OxySure Systems (OXYS) Reports Fourth Quarter and Full-Year 2013
Results
Conference Call at 9:00 am ET on April 16, 2014
FRISCO, TX--(Marketwired -
April 16, 2014) - OxySure Systems, Inc. (OTCQB: OXYS) ("OxySure," or the "Company"),
today announced financial and operating results for the fourth
quarter and year ended December 31, 2013.
Fiscal Year 2013
Highlights :
- Revenues were $1.8 million, up 566%, led by a 787%
increase in revenues in the United States
- Gross profit increased 55.4%; gross margins up to 72.8%
from 46.8%
- General & administrative expenses down 3%
- Notes payable down 26.3% to $349,975
- Working capital increased $2,173,647 to a surplus of
$747,473
- Current ratio up to a healthy 1.88
- Stockholder equity increased by $2,339,709
- Total assets increased by $1,472,960 to $2,352,354
- Cash flows increased by $695,765
- Net loss per share for the year down to $.03 from $.06 the
prior year
Julian T. Ross, Chairman of the Board and Chief Executive
Officer of OxySure stated, "We finished the year strong, and our
fundamentals continue to improve. We are pleased to have delivered
on a number of our sales and business goals for the year, including
growing our international distribution footprint, building our
brand, diversifying our revenue streams and strengthening our
balance sheet. I'm also very excited about the way our products are
continuing to save or improve people's lives."
For the fiscal year ended December 31, 2013, revenues increased
by 566% to $1,800,327 from $270,387 in the comparable period last
year. The increase was primarily driven by a 787% surge in revenues
in the United States. Revenues from international markets also
increased 305% to $498,286 for the year ended December 31, 2013, up
from $122,900 during 2012. Sales from products for the military in
connection with a teaming agreement also increased significantly to
$627,200 for the twelve months ended December 31, 2013.
For the Company's Model 615 portable emergency oxygen product,
unit cartridge reorder rates continued to increase as the installed
base of Model 615 increases, indicating the development of a very
"sticky" customer relationship with the product upon adoption. Unit
cartridge shipments for the first time exceeded unit shipments of
Model 615: during fiscal year ended December 31, 2013 unit
cartridge shipments represented 126% of Model 615 units shipped, up
from 63% during 2012. As of December 31, 2013, replacement
cartridges shipped represented 39.3% of the Model 615 installed
base, up from 34.9% as at December 31, 2012. This is consistent
with historical trends of rising reorders as customers become more
accustomed to OxySure's products.
Gross profit was $1,310,008 for the twelve months ended December
31, 2013, an increase of $1,183,371 or 934%, primarily due to the
combined effect of an increase in service revenues and license
fees, and an increase in product gross margins. Gross margin was
72.8%, up significantly from 46.8% in 2012.
Selling, general and administrative expenses for 2013 were
$1,798,306 compared to $1,264,825 for fiscal year 2012. The Company
increased sales and marketing expenses by 168% to $353,156 as it
expanded its sales and marketing, branding and investor relations
efforts. General and administrative expenses fell by 3% to
$1,089,135 primarily as a result of decreases in employee stock
option expense and salaries and wages, offset by increases in
professional fees and rent expense.
Interest expense increased 15% from $217,018 during 2012 to
$249,703 during 2013. The increase was primarily attributable to an
increase of $57,637 in interest accrued on promissory notes, offset
by a decrease of $25,911 in interest related to debt discount and
amortization of warrant fair values.
Net loss during fiscal year ended December 31, 2013 decreased to
$712,452, or $0.03 per share, as compared to $1,144,799 or $0.06
per share for fiscal year ended December 31, 2013. The weighted
average shares outstanding were 23,754,402 and 19,880,342 for
fiscal year 2013 and 2012, respectively.
The Company achieved significant improvements to its balance
sheet. Cash was up to $657,673 at December 31, 2013 from just
$13,513 at the end of 2012. Working capital increased $2,173,647 to
a surplus of $747,473 from a deficit of $1,426,174 at the prior
year end. The Company's current ratio was up significantly to a
healthy 1.88, up from just .17 at the prior year end.
The Company converted $462,448 of notes payable into common
stock during 2013 at an aggregate conversion price of $.96 per
share. Stockholder equity increased by $2,339,709 to a surplus of
$1,423,374 at December 31, 2013, from a deficit of $916,335 at the
end of December 31, 2012. Total assets increased by $1,472,960 to
$2,352,354 at December 31, 2013, as compared to $879,394 at
December 31, 2012.
Business updates
OxySure enters 2014 in a strong competitive position. Over the
past twelve months, the Company has:
- Expanded its international distribution footprint
significantly by adding new distributors such as Medizon
B.V. for the Netherlands, Belgium and Luxembourg; Aero
Healthcare in Australia and the United Kingdom; Pacific
Medical Systems in Hong Kong and Macau; and Python in
Chile;
- Added a comprehensive group of Automated
External Defibrillators (AEDs) offerings and other
complimentary products to provide its customers, distributors
and agents a single source solution for medical emergency
preparedness;
- Opportunistically invested in operational efficiencies;
and
- Significantly improved its balance sheet to allow for more
financial flexibility.
The Company plans to continue its focus on enhancing its
competitive position across three areas: sales and marketing,
regulatory approvals and product costs. These initiatives and
investments will result in higher sales for OxySure in the future
by allowing deeper and wider penetration of its existing markets,
and by developing new markets, including international markets. At
the same time, they will expand OxySure's leadership position in
the emergency/short duration oxygen market and the pre-hospital
medical emergency market in general.
"We are excited about 2014 as we anticipate continued growth,
new opportunities and even the possibility of a catalytic event,"
said Mr. Ross. "We plan to continue to work hard to improve our
products, our competitive position, and our category leadership,
while striving to maintain our culture of innovation as we
grow."
Conference Call
OxySure's CEO Julian Ross will host the conference call to
discuss the Company's fiscal year 2013 results.
Date: Wednesday, April 16, 2014
Time: 9:00 am ET
US Dial-In: 1 (866) 352-2112 US Toll Free
International Dial-In: 1 (630) 691-2779
Passcode: 7064 119#
For webcast
link: http://www.oxysure.com/aed/index.php/investors-home
Please dial in at least 10-minutes before the call to ensure
timely participation.
About OxySure Systems, Inc.
OxySure Systems, Inc. (OXYS) is a medical technology company
that focuses on the design, manufacture and distribution of
specialty respiratory and medical solutions. The company pioneered
a safe and easy to use solution to produce medically pure (USP)
oxygen from inert powders. The company owns numerous issued patents
and patents pending on this technology which makes the provision of
emergency oxygen safer, more accessible and easier to use than
traditional oxygen provision systems. OxySure's products improve
access to emergency oxygen that affects the survival, recovery and
safety of individuals in several areas of need: (1) Public and
private places and settings where medical emergencies can occur;
(2) Individuals at risk for cardiac, respiratory or general medical
distress needing immediate help prior to emergency medical care
arrival; and (3) Those requiring immediate protection and escape
from exposure situations or oxygen-deficient situations in
industrial, mining, military, or other "Immediately Dangerous to
Life or Health" (IDLH) environments. www.OxySure.com
Forward-Looking Statements
Statements in this earnings release that are not historical
facts are considered to be forward-looking statements. Such
statements include, but are not limited to, statements regarding
management beliefs and expectations, based upon information
available at the time the statements are made, regarding future
plans, objectives and performance. All forward-looking statements
are subject to risks and uncertainties, many of which are beyond
management's control and actual results and performance may differ
significantly from those contained in forward-looking statements.
OxySure Systems, Inc. intends any forward-looking statement to be
covered by the Litigation Reform Act of 1995 and is including this
statement for purposes of said safe harbor provisions. Readers are
cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date of this news release.
OxySure Systems, Inc. undertakes no obligation to update any
forward-looking statements to reflect events or circumstances that
occur after the date as of which such statements are made. A
discussion of certain risks and uncertainties that could cause
actual results to differ materially from those contained in
forward-looking statements is included in OxySure Systems, Inc.'s
Annual Report on Form 10-K for the year ended December 31,
2013.
| |
|
| OXYSURE SYSTEMS INC. |
|
| BALANCE SHEETS |
|
| |
|
December 31, |
|
| |
|
2013 |
|
|
2012 |
|
| |
|
|
|
|
Restated |
|
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
657,673 |
|
|
$ |
13,513 |
|
| Accounts receivable, net of allowances for sales
returns and allowance for doubtful accounts |
|
|
47,183 |
|
|
|
18,486 |
|
| Inventories |
|
|
287,666 |
|
|
|
221,345 |
|
| License fees receivable |
|
|
500,000 |
|
|
|
- |
|
| Prepaid expenses and other current assets |
|
|
107,305 |
|
|
|
36,903 |
|
| Total current assets |
|
|
1,599,827 |
|
|
|
290,247 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
70,249 |
|
|
|
46,489 |
|
| |
Intangible assets, net |
|
|
392,746 |
|
|
|
418,478 |
|
| Other assets |
|
|
289,532 |
|
|
|
124,180 |
|
| |
|
|
|
|
|
|
|
|
| TOTAL ASSETS |
|
$ |
2,352,354 |
|
|
$ |
879,394 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Accounts payable and accrued expenses |
|
$ |
147,719 |
|
|
$ |
302,433 |
|
| Related party payable |
|
|
118,627 |
|
|
|
207,472 |
|
| Deferred revenue |
|
|
2,976 |
|
|
|
499,226 |
|
| Capital leases - current |
|
|
309,129 |
|
|
|
308,701 |
|
| Notes payable - current, net of discount |
|
|
44,000 |
|
|
|
31,588 |
|
| Convertible notes payable, net of discount |
|
|
229,903 |
|
|
|
367,001 |
|
| Total current liabilities |
|
|
852,354 |
|
|
|
1,716,421 |
|
| |
|
|
|
|
|
|
|
|
| Long-term liabilities |
|
|
|
|
|
|
|
|
| Capital leases |
|
|
554 |
|
|
|
3,236 |
|
| Notes payable, net of discount |
|
|
76,072 |
|
|
|
76,072 |
|
| Total long-term liabilities |
|
|
76,626 |
|
|
|
79,308 |
|
| |
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES |
|
|
928,980 |
|
|
|
1,795,729 |
|
| |
|
|
|
|
|
|
|
|
| COMMITMENTS AND CONTINGENCY (NOTE 9) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
| Preferred stock, par value $0.0005 per share;
25,000,000 shares authorized; |
|
|
|
|
|
|
|
|
| 743,750 Series A convertible preferred shares
issued and outstanding as of December 31, 2013 and 818,750 shares
issued and outstanding as of December 31, 2012. |
|
|
371 |
|
|
|
409 |
|
| 750 Series B convertible preferred shares issued
and outstanding as of December 31, 2013 and 0 shares issued and
outstanding as of December 31, 2012. |
|
|
- |
|
|
|
- |
|
| Common stock, par value $0.0004 per share;
100,000,000 shares authorized; |
|
|
|
|
|
|
|
|
| 25,854,307 shares of voting common stock issued and
outstanding as of December 31, 2013 and 22,548,678 shares issued
and outstanding as of December 31, 2012 |
|
|
10,343 |
|
|
|
9,020 |
|
| Additional Paid-in Capital |
|
|
16,700,307 |
|
|
|
13,649,431 |
|
| Accumulated deficit |
|
|
(15,287,647 |
) |
|
|
(14,575,195 |
) |
| |
|
|
|
|
|
|
|
|
| TOTAL STOCKHOLDERS' EQUITY |
|
|
1,423,374 |
|
|
|
(916,335 |
) |
| |
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
2,352,354 |
|
|
$ |
879,394 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| OXYSURE SYSTEMS INC. |
|
| STATEMENTS OF OPERATIONS |
|
| |
|
|
|
|
|
|
| |
|
For the year ended December 31, |
|
| |
|
2013 |
|
|
2012 |
|
| |
|
|
|
|
Restated |
|
| |
|
|
|
|
|
|
|
|
| Revenues, net |
|
$ |
1,800,327 |
|
|
$ |
270,387 |
|
| Cost of goods sold |
|
|
490,319 |
|
|
|
143,750 |
|
| Gross profit |
|
|
1,310,008 |
|
|
|
126,637 |
|
| |
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
| |
Research and development |
|
|
356,015 |
|
|
|
25,816 |
|
| |
Sales and marketing |
|
|
353,156 |
|
|
|
131,933 |
|
| Other general and administrative |
|
|
1,089,135 |
|
|
|
1,107,076 |
|
| Loss from operations |
|
|
(488,298 |
) |
|
|
(1,138,188 |
) |
| |
|
|
|
|
|
|
|
|
| Other income (expenses) |
|
|
|
|
|
|
|
|
| |
Other income (expense) |
|
|
25,825 |
|
|
|
210,407 |
|
| Interest expense |
|
|
(249,979 |
) |
|
|
(217,018 |
) |
| Total other income (expenses) |
|
|
(224,154 |
) |
|
|
(6,611 |
) |
| |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(712,452 |
) |
|
$ |
(1,144,799 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Basic net income (loss) per common share |
|
$ |
(0.03 |
) |
|
$ |
(0.06 |
) |
| Diluted net income (loss) per common share |
|
$ |
(0.03 |
) |
|
$ |
(0.06 |
) |
| |
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
| Basic |
|
|
23,754,402 |
|
|
|
19,880,342 |
|
| Diluted |
|
|
23,754,402 |
|
|
|
19,880,342 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| OXYSURE SYSTEMS INC. |
|
| STATEMENTS OF CASH FLOWS |
|
| |
|
|
|
|
|
|
| |
|
Year Ended December 31, |
|
| |
|
2013 |
|
|
2012 |
|
| |
|
|
|
|
Restated |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
(712,452 |
) |
|
$ |
(1,144,799 |
) |
| Adjustments to reconcile net income (loss) to
net |
|
|
|
|
|
|
|
|
| cash from operating activities: |
|
|
|
|
|
|
|
|
| Depreciation and amortization expense |
|
|
53,159 |
|
|
|
166,072 |
|
| Amortization of debt discount and beneficial
conversion features |
|
|
207,239 |
|
|
|
202,023 |
|
| Expenses paid by related parties |
|
|
37,335 |
|
|
|
21,358 |
|
| Gain on forgiveness of debt by related parties |
|
|
- |
|
|
|
(163,570 |
) |
| Stock based compensation |
|
|
61,480 |
|
|
|
134,257 |
|
| Stock issued for services |
|
|
126,756 |
|
|
|
76,376 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
(28,697 |
) |
|
|
(15,728 |
) |
| Inventories |
|
|
(66,321 |
) |
|
|
26,611 |
|
| Deferred license fees |
|
|
(500,000 |
) |
|
|
- |
|
| Other assets |
|
|
106,148 |
|
|
|
107,530 |
|
| Accounts payable and accrued liabilities |
|
|
(72,601 |
) |
|
|
134,969 |
|
| Deferred revenue |
|
|
(72,837 |
) |
|
|
77,513 |
|
| |
|
|
|
|
|
|
|
|
| NET CASH USED IN OPERATING ACTIVITIES |
|
|
(860,791 |
) |
|
|
(377,388 |
) |
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| |
Purchase of property and equipment |
|
|
(12,105 |
) |
|
|
(32,876 |
) |
| Purchase of intangible assets |
|
|
(4,262 |
) |
|
|
(3,172 |
) |
| |
|
|
|
|
|
|
|
|
| NET CASH USED IN INVESTING ACTIVITIES |
|
|
(16,367 |
) |
|
|
(36,048 |
) |
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| |
Common stock issued for cash |
|
|
347,364 |
|
|
|
41,250 |
|
| |
Series B preferred stock issued for cash and
warrants |
|
|
750,000 |
|
|
|
- |
|
| Common stock issued for cash and warrants |
|
|
216,800 |
|
|
|
- |
|
| Cash received from related parties |
|
|
42,470 |
|
|
|
555,599 |
|
| Payments made to related parties |
|
|
(268,950 |
) |
|
|
(264,665 |
) |
| Cash received notes payable |
|
|
- |
|
|
|
- |
|
| Payments made on notes payable |
|
|
- |
|
|
|
- |
|
| Cash received from convertible notes payable |
|
|
431,500 |
|
|
|
125,000 |
|
| Payments made on convertible notes payable |
|
|
- |
|
|
|
(85,998 |
) |
| Payments on capital leases |
|
|
(2,254 |
) |
|
|
(18,634 |
) |
| |
Exercising of warrants |
|
|
4,388 |
|
|
|
9,279 |
|
| |
|
|
|
|
|
|
|
|
| NET CASH PROVIDED BY FINANCING ACTIVITIES |
|
|
1,521,318 |
|
|
|
361,831 |
|
| |
|
|
|
|
|
|
|
|
| Net change in cash and cash equivalents |
|
|
644,160 |
|
|
|
(51,605 |
) |
| |
|
|
|
|
|
|
|
|
| Cash and cash equivalents, at beginning of
period |
|
|
13,513 |
|
|
|
65,118 |
|
| |
|
|
|
|
|
|
|
|
| Cash and cash equivalents, at end of period |
|
$ |
657,673 |
|
|
$ |
13,513 |
|
| |
|
|
|
|
|
|
|
|
| Supplemental disclosure of cash flow
information: |
|
|
|
|
|
|
|
|
| Cash paid during the period for: |
|
|
|
|
|
|
|
|
| Interest |
|
$ |
18,792 |
|
|
$ |
679 |
|
| Income taxes |
|
$ |
- |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Supplemental non-cash investing and financing
activities: |
|
|
|
|
|
|
|
|
| Capitalization of deferred loan costs |
|
$ |
48,012 |
|
|
$ |
144,433 |
|
| Common stock issued for services and rent
extension |
|
|
179,710 |
|
|
|
- |
|
| Common stock issued for capitalized website
development costs |
|
|
114,180 |
|
|
|
37,840 |
|
| Common stock issued for capitalized URL's |
|
|
- |
|
|
|
33,066 |
|
| Cashless exercise of warrants for forgiveness of
debt |
|
|
14,700 |
|
|
|
95,000 |
|
| Conversion of notes payable |
|
|
- |
|
|
|
20,000 |
|
| Conversion of convertible notes payable |
|
|
447,748 |
|
|
|
2,413,841 |
|
| Beneficial conversion feature |
|
|
317,609 |
|
|
|
- |
|
| Conversion of Series A preferred stock to common
stock |
|
|
38 |
|
|
|
1,154 |
|
| Conversion of accrued rent to common stock |
|
|
423,413 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
Contacts:
Investor Contact:Stonegate Securities, Inc.214-987-4121
972-294-6461investors@oxysure.comMedia
Contact:media@oxysure.com