Annidis Corporation Reports 2014 Second Quarter Results

OTTAWA, Aug. 28, 2014 /CNW/ - Annidis Corporation (TSX Venture: RHA) ("Annidis" or the Company"), today announced its financial results for the three-month and six-month periods ended June 30, 2014. The unaudited condensed consolidated financial statements for the three and six months ended June 30, 2014, and the related Management's Discussion and Analysis are available at www.sedar.com.

Annidis Corporation develops and markets imaging technologies to eye care professionals. The Annidis RHA™ instruments, which are 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.

"The demand for our instruments continues to grow, however slower than we anticipated. We have reorganized our sales management and continue to invest heavily on our sales and marketing efforts," said Gerald Slemko, CEO of Annidis Corporation. "With our recent CFDA approval, and our strong partnership in China, we strongly believe that we are at the beginning of our accelerated growth phase. As the result, we are positioning ourselves to deliver on orders that we are expecting out of the Chinese market and buying groups we are working with in United States."

Highlights

  • During the second quarter of 2014, the Company sold seven units compared to one unit in the corresponding quarter of 2013.
  • Finalized development of the latest "Gold" model of our RHA instrument, which we started shipping in June. The new model incorporates a reduction in manufacturing costs in excess of 20%, as well as additional features, adding to the utility of the instrument.
  • Raised an additional $1 million of financing through a secured promissory note with YIMAI.
  • In July, the Company received China Food and Drug Administration (CFDA) approval for its RHATM Gold Multi-Spectral Imaging instrument to be sold to eye-care professionals in the Chinese market. The Company will be attending the major trade show in Xian, China in September with over 700 ophthalmologists expected to view the RHA instrument. 
  • Concurrent with receiving CFDA approval, Annidis received a purchase order for 20 RHA instruments from its Chinese distribution partner, YIMAI.
  • The Company continues to invest significantly in the sales and marketing efforts, building relationships with buying and support groups in the eye care space. This provides a forum to present to larger audiences and leverage the sales effort.
  • The Company's new RHA Platinum, targeting the ophthalmology market, is progressing well in clinical studies, and continues to show results that are significantly superior to traditional technology available in the market.
  • The Company continues to focus on building its back order position, thus moving towards profitability. The Company currently has confirmed orders for 46 instruments to be delivered over the next few quarters.
  • Annidis continues to negotiate with potential strategic partners regarding various new opportunities and uses for the MSI technology.

The Company believes that its technology is "leading edge" and has obtained endorsements of the product's capabilities from key opinion leaders in both the optometry and ophthalmology fields.

Key Financial Metrics

Q2 2014

Q2 2013

% Change

Installed Base (as at June 30)

60

36

+66.7%





Revenue

$ 532,982

$130,049

+309.8%

Net loss

$(1,362,492)

$(1,123,649)

-21.3%

Financial Highlights

  • Revenue grew by 310% to $532,982 for the three months ended June 30, 2014, compared to $130,049 for the same period in 2013.
  • Cost of sales was $345,280 for the three months ended June 30, 2014 compared to $101,009 for the same period in 2013.
  • General and administrative expenses were $335,338 for the three months ended June 30, 2014 compared to $326,550 for the corresponding period in 2013.
  • Research and development expenses were $329,425 for the three months ended June 30, 2014 compared with $222,522 for the same period in 2013.
  • Net loss was $1,362,492 ($0.02 per share) for the three months ended June 30, 2014 compared to a loss of $1,123,649 ($0.02 per share) for the corresponding period in 2013.
  • Net cash used in operating activities was $993,341 for the three months ended June 30, 2014, compared to $577,250 for the corresponding period in 2013.
  • As at June 30, 2014, the Company's cash position was $492,374, compared to a cash position of $1,854,534 at December 31, 2013.

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, Chief Executive Officer, Annidis Corporation, (519) 858-1582 ext. 239, geralds@annidis.com; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-995-8651, bpedram@virtusadvisory.com

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