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Medipattern Reports Highlights and Results for Q3 2012

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TORONTO, ONTARIO, May 30, 2012 (MARKETWIRE via COMTEX) —
The Medipattern Corporation


/quotes/zigman/377611 CA:MKI
-1.72%



(“Medipattern” or
the “Company”) is pleased to report third quarter highlights and
results from the Company’s 2012 financial year, to March 31,
2012.



        
        HIGHLIGHTS FOR THE QUARTER:
        --  Installed Visualize:Vascular(TM) in 23 facilities which have a combined
            total of 154 sites;
        --  Established that average reimbursement across market segment (surgeons,
            radiologists, cardiologists and primary care physicians) is consistent
            with CMS (Medicare) fee schedule for all major payers;
        --  Increased scanning volumes month over month (January (17), February (83)
            and March (248));
        --  Expanded sales into mobile diagnostic providers with multiple customers;
        --  Continued Visualize:Vascular roll out expanding to the Southeastern
            United States;
        --  Reinforced clinical performance with case study showing that
            Visualize:Vascular correctly identified patients with severe Stenosis
            that Doppler ultrasound technology did not find. Visualize:Vascular
            correlated to magnetic resonance angiography (MRA) and surgical
            findings;
        --  Subsequent to the end of the quarter, Medipattern announced that it had
            signed a binding letter agreement with MYTRAK(R) Health System Inc.
            ("MYTRAK") to combine their technologies and launch a new personalized
            mobile health business called MyTrak Personal Health Solutions, focusing
            on monitoring physical activity for the management of Metabolic Syndrome
            by leveraging MYTRAK's proven wearable mobile technology platform to
            complement its core proprietary cardiovascular visualization and image
            analysis business.
        
        


“Key milestones were met in the vascular product line during the third
quarter. Daily clinical use in the diagnostic imaging market of
Visualize:Vascular is confirming that the product is medically
beneficial, easy to use and cost effective in practice. We are
extremely pleased with the growing acceptance of the product and the
continued ramp up in installations and scanning volumes,” stated Jeff
Collins, CEO of Medipattern. “Our increased exposure to the vascular
market and cardiologists has created new opportunities for
Medipattern, like the recently announced MyTrak Personal Health
Solutions product, which addresses external patient monitoring
requirements that are not being adequately addressed in the market.
We expect that the new product we are developing utilizing MyTrak
Health Solutions proprietary technology will be readily accepted and
fill a significant void in the patient wellness space, as well as
create a significant new revenue stream for Medipattern. The
potential for the Company’s product offering in both the diagnostic
imaging market and the patient wellness market is very strong and the
Company is positioned well in both markets.”



        
        Financial Summary for Q3 Fiscal 2012:
        --  Revenue totaled $11,734 (Q3 2011 - $57,929) for the fiscal quarter ended
            March 31, 2012, an overall decrease of 79.7%, while nine month fiscal
            revenues declined to $25,715, a 77.3% drop from last years' nine month
            total of $113,102. Subscription rental fees for both
            Visualize:Vascular(TM) and B-CAD-FOR-LIFE(TM) accounted for all Q3 2012
            quarterly revenue (Q3 2011 - $6,647) as the Company continued to focus
            its core RD resources and marketing expertise on meeting its deadlines
            for completion of final development and commercialization of its new
            vascular software Visualize:Vascular(TM) which was rolled out on a
            limited basis in June 2011. Consequently, in Q3 2012, the Company
            generated no licensing revenue or professional fees (Q3 2011 - $23,105
            in licensing fees and $28,177 in professional fees). For the nine month
            period ended March 31, 2012 subscription rental fees of $25,715 also
            accounted for all revenue (2011 - $36,334) while $48,591 of licensing
            fees and $48,591 of ancillary professional fees were earned in the
            similar nine month period of fiscal 2011.
        --  Non-interest operating expenses in Q3 2012 totaled $600,330 versus
            $516,794 in Q3 2011, an overall increase of 16.1%. For the nine months
            ended March 31, 2012 operating expenses totaled $1,870,797 compared to
            $1,630,785, a 14.7% increase. Despite modest increases in RD expenses
            associated with the final development of Visualize:Vascular(TM), and
            higher professional fees incurred with securing the Company's patents
            and conversion to IFRS, the Company remains committed to controlling all
            discretionary spending until operating cash flow improves in response to
            its ongoing commercialization of its award winning software products.
        --  Total interest expense (including accreted interest on Convertible Debt)
            for Q3 2012 increased 154.9% to $186,970 (Q3 2011 - $73,351) as a result
            of a late Q3 fiscal 2011 Convertible Debt financing with its associated
            accredit interest, and the end of the Notes interest-free period at
            December 31, 2011. For the nine months ended March 31, 2012 interest
            expenses amounted to $428,608, compared to $185,778 for fiscal 2011, a
            130.8% increase.
        --  In Q3 2012 the Company also recorded a fair value, non-cash gain on
            embedded conversion options in its 2010 Convertible Notes of $42,705 (Q3
            2011 - $2,524,126 loss) with a similar gain for the nine month period of
            $1,400,499 in 2012 versus a loss of $2,443,700 in fiscal 2011. These
            fiscal 2012 gains represent a reversal of losses recorded by the Company
            in previous fiscal periods as a result of its conversion to IFRS and are
            highly sensitive to the Company's share price.
        --  Resulting net loss for Q3 2012 was $742,953 ($0.01 per share basic and
            diluted) versus a loss of $3,055,069 ($0.05 per share basic and diluted)
            for Q3 2011. For the nine months ended March 31, 2012 the Company
            reported a net loss of $870,656 ($0.02 per share basic and diluted)
            versus a loss of $4,148,152 ($0.07 per share basic and diluted) for the
            similar nine month period of fiscal 2011.
        --  As at March 31, 2012, cash and cash equivalents totaled $230,654 (June
            30, 2011 - $201,703), current assets, including highly liquid short-term
            investments of $750,752 (June 30, 2011 - $2,567,619), were $1,490,128
            (June 30, 2011 - $3,313,658) and current liabilities were $401,467 (June
            30, 2011 - $352,104). Working capital at March 31, 2012 totaled
            $1,088,661 (June 30, 2011 - $2,961,554). At May 29, 2012, the Company
            estimates working capital at $625,000.
        Results of Operations (note 1):
        THE MEDIPATTERN CORPORATION
        UNAUDITED STATEMENT OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)
        FOR THE THREE and NINE MONTHS ENDED MARCH 31, 2012 AND 2011
        ---------------------------------------------------------------------------
                             Three Months  Three Months   Nine Months   Nine Months
                                    Ended         Ended         Ended         Ended
                                 March 31,     March 31,     March 31,     March 31,
                                     2012          2011          2012          2011
                             ------------------------------------------------------
                               (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
        Revenues
          Licensing fees     $          -  $     23,105  $          -  $     48,591
          Professional fees             -        28,177             -        28,177
          Subscription
           rental fees             11,734         6,647        25,715        36,334
                             ------------------------------------------------------
                                   11,734        57,929        25,715       113,102
                             ------------------------------------------------------
        Expenses
          Research and
           development            283,575       231,263       788,503       695,046
          Administration and
           product support        205,367       179,381       745,074       606,664
          Sales and
           marketing              102,035        97,633       310,280       303,525
          Interest on
           convertible debt       112,440        47,565       212,325       131,842
          Accretion of
           interest on
           convertible debt        74,530        25,787       216,282        53,937
          Loss (gain) on
           convertible debt
           conversion option
           (1)                    (42,705)    2,524,126    (1,400,499)    2,443,700
          Foreign exchange
           loss                    12,981         1,684        15,479         8,957
          Investment income        (2,889)       (2,957)      (18,013)       (7,965)
          Depreciation of
           property and
           equipment                9,353         8,516        26,940        25,548
                             ------------------------------------------------------
                                  754,687     3,112,997       896,371     4,261,255
                             ------------------------------------------------------
        Net Loss and Total
         Comprehensive Loss  $   (742,953) $ (3,055,068) $   (870,656) $ (4,148,152)
                             ------------------------------------------------------
        Loss Per Share -
         Basic and Diluted   $      (0.01) $      (0.05) $      (0.02) $      (0.07)
                             ------------------------------------------------------
        Weighted Average
         Number of Common
         Shares Outstanding    57,404,579    57,181,233    57,404,579    57,181,233
                             ------------------------------------------------------
        (1)  The non-cash gain on the convertible debt conversion option represents
             the reversal of significant prior fiscal period losses booked in
             conjunction with the Company's conversion to IFRS and as outlined in
             further detail in note 5 to the accompanying condensed unaudited
             interim financial statements.
        
        


For further details concerning Medipattern’s results, please see the
Company’s filings on SEDAR (
www.sedar.com ).



        
        Upcoming Events
        Annual Meeting - MHA          June 6 - 7, 2012 Brewster, MA
        SVU/SVS Annual Conference     June 7 - 9, 2012 Baltimore, MD
        
        


About the Medipattern Corporation:

Medipattern(R) is a pioneer in the development of imaging software
solutions that help medical practitioners to better understand
lesions and critical anatomy. Medipattern uses its Cadenza(TM)
technology to process images, finding the salient region of interest
and presenting them in 2D and 3D formats that enhance the reader’s
perception. For more information, please visit the Company’s website:

www.medipattern.com .

Medipattern(R) and B-CAD(R) are registered marks of The Medipattern
Corporation. Visualize:Vascular(TM) is a trademark of the Medipattern
Corporation.

Forward-looking statements

This document contains forward-looking statements relating to
Medipattern’s performance, operations, or business environment. These
statements are based on what we believe are reasonable assumptions
given currently available information and our understanding of
Medipattern’s current activities. We have tried, whenever possible,
to identify these forward-looking statements using words such as
“anticipates”, “believes”, “estimates”, “expects”, “plans”,
“intends”, “potential”, and similar expressions. Forward-looking
statements are not guarantees of future performance and involve risks
and uncertainties that are difficult to predict or control. A number
of factors could cause actual outcomes and results to differ
materially from those expressed in forward-looking statements. These
factors include but are not limited to those set forth in the
Company’s corporate filings (posted at
www.sedar.com ). In addition,
these forward-looking statements relate to the date on which they are
made. The Company disclaims any intention or obligation to update or
revise any forward-looking statements for any reason. Readers should
not rely on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.



        
        Contacts:
        The Medipattern Corporation
        Jeff Collins
        CEO
        (416) 744-0009 ext. 224
        jcollins@medipattern.com
 
www.medipattern.com            
        Spinnaker Capital Markets Inc.
        Kevin O'Connor
        (416) 962-3300 ext. 226
        ko@spinnakercmi.com
        
        
        


SOURCE: The Medipattern Corporation



        mailto:jcollins@medipattern.com
 
http://www.medipattern.com            mailto:ko@spinnakercmi.com
        


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About the Author:

Paul Khunkhun, serving Southern California since 1998. Paul is the owner of MDIS. He is a Board Certified Ultrasound Sonographer with RDCS and RVT credentialing. He is also pending ICAEL accreditation.

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