Tribute Pharmaceuticals Canada Inc. (fka TBUFF)

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Gross Profit and Cost of Sales

Gross profit for the three month period ended March 31, 2014 was $1,734,600, higher by 3.5%, or $58,700 compared to the same period in the prior year. Underlying improvements in gross profit for the three month period ended March 31, 2014 were due to additional gross profit of $258,200 from licensed domestic product net sales. Serving as a partial offset was a decrease in gross profit from other domestic product sales and international product sales of $119,800 and from royalty and licensing revenue of $79,600. Excluding gross profit associated with the Cambia ® initial buy-in in the first quarter of 2013, the adjusted gross profit in that period was $1,174,200. This represents an increase in the gross profit of $560,500 or 47.7% for first quarter of 2014 compared to the same period in the prior year.