Spine Pain Management, Inc. (OTCQB:SPIN), a technology-driven,
medical service, device and healthcare solution company servicing
the multi-billion dollar spine injury sector, today announced
financial results for the first quarter 2014.
The Company recorded $657,931, in gross revenue for the three
months ended March 31, 2014, offset by $323,243 of the expected
settlement discount resulting in net revenue of $344,688. For the
same period in 2013, gross revenue was $2,102,929, offset by $1,
059,728 of standard allowance for discount, resulting in net
revenue of $1, 043,201. Revenue was negatively affected by lower
case volume in 2014 due to multiple factors. In January 2014 we
made the decision to cease managing centers in Florida and
terminated our affiliation with our healthcare provider in the
state. Also in January 2014, the Company made the decision to
discontinue doing business in McAllen, Texas in connection with
what the Company believed was an isolated situation which increased
competition in the area. We have no revenue from our Florida or
McAllen affiliates for the three months ended March 31, 2014. As a
result of the foregoing, we had a net loss of $480,287 or $.025 per
share for the three months ended March 31, 2014, with non-cash
charges totaling $230,149, compared to $.002 of net income for the
three months ended March 31, 2013, with non-cash charges of
$260,621.
Dr. William Donovan, CEO stated, "When I first decided to bring
public SPIN's business model several years ago, it was at that time
and still is unique in the public company sector; effectively
meaning there were no other companies to learn from. Throughout
this time we have had our ups and downs; yet in spite of the recent
'downs' the resilience of the core business model has
unquestionably grown the company considerably with minimal outside
funding as witnessed by its current balance sheet and only a
handful of small quarterly losses over the years. Already the
Company is quickly seeing positive results from changes made in Q2
which should be evident in the Q2 14 reported results." Donovan
went on to say, "As you can also see below, we have taken our
proprietary HALO which was originally developed for internal use,
but thanks to a rapidly growing need for worldwide Medical
'transparency', may be on the verge of becoming a 'game
changer.' I cordially invite all shareholders and interested
parties to attend our quarterly interactive conference call to
learn more about the Company."
Major Transition Underway, New Programs
Implemented.
- As discussed in the last CC, primarily due to Florida's
difficult personal injury case environment, whereby victims must
first go to a certified medical facility before filing, reducing
the overall settlement possibility, SPIN ceased funding Florida
cases Jan. 1st as well as in McAllen, TX due to what the
Company feels was an isolated competition situation.
- Historically, approximately 40% of funding went into Florida
and 30% to McAllen. All prior cases funded are unaffected and are
being, or awaiting collection. For SEC reporting, SPIN books Net
Revenues on a formula at the time of funding, so termination of
funding in these areas would expect an immediate proportional
reduction in Revenues and respective earnings.
- With no Funding provided to the FL or McAllen affiliates, SPIN
can and is now deploying its cash into new more lucrative markets,
as witnessed in its recent PR announcing a LOI with a new
Midland-Odessa affiliate, with no negative affect other than short
term loss of Revenues and Earnings. Additional locations are soon
anticipated.
Business Model Expansion
- Until now, SPIN restricted its funding mostly to "Injection"
procedures only. Beginning in the current Q2, we have expanded
our funding to include selective MRI and Surgical funding as well.
- The medical portion which typically shares in a third of
smaller settlements after attorney expenses; is further broken down
into three or four segments. Therapy, MRI, Injections, and if
needed Surgery. Most cases start with several months of Therapy to
establish whether soft tissue or more serious spine damage has
occurred. If the latter, the next step is MRI. SPIN is now
selectively funding the MRI portion on specific cases using the
latest MRI technology which is attracting higher value cases.
- Surgery is typically only involved in the larger cases with
higher insurance limits. Should a case qualify, SPIN is prepared to
selectively fund such cases. While percentage returns are less,
surgery is usually the last step and done just months before final
settlement. SPIN has already actively participated in both new
Segments in this Q2.
Third Party Commercialization of SPIN's Proprietary Quad
Video HALO™
- To date SPIN has expended in excess of $400,000 as well as
considerable man-hours in commercializing and exposing its HALO to
prospective buyers. With the favorable reception, along with
modification suggestions received from its participation in three
major trade shows, what was once thought to be an "interesting"
potential revenue source is now appearing to be a potential "game
changer" for "Transparency" in the multi-billion dollar C-Arm
Fluoroscopy procedure segment.
- FDA Review and the UL testing process has been initiated with
approval expected later this year. Preliminary review by counsel
indicates the HALO should qualify as a Class I, 510(k) exempt
medical device. This certification will facilitate sales to third
party buyers.
Conference Call Details
Conference Call: An investor's conference call
with management will be held on Thursday, May 15, at 4:20 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 Thursday, May 15, at 4:20 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/423192782
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID:
423-192-782
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)
655-0061Participant Access
Code: 384-587-251
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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