Exhibit 99.1
For immediate release
COMPETITIVE TECHNOLOGIES ANNOUNCES TRANSITIONAL FINANCIAL REPORT FOR PERIOD
ENDED DECEMBER 31, 2010
FAIRFIELD, CT - (FEBRUARY 22, 2011) - Competitive Technologies, Inc. (OTCQX:
CTTC) today announced that it has changed to calendar year financial reporting
and has issued the financial report for the transitional period November and
December 2010. This transitional report reflects that the Company has (a)
negotiated an exit from the 11,000 square foot office space including paying all
back rents, (b) moved the headquarters office to a new 2,700 square foot
location in Fairfield, CT, (c) brought current all outstanding payables, (d)
reviewed for collection or write-off all receivables, (e) raised additional
capital, and (f) completed a review and replacement of International
distribution contracts. These actions provide the Company a lower cost base for
2011 operations.
The Company issued a $750,000 convertible preferred stock to replenish the
Company's operating cash which had been drawn down by the $750,000 cash
collateral previously posted in a prejudgment remedy action brought by a former
CEO. Because of the convertible feature of this preferred stock, it is treated
in the financial statements as a derivative liability under GAAP reporting.
The results for the two-month transitional period show total expenses of $1.4
million, including bad debt expenses of $0.4 million and restructuring charges
of $0.3 million, and an accrued preferred stock dividend of $0.1 million.
Revenue for the period was $0.1 million and the net loss for shareholders of the
common stock was $1.4 million. The expenses for the three-month period ending
January 31, 2010 were $1.0 million and revenue was $0.3 million producing a net
loss of $0.7 million.
"We believe the active sales program and lower expenses will produce
profitability throughout 2011. At the same time the restructuring changes were
being made, the sales and marketing teams were successful in establishing a
series of Calmare medical device sales in the US for the first quarter 2011.
Also, new international customers have purchased ten devices in the first
quarter of 2011. Progress is being made toward obtaining insurance
reimbursement codes. The sales activity for the military programs has been
accelerated into seven military locations. This Company is moving forward with a
great Calmare medical device from Professor Marineo, manufactured by GEOMC and
a dedicated staff of employees, consultants and the sales group," said Johnnie
D. Johnson, CEO.
ABOUT COMPETITIVE TECHNOLOGIES
Competitive Technologies, established in 1968, provides distribution, patent and
technology transfer, sales and licensing services focused on the needs of its
customers and matching those requirements with commercially viable product or
technology solutions. CTTC is a global leader in identifying, developing and
commercializing innovative products and technologies. CTTC's principal
technology is the non-invasive Calmare pain therapy medical device, which uses
the biophysical "Scrambler Therapy" technology, and was developed in Italy by
CTTC's client, Professor Giuseppe Marineo. The Calmare device is currently
being manufactured for sale by CTTC's partner, GEOMC Co., Ltd. of Seoul, Korea.
For more information on the device, visit www.calmarett.com. Visit CTTC's
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website: www.competitivetech.net
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Statements made about our future expectations are forward-looking statements and
subject to risks and uncertainties as described in our most recent Annual Report
on Form 10-K for the year ended July 31, 2010, filed with the SEC on October 27,
2010, and other filings with the SEC, and are subject to change at any time. Our
actual results could differ materially from these forward-looking statements. We
undertake no obligation to update publicly any forward-looking statement.
Direct inquiries to: Jean Wilczynski, IR Services, LLC
(860.434.2465/info@corpirservices.com)
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COMPETITIVE TECHNOLOGIES, INC.
TWO AND FIVE MONTHS ENDED DECEMBER 31, 2010
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts) (unaudited)
Two months ended Three months ended Five months ended Six months ended
December 31, 2010 January 31, 2010 December 31, 2010 January 31, 2010
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Revenue $ 68 $ 268 $ 188 $ 412
Operating expenses 1,381 1,013 2,595 1,913
Provision for income tax - - - -
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Net (loss) $ (1,313) $ (745) $ (2,407) $ (1,501)
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Preferred stock dividend 132 - 132 -
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Net (loss) attributable
to common shareholders: $ (1,445) $ (745) $ (2,540) $ (1,501)
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Net (loss) per share
Basic and diluted $ (0.11) $ (0.07) $ (0.18) $ (0.15)
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Weighted average number of
common shares outstanding:
Basic and diluted (000) 13,825 10,526 13,825 10,206
OTHER FINANCIAL DATA At December 31, 2010 At July 31, 2010
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Cash and cash equivalents
$ 557 $ 907
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Restricted cash $ 750 $ -
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Total Assets $ 3,196 $ 4,950
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Total liabilities $ 2,544 $ 2,341
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Shareholders' equity $ 651 $ 2,609
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