OTTAWA, Nov. 28, 2013 /CNW/ - Annidis Corporation (TSX Venture: RHA), today announced its results for the three and nine
month periods ended September 30, 2013. The unaudited condensed
consolidated financial statements for the three months ended September
30, 2013, and the related Management's Discussion and Analysis are
available at www.sedar.com.
Annidis Corporation developed and markets imaging technologies to eye
care professionals. The Annidis RHA™ instrument, which is based on
Multi-Spectral Imaging ("MSI"), assists eye-care professionals in
screening, diagnosing and managing ocular diseases by allowing them to
view non-invasively the deepest layers of the eye.
Subsequent to the quarter, Annidis closed its previously announced
$5,000,000 private placement with YIMAI Technology International
Company Limited ("YIMAI"). The proceeds from the financing will be used
to accelerate manufacturing and fulfill its committed orders.
Grew total committed orders to 34 as at September 30. These orders were
the result of the continued focus on large buying groups, with orders
originating from two American groups. The Company is now in a position
to fulfill its backorder position. It has currently scheduled
production runs for 125 units to fill current orders and anticipated
orders based on its extensive pipeline.
Continued negotiations with potential strategic partners regarding
various new opportunities and uses for the MSI technology.
Undertook two trials with its new RHA Platinum, with early results
demonstrating a significant improvement over traditional technology.
Introduced the new RHA Platinum device at the American Academy of
Ophthalmology in New Orleans in November.
Introduced the RHA device to the Chinese market at a tradeshow in China
with the support of YIMAI. The device is still pending CDFA approval
which the Company expects in Q3 2014. YIMAI has order an additional two
units for delivery in December 2013 to be used in clinical trials in
Key Financial Metrics
Net Income (loss)
Net Income (loss) per share
"With our $5M financing now completed we are poised to capitalize on our
industry first technology and growing distribution network," said
Gerald Slemko, CEO of Annidis. "We have quickly deployed the capital we
received in October and expect to have built and shipped sufficient
units to fulfill half of our committed orders by January 2014. With a
validated technology, cash on hand and a growing backlog, we are
looking forward to strong revenue growth in 2014."
Revenue was $255,096 and $746,963 for the three and nine months ended
September 30, 2013, compared to $192,397 and $660,683 for the same
period in 2012. The year-over-year increase in revenue is attributable
to higher sales in 2013, partly offset by lower rental revenue in
General and administrative expenses were $221,641 and $838,932 for the
three and nine months ended September 30, 2013, compared to $280,995
and $908,783 for the corresponding periods in 2012. Higher legal,
regulatory and other professional costs associated with the YIMAI
transaction were offset by a reduction in an accrual for royalties
based on a renegotiate agreement.
Research and development expenses were $221.677 and $656,497 for the
three and nine months ended September 30, 2013, compared with $214,649
and $546,789 for the same period in 2012. The change in expenses is
largely attributed to the development of new products together offset
by reduced legal costs on patents.
Net loss was $1,151,281 ($0.02 per share) and $3,241,303 ($0.05 per
share) for the three and nine months ended September 30, 2013, compared
to a loss of $900,988 ($0.01 per share) and $3,124,608 ($0.05 per
share) for the corresponding period in 2012. The change in net loss is
attributable to increased interest on the $3 million promissory note
financing and share-based compensation.
Cash used in operating activities was $765,908 and $2,041,254 for the
three and nine months ended September 30, 2013, compared to $552,952
and $1,826,117 for the corresponding period in 2012.
At September 30, 2013, the Company's working capital deficiency was
$4,769,207 compared to a working capital deficiency of $2,476,459 at
December 31, 2012. The Company's position is expected to improve as the
YIMAI financing is expected to provide the resources to grow the
revenue as additional devices are deployed.
At November 25, the Company's cash position was $3.0 million. Cash from
the common share financing was used to repay short term borrowings and
accrued interest, outstanding payables, financing costs and purchase
parts inventory for the current build.
About Annidis Corporation
Annidis (TSX-V: RHA) has developed and is marketing a new imaging
platform technology based on Multi-Spectral Imaging (MSI). This new
technology is opening a new frontier in disease identification and its
management. The Annidis MSI technology allows eye-care professionals to
view non-invasively the deepest areas of the eye aiding eye care
professionals in the early identification and treatment of debilitating
eye diseases. The Company's existing RHA 2020-U Gold, used by eye care
professionals as a broad based tool for detecting early-onset of eye
related diseases such as Dry AMD, has a potential market of over 20,000
clinics in North America. The RHA Platinum MD will further strengthen
the value proposition allowing doctors to visualize choroidal and
retinal vasculature non-invasively. The RHA Platinum MD has global
market potential of more than 100,000 Ophthalmologists.
This news release may contain "forward-looking information" within the
meaning of applicable Canadian securities legislation. Statements made
in this news release, other than those concerning historical financial
information, may be forward-looking and therefore subject to various
risks and uncertainties. The words "may", "will", "could", "should",
"would", "suspect", "outlook", "believe", "plan", "anticipate",
"estimate", "expect", "intend", "forecast", "objective", "hope", and
"continue" (or the negative thereof), and words and expressions of
similar import are intended to identify forward-looking statements.
Certain material factors or assumptions are implied in making
forward-looking statements and actual results may differ materially
from those expressed or implied in such statements. Factors that could
cause results to vary include those identified in the Corporation's
filings with Canadian securities regulatory authorities, as well as the
applicability of patents and proprietary technology; the outcome of
pending corporate transactions; possible patent ligation; regulatory
approval of products in development; changes in government regulation
or regulatory approval processes; government and third party
reimbursement; dependence on strategic partnerships; intensifying
competition; rapid technological change in the industry; anticipated
future losses; the ability to access capital; and the ability to
attract and retain key personnel. All forward-looking information
presented herein should be considered in conjunction with such
filings. Except as required by Canadian securities laws, the
Corporation does not undertake to update any forward-looking
statements; such statements speak only as of the date made.
Neither 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.
SOURCE: Annidis Corporation
For further information:
Gerald Slemko, CEO
(519) 858-1582 ext. 239
James Binckly, Investor Relations
(416) 815-0700 ext. 228