Medipattern Reports Highlights and Results for Q1 2013
TORONTO, ONTARIO, Nov 30, 2012 (Menafn - Marketwire via COMTEX) --Attention: Business/Financial Editors
The Medipattern Corporation ("Medipattern" or "Company") , is pleased to report first quarter highlights and results of operations from the Company's 2013 financial year, to September 30, 2012.
HIGHLIGHTS FOR THE QUARTER:
--Increased Visualize: Vascular(TM) customer base to a total of 46
customers which provide services in a combined total of 272 sites.
--Processed 1,243 cases in the quarter.
--Completed the acquisition of Mytrak Health Systems Inc.'s Mobile
Technology Business Unit ("mHealth division") in conjunction with a 1.8
million financing.
"The customer base for our vascular product line continues to grow. We are refining the installation and training to streamline our start up process for Visualize: Vascular(TM) customers. We have implemented a cloud based system for delivery of medical images and reports for our customers so we can begin to scale the solution as we anticipate increased scanning volume. This new delivery system will enable our customers to begin to increase their volumes as we transition many of them from pre-revenue test scanning to contracted primary workload cases," stated Jeff Collins, CEO of The Medipattern Corporation. "The company also introduced its wearable mobile health device, SMARTCOACH(TM), into its Visualize: Vascular(TM) customer base. The medical community appreciates the device's ability to highlight heart activity and monitor the intensity of physical activity. Zwanger-Pesiri Radiology is utilizing SMARTCOACH(TM) as a method to encourage all 600 of their employees to meet their individual wellness goals, emphasizing that the entire organization benefits when the team is in good health."
"A new case study shows that Visualize: Vascular(TM) improved the Physician's ability to better identify those patients at risk to stroke," Collins stated. "The paper was presented at the Annual Meeting of the Society of Radiologists in Ultrasound, a division of the American College of Radiology. The paper shows that Visualize's 3D rendering results have a greater than 99% correlation to Magnetic Resonance Angiography (MRA). Each case was run with the standard of care: Carotid Ultrasound and MRA, and then with Visualize. Angiography is the gold standard for determining vascular integrity. The study shows that the standard of care Carotid Ultrasound only agreed with MRA 75% of the time. Using Visualize's 3D with Carotid Ultrasound improved diagnostic accuracy to the same level as angiography, bringing the accuracy of angiography to ultrasound. Clinical results continue to strongly substantiate the benefits of our vascular product line."
Collins continues, "Medipattern is positioned well to continue growing its vascular product line and increase delivery of its mHealth division products through this channel."
Financial Highlights for Q1 Fiscal 2013:
--Revenue totaled 100,743 for the three month period ended September 30,
2012 (Q1 Fiscal 2013) versus 6,504 for Q1 Fiscal 2012. Of the 94,239
increase, device and accessories sales from the new mHealth division
accounted for 76,399, subscription fees for Visualize: Vascular(TM), B-
CAD-FOR-LIFE(TM) and SMARTCOACH(TM) accounted for 14,344 and 10,000
from the sale of B-CAD(r) licenses. Throughout Q1 2013 the Company
continued to focus its core R&D resources and marketing expertise on
meeting its iaHealth division deadlines for final commercialization of
its Visualize: Vascular(TM) software, while improving the customer user
experience and device interface on its mHealth division technology
platform. As a consequence, no licensing or professional fees were
earned in the quarter (Q1 2012 - nil);
--Non-interest operating expenses in Q1 Fiscal 2013 totaled 1,291,287
versus 581,029 for Q1 Fiscal 2012, an overall increase of 122%. Of the
710,258 increase, 403,492 was attributable to the addition of the new
mHealth division, while related acquisition costs, increased patent fees
and higher share-based compensation accounted for the balance of the
increased expenses. The Company remains committed to controlling all
discretionary non-interest spending until operating cash flow improves
and new financing is arranged;
--Total interest expense (including accreted interest on Convertible Debt)
for Q1 Fiscal 2013 increased 68% to 201,279 (Q1 2012 - 120,097) as a
result of the commencement of 8% interest due on certain Convertible
Notes starting on January 1, 2012;
--In Q1 Fiscal 2013 the Company also recorded 2 significant non-cash
items; one, a fair value gain on embedded conversion options in its 2010
Convertible Notes of 619,765 (Q1 - 2012 - 39,287) and two, a goodwill
impairment provision on its recently acquired mHealth division of
1,764,584;
--Resulting net loss for Q1 Fiscal 2013 was 2,549,663 (0.03 per share)
versus 653,096 (0.01 per share) for Q1 fiscal 2012;
--As at September 30, 2012, cash totaled 238,733 (June 30, 2012 -
348,732), current assets, including short-term investments of 272,689
(June 30, 2012 - 271,665), were 1,549,431 (June 30, 2012 - 870,989)
and current liabilities were 1,050,475 (June 30, 2012 - 355,636).
Working capital at September 30, 2012 totaled 498,956 (June 30, 2012 -
515,353), total assets totaled 3,108,838 (June 30, 2012 - 922,373)
and total liabilities were 6,814,934 (June 30, 2012 - 6,652,560).
Subsequent to September 30, 2012
--The Company initiated significant cost reduction initiatives to minimize
monthly cash expenses and allow available financial resources to focus
specifically on revenue generation. Included in these cash containment
measures is senior management's (including its NEO's) agreement to
receive no or reduced salaries until sufficient new liquidity is
achieved through either new capital financing or enhanced revenue
generation.
--November 7, 2012, the Company announced it had arranged a term debt
facility ('Facility") to provide up to 1,000,000 of working capital.
The Facility calls for advances to be made monthly to the Company,
initially for 100,000. The Notes will expire on June 30, 2013, and will
bear interest at 6% per annum. The Notes will be secured by a general
security agreement over all the assets of the Company, in priority to
all existing security interests granted by the Company. The closing of
the Facility and the initial 100,000 advance is subject to completion
of definitive agreements and TSX Venture Exchange approval. Medipattern
and its Board have agreed the holders of the Notes have the right to
appoint up to two representatives as directors of Medipattern's Board.
To date, this Facility has not closed and no funds have been advanced.
THE MEDIPATTERN CORPORATION
UNAUDITED CONDENSED STATEMENT OF OPERATIONS and COMPREHENSIVE LOSS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
----------------------------------------------------------------------------
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Three MonthsThree Months
EndedEnded
SeptemberSeptember
30,30,
20122011
---------------------------
---------------------------
Revenues
Devices and accessories76,399-
Licensing fees10,000-
Professional fees--
Subscription rental fees14,3446,504
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100,7436,504
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Expenses
Cost of Sales70,549-
Research and development331,273260,530
Administration and product support752,935209,910
Sales and marketing136,530110,589
Interest on convertible debt117,54749,943
Accretion of interest on convertible debt83,73270,154
Unrealized gain on convertible debt conversion
option(619,765)(39,287)
Goodwill impairment provision1,764,584-
Foreign exchange loss (gain)6,488(271)
Investment income(2,165)(9,762)
Depreciation of property and equipment8,6977,794
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2,650,406659,600
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Net loss and total comprehensive loss(2,549,663)(653,096)
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Loss per share - basic and diluted(0.03)(0.01)
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Weighted average number of common shares
outstanding75,286,46957,404,579
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About the Medipattern Corporation:
Medipattern(r) is the award-winning leader in the development and commercialization of healthcare solutions that positively impact people's lives through the prevention of disease and analysis of medical images and data. Medipattern's Knowledge-based Informatics (MKI) platform enables delivery of these streamlined solutions. Medipattern mHealth uses patented prevention technologies to engage, coach and monitor people in achieving their personalized goals. Medipattern iaHealth uses patented pattern recognition technology to analyze medical data to aid medical practitioners in the assessment of disease and critical anatomy. 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.
FOR FURTHER INFORMATION PLEASE CONTACT: The Medipattern CorporationJeff CollinsCEO(416) 744-0009 ext. 224jcollins@medipattern.comwww.medipattern.com
Spinnaker Capital Markets Inc. Kevin O'Connor (416) 962-3300 ext. 226 ko@spinnakercmi.com
SOURCE: The Medipattern Corporation
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