Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jay Harris - Goldsmith & Harris.
Jay Harris - Goldsmith & Harris
Alan, could you give us some additional numbers, operating cash flow for the quarter, capital expenditures, and non-cash charges to net income.
Alan Levy
Our normal non-cash charges are pretty much in line with the prior, which would be depreciation and change in our deferred tax asset. Stock based compensation for the quarter was $286,000 versus $244,000 last quarter. Cash provided by operating activities for this quarter is $459,000 versus $429,000 last quarter. CapEx was about $70,000, which was a combination of we had bought a bunch of new trade show display exhibits and additional computer equipment for the new hires that the company has taken on.
Jay Harris - Goldsmith & Harris
What is the market size, Frank, for the UTI-Stat opportunity in the U.S.?
Frank A. Newman
It is an underexploited category and there is no directly competitive product, but the techniques that are used to variarate this ailment, or as a prophylactic for UTIs, tend to be widespread use of cranberry juice in nursing homes which has been shown to be somewhat effective in that regard, and the use of cranberry supplement tablets.
So, obviously the cranberry juice market is a huge one but I think that would probably be overstating the market opportunity for us. The cranberry tablet market is something in the $20 million range, but I think that clearly understates market potential because it’s a difficult product to take, and its efficacy is not as great as that of UTI-Stat.
I think we will create a market as much as replace existing products in that market, Jay. So it’s difficult to come up with an existing market size for you. If you were to include cranberry juice, it would be obviously $100s of millions, but that would be overstating.
Gary Giblen - Goldsmith & Harris
Has there been any competitive response to your price decreases when they were implemented?
Frank A. Newman
There has been some, not significant. We are, as I think we talked about in the last conference call, we've really positioned ourselves with a very competitive price, which makes it more difficult for our competitors to gain share. We have seen them reacting with some one-off deals, as nearly as we can determine. But overall, we’re extremely pleased with user reaction to our new pricing.
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