MedX Health Corp. Results for the Third Quarter of Fiscal 2013

TSX Venture Symbol: MDX      

CUSIP #:   585090

MISSISSAUGA, ON, Nov. 12, 2013 /CNW/ - MedX Health Corp. ("MDX" or the "Company") (TSX-V: MDX) reported today its financial and operational results for the Third Quarter of fiscal 2013. All amounts are in Canadian dollars unless otherwise stated.

Third Quarter Financial Highlights

The highlights for MDX, on a consolidated basis, are:

  • Consolidated revenue decreased by 37% to $109,000 in Q3 2013 compared to $174,000 in Q3 2012;
  • Consolidated Gross Profit decreased 46% to $49,000 in Q3 2013 compared to $92,000 in Q3 2012;
  • Consolidated operating expenses decreased by 37% to $412,000 in Q3 2013 compared to $421,000 in Q3 2012;
  • Comprehensive loss before income taxes increased by 10%, to $362,000,000 in Q3 2013 compared to comprehensive loss of $329,000 in Q3 2012;

Steve Guillen, CEO, said:  "The Third Quarter of Fiscal 2013 was another tough period and continued to present many challenges while we were in the process of changing many aspects of our business strategy.   We have significantly developed and re-aligned our strategic approach to marketing which we believe will lead to major developments during the latter part of fiscal 2013 as we bring our products, especially the MoleMate™ units, to the market through new channels."

Historical information for the Three month periods ended September 30, 2013 and 2012 are as follows: (in $000's except per share figures)

  THREE MONTHS ENDED SEPTEMBER 30
  2013 2012
Revenues 109 174
Cost of goods sold 60 81
Gross profit 49 92
Expenses 412 421
Comprehensive loss (362) (329)
Per share (loss) (0.01) (0.01)

Consolidated Unaudited Interim Financial Statements

NOTE TO READER: The following unaudited interim financial statements are extracted from the complete unaudited interim financial statements of the Company for the Three and Nine Months ended September 30, 2013, which have been filed on SEDAR together with the Management's Discussion and Analysis. References to "accompanying Notes" refer to the Notes to the unaudited interim financial statements for the Three and Nine Months ended September 30, 2013 and 2012, which are filed with the Company's documents, and can be found on www.sedar.com to which the reader is referred.

MEDX HEALTH CORP.      
Consolidated Statement of Financial Position      
(Expressed in Canadian dollars)      
(unaudited)      
         
As at,   September 30,
2013
  December 31,
2012 (Audited)
         
ASSETS   $   $
CURRENT ASSETS      
  Cash 161   16,051
  Trade and other receivables (note 5) 43,151   127,450
  Inventory (note 6) 123,039   97,677
  Prepaid expenses and deposits 22,668   11,150
                      189,019                   252,328
         
PROPERTY, PLANT AND EQUIPMENT (note 7) 39,755   33,158
INTANGIBLE ASSETS (note 8) 170,717   190,217
         
                      399,491                   475,703
         
LIABILITIES      
CURRENT LIABILITIES      
  Trade and other payables (note 9) 4,460,456                3,985,297
  Demand loans 721,394                   779,394
  Convertible debentures 157,385                   171,118
    5,339,235   4,935,809
         
         
SHAREHOLDERS' DEFICIENCY      
CAPITAL STOCK (note 10) 12,983,576   12,577,279
EQUITY PORTION OF CONVERTIBLE DEBENTURES 16,906                     16,906
WARRANTS 1,388,124   1,388,124
SHARE BASED PAYMENTS 1,171,224   1,171,224
         
DEFICIT                (20,499,574)              (19,613,639)
         
                  (4,939,744)                (4,460,106)
         
    399,491   475,703
         
         
         
The accompanying notes are an integral part of these consolidated financial statements.


MEDX HEALTH CORP.              
Consolidated Statement of Comprehensive Loss              
For the periods ended September 30, 2013 and 2012            
(Expressed in Canadian dollars)              
(Unaudited)              
               
  Three months ended   Nine months ended
  Sep 30,
2013
  Sep 30,
2012
  Sep 30,
2013
  Sep 30,
2012
               
  $   $   $   $
SALES 109,296   173,747   419,090   534,960
               
COST OF SALES 59,824   81,373   193,330   228,253
               
GROSS PROFIT 49,472   92,374   225,760   306,707
  45%   53%   54%   57%
               
               
EXPENSES              
    Selling, general and administrative 434,827   368,283   1,032,395   1,236,075
    Research and development costs -   42,308   -   48,718
    Interest accretion on convertible debentures 3,144                    -     9,432                  -  
    Interest on demand loans and convertible debentures 28,262                    -     92,723                  -  
    Foreign exchange loss (gain) 9,088   170   6,533   2,554
    Depreciation of property, plant and equipment 2,523   2,123   6,894   6,163
    Amortization of intangible assets 6,500   8,500   19,500   25,500
    Loss (Gain) on debt settlement with common shares (72,416)   -   (55,782)   39,402
               
         411,928   421,384       1,111,695   1,358,412
               
COMPREHENSIVE LOSS       (362,456)           (329,010)         (885,935)      (1,051,705)
               
               
Comprehensive loss per common shares - basic
and diluted
(0.01)   (0.01)   (0.02)   (0.03)
               
Weighted average number of Common Shares
outstanding - basic and fully diluted
44,612,084   36,341,513   41,986,241   36,129,402
               
               
The accompanying notes are an integral part of these consolidated financial statements.        


MEDX HEALTH CORP.        
Consolidated Statement of Cash Flows        
For the periods ended September 30, 2013 and 2012        
(Expressed in Canadian dollars)        
(Unaudited)        
    Three months ended Nine months ended
    Sep 30, 2013 Sep 30, 2012 Sep 30, 2013 Sep 30, 2012
    $ $ $ $
CASH FLOWS FROM OPERATING ACTIVITIES        
  Comprehensive loss          (362,456)        (329,010)          (885,935)     (1,051,705)
           
  Adjustments for non-cash items:        
    Depreciation of property, plant and equipment              2,523            2,123             6,894            6,163
    Amortization of intangible assets              6,500            8,500           19,500           25,500
    Foreign exchange loss (gain)              9,088                  -               6,533                 -  
    Loss (gain) on debt settlement with common shares         (72,416)                  -           (55,782)           39,402
    Interest accretion on convertible debentures               3,144             3,144             9,432            9,432
    Accrued interest on demand loans and convertible
debentures
            28,262             8,528           92,723           77,115
    Trade debt settled with common shares                    -                    -           100,000           98,506
     Conversion of debentures           (23,165)                  -          (23,165)                 -  
      Issuance of capital stock             362,078 -   362,078 -
             
    Net change in non-cash operating working capital items:        
        Trade and other receivables             66,677               249 84,299           40,792
        Inventory             (1,303)           12,197        (25,362)           27,025
        Prepaid expenses and deposits           (12,385)         (22,714)         (11,518)          (40,094)
        Deferred revenue                    -             (6,925)                    -            (20,775)
        Trade payables and other payables           194,194         341,037 375,828       761,167
Cash flow (used in) from operating activities              (7,259)           17,129          (152,475)          (27,472)
           
CASH FLOWS FROM INVESTING ACTIVITIES        
  Purchases of property, plant and equipment                    -                (942)            (13,415)           (6,322)
  Purchase of intangible assets                    -             (1,405)                    -            (23,377)
Cash flow used in investing activities                    -              (2,347)           (13,415)          (29,699)
           
CASH FLOWS FROM FINANCING ACTIVITIES        
  Proceeds from other loans                    -           (23,165) 150,000                 -  
Cash flow used in financing activities                    -            (23,165) 150,000                 -  
           
NET INCREASE (DECREASE) IN CASH              (7,259)            (8,383)            (15,890)          (57,171)
  Cash, beginning of period               7,420             9,917          16,051           58,705
           
CASH, END OF PERIOD                 161             1,534 161            1,534
     
  The accompanying notes are an integral part of these consolidated financial statements.  
           



MEDX HEALTH CORP.              
Consolidated Statements of Changes in Shareholders' Deficiency        
               
               
  Capital Stock          
  Number Amount Equity
portion of
convertible
debentures
Warrants Share
based
payments
Deficit Total
    $ $ $ $ $ $
               
Balance, January 1, 2012        35,356,453      12,150,281                   25,676        1,370,725         1,029,424        (19,074,415)         (4,498,309)
               
Common shares issued for
debt settlement
         3,862,693           335,228               17,399            141,800                494,427
Convertible debenture
exercise
            332,000             83,000                        83,000
Value transfer on
convertible debenture
exercise
                8,770 (8,770)                             -  
               
Comprehensive loss                          -                 (539,224)            (539,224)
Balance, December 31,
2012
       39,551,146      12,577,279                   16,906        1,388,124         1,171,224        (19,613,639)         (4,460,106)
               
Common shares issued for
debt settlement
         5,415,145           406,296                      406,296
               
Comprehensive loss                       (885,935)            (885,935)
               
Balance, September 30,
2013
       44,966,291      12,983,576                   16,906        1,388,124         1,171,224        (20,499,574)         (4,939,744)
               
               
The accompanying notes are an integral part of these consolidated financial statements.

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.

Certain information set out in this News Release constitutes forward-looking information.  Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of MDX as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements.  Although MDX believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct.  The forward-looking statements of MDX contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in MDX's current annual information form available at www.sedar.com.

 

 

SOURCE: MedX Health Corp.

For further information:

For further information, please contact Louie Canitano, President and Chief Operating Officer at (905) 670-4428 Email inquiries should be made to canitano@medxhealth.com and the company website is located at www.medxhealth.com.  Inquiries by direct mail should be addressed to; MedX Health 220 Superior Blvd., Mississauga, Ontario, L5T 2L2

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