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Nephros Reports Third Quarter 2013 Financial Results and Completes Bridge Financing
Date:11/14/2013

RIVER EDGE, N.J., Nov. 14, 2013 /PRNewswire/ -- Nephros, Inc. (OTC Bulletin Board: NEPH), a commercial stage medical device company that develops and sells high performance liquid purification ultrafilters, announced today financial results for the three and nine months ended September 30th 2013 and that the company entered into a bridge loan and security agreement with Lambda Investors LLC, an affiliate of Wexford Capital LP and the company's largest shareholder.

Financial Performance for the Third Quarter Ended September 30, 2013
Total net revenues for the three months ended September 30, 2013 were approximately $418,000 compared to approximately $604,000 for the three months ended September 30, 2012.  Total net revenues decreased by approximately $186,000, or 31%.  Overall, the key business segments of dialysis water and hospital water revenue increased by approximately $45,000 for the three months ended September 30, 2013.  There were no Military sales in the three months ended September 30, 2013 as compared with $114,000 of Military sales in the same period in 2012, in addition to which approximately $127,000 of anticipated sales credits are recorded to reflect the impact of a voluntary product recall of point of use filters (POU) announced on October 30, 2013. The overall product revenue decrease of $196,000, or 45%, is offset partially by an increase of approximately $10,000 as a result of increased licensing revenue related to the Bellco license agreement.

Total operating expenses for the quarter ended September 30, 2013 were $837,000 compared with $1,266,000 for the quarter ended September 30, 2012. The decrease was primarily driven by decreases in legal, accounting and professional services fees as well as personnel costs during the quarter ended September 30, 2013 compared to the quarter ended September
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