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
https://www.medipattern.com mailto:ko@spinnakercmi.com
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