Annidis Corporation Reports 2015 Third Quarter Results

OTTAWA, Nov. 20, 2015 /CNW/ - Annidis Corporation (TSX Venture: RHA) ("Annidis" or the Company"), today announced its financial results for the three-month and nine-month periods ended September 30, 2015. The unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2015, and the related Management's Discussion and Analysis are available at www.sedar.com.

Annidis 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.

The Company has been awarded six patents to date across the markets of USA, Canada, China, and the European Community.  These six and an additional four pending patents arose from the development of the Company's retinal and choroidal imaging technology.  In particular, the Company has inventions that enable the imaging of parts of the eye without the need for the current standard practice of invasive dyes.  These will be of interest to health care practitioners and insurance providers who value the early detection of eye disease in younger and older patients.

"While we are pleased to announce that revenues increased by 34% in comparison to the same quarter last year, our focus remains fixed on growing the North American market," said Michael Crowley, CEO of Annidis Corporation. "This quarter we added Jeffery Pratt to the company, and he was instrumental in bringing in new sales representatives to the team who are highly qualified and experienced in the industry. We believe that once they have the opportunity to fully understand the technology behind the RHA and how effective it is, they will be able to expand our reach in the US market."

"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 Mr. 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."

The company has expanded and accelerated a planned program to collect quantitative evidence to further support claims of the RHA device's superior clinical utility for the earlier detection of a wider range of pathologies when compared to other imaging modalities and common lower utility cameras.  There are multiple projects underway with thought leaders in both optometric and ophthalmologic practices.  When the projects are complete, the data will be compiled, analyzed and submitted to industry and scientific publications.   

Sales into the Chinese market continue as planned and Annidis announced that it received a purchase order from distribution partner, Yimai Technology International Company for 30 units that are scheduled to be delivered by January 31, 2016.  The Company concurrently received payment in full for these units.  As a unique and comprehensive retinal screening offering, the Annidis MSI technology is well positioned to take advantage in the early stages of the deployment of eye health assessment technology in China.

Q3 2015 Highlights

  • Sold 12 units in the third quarter of 2015 compared to 8 units in the third quarter of 2014. As a result, revenue increased by 34% in comparing the two periods. 
  • Gross margin percentage increased from 24% to 34% in comparing the quarter to the comparative quarter in 2014 as a result of a significant decrease in the cost of inventory.
  • The Company received a purchase order for 30 units accompanied by payment in full of $1,350,000 from Yimai Technology International Company. These units are scheduled to be delivered by January 31, 2016.

Three months ended September 30

Key Financial Metrics

2015

2014

 % Change

Installed Base (as at September 30)

102

67

52%





Revenue

$645,309

$480,218

34%

Net loss

($1,231,290)

($1,240,943)

0%

Financial Highlights

  • Revenue was $645,309 for the three months ended September 30, 2015, compared to $480,218 for the same period in 2014.
  • Gross margins percentage for the three month period ended September 30, 2015 was 34% compared to 24% for the same period in 2014.
  • Manufacturing and operations expenses were $59,792 for the three months ended September 30, 2015 compared to $140,792 for the same period in 2014.
  • Research and development expenses were $310,466 for the three months ended September 30, 2015 compared with $268,121 for the same period in 2014.
  • General and administrative expenses were $297,682 for the three months ended September 30, 2015 compared to $343,166 for the same period in 2014.
  • Sales and marketing expenses were $413,130 for the three months ended September 30, 2015 compared to $378,027 for the same period in 2014.
  • Net loss was $1,231,290 ($0.01 per share) for the three months ended September 30, 2015 compared to a loss of $1,240,943 ($0.01 per share) for the same period in 2014.
  • Net cash used in operating activities was $562,012 for the three month period ended September 30, 2015, compared to $475,239 for the corresponding period in 2014.
  • As at September 30, 2015, the Company's cash position was $706,001, compared to a cash position of $80,016 at December 31, 2014.




   Three months ended






   September 30






2015

2014


Revenue by Source







Sales



$552,242

$375,727



Rentals, support and maintenance fees



93,067

104,491












$645,309

$480,218








Revenue by Geography







United States



$208,853

$264,970



China



420,000

168,000



Canada



16,456

47,248













$645,309

$480,218


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.

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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