Annidis Corporation Reports 2015 Second Quarter Results

OTTAWA, Aug. 28, 2015 /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, 2015. The unaudited condensed consolidated financial statements for the three and six months ended June 30, 2015, and the related Management's Discussion and Analysis are available at www.sedar.com.

Annidis (TSX-V: RHA) has developed and is marketing a new imaging platform technology based on Multi-Spectral Imaging (MSI). This new technology is advancing disease identification and its management. The Annidis MSI technology allows eye-care professionals to view, non-invasively, the deepest areas of the eye, aiding in the early identification and treatment of debilitating eye diseases.

"We had three strategic objectives for the second quarter of 2015," stated Michael Crowley, CEO of Annidis Corporation. "The first objective was our continued expansion into the Chinese market, led by Annidis' founder and President, Nick Ribaric. The discussions we've had with our distributor regarding this expansion suggest a significant sales volume increase in the second half of 2015, and we are excited to be a part of it. The second objective was further expansion of our U.S. sales effort, accompanied by the hiring of a seasoned executive to lead our North American sales force. While we are still working towards our penetration of the U.S. market, we believe the improvements made to the sales team were a necessity to increase sales volume for the remainder of the year. The third objective was to continue to build inventory to satisfy the strengthening demand in both the North American and Chinese markets, which was facilitated by the financing provided by Yimai early in the quarter."

The Company strengthened its U.S. sales effort subsequent to the quarter with the hiring of Jeffery Pratt, who joined the company in August 2015. Mr. Pratt has held long term leadership positions in sales and sales management, selling capital equipment into the ophthalmic market and for Alcon, and more recently Bausch and Lomb. In addition to his sales expertise, Mr. Pratt brings many new relationships in the MD ophthalmic community who will be introduced to the RHA Imaging System for the first time in the months ahead.

"I'm excited to join a group of innovative pioneers bringing state of the art technology to the ophthalmology field," said Jeffery Pratt.

"We have refined our marketing strategy to fully support our sales efforts in the priority segments of the eye care markets that we believe are ideally positioned to adopt the RHA system," added Michael Crowley. "We've also heightened our sales and marketing activity with large, successful buying groups, and we believe Jeff will be a key contributor to Annidis' growth in these markets."

As previously announced in its May 6, 2015 release, Annidis also made changes to its senior management team and Board of Directors in the second quarter to better position the Company for aggressive growth and global opportunities. The company expects to manage the management transition phase into the third quarter with no setback in objective and strategy achievement.

Q2 2015 Highlights

  • Sold 5 units in the second quarter of 2015 compared to 7 units in the second quarter of 2014. As a result, revenue decreased by 28% in comparing the two periods. 
  • Gross margin percentage remained relatively flat in comparing the quarter to the comparative quarter in 2014 as a result of a higher proportion of overall sales being made to Annidis' distributor in China, offset by a lower overall cost of inventory.
  • Completed a non-brokered private placement of 12,016,667 common shares to Yimai for proceeds of $3,000,000 reflecting a share price of approximately $0.25 per share. This financing was provided primarily to fulfill working capital requirements to support the anticipated growth in customer demand in the second half of 2015. This involved significant payments being made to settle amounts owing to important vendors, and the purchasing of inventory to fulfill requirements for the next manufacturing build. As a result of this investment, Annidis had 20 units in work in process at June 30, 2015.
  • The Company and Yimai agreed to extend the terms of Annidis' convertible promissory note by 24 months. The note was originally scheduled to mature on May 17, 2015.     
  • The Company began the restructuring process of its U.S. sales force to pursue the initiatives outlined by the new senior management group.

Three months ended June 30

Key Financial Metrics

2015

2014

 % Change

Installed Base (as at June 30)

90

60

+50.0%





Revenue

$381,893

$532,982

-28.3%

Net loss

($1,527,058)

($1,362,492)

+12.1%

Financial Highlights

  • Revenue was $381,893 for the three months ended June 30, 2015, compared to $532,982 for the same period in 2014.
  • Gross margins percentage for the three month period ended June 30, 2015 was 35% compared to 34% for the same period in 2014.
  • Manufacturing and operations expenses were $ 196,945 for the three months ended June 30, 2015 compared to $ 109,156 for the same period in 2014.
  • Research and development expenses were $249,047 for the three months ended June 30, 2015 compared with $329,425 for the same period in 2014.
  • General and administrative expenses were $323,754 for the three months ended June 30, 2015 compared to $335,338 for the same period in 2014.
  • Sales and marketing expenses were $ 528,751 for the three months ended June 30, 2015 compared to $ 536,609 for the same period in 2014.
  • Net loss was $ 1,527,058 ($0.02 per share) for the three months ended June 30, 2015 compared to a loss of $ 1,362,492 ($0.02 per share) for the same period in 2014.
  • Net cash used in operating activities was $ 1,663,648 for the three month period ended June 30, 2015, compared to $ 993,341 for the corresponding period in 2014.
  • As at June 30, 2015, the Company's cash position was $1,298,220, compared to a cash position of $80,016 at December 31, 2014.




   Three months ended





   June 30





2015

2014

Revenue by Source






Sales



$300,737

$434,815


Rentals, support and maintenance fees



81,156

98,167










$381,893

$532,982






Revenue by Geography






United States



$278,915

$425,821


China



84,000

-


Canada



18,978

107,161











$381,893

$532,982

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: Michael Crowley, CEO, Annidis Corporation, 519-859-7439, mcrowley@annidis.com; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-995-8651, bpedram@virtusadvisory.com

RELATED LINKS
www.annidis.com

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