Spine Pain Management, Inc. (OTCQB:SPIN), a financial service and
technology company that provides licensing, management, marketing,
billing, collections and financial services related to liability
spine injuries, today announced financial results for the full
year, 2013.
Net loss for the year ended December 31, 2013 was $626,071
compared to net loss of $430,218 for the year ended December 31,
2012. Lower revenue, coupled with additional personnel and non-cash
charges (interest costs for stock options and stock warrants,
consulting, and bad debt expense) resulted in net loss increasing
in 2013 from 2012. Non-cash charges for 2013 included $460,000 in
bad debt expenses, $516,666 in stock based compensation, $100,448
in interest expense related to warrant amortization, and $113,358
in accretion of long term debt discount. Non-cash charges for
2012 included $240,000 in bad debt expenses, $474,084 in stock
based compensation, $168,408 in interest expense related to warrant
amortization, and $41,678 in accretion of long term debt discount
plus a litigation settlement of stock worth $326,650.
The company recorded $3,299,928 in net revenues with $1,320,348
in costs of services and gross profit of $1,979,580 for the year
ended December 31, 2013. For the year ended December 31, 2012,
we recorded $3,459,231 in net revenues with $1,468,731 in costs of
services and gross profit of $1,990,500. Revenue was down in
2013 due to multiple factors. The company faced new
competition in the McAllen and Florida locations resulting in lower
case volume in 2013. Additionally in 2013, because of the low
returns we have experienced on cases of patients with minimal
insurance coverage limits, the affiliated diagnostic centers
performed fewer of the procedures on these patients.
Major Developments and Milestones
- Annual Cash Collections surpassed $3 million for the first
time.
- 1243 Cases Settled to date (503 for 2013) with cash received
surpassing $8 million ($3 million for 2013) ; leaving a record
2,334 funded cases already awaiting Settlement.
- Successfully opened a new affiliate in San Antonio, Texas using
both Company developed Quad Video HALO™ (QVH) and CLE* programs
from inception.
- Entered Partnership Distribution Agreement Med X Change for QVH
"upstream" hardware/software.
- Successfully Introduced 3rd Party version of QVH at
Radiological Society of North America (RSNA) trade show in Dec.
with much interest.
- Ended the year with a strong cash position while also reducing
debt by over $500,000 (*Continued Legal Education program for
attorneys)
Subsequent Events
- Exhibited the new QVH branded Med X Change upgrade at the
American Academy of Orthopedic Surgeon annual convention in New
Orleans in March 2014 .
- Will be attending and exhibiting at the: - Radiology &
Imaging Conference 2014 (St. Louis, MO) April 28-30,
2014.(Booth 306) - Medical World Americas Conference
& Expo-MEDICA (Houston, TX) April 28-30. (Booth
313)
- Initiated and currently executing exit from Florida market
regarding future procedure funding do to complex changes in Florida
law regarding personal injury cases, coupled with changes with our
affiliate doctor. Funds will be deployed in current and new
markets with greater profit potential.
Spine Pain Management's CEO, Dr. William Donovan
stated; "We faced some formidable hurdles during 2013
resulting in a small loss of $.03 a share for SPIN. We did
spend a lot of time and resources in developing our QVH product for
third party sales. Our referrals in the fourth quarter dropped
significantly dragging down revenue. This decline, coupled with the
increase in our bad debt allowance, were the main drivers of our
loss for the year. The decline in referrals was from new
competition in the McAllen, Texas and changes in our Florida
affiliate.
"We still believe in our core funding model," Dr. Donovan
continued. "We ended 2013 with total cash collections since
inception of over $8 million which was collected from only 1,243
cases or 35% of the 3,577 total active cases we had already funded
by years end. Based on recent meetings with prospective new
Affiliate doctors, thanks to our unique advantage of having the QVH
to offer with our program, access to cash and a very successful 3rd
party pilot program in San Antonio, we are very confident new
centers will be opening and earnings and revenue growth will resume
in Q2 of this year due to our core business alone.
Conference Call Details
Conference Call: An investor's conference call
with management will be held on Monday, March 31, at 4:15 p.m.
(EDT). The call will be video WebCast with a short live Power Point
Presentation followed by Q & A. The call may be accessed
either by phone alone, which will not allow asking questions, or by
phone and/or VOIP with headset after internet log-in with an on
screen provided Audio Pin # which will allow verbally asking
questions. Questions can also be typed into an online chat
screen at any time during the presentation or Q & A period.
Access to the Call: To use the internet
link, you must register prior to access. So we suggest you complete
the registration and get your log-in information in advance of the
start of the presentation. You can register at any time. As
mentioned above, the call is Monday, March 31, at 4:15 p.m.
(EDT).
Click or paste the link below in your browser for registration
and web access to the presentation and follow the online
instructions:
https://www3.gotomeeting.com/register/873444350
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID:
873-444-350
Telephone Dial-in and/or VOIP which provides Q&A: To
verbally ask a question using your telephone, you must be online at
the presentation website during the internet presentation where a
unique Audio PIN # will be provided to you on screen after you
log-in to the presentation console. You must use the pin to
hear the call on the phone. During the presentation, all will be
muted until the Q&A portion.
The Q & A will be moderated, but without an operator, and
will be open to all questions after the formal
presentations. Review this short YouTube tutorial video for
pointers on how to use the Webinar Features. (This is just a demo.
Do not use the numbers or codes on this demo. Use what is provided
above.)
YouTube webinar
instructions:
http://youtu.be/n7b1VHDwwD4
If you use the telephone, but are NOT also online, you will be
able to hear the presentation plus Q & A, but will remain in
"listen only" mode for the duration of the call.
Conference Dial-in Number: +1 (415) 655-0063
Participant Access Code: 577-959-418
Conference Play Back: A video replay of
the conference call presentation will be available several hours
after the completion of the call at the company website:
http://www.spinepaininc.com/investor-information.php
About Spine Pain Management, Inc:
We are a medical services and technology company facilitating
diagnostic services for patients who have sustained spine injuries
resulting from traumatic accidents. We deliver turnkey solutions to
spine surgeons, orthopedic surgeons and other healthcare providers
that provide necessary and appropriate treatment of
musculo-skeletal spine injuries resulting from automobile and
work-related accidents. Our care management services help reduce
the financial burden on healthcare providers that provide patients
with early-stage diagnostic testing and non-invasive surgical care,
preventing many patients from being unnecessarily delayed or
inhibited from obtaining needed treatment. We believe that our
services and technology brings strong transparency and impartiality
to all parties involved in the settlement of patient cases.
In addition, we are the owners and developers of the Quad Video
HALO™, the latest hardware/software advancement in providing video
transparency to medical procedures using C-Arm Fluoroscopy.
Additional information about the company, along with a video can
be found at its website at www.spinepaininc.com.
Forward-Looking Statements: This press release includes
forward-looking statements as determined by the U.S. Securities and
Exchange Commission (the "SEC"). All statements, other than
statements of historical facts, included in this press release that
address activities, events, or developments that the company
believes or anticipates will or may occur in the future are
forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the
company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include general economic
and business conditions, the ability to acquire and develop
specific projects, the ability to fund operations, healthcare
services demands, changes in healthcare practices, government
regulation, and other factors over which the company has little or
no control. The company does not intend (and is not obligated) to
update publicly any forward-looking statements. The contents of
this press release should be considered in conjunction with the
warnings and cautionary statements contained in the company's
recent filings with the SEC.
CONTACT: Company Contact
Dr. William F. Donovan
Chairman, President & CEO
Spine Pain Management, Inc.
713 521-4224
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