OTTAWA, Aug. 29, 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 second quarter operating and financial results for the period ended June 30, 2012.
- The Wall Street Journal recently highlighted the use of specialized eye equipment by doctors to not only help in the diagnosis of various eye complications, but also to get a better understanding of the general health of patients (http://on.wsj.com/R81vo0). This is in line with Annidis' investment thesis and the Company's continuous focus on providing one of the most effective devices to the market.
- Annidis has broadened its product line. The RHA-OD, the original device, is used by optometrists as a broadly based screening tool for catching early-onset eye-related diseases, and has a market potential of over 20,000 clinics in North America and more in the rest of world. The RHA-MD provides ophthalmologists with a multi-layered view of the eye in order to manage/monitor treatment programs and has a North American market of more than 10,000 clinics. And the Animal Model, using the same technology as the RHA-OD but for use in animal testing clinical studies, has market potential for outright sales in the hundreds per year.
- As of end of Q2 2012, Annidis has a total of 30 installed RHA™ devices and nine confirmed and committed orders. The Company has made great strides in targeting larger buying groups (see quote below).
- As a result of expected growing volumes, Annidis is now in talks with a number of strategic partners that will allow for sourcing of components and subcomponents offshore. This strategy will reduce production cost and increase product placement in desired markets.
- On April 19th, the Company converted $842,957 of convertible debentures consisting of $600,000 in principal and $242,957 in accrued interest, which came due April 1, 2012, through issuing 2.1 million common shares and approximately 1.1 million warrants to the holders.
"Our RHA device continues to gain strong traction within the ophthalmology and optometric space across the United States and Canada and we are constantly exploring new opportunities to increase sales and operational efficiency," said Gerald Slemko, Chief Executive Officer of Annidis. "During the quarter we allocated more resources toward upgrading our RHA devices and bringing this updated technology to our early adopters. Other significant resources this quarter were put towards targeting large buying groups. We are confident this new large-scale approach will yield a much better result in securing larger orders in the near future. In preparation for these orders, we have also been in talks with a number of strategic partners to source components and subcomponents offshore in upcoming months. This strategy will help us reduce our production costs and increase product placement within our targeted markets."
"Annidis imaging technology allows me to examine the retina as never before," said Dr. Dorothy Hitchmoth, clinical professor of optometry for the New England College of Optometry USA and user of the Annidis RHA device. "With significant experience at Veterans Affairs and in a private practice, I have access and use of most technologies to examine patients' eye health and diagnose disease. My patients deserve access to cutting edge technology that has the potential to change their quality of life. Annidis Multi-Spectral Imaging (MSI) of the retina provides a window to eye and systemic disease like no other imaging technology. This is instrumental to examining populations at risk including groups such as veterans, diabetics, aging population."
The Company recorded contract revenues earned from the deployment of medical devices for the three and six months ended June 30, 2012, of $151,798 and $469,718, compared to $47,405 and $80,702, respectively, for the same period in 2011. The increase in revenue over the prior year was attributed to the higher number of devices sold and deployed in clinic offices and recurring revenues from existing deployed devices in the first six months of 2012.
Total general, administrative and operational expenses for the three and six months ended June 30, 2012, were $320,764 and $627,788, compared to $180,337 and $356,312, respectively 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 for the quarter over the prior year by $27,728 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 and six months ended June 30, 2012, were $143,061 and $332,140, compared with $186,171 and $373,092, respectively, for the corresponding period in 2011. The reduction in expenses is largely attributed to lower staff costs and decreased professional fees for patent filings incurred during fiscal 2012 over the same period last year as a result of the level of research and development activity.
Net loss was $1,289,759 or loss of $0.02 per share and $2,223,620 or loss of $0.03 per share for the three and six months ended June 30, 2012, respectively, compared with the loss of $2,833,869 or loss of $0.06 per share and $3,729,607 or loss of $0.08 per share for the corresponding periods in 2011. This difference is primarily due to a decrease in expenses in 2012 of $1,591,764, largely attributed to the financing transaction costs and listing expenses incurred in 2011.
During the three and six months ended June 30, 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 June 30, 2012, the Company had cash on hand of $245,962 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 $2,682,431 at June 30, 2012, compared to $4,786,449, at December 31, 2011.
As at June 30, 2012, the Company's working capital deficiency was $324,995 compared to a working capital deficiency of $2,591,834 as at December 31, 2011. This increase in equity is largely attributed to closing of the private placement for gross proceeds of $2,020,000 and the reclassification of the converted portion of the convertible debentures from liabilities to share capital and the issuance of equity relating to the debenture holders who subscribed to common shares and warrants in exchange for the debentures that matured on March 31, 2012.
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.
SOURCE: Annidis Corporation
For further information:
Gerald Slemko, CEO
Babak Pedram, Investor Relations
(416) 815-0700 ext. 264