OTTAWA, April 30, 2013 /CNW/ - Annidis Corporation (TSX Venture: RHA), creator of the Annidis RHA™ imaging technology, today announced its financial results for the three-month period ended December 31, 2012 (Q4 2012) and the twelve-month period ended December 31, 2012 (FY 2012). The Audited Consolidated Financial Statements for the years ended December 31, 2012 and 2011 and the related Management's Discussion and Analysis are available at www.sedar.com.
The Annidis RHA instruments assist eye-care professionals in screening, diagnosing and managing ocular diseases including age related macular degeneration and diabetic retinopathy.
- Grew revenues by 178% and 275% to $482,336 and $1,144,455 in Q4 2012 and FY 2012, respectively, compared to the corresponding periods in 2011.
- Installed 10 devices in Q4 2012, a new quarterly sales record, and grew the installed base to 38 units. The Company has 19 orders confirmed and committed as of April 24, 2013.
- Obtained encouraging preliminary feedback from a recently completed pilot project with one of North America's largest optometry chains on the Annidis RHA™ technology.
- Continued discussions with international distributors and anticipate an agreement in 2013 for distribution in China.
- Maintained industry leading customer service resulting in high levels of customer satisfaction as demonstrated by subsequent recommendations and referrals.
"Clinics clearly see the benefit a RHA™ provides their patients, as evidenced by the significant growth in revenue," said Gerald Slemko, Chief Executive Officer of Annidis. "The feedback we continue to receive from the industry, through pilot programs and key opinion leaders that have been introduced to the Annidis RHA™ technology, is resoundingly positive. The increasing acceptance of our technology is reflected by the growing adoption of our established installed units and increased utilization in the clinics. We remain well positioned to continue growing sales in 2013 through leveraging the strong working relationships we have developed with buying groups and the development of new market channels."
"This new instrument gives the physician the capability to clearly visualize changes in the retinal pigmented epithelium, the earliest indication of macular degeneration which is leading cause of blindness in the population fifty years and older," said Kerry Gelb, O.D., President of AllDocs, the Association of LensCrafters Leaseholding Doctors. "Our patients have been extremely satisfied and impressed by the ability to see their retinal images as provided by Annidis Multi-Spectral Imaging. I would like to congratulate Annidis for coming up with technology that has the potential of saving thousands of people from AMD related blindness."
Revenues were $482,336 and $1,144,455 for Q4 2012 and FY 2012, respectively, compared to $270,295 and $415,131 for the same periods in 2011. The year-over-year increase in revenue is attributable to the higher number of devices sold and rental units deployed during the period.
General and administrative expenses were $548,018 and $1,461,462 for Q4 2012 and FY 2012, compared to $387,584 and $1,237,123, respectively, for the corresponding periods in 2011. Q4 2012 expenses include a charge of $225,000 for a research contract with Ottawa Health Research Institute. In addition, occupancy costs have increased over the prior year by $74,586 due to the additional space requirements and higher costs incurred in fiscal 2012 for clinical development activities.
Research and development expenses were $183,496 and $730,285 for the Q4 2012 and FY 2012, compared with $302,725 and $1,044,599, respectively, for the corresponding periods in 2011. The reduction in expenses is largely attributed to lower staff costs, reduced R&D activity and decreased professional fees for patent filings incurred during fiscal 2012.
Net loss was $1,419,396 ($0.02 per share) and $4,544,004 ($0.07 per share) for Q4 2012 and FY 2012, respectively, compared with the loss of $1,389,680 ($0.03 per share) and $6,395,115 ($0.12 per share) for the corresponding periods in 2011. The decrease in net loss is largely attributed to higher revenue on increased unit sales and lower compensation to employees and consultants.
Cash consumption for operating activities was $455,139 and $2,281,256 in Q4 2012 and FY 2012 as compared to $781,147 and $3,424,924 for the corresponding periods in 2011.
In late 2012, Annidis, subject to the approval of the TSXV, obtained promissory note advances with a total aggregate principal amount of $1,292,985 from directors ($526,859) and third parties ($766,126). A total of 1,292,985 warrants will be issued to the lenders in connection with the issuance of the notes. Each warrant is exercisable at a price of $0.40 per common share, for a period of three years from the date of issuance, subject to the early expiry provisions as set out in the policies of the TSXV.
In January and March 2013, the Company obtained additional advances of $636,712 from third parties which, subject to TSXV approval, will also be converted into secured promissory notes.
As of December 31, 2012 the Company had current liabilities of $2,840,960 (including advances on the promissory notes of $1,304,845 which will become a long term liability) and long term liabilities of $1,221,507 compared to $3,780,599 of current liabilities and $1,005,850 of long term liabilities at December 31, 2011.
At December 31, 2012, the Company's working capital deficiency was $1,878,018 compared to a working capital deficiency of $2,290,820 as at December 31, 2011. The reduction in the working capital deficiency is attributable to the proceeds of $2,020,000 from the private placement of common shares and $1,395,323 from promissory note advances together with the conversion, reclassification to equity and repayment of the convertible debentures outstanding as at December 31, 2011 in the amount of $2,322,689 offset by funds used to finance the current year's operating losses.
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 RHA™ 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 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 and the United States.
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.
SOURCE: Annidis Corporation
For further information:
Gerald Slemko, CEO
(519) 858-1582 ext. 239
James Binckly, Investor Relations
(416) 815-0700 ext. 228