that will review our progress and
discuss the Company in greater detail. In the meantime, we thank our
investors for their continued support."  
About CytoSorbents, CytoSorb(R), and HemoDefend  
CytoSorbents Corporation is a critical care focused therapeutic
device company using blood purification to modulate the immune system
and fight multi-organ failure in life-threatening illnesses. Its
purification technology is based on biocompatible, highly porous
polymer beads that can actively remove toxic substances from blood
and other bodily fluids by pore capture and surface adsorption. In
2011, CytoSorb(R), the Company's flagship product, achieved European
regulatory approval as an extracorporeal cytokine filter, allowing it
to be sold throughout the European Union (E.U.) under the CE Mark, to
be used in clinical situations where cytokines are elevated. The goal
of CytoSorb(R) is to modulate the immune system by reducing "cytokine
storm" in critically-ill patients that could otherwise lead to deadly
inflammation, multiple organ failure, immune dysfunction, and often
death in common illnesses such as sepsis, trauma, burn injury, acute
respiratory distress syndrome, and pancreatitis. CytoSorb(R) has
demonstrated statistically significant reductions in mortality in
septic patients at high risk of death in early studies and is now
being sold in Germany, Austria and Switzerland for the treatment of
critical care illnesses, with availability in other E.U. countries
planned in the future, assuming adequate and timely funding, and
continued positive results from clinical studies.  
HemoDefend is a development-stage blood purification technology
platform for the blood transfusion industry intended to reduce
transfusion reactions and safeguard the quality and safety of the
blood supply. The HemoDefend technology utilizes the Company's
polymer bead technology to remove many substances, such as
antibodies, free hemoglobin and inflammatory mediators that can cause
potentially serious and sometimes fatal transfusion reactions.  
CytoSorb(R) and HemoDefend are just two of a number of different
polymers the Company has designed for various medical applications,
including improved dialysis, reduction of post-surgical complications
in cardiac surgery, treatment of inflammatory and autoimmune
disorders, radio-imaging contrast removal in imaging and
interventional radiology procedures, and the treatment of
rhabdomyolysis, drug overdose, and others. Additional information is
available for download on the Company's website:
http://www.cytosorbents.com.  
Forward-Looking Statements  
This press release includes forward-looking statements intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
in this press release are not promises or guarantees and are subject
to risks and uncertainties that could cause our actual results to
differ materially from those anticipated. These statements are based
on management's current expectations and assumptions and are
naturally subject to uncertainty and changes in circumstances. We
caution you not to place undue reliance upon any such forward-looking
statements. Actual results may differ materially from those expressed
or implied by the statements herein. CytoSorbents Corporation and
CytoSorbents, Inc. believe that its primary risk factors include, but
are not limited to: obtaining government approvals including required
FDA and additional CE Mark approvals; ability to successfully develop
commercial operations; dependence on key pe
rsonnel; acceptance of the
Company's medical devices in the marketplace; the outcome of pending
and potential litigation; compliance with governmental regulations;
reliance on research and testing facilities of various universities
and institutions; the ability to obtain adequate and timely financing
in the future when needed; product liability risks; limited
manufacturing experience; limited marketing, sales and distribution
experience; market acceptance of the Company's products; competition;
unexpected changes in technologies and technological advances; and
other factors detailed in the Company's Form 10-K filed with the SEC
on March 30, 2012, which is available at http://www.sec.gov.  


 
                                                                            
                                                                            
                          CYTOSORBENTS CORPORATION                          
                       (a development stage company)                        
               CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS               
               (amounts in thousands, except per share data)                
                                (unaudited)                                 
                                                                            
                          Nine Months Ended          Three Months Ended     
                            September 30,               September 30,       
                         2012          2011          2012          2011     
                     ------------  ------------  ------------  ------------ 
                                                                            
Revenues                                                                    
  Sales              $         64  $        ---  $         14  $        --- 
  Grant income                675           ---           591           --- 
                     ------------  ------------  ------------  ------------ 
  Total revenues              739           ---           605           --- 
                     ------------  ------------  ------------  ------------ 
                                                                            
Expenses                                                                    
  Cost of revenue             261           ---           142           --- 
  Research and                                                              
   development              1,854         2,394           554           780 
  Legal, financial                                                          
   and other                                                                
   consulting                 386           260           151            94 
  Selling, general                                                          
   and                                                                      
   administrative             916           814           359           352 
                     ------------  ------------  ------------  ------------ 
  Total operating                                                           
   costs and                                                                
   expenses                 3,417         3,468         1,206         1,226 
                     ------------  ------------  ------------  ------------ 
                                                                            
Operating loss             (2,678)       (3,468)         (601)       (1,226)
                                                                            
Other expenses, net           448           817            51           503 
                     ------------  ------------  ------------  ------------ 
                                                                            
Net loss                   (3,126)       (4,285)         (652)       (1,729)
                                                                            
Preferred stock                                                             
 dividend                   1,871         2,354           630           735 
                     ------------  ------------  ------------  ------------ 
                                                                            
Net loss available                                                          
 to common                                                                  
 stockholders        $     (4,997) $     (6,639) $     (1,282) $     (2,464)
                     ============  ============  ============  ============ 
                                                                            
Earnings per share:                                                         
  Basic and diluted                                                         
   earnings per                                                             
   share             $      (0.03) $      (0.04) $      (0.01) $      (0.01)
                     ============  ============  ============  ============ 
                                                                            
  Basic and diluted                                                         
   weighted average                                                         
   shares                                                                   
   outstanding        193,383,650   153,796,011   204,438,894   168,230,680 
                     ============  ============  ============  ============ 
                                                                            
                                                                            
                                                                            
                          CYTOSORBENTS CORPORATION                          
                        (a development stage company)                       
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                           (amounts in thousands)                           
                                 (unaudited)                                
                                                                            
                                                September 30,  December 31, 
                                                    2012           2011     
ASSETS:                                                                     
Cash and cash equivalents                      $        2,061 $        1,186
Accounts receivable, net                                   52             36
Inventories                                               626            431
Prepaid expenses and other current assets                 116             44
                                               -------------- --------------
  Total current assets                                  2,855          1,697
                                                                            
Property and equipment, net                               135            155
Other assets                                              278            271
                                               -------------- --------------
  TOTAL ASSETS                                 $        3,268 $        2,123
                                               ============== ==============
                 
                                                           
LIABILITIES AND STOCKHOLDERS'EQUITY:                                        
Accounts payable                               $          729 $          676
Accrued expenses and other current liabilities            374            558
Convertible notes payable, net                            973            294
                                               -------------- --------------
  Total current liabilities                             2,076          1,528
                                                                            
Convertible notes payable, net                            ---            276
                                               -------------- --------------
  Total liabilities                                     2,076          1,804
                                               -------------- --------------
                                                                            
Total stockholders' equity                              1,192            319
                                               -------------- --------------
  TOTAL LIABILITIES AND EQUITY                 $        3,268 $        2,123
                                               ============== ==============

  
Contact: 
CytoSorbents Corporation
Dr. Phillip Chan 
Chief Executive Officer 
(732) 329-8885 ext. *823 
pchan@cytosorbents.com 
 
 
Press spacebar to pause and continue. Press esc to stop.