Mera reduces quarterly loss

This email address is being protected from spambots. You need JavaScript enabled to view it.”>By Dave Segal


Mera Pharmaceuticals Inc., a producer of human nutritional products out of microalgae, narrowed its loss in the 2009 fiscal fourth quarter but warned that it expects to continue to incur smaller operating losses for the 2010 fiscal year.

The Kona-based company lost $100,410 in the three-month period ended Oct. 31, 2009, versus a loss of $1.8 million in the year-ago period, according to a filing Wednesday with the Securities and Exchange Commission. Revenue fell 36.5 percent to $98,179 from $154,657.

For the year, Mera pared its loss to $192,878 from $1.9 million while its revenue decreased 1.8 percent to $599,091 from $609,984. The revenue was generated principally through direct sales and a technical service contract which expired during June 2009.

In November, Mera reached an agreement with an entity created by some members of its board that involved the bulk purchase of Kona Deep Sea Salt from unsold inventory at a price of $7.25 per kilogram. The company estimates its direct cost for this material is approximately $5 per kilogram.

“The purpose of this transaction is… to provide cash flow needed to maintain and grow operations so that the company is able to produce enough Kona Deep Sea Salt to market and sell outside of Hawaii,” Mera said.