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Annidis Corporation Reports 2013 Third Quarter Results

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Thursday, November 28, 2013

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OTTAWA, Nov. 28, 2013 /CNW/ - Annidis Corporation (TSX Venture: RHA), today announced its results for the three and nine month periods ended September 30, 2013. The unaudited condensed consolidated financial statements for the three months ended September 30, 2013  and the related Management's Discussion and Analysis are available at www.sedar.com.

Annidis Corporation developed and markets imaging technologies to eye care professionals. 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 non-invasively view the deepest layers of the eye.

Highlights

  • Subsequent to the quarter, Annidis closed its previously announced $5,000,000 private placement with YIMAI Technology International Company Limited ("YIMAI"). The proceeds from the financing will be used to accelerate manufacturing and fulfill its committed orders.
  • Grew total committed orders to 34 as of September 30. These orders were the result of the continued focus on large buying groups, with orders originating from two American groups. The Company is now in a position to fulfill its backorder position. It has currently scheduled production runs for 125 units to fill current orders and anticipated orders based on its extensive pipeline.
  • Continued negotiations with potential strategic partners regarding various new opportunities and uses for the MSI technology.
  • Undertook two trials with its new RHA Platinum, with early results demonstrating a significant improvement over traditional technology.
  • Introduced the new RHA Platinum device at the American Academy of Ophthalmology in New Orleans in November.
  • Introduced the RHA device to the Chinese market at a tradeshow in China with the support of YIMAI. The device is still pending CDFA approval which the Company expects in Q3 2014. YIMAI has order an additional two units for delivery in December 2013 to be used in clinical trials in China.

Key Financial Metrics

Q3 2013

Q3 2012

 % Change 

Installed Machines

39

27

+44%

Committed Orders

34

20

+70%

Revenue

$ 255,096

$192,397

+33%

Net Income (loss)

  $(1,151,281)

  $(900,988)

-28%

Net Income (loss) per share   

$(0.02)

$(0.01)

-100%

"With our $5M financing now completed we are poised to capitalize on our industry first technology and growing distribution network," said Gerald Slemko, CEO of Annidis. "We have quickly deployed the capital we received in October and expect to have built and shipped sufficient units to fulfill half of our committed orders by January 2014.   With a validated technology, cash on hand and a growing backlog, we are looking forward to strong revenue growth in 2014."

Financial Highlights

Revenue was $255,096 and $746,963 for the three and nine months ended September 30, 2013, compared to $192,397 and $660,683 for the same period in 2012. The year-over-year increase in revenue is attributable to higher sales in 2013, partly offset by lower rental revenue in Canada.

General and administrative expenses were $221,641 and $838,932 for the three and nine months ended September 30, 2013, compared to $280,995 and $908,783 for the corresponding periods in 2012. Higher legal, regulatory and other professional costs associated with the YIMAI transaction were offset by a reduction in an accrual for royalties based on a renegotiate agreement.

Research and development expenses were $221.677 and $656,497 for the three and nine months ended September 30, 2013, compared with $214,649 and $546,789 for the same period in 2012. The change in expenses is largely attributed to the development of new products together offset by reduced legal costs on patents.

Net loss was $1,151,281 ( $0.02 per share) and $3,241,303 ( $0.05 per share) for the three and nine months ended September 30, 2013, compared to a loss of $900,988 ( $0.01 per share) and $3,124,608 ( $0.05 per share) for the corresponding period in 2012. The change in net loss is attributable to increased interest on the $3 million promissory note financing and share-based compensation.

Cash used in operating activities was $765,908 and $2,041,254 for the three and nine months ended September 30, 2013, compared to $552,952 and $1,826,117 for the corresponding period in 2012.

At September 30, 2013, the Company's working capital deficiency was $4,769,207 compared to a working capital deficiency of $2,476,459 at December 31, 2012. The Company's position is expected to improve as the YIMAI financing is expected to provide the resources to grow the revenue as additional devices are deployed.

At November 25, the Company's cash position was $3.0 million.  Cash from the common share financing was used to repay short term borrowings and accrued interest, outstanding payables, financing costs and purchase parts inventory for the current build.

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 Corporation's filings with Canadian securities regulatory authorities, as well as the applicability of patents and proprietary technology; the outcome of pending corporate transactions; 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

  • Company Earnings
  • Finance

Contact:

Gerald Slemko, CEO
Annidis Corporation
(519) 858-1582 ext. 239
Email: geralds@annidis.com

James Binckly, Investor Relations
TMX Equicom
(416) 815-0700 ext. 228
Email: jbinckly@tmxequicom.com