 SOUTH ORANGE, NJ, Aug. 05, 2020 GLOBE NEWSWIRE -- Net Revenue down 32 due to COVID-19 Interruptionsvia NEWMEDIAWIRE -- Nephros, Inc. Nasdaq:NEPH, a commercial-stage company that develops and sells high performance water purification products and pathogen detection systems to the medical and commercial markets, today announced financial results for the three months ended June 30, 2020. Financial HighlightsWater Filtration Business Segment Highlights Net revenue was 1.6 million, down 32 compared with 2.3 million in 2019 Net loss was 0.9 million, compared with 0.3 million in 2019 Adjusted EBITDA was 0.7 million, compared with breakeven in 2019Consolidated Highlights Net revenue was 1.6 million, down 32 compared with 2.3 million in 2019 Net loss was 1.7 million, compared with 0.9 million in 2019 Adjusted EBITDA was 1.4 million compared with 0.5 million in 2019While COVID-19 broke our streak of 15 quarters of year-over-year growth, we remain optimistic about our growth prospects, said Daron Evans, President and CEO. We have already seen some strengthening of the market in early Q3, and we hope to see a return to revenue growth soon, as the pandemic evolves from an all-hands-on-deck emergency to a new normal background issue.Mr. Evans continued, During the relatively slower second quarter, our team focused on building new capabilities, including the acceleration and release of our SequaPathTM product and our recently published study of water in buildings affected by COVID-19-related shutdowns. In the near future, we will also release DialyPathTM, our real-time test for dialysis clinics that will detect and quantify endotoxin-producing Gram-negative bacteria.Consolidated Financial Performance for the Quarter Ended June 30, 2020Net revenue for the quarter ended June 30, 2020 was 1.6 million, compared with 2.3 million in 2019, a decrease of 32.Net loss for the quarter ended June 30, 2020 was 1.7 million, compared with a net loss of 0.9 million in 2019 an increase of 76.Adjusted EBITDA for the quarter ended June 30, 2020 was 1.4 million, compared with 0.5 million in 2019.Cost of goods sold for the quarter ended June 30, 2020 was 0.7 million, compared with 0.9 million in 2019, a decrease of 28. Gross margins for the quarter ended June 30, 2020 were 57, compared with 59 in 2019. Management expects future gross margins to continue in the range of 55 to 60.Research and development expenses for the quarter ended June 30, 2020 were 0.84 million, compared with 0.80 million in 2019, an increase of 5.Depreciation and amortization expenses for the quarter ended June 30, 2020 were approximately 47,000, compared with approximately 48,000 in 2019, a decrease of 2.Selling, general and administrative expenses for the quarter ended June 30, 2020 were 1.6 million, compared with 1.4 million in 2019, an increase of 15.As of June 30, 2020, Nephros had cash and cash equivalents of 7.0 million.Adjusted EBITDA Definition and Reconciliation to GAAP Financial MeasuresAdjusted EBITDA is calculated by taking net loss income calculated in accordance with generally accepted accounting principles GAAP and excluding all interest-related expenses and income, tax-related expenses and income, non-recurring expenses and income, and non-cash items, including depreciation and amortization and non-cash compensation. The following table presents a reconciliation of Adjusted EBITDA to net loss income, the most directly comparable GAAP financial measure, for the second quarter of the 2020 and 2019 fiscal years for both Nephros on a consolidated basis and the Water Filtration Business Segment: 3 Months Ended Jun 30, Water Filtration Business Segment20202019 Net loss911408 Adjustments: Depreciation of property and equipment68 Amortization of other assets4544 Interest expense3046 Noncash interest expense-- Interest income4- Change in fair value of contingent consideration-9 Noncash compensation166150 Other noncash items1231 Nonrecurring: Biocon Pathogen Detection-150 Adjusted EBITDA65612 3 Months Ended Jun 30, Consolidated Results20202019 Net loss1,657942 Adjustments: Depreciation of property and equipment68 Amortization of other assets4544 Interest expense3046 Noncash interest expense-- Interest Income4- Change in fair value of contingent consideration-9 Noncash compensation179150 Other noncash items1231 Nonrecurring: Biocon Pathogen Detection-150 Adjusted EBITDA1,389522 Nephros believes that Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to Nephross financial condition and results of operations. Management does not consider Adjusted EBITDA in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recognized in Nephross consolidated financial statements. In addition, Adjusted EBITDA is subject to inherent limitations as it reflects the exercise of judgments by management about which expenses and income are excluded or included in determining Adjusted EBITDA. In order to compensate for these limitations, management presents Adjusted EBITDA in connection with net loss income, the most directly comparable GAAP financial measure. Nephros urges investors to review the reconciliation of Adjusted EBITDA to net loss income and not to rely on any single financial measure to evaluate the business.Conference Call Today at 4:30 p.m. ETNephros will host a conference call today at 4:30 PM Eastern Time, during which management will discuss Nephross financial results and provide a general business overview.Participants may dial into the following number to access the call: 1-844-808-7106.International callers may use 1-412-317-5285. Please ask to be joined into the Nephros conference call. A replay of the call can be accessed until August 12, 2020 at 1-877-344-7529or 1-412-317-0088for international callers and entering replay access code: 10144283. An audio archive of the call will be available shortly after the call on the Nephros investor relations page at NephrosNephros is a commercial-stagecompany that develops and markets high-performance water purification products and pathogen detection systems for medical and commercial markets.Nephros ultrafilters are used in hospitals, medical clinics, and commercial facilities to retain bacteria and viruses from water, providing barriers that aid in infection control for showers, sinks, and ice machines. Nephros ultrafilters are also used in dialysis centers to aid in the removal of endotoxins and other biological contaminants from water and bicarbonate concentrate in hemodialysis machines. Nephros pathogen detection systems, including thePluraPathand SequaPathsystems, provide near-real time information on bacterial genera, waterborne bacteria, and viruses to medical and water safety professionals. These products integrate Nephros ultrafilters with DNA sequencing and quantitative polymerase chain reaction qPCR technology.Nephros commercial filters, including AETHERTM brand filters, improve the taste and odor of water, and reduce scale build-up in downstream equipment. Nephros and AETHER products are used in the health care, food service, hospitality, and convenience store markets.For more information about Nephros, please visit its website at StatementsThis release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the potential for further growth and the expected growth in medical, commercial and industrial filter sales, managements expectations regarding future gross margins, Nephross ability to respond to outbreaks in water borne pathogens and other statements that are not historical facts, including statements which may be accompanied by the words intends, may, will, plans, expects, anticipates, projects, predicts, estimates, aims, believes, hopes, potential or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including the impact of Covid-19, uncertainty in clinical outcomes, potential delays in the regulatory approval process, changes in business, economic and competitive conditions, the availability of capital when needed, dependence on third-party manufacturers and researchers, regulatory reforms, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Nephross reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019. Nephros does not undertake any responsibility to update the forward-looking statements in this release.Contacts:Investor Relations Kirin Smith, President PCG Advisory, Inc. 646 863-6519 Relations: Bill Douglass Gotham Communications, LLC 646 504-0890 Andy Astor, COO CFO Nephros, Inc. 201 345-0824 INC. 