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
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
Installed Machines (as of May 30)
Committed Orders (as of May 30)
Net Income (loss)
Net Income (loss) per share
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
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."
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.
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
(519) 858-1582 ext. 239
James Binckly, Investor Relations
(416) 815-0700 ext. 228