Chromatics Releases Fiscal Year 2000 Results

Apr 18, 2001, 01:00 ET from Chromatics Color Sciences International, Inc.

    NEW YORK, April 18 /PRNewswire/ --
 Chromatics Color Sciences International, Inc. (Nasdaq: CCSI) today announced
 its financial results for the fiscal year ending December 31, 2000.
     Revenues for the year were $3,842,000 as compared to $1,103,200 for the
 previous year ended December 31, 1999. Revenues for 2000 primarily result from
 the acquisition of Gordon Laboratories, Inc. ("Gordon") on June 2, 2000, while
 revenues for the previous year are primarily from the sale of medical products
 to Datex-Ohmeda, Inc. and its Ohmeda Medical Division.
     Chromatics incurred a net loss of $19,496,400 (net loss of $1.40 per
 share) for the year ended December 31, 2000 as compared to a net loss of
 $12,808,000 (net loss of $.93 per share) for the previous year. The $6,688,400
 increase in net loss for 2000 compared to 1999 is primarily attributable
 to a $2,970,300 increase in cost of sales inclusive of a $733,100 write-off of
 selected inventory; and non-cash impairment charges in 2000 of $6,784,000 for
 write-downs of property and equipment, Gordon goodwill and other untangible
 assets.
     Chromatics Color Sciences is in the business of color science and has
 developed technologies and intellectual properties in this field. The Company
 has received clearance from the Food and Drug Administration (FDA) for the
 commercial use of its medical device for the non-invasive monitoring of
 hyperbilirubinemia in newborn infants by healthcare professionals in
 hospitals, clinics, pediatrician offices and the home environment. The Company
 believes its technologies and intellectual properties may also have medical
 applications in the detection and monitoring of other chromogenic diseases
 which the Company defines as those diagnosed or monitored by the coloration of
 the human skin, tissue or fluid being affected. Medical applications, in
 addition to the non-invasive monitoring of hyperbilirubinemia in newborns,
 will require additional clinical trials and FDA clearances for commercial use.
     The Company's technologies and intellectual properties also have other
 applications including the scientific color measurement and classification of
 human skin and certain color-sensitive consumer products, and in determining
 the color compatibility of such skin and product color classification for use
 in a variety of industries including the cosmetic, beauty-aid and fashion,
 industries.
 
     Certain of the matters discussed in this announcement contain,
 forward-looking statements that involve material risks to and uncertainties in
 the Company's business that may cause actual results to differ materially from
 those anticipated by the statements made herein. Such risks and uncertainties
 include, among other things, the availability of any needed financing, the
 Company's ability to implement its long range business plan for various
 applications for its technologies, the Company's ability to enter into
 agreements with additional marketing and distribution partners, the impact of
 competition, the obtaining and maintaining of any necessary regulatory
 clearances applicable to applications of the Company's technology, management
 of growth, and other risks and uncertainties that may be detailed from time to
 time in the Company's reports filed with the Securities and Exchange
 Commission, including those set forth in its annual report on Form 10-K for
 the year ended December 31, 2000.
 
 
          CHROMATICS COLOR SCIENCES INTERNATIONAL, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
     Year ended December 31,                             2000           1999
     Sales                                         $3,842,000     $1,103,200
     Costs and expenses:
     Cost of sales                                  3,868,400        898,100
     Sales, marketing and trade show costs          2,047,300      2,511,600
     Medical regulatory expenses                      840,100      1,323,300
     Research and development                       1,493,700        996,300
     Patent application costs                         255,600        134,400
     Compensation costs relating to options
      granted to consultants (non-cash)               690,000        984,000
     Impairment charges                             6,784,200             --
     General and administrative:
     Compensation - officers and employees          1,430,500        803,900
     Consultants                                      534,200        301,000
     Legal fees                                       734,300        793,900
     Accounting fees                                  204,200         79,100
     Rent and storage                                 349,800        296,800
     Insurance                                        329,800        222,600
     Travel and entertainment                         162,500        120,000
     Repairs and maintenance                          176,500        118,100
     Depreciation and amortization                    854,000        494,600
     Payroll taxes                                     86,300         55,200
     Stock administrative fees                        130,500        171,700
     Public relations                                 212,100        192,700
     Amortization of goodwill                         199,100             --
     Other                                            405,800        301,600
                                                   21,788,900     10,798,900
       Operating loss                            (17,946,900)    (9,695,700)
 
     Interest income (expense):
     Interest income                                  133,400        200,700
     Interest expense and non-cash
      financing costs                             (1,682,900)    (3,313,000)
                                                  (1,549,500)    (3,112,300)
     Net loss                                   $(19,496,400)  $(12,808,000)
 
     Net loss to common stockholders:
     Net loss                                   $(19,496,400)  $(12,808,000)
     Deemed dividend for convertible
      preferred stock                             (3,900,000)    (1,558,300)
     Net loss to common stockholders             $ 23,396,400  $(14,366,300)
     Weighted average number of common
      shares outstanding                           16,746,354     15,498,300
     Basic and diluted loss per share                 $(1.40)         $(.93)
 
 
          CHROMATICS COLOR SCIENCES INTERNATIONAL, INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEETS
 
     December 31,                                        2000           1999
     Assets
     Current:
     Cash and cash equivalents                     $1,457,800     $2,790,400
     Accounts receivable - net of
      allowance of $131,000 in 2000                   960,500        842,300
     Inventories                                    1,643,300      1,171,800
     Prepaid expenses and other current assets        255,800        129,200
       Total current assets                         4,317,400      4,933,700
     Property and equipment - net                   1,227,900        612,200
     Software development costs - net                 261,400        470,500
     Patent costs - net                               581,100        984,000
     Goodwill - net                                 1,352,500             --
     Other amortizable assets - net                   879,500        455,400
     Other assets                                     377,000        654,400
                                                   $8,996,800      8,110,200
 
     Liabilities and Stockholders' Equity (Deficit)
     Current liabilities:
     Amounts payable to related party                     $--       $256,100
     Current portion of notes payable               2,963,200             --
     Due to factor                                    184,300             --
     Accounts payable and accrued expenses:                               --
      Attorneys and accountants                       458,900        394,600
      Consultants                                     141,700        119,100
      Trade                                         1,195,200        240,000
       Total current liabilities                    4,943,300      1,009,800
 
     Long-term debt:
     Senior convertible debentures                         --      4,165,800
     Accrued interest on senior
      convertible debentures                               --        495,800
     Amount payable for purchase of Gordon            653,000             --
                                                      653,000      4,661,600
       Total liabilities                            5,596,300      5,671,400
 
     Commitments and contingencies
     Redeemable preferred stock:
     Class A, par value $.01 per share:
      Authorized - 1,400,000 shares;
       issued and outstanding; 1,380,000 shares
        at par and redemption value                    13,800         13,800
     Class B, Series 2 convertible
      preferred stock, no par value:
     Authorized - 10,000,000 shares; issued
      and outstanding 40,000 shares
       in 1999 - $115 redemption value                     --      2,928,700
                                                       13,800      2,942,500
     Stockholders' equity (deficit):
     Preferred stock                               11,510,800             --
     Common stock, par value $.001 per share:
     Authorized - 50,000,000 shares; issued
      and outstanding - 19,033,308 (2000)
       and 15,539,117 (1999) shares                    19,100         15,500
     Capital in excess of par value                45,934,400     34,062,000
     Accumulated deficit                         (54,077,600)   (34,581,200)
     Total stockholders' equity (deficit)           3,386,700      (503,700)
                                                   $8,996,800     $8,110,200
 
 

SOURCE Chromatics Color Sciences International, Inc.
    NEW YORK, April 18 /PRNewswire/ --
 Chromatics Color Sciences International, Inc. (Nasdaq: CCSI) today announced
 its financial results for the fiscal year ending December 31, 2000.
     Revenues for the year were $3,842,000 as compared to $1,103,200 for the
 previous year ended December 31, 1999. Revenues for 2000 primarily result from
 the acquisition of Gordon Laboratories, Inc. ("Gordon") on June 2, 2000, while
 revenues for the previous year are primarily from the sale of medical products
 to Datex-Ohmeda, Inc. and its Ohmeda Medical Division.
     Chromatics incurred a net loss of $19,496,400 (net loss of $1.40 per
 share) for the year ended December 31, 2000 as compared to a net loss of
 $12,808,000 (net loss of $.93 per share) for the previous year. The $6,688,400
 increase in net loss for 2000 compared to 1999 is primarily attributable
 to a $2,970,300 increase in cost of sales inclusive of a $733,100 write-off of
 selected inventory; and non-cash impairment charges in 2000 of $6,784,000 for
 write-downs of property and equipment, Gordon goodwill and other untangible
 assets.
     Chromatics Color Sciences is in the business of color science and has
 developed technologies and intellectual properties in this field. The Company
 has received clearance from the Food and Drug Administration (FDA) for the
 commercial use of its medical device for the non-invasive monitoring of
 hyperbilirubinemia in newborn infants by healthcare professionals in
 hospitals, clinics, pediatrician offices and the home environment. The Company
 believes its technologies and intellectual properties may also have medical
 applications in the detection and monitoring of other chromogenic diseases
 which the Company defines as those diagnosed or monitored by the coloration of
 the human skin, tissue or fluid being affected. Medical applications, in
 addition to the non-invasive monitoring of hyperbilirubinemia in newborns,
 will require additional clinical trials and FDA clearances for commercial use.
     The Company's technologies and intellectual properties also have other
 applications including the scientific color measurement and classification of
 human skin and certain color-sensitive consumer products, and in determining
 the color compatibility of such skin and product color classification for use
 in a variety of industries including the cosmetic, beauty-aid and fashion,
 industries.
 
     Certain of the matters discussed in this announcement contain,
 forward-looking statements that involve material risks to and uncertainties in
 the Company's business that may cause actual results to differ materially from
 those anticipated by the statements made herein. Such risks and uncertainties
 include, among other things, the availability of any needed financing, the
 Company's ability to implement its long range business plan for various
 applications for its technologies, the Company's ability to enter into
 agreements with additional marketing and distribution partners, the impact of
 competition, the obtaining and maintaining of any necessary regulatory
 clearances applicable to applications of the Company's technology, management
 of growth, and other risks and uncertainties that may be detailed from time to
 time in the Company's reports filed with the Securities and Exchange
 Commission, including those set forth in its annual report on Form 10-K for
 the year ended December 31, 2000.
 
 
          CHROMATICS COLOR SCIENCES INTERNATIONAL, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
     Year ended December 31,                             2000           1999
     Sales                                         $3,842,000     $1,103,200
     Costs and expenses:
     Cost of sales                                  3,868,400        898,100
     Sales, marketing and trade show costs          2,047,300      2,511,600
     Medical regulatory expenses                      840,100      1,323,300
     Research and development                       1,493,700        996,300
     Patent application costs                         255,600        134,400
     Compensation costs relating to options
      granted to consultants (non-cash)               690,000        984,000
     Impairment charges                             6,784,200             --
     General and administrative:
     Compensation - officers and employees          1,430,500        803,900
     Consultants                                      534,200        301,000
     Legal fees                                       734,300        793,900
     Accounting fees                                  204,200         79,100
     Rent and storage                                 349,800        296,800
     Insurance                                        329,800        222,600
     Travel and entertainment                         162,500        120,000
     Repairs and maintenance                          176,500        118,100
     Depreciation and amortization                    854,000        494,600
     Payroll taxes                                     86,300         55,200
     Stock administrative fees                        130,500        171,700
     Public relations                                 212,100        192,700
     Amortization of goodwill                         199,100             --
     Other                                            405,800        301,600
                                                   21,788,900     10,798,900
       Operating loss                            (17,946,900)    (9,695,700)
 
     Interest income (expense):
     Interest income                                  133,400        200,700
     Interest expense and non-cash
      financing costs                             (1,682,900)    (3,313,000)
                                                  (1,549,500)    (3,112,300)
     Net loss                                   $(19,496,400)  $(12,808,000)
 
     Net loss to common stockholders:
     Net loss                                   $(19,496,400)  $(12,808,000)
     Deemed dividend for convertible
      preferred stock                             (3,900,000)    (1,558,300)
     Net loss to common stockholders             $ 23,396,400  $(14,366,300)
     Weighted average number of common
      shares outstanding                           16,746,354     15,498,300
     Basic and diluted loss per share                 $(1.40)         $(.93)
 
 
          CHROMATICS COLOR SCIENCES INTERNATIONAL, INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEETS
 
     December 31,                                        2000           1999
     Assets
     Current:
     Cash and cash equivalents                     $1,457,800     $2,790,400
     Accounts receivable - net of
      allowance of $131,000 in 2000                   960,500        842,300
     Inventories                                    1,643,300      1,171,800
     Prepaid expenses and other current assets        255,800        129,200
       Total current assets                         4,317,400      4,933,700
     Property and equipment - net                   1,227,900        612,200
     Software development costs - net                 261,400        470,500
     Patent costs - net                               581,100        984,000
     Goodwill - net                                 1,352,500             --
     Other amortizable assets - net                   879,500        455,400
     Other assets                                     377,000        654,400
                                                   $8,996,800      8,110,200
 
     Liabilities and Stockholders' Equity (Deficit)
     Current liabilities:
     Amounts payable to related party                     $--       $256,100
     Current portion of notes payable               2,963,200             --
     Due to factor                                    184,300             --
     Accounts payable and accrued expenses:                               --
      Attorneys and accountants                       458,900        394,600
      Consultants                                     141,700        119,100
      Trade                                         1,195,200        240,000
       Total current liabilities                    4,943,300      1,009,800
 
     Long-term debt:
     Senior convertible debentures                         --      4,165,800
     Accrued interest on senior
      convertible debentures                               --        495,800
     Amount payable for purchase of Gordon            653,000             --
                                                      653,000      4,661,600
       Total liabilities                            5,596,300      5,671,400
 
     Commitments and contingencies
     Redeemable preferred stock:
     Class A, par value $.01 per share:
      Authorized - 1,400,000 shares;
       issued and outstanding; 1,380,000 shares
        at par and redemption value                    13,800         13,800
     Class B, Series 2 convertible
      preferred stock, no par value:
     Authorized - 10,000,000 shares; issued
      and outstanding 40,000 shares
       in 1999 - $115 redemption value                     --      2,928,700
                                                       13,800      2,942,500
     Stockholders' equity (deficit):
     Preferred stock                               11,510,800             --
     Common stock, par value $.001 per share:
     Authorized - 50,000,000 shares; issued
      and outstanding - 19,033,308 (2000)
       and 15,539,117 (1999) shares                    19,100         15,500
     Capital in excess of par value                45,934,400     34,062,000
     Accumulated deficit                         (54,077,600)   (34,581,200)
     Total stockholders' equity (deficit)           3,386,700      (503,700)
                                                   $8,996,800     $8,110,200
 
 SOURCE  Chromatics Color Sciences International, Inc.