Cell Robotics Reports Fourth Quarter and Year-End Financial Results for 2000.Business Editors ALBUQUERQUE, N.M.--(BUSINESS WIRE)--April 2, 2001 Cell Robotics robotics, science and technology of general purpose, programmable machine systems. Contrary to the popular fiction image of robots as ambulatory machines of human appearance capable of performing almost any task, most robotic systems are anchored to fixed positions International, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : CRII CRII Cooperative Research in Information Infrastructure CRII Customer Returns Improvement Initiative ), the developer of the Lasette(R), a needleless laser finger perforator per·fo·rate v. per·fo·rat·ed, per·fo·rat·ing, per·fo·rates v.tr. 1. To pierce, punch, or bore a hole or holes in; penetrate. 2. that allows the nearly painless pain·less adj. Free from complication or pain: a painless operation. pain  less·ly adv. drawing of capillary capillary (kăp`əlĕr'ē), microscopic blood vessel, smallest unit of the circulatory system. Capillaries form a network of tiny tubes throughout the body, connecting arterioles (smallest arteries) and venules (smallest veins). blood samples in the health care industry
and by diabetics monitoring their blood glucose levels blood glucose level,n level of glu-cose in the bloodstream, normally about 70 to 115 mg/dL after fasting overnight. Higher levels may indicate diseases such as diabetes mellitus. , today announced financial results for the fourth quarter and year ended December 31, 2000. The Company reported 2000 annual revenues of $1.01 million compared to revenues of $1.42 million for the fiscal year ended December 31, 1999. The net loss for 2000 was $5.04 million, or $(0.54) per share compared to a net loss in 1999 of $1.91 million, or $(0.31) per share. The increased net loss was primarily attributable to three items. In the third quarter of 2000, the Company recorded a $1.2 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to interest expense to record the beneficial conversion charge required when a convertible note was exchanged for common stock. Second, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased due to laser design improvements and the rework re·work tr.v. re·worked, re·work·ing, re·works 1. To work over again; revise. 2. To subject to a repeated or new process. n. of the existing inventory of laser rods The Laser Rods are a sub-group of Transformers toys released as part of their Generation 2 line. Members include both Autobots and Decepticons. They were also called Illuminators in some parts of Europe. for the Lasette and the increased sales and marketing costs associated with the accelerated product rollout of the Lasette in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe and Asia. Third, during 2000 the Company recorded charges to cost of sales associated with the anticipated successful resolution of a dispute with Big Sky Laser Technologies, Inc. (BSLT BSLT Basalt (lithological term) BSLT Big Sur Land Trust BSLT British School of Leather Technology ). As a result of the agreement that was reached with BSLT in January 2001, the Company paid BSLT $350,000 for the manufacture of 100 Professional Lasettes and the return of all remaining BSLT Lasette inventory. For the fourth quarter ended December 31, 2000, sales revenues were $243,655 compared with sales revenues of $23,643 for the fourth quarter of 1999. Revenue growth in the quarter was primarily driven by significant increases in the shipments of the company's genetic engineering workstation and sales of the Lasette. Dr. Ronald K. Lohrding, President and Chief Executive Officer of the Company, stated, "We believe that during 2000 we put the elements in place to bring the Lasette to market and to begin building awareness of the revolutionary benefits it provides to health care workers and to the large and growing population of diabetics worldwide. Given our strong performance in the fourth quarter of 2000, we believe that we are beginning to see the fruits of our efforts. Specifically, we are pleased with the current direction of the Company's sales, particularly the significant sales increase witnessed in the fourth quarter last year and the continuing positive trend experienced in the first quarter of 2001. Based upon this trend, we hope to have an even stronger second quarter of 2001. We believe that sales growth in the second and third quarter 2001 is achievable as a result of our new marketing and sales approaches being implemented and overseen by our new Vice President for sales and marketing. We believe these programs, combined with increased production capacity and new partnerships will enable us to continue our aggressive sales efforts. For example, we are now able to provide some introductory discounts on the price of the Lasette, such as our ability to offer patients the Lasette for as little as $0.90 a day or $27.50 per month for three years, through our new distributor, Home Test Medical." Lohrding continued, "Looking forward, we believe that we now have the product, staff and distributor relationships to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. industry trends. Many medical professionals believe strongly that the long-term health of diabetics can be improved with more frequent glucose testing glucose test See 1 Glucose, see there 2 Glucose tolerance test, see there . Because sampling blood with the Lasette is so gentle to your hands, users are encouraged to test their glucose levels more frequently resulting in better management of their diabetes. This in turn can lead to future decreased incidences of long-term diabetes complications such as heart attacks, strokes, blindness, kidney failure kidney failure or renal failure Partial or complete loss of kidney function. Acute failure causes reduced urine output and blood chemical imbalance, including uremia. Most patients recover within six weeks. , foot or leg amputations and sexual dysfunction sexual dysfunction Inability to experience arousal or achieve sexual satisfaction under ordinary circumstances, as a result of psychological or physiological problems. ." Dr. Lohrding concluded by saying, "We are also delighted with the rapidly increasing market pull for our Cell Robotics Workstation. Applications for analyzing cancer cells cells once believed to be peculiar to cancers, but now know to be epithelial cells differing in no respect from those found elsewhere in the body, and distinguished only by peculiarity of location and grouping. See also: Cancer in thin sections, producing transgenic animals Transgenic animal Animals that have had genes from other species inserted into their genetic code. Mentioned in: Glycogen Storage Diseases , and using the results of the human genome The human genome is the genome of Homo sapiens, which is composed of 24 distinct pairs of chromosomes (22 autosomal + X + Y) with a total of approximately 3 billion DNA base pairs containing an estimated 20,000–25,000 genes. project to produce new pharmaceutical products have increased the demand for using the LaserTweezers and LaserScissors of the Workstation. We are pleased with the ground work that was laid for both the Lasette and the Cell Robotics Workstation in 2000 and we anticipate that in 2001 we will begin to enjoy increases in sales from that groundwork." Cell Robotics International, Inc. is the only company offering an FDA-cleared alternative to the steel lancet lancet /lan·cet/ (lan´set) a small, pointed, two-edged surgical knife. lan·cet n. or needle, for testing blood glucose blood glucose Diabetology The principal sugar produced by the body from food–especially carbohydrates, but also from proteins and fats; glucose is the body's major source of energy, is transported to cells via the circulation and used by cells in the presence for insulin insulin, hormone secreted by the β cells of the islets of Langerhans, specific groups of cells in the pancreas. Insufficiency of insulin in the body results in diabetes. Insulin was one of the first products to be manufactured using genetic engineering. injections. The needleless Lasette is an ideal device to help health care facilities comply with the "Needlestick Safety and Prevention Act" signed into law on November 6, 2000. This legislation mandates healthcare facilities employ measures to reduce or eliminate accidental needlesticks. Also, the Lasette enables diabetics to sample their blood, in a nearly painless manner, as the first step in testing glucose levels to determine proper insulin dosing. The Company believes the potential market could be enormous. About Cell Robotics Cell Robotics International Inc. is a medical products company committed to enhancing the quality of life through technology. The Company manufactures, markets and distributes the Lasette, the only FDA-cleared alternative to the needle or steel blade lancet currently available for diabetics to draw blood so as to test their glucose levels for insulin injections. It also, manufactures, markets and distributes and the Cell Robotics Workstation, an innovative scientific research instrument that uses laser light to transform a microscope from a viewing device into a tool for physically manipulating and dissecting dis·sect tr.v. dis·sect·ed, dis·sect·ing, dis·sects 1. To cut apart or separate (tissue), especially for anatomical study. 2. living cells in microspace. Additional information on all Cell Robotics' products is available on the Company's Web site at http://www.cellrobotics.com, by e-mail at crii@cellrobotics.com, or by telephone at 505/343-1131. SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. FOR FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release may contain forward-looking statements. These statements relate to future events or our future financial performance. In some cases, forward-looking statements can be identified by terminology, for instance the terms "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms or other comparable terminology. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. In addition, these forward-looking statements include, but are not limited to, statements regarding anticipated operating results and sources of future revenue, growth, commercial acceptance of our products and our ability to manufacture and distribute our products. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on our current expectations and are subject to a number of risks and uncertainties. Actual results will differ and could differ materially from these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include the following: (I) industry conditions and competition, (ii) reforms in the health care industry or limitations imposed on third party reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of health care costs, (iii) the rate of market acceptance of our products, particularly the Lasette, (iv) operational risks and insurance, (v) risks associated with operating in foreign jurisdictions, (vi) product liabilities which may arise in the future which are not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by insurance or indemnity, (vii) the impact of current and future laws and government regulation, as well as repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law. The revocation of the law can either be done through an express repeal or modification of same, affecting the medical defice industry and our operations in particular, (viii) the ability to retain key personnel, (ix) renegotiation, nullification nullification, in U.S. history, a doctrine expounded by the advocates of extreme states' rights. It held that states have the right to declare null and void any federal law that they deem unconstitutional. , or breach of contracts with distributors, suppliers or other parties, (x) the relationship with our suppliers, particularly our supplier of crystals used in our Ebrium: YAG lasers YAG laser Yttrium-aluminum-garnet laser, Nd:YAG–neodymium:yttrium-aluminum-garnet–laser. See Laser. and (xi) the risks described elsewhere and from time to time in our other reports to and filings with the Securities and Exchange Commission. In light of the uncertainties, there can be no assurance that the matters referred to in the forward-looking statements contained in this release will in fact occur. We are under no duty to update any of the forward-looking statements after the date of this release.
CELL ROBOTICS INTERNATIONAL, INC.
AND SUBSIDIARY
Consolidated Balance Sheets
December 31, 2000 and 1999
2000 1999
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 1,043,230 $ 358,379
Accounts receivable, net of
allowance for doubtful
accounts of $1,841 in 2000
and $23,841 in 1999 378,853 206,278
Inventory 1,079,086 897,971
Other current assets 60,850 36,543
---------- ----------
Total current assets 2,562,019 1,499,171
Property and equipment, net 549,688 485,556
Other assets, net 24,109 28,939
---------- ----------
Total assets $ 3,135,816 $ 2,013,666
=========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 350,399 $ 684,403
Note payable 250,000 --
Payroll related liabilities 152,860 116,617
Royalties payable 79,046 67,519
Other current liabilities 518,010 40,294
----------- -----------
Total current liabilities 1,350,315 908,833
Note payable -- 250,000
----------- -----------
Total liabilities 1,350,315 1,158,833
----------- -----------
Stockholders' equity:
Preferred stock, $.04 par value.
Authorized 2,500,000 shares, zero shares
issued and outstanding at December 31,
2000 and 1999 -- --
Common stock, $.004 par value. Authorized
50,000,000 shares, 9,965,644 and 8,244,121
shares issued and outstanding at December
31, 2000 and 1999, respectively 39,863 32,976
Additional paid-in capital 25,114,871 19,154,908
Accumulated deficit (23,369,233) (18,333,051)
----------- -----------
Total stockholders' equity 1,785,501 854,833
----------- -----------
Commitments and contingencies $ 3,135,816 $ 2,013,666
=========== ===========
CELL ROBOTICS INTERNATIONAL, INC.
AND SUBSIDIARY
Consolidated Statements of Operations
For the years ended December 31, 2000 and 1999
2000 1999
----------------------------------------------------------------------
Product sales $ 992,710 $ 1,294,936
Research and development grants 14,353 122,381
----------- -----------
Total revenues 1,007,063 1,417,317
----------- -----------
Product cost of goods sold (1,516,846) (1,064,130)
SBIR direct expenses (14,353) (122,381)
----------- -----------
Total cost of goods sold (1,531,199) (1,186,511)
----------- -----------
Gross profit (loss) (524,136) 230,806
----------- -----------
Operating expenses:
General and administrative 1,297,779 988,288
Marketing & Sales 1,289,728 625,777
Research and development 816,659 551,486
----------- -----------
Total operating expenses 3,404,166 2,165,551
----------- -----------
Loss from operations (3,928,302) (1,934,745)
----------- -----------
Other income (expense):
Interest income 76,088 26,111
Interest expense (1,258,453) (716)
Other, net 74,485 0
----------- -----------
Total other income (expense) (1,107,880) 25,395
----------- -----------
Net loss (5,036,182) (1,909,350)
Preferred stock dividends -- (515,280)
----------- -----------
Net loss applicable to common shareholders $(5,036,182) $(2,424,630)
=========== ===========
Weighted average common shares
outstanding, basic and diluted 9,286,128 7,734,762
=========== ===========
Net loss applicable to common shareholders
per common share, basic and diluted $ (0.54) $ (0.31)
=========== ===========
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