OTTAWA, May 25, 2012 /CNW/ - Annidis Corporation (TSXV:RHA), creator of the Annidis RHA™ imaging technology that assists eye-care professionals screen, detect, diagnose and manage ocular diseases including glaucoma, age related macular degeneration and diabetic retinopathy, today announced its first quarter operating and financial results for the period ended March 31, 2012.
- Completed a $2.0 million brokered private placement during the quarter
- Recorded revenue of $317,920 for Q1 2012, compared to $33,297 in Q1 2011
- In connection with the settlement of $600,000 in principal of Convertible Debentures plus accrued interest of $242,957, the Company issued 2,107,392 units at $0.40 per unit. Each unit consisted of one common share and one-half common share purchase warrant
- Announced the introduction of the RHA-MD, an extension of the current platform focused on ophthalmology market. RHA-MD provides a significant improvement in the visualization of choroidal and retinal vasculature non-invasively, and is of special interest to ophthalmologists managing a wide range of eye diseases
"We are growing our presence across Canada and the United States, as evidence, we are reporting another quarter of growing installations and revenues," said Gerald Slemko, Chief Executive Officer of Annidis. "Practitioners continue to see significant clinical and financial benefit our RHATM device provides, and with recent additions to our U.S. sales team we continue to add more and more ODs to our customer base. We are also exploring potential partnership opportunities to further accelerate our market expansion across North America, and with new products coming on line, we expect a strong growth opportunity in the near future."
The Company recorded contract revenues earned from the deployment of medical devices for the three months ended March 31, 2012, of $317,920, compared to $33,297 for the same period in 2011. The increase in revenue over the prior year was entirely attributed to the higher number of devices sold and deployed in clinic offices in the first quarter of 2012.
Total general, administrative and operation expenses for the three months ended March 31, 2012, were $307,024, compared to $175,975 for the corresponding period in 2011. A significant portion of this increase is attributable to higher costs incurred in 2012 as a result of the Company being a public entity. In addition, occupancy costs have increased over the prior year by $25,765 due to the additional spacing requirements and increased costs incurred in fiscal 2012 for clinical development activities.
Research and development (R&D) expenses for the three months ended March 31, 2012, were $189,079, compared with $186,171 for the corresponding period in 2011. Taking into account the investment tax credits recorded in fiscal 2011 for $106,193, research and development expenditures decreased by $103,285 in 2012, largely attributed to lower staff costs and decreased professional fees incurred on patent filings.
Net loss was $933,861 or loss of $0.02 per share for the three month period ended March 31, 2012, compared with the loss of $895,738 or loss of $0.02 per share for the corresponding period in 2011. The increase in reported loss is primarily attributed to higher operating costs and expenses as the Company transitions from the development stage to the early commercialization stage, as well as listing expenses associated with the Qualifying Transaction.
During the three months ended March 31, 2012, the Company used net cash of $423,369 for operating activities as compared to $567,639 for the corresponding periods of 2011.
As at March 31, 2012, the Company had cash on hand of $1,143,571 compared to $73,214 as at December 31, 2011. The increase was as the result an equity raise of $2,020,000, which was completed on March 16, 2012.
Total current liabilities and long term liabilities were $3,502,323 at March 31, 2012, compared to $4,786,449, at December 31, 2011.
As at March 31, 2012, the Company's working capital deficiency was $227,502 compared to a working capital deficiency of $2,591,834 as at December 31, 2011. This decrease in the working capital deficiency is attributable to the proceeds from the issuance of share and share warrant units, and the reclassification of the converted portion of the convertible debentures from liabilities to share capital.
About Annidis Corporation
Annidis (TSX-V:RHA) is dedicated to researching and developing instrumentation to assist in the early detection and monitoring of diseases of the eye. The Company's RHATM is an ocular pathology management system that integrates advanced multi-spectral imaging and analytic software for early detection and management of ocular pathologies such as glaucoma, age-related macular degeneration and diabetic retinopathy. The RHA system is the result of a multiyear research and development effort by the Annidis team in collaboration with leading eye care professionals and researchers in Canada including the Ottawa Eye Institute, Toronto Western Hospital, the School of Optometry in Montreal and numerous optometric clinics in Ontario.
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.
For further information:
Gerald Slemko, CEO
Babak Pedram, Investor Relations
(416) 815-0700 ext. 264