Annidis Corporation Reports 2013 First Quarter Results

OTTAWA, May 30, 2013 /CNW/ - Annidis Corporation (TSX Venture: RHA) today announced its results for the three-month period ended March 31, 2013 (Q1 2013). The unaudited condensed consolidated financial statements for the three months ended March 31, 2013 and the related Management's Discussion and Analysis are available at www.sedar.com.

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 instrumental for preserving vision.

Key Financial Metrics Q1 2013 Q1 2012 % Change
Installed Machines (as of May 30) 38 18 +111.1%
Committed Orders (as of May 30) 29 12 +241.7%
Revenue $361,818 $317,920 +13.8%
Net Income (loss) $(966,373) $(933,861) -3.3%
Net Income (loss) per share (0.01) (0.02) +50%

Highlights

  • Installed 6 instruments and grew committed orders by 6 units in Q1 2013.
  • Subsequent to quarter end, the Company grew its committed orders by 12, five of which were purchased by one customer with multiple clinics. These sales were a direct result of our strong relationships with buying groups and validation of our sales strategy.
  • Reported clinics imaging in excess of 150 images per month from machines installed for more than three months. In the quarter the Company saw some clinics imaging in excess of 300 images per month.
  • Initiated negotiations with potential strategic partners on a number of opportunities central to which is Annidis' world leading MSI Technology. These opportunities include participation in clinical trials and other strategic relationships.
  • Advanced negotiations with international distributors and expect agreements to be completed in the third quarter.
  • Expanded our product line with the development of the RHA2020-U Platinum MD to better address the ophthalmology (MD) market within North America and globally.
  • Demonstrated the RHA instrument at the Association for Vision and Ophthalmology (ARVO) in Seattle, Washington to positive reviews from both domestic and international ophthalmologists and institutions. ARVO is the largest eye and vision research organization in the world and has over 12,750 members in 81 countries.

"We continued to grow our installed base in the quarter and built our backlog of committed orders subsequent to quarter end. We rounded out our product line with our new MD focused device which provides us with a solution for all market players," said Gerald Slemko. "We are currently working on a number of opportunities to strengthen our balance sheet and expect to close on a transaction in the next 90 days. We remain well-positioned to fulfill our committed orders in the second half of the year and fully execute on our sales and growth strategy."

Financial Highlights

Revenue was $361,818 for Q1 2013, compared to $317,920 for the three months ended March 31, 2012 (Q1 2012). The year-over-year increase in revenue is attributable to a greater number of units sold.

Gross margin for the period was 12% compared to 28% in Q1 2012. This change is due in part to certain incentives the Company has offered to clients. In addition, units sold in the first quarter of 2012 had a higher selling price than the units sold in 2013 due to the nature of the units resulting in a higher margin in 2012. The Company expects to see its margins increase as the incentives expire, costs decrease and imaging revenue grows as a percentage of total revenue.

General and administrative expenses were $281,298 for Q1 2013 compared to $307,024 for the corresponding periods in 2012.

Research and development expenses were $219,821 for the Q1 2013 compared with $189,079 for Q1 2012. The change in expenses is largely attributed to the development of new products.

Net loss was $966,373 ($0.01 per share) for Q1 2013, compared with the loss of $933,861 ($0.02 per share) for the corresponding period in 2012. The change in net loss can partly be attributed the lower margin sales in the period.

Cash used in operating activities was $698,096 in Q1 2013 compared to $423,369 for the corresponding period in 2012.

In January and March 2013, the Company obtained additional advances of $636,712 from third parties which, subject to TSXV approval, will be converted into secured promissory notes.

At March 31, 2013, the Company's working capital deficiency was $3,430,601 compared to a working capital deficiency of $2,476,459 as at March 31, 2012. The reduction in the working capital deficiency is attributable to the loss of $966,373 in the quarter. Management anticipates that over the short term there will be an increase in revenues as additional devices are deployed and believes it will be able to obtain sufficient funds to finance ongoing operations.

Warrant Extension

In accordance with TSX-V Policy 4.1, Annidis Corporation reports that it will submit an application to the TSX-V to extend the term of 4,171,250 warrants which were originally issued on June 9, 2011 in connection with the private placement completed concurrently with the corporation's Qualifying Transaction. The warrants are presently exercisable at a price of $0.80 per common share until June 9, 2013. Annidis Corporation is applying to extend the expiry date of these warrants to June 9, 2016. The exercise price of the warrants will remain the same. The proposed warrant extension has been approved by the board of directors of Annidis Corporation, subject to the receipt of TSX-V approval.

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 Company's Annual Information Form and other such filings with Canadian securities regulatory authorities, such as the applicability of patents and proprietary technology; 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
Annidis Corporation
(519) 858-1582 ext. 239
Email: geralds@annidis.com 

James Binckly, Investor Relations
TMX Equicom
(416) 815-0700 ext. 228
Email: jbinckly@tmxequicom.com


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