Cereplast, Inc. reported unaudited consolidated financial results for the third quarter and nine months ended Sep. 30, 2013. For the quarter, net sales were $436,000 against $477,000 for the same period of last year. Operating loss was $1,702,000 against $6,958,000 for the same period of last year. Loss before provision for income taxes was $7,271,000 against $9,968,000 for the same period of last year. Net loss was $7,271,000 against $9,968,000 for the same period of last year. Net loss per basic and diluted share was $0.01 against $0.40 for the same period of last year. Revenue did not increase for the quarter as a direct result of the current confusion created by the hold on the Italian legislation requested by the European Community.

The company announced $2.1 million in revenue during the first nine months of 2013 compared to $786,000 for the same period the prior year and a total of $911,000 for the 2012 full year. Net sales for the nine months ended September 30, 2013 were approximately $2.1 million, compared to $0.8 million in the same period in 2012. Sales increased from the prior year due to growing demand in European markets primarily due to anticipated legislation in Italy banning traditional plastic bags. Net loss for the nine months ended September 30, 2013 was $34 million, as compared to $16.3 million in the same period in 2012. The increase in net loss was primarily driven by an increase in Other Expense related to financing transactions. The increase in net loss was partially offset by a decrease in bad debt expense recorded in the first nine months of 2013 compared to the first nine months of 2012. Operating loss was $4,386,000 against $10,980,000 for the same period of last year. Loss before provision for income taxes was $34,039,000 against $16,275,000 for the same period of last year. Net loss per basic and diluted share was $0.07 against $0.77 for the same period of last year. Net cash used in operating activities was $2,293,000 against $4,269,000 for the same period of last year. Purchase of property and equipment, and intangibles was $3,000 against $180,000 for the same period of last year. The increase in its net loss for 2013 primarily attributable by an increase in non-cash expenses or other income and expense offset by an improvement in its operating margin.

The company recorded a non-cash asset impairment charge of $547,000 for the third quarter of 2013 to adjust the carrying value of its facility in Italy to offset its outstanding mortgage.

Based on its current trend, the company should be able to reach cash flow breakeven for operations, as soon as it will reach its run rate of about $1 million a month, a number that it is hopeful it should reach in 2014.