TORONTO,
Feb. 28, 2012 /PRNewswire/ -
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF), a leader in
secure mobile health that "Powers Care Coordination through
Mobility", reported its fourth quarter and fiscal 2011 results for
the period ended December 31, 2011.
All dollar amounts are in U.S. dollars.
"In 2011, Diversinet made substantial strides in
advancing the market adoption of our secure mobile solutions in the
growing wireless health and mHealth marketplace," said Dr.
Hon Pak, Diversinet's CEO. "This was
demonstrated in events and milestones that were both significant
and wide ranging."
Q4 and Fiscal 2011 Financial
Highlights
Revenues for the fourth quarter were
$382,000 compared to $106,000 in the same year-ago period. Revenues
for the full year were $1.3 million,
compared to $4.9 million in 2010.
Revenues in 2010 included $3.7
million from AllOne Mobile Corporation ("AllOne") relating
to a termination of a prior agreement.
Net loss for the fourth quarter was $1.7 million or $(0.04) per share, compared to $1.5 million or $(0.04) per share the year-ago quarter. The net
loss in the fourth quarter 2011 included non-cash items of
$154,000 in stock-based compensation
expense, $16,000 in depreciation, and
a foreign exchange loss of $52,000.
This compares with non-cash items in the year-ago quarter of
$129,000 in stock-based compensation
and $17,000 in depreciation, and a
foreign exchange gain of $91,000.
Net loss for the year was $5.5 million or $(0.13) per share, compared to net income of
$1.9 million or $0.04 per share in 2010. Included in the
full-year net income were non-cash items $670,000 in stock-based compensation,
$63,000 in depreciation, and a
foreign exchange loss of $32,000.
This compares with non-cash items in 2010 of $3.1 million related to the canceled shares from
AllOne, $659,000 in stock-based
compensation, $66,000 in
depreciation, and a foreign exchange gain of $190,000.
Cash and cash equivalents totaled $7.4 million at December
31, 2011, as compared to the previous year's balance of
$12.5 million.
2011 Operational Highlights
- Based on the strong results from the Mihealth™ pilot program
with its subscription based patient health record (PHR) system,
Diversinet began 2011 by signing a five-year, $5 million Canadian reseller agreement with
Mihealth Global Systems, Inc. for its MobiSecure® platform. This
relationship enabled Diversinet to focus on the large opportunities
in the U.S.
- In March, Diversinet released a Clinical Communicator
application, which incorporates the power and unique functionality
of its field-proven MobiSecure Publisher and MobiSecure SMS.
Clinical Communicator enables physicians, nurses and other
clinicians to communicate securely with their patients via mobile
devices and tablets.
- Another successful pilot program led Johnson & Johnson
Pharmaceutical Research and Development to license
MobiSecure. This deployment involved new features developed
for consumer interaction, which demonstrated how MobiSecure's
turnkey capability can provide full customization without
undergoing extensive product development and testing, and while
also maintaining feature flexibility, security and customer
branding.
- In September, the U.S. Army's Telemedicine and Advanced
Technology Research Center renewed its annual contract with
Diversinet to support the Army's mCare telehealth outreach
program. The program was established for members of the
military recovering from mild traumatic brain injuries and other
wounds. The mCare mobile health application, powered by
MobiSecure, also received the '2010 Army Greatest Inventions
Award,' representing the most innovative advances in Army
technology.
- Diversinet enhanced its intellectual property portfolio with
the award of a U.S. patent for an encryption method that addresses
growing concerns about protecting sensitive personal data stored on
a mobile device. This technology prevents unauthorized access to
data via encryption and protects information if it is transferred
to another mobile device.
- In December, Diversinet reached an important milestone in an
extensive security validation process for the cryptographic modules
used by its MobiSecure® mHealth application, with a formal listing
in the "Federal Information Processing Standards Publication (FIPS)
140-2" publication. This listing is critical for government
agencies, medical device manufacturers and pharmaceutical companies
that require absolute security in safeguarding personal health
information.
In February 2012,
the company's board of directors appointed Hon Pak CEO, succeeding
Albert Wahbe. The board
believes his leadership will continue to be important to
Diversinet's success in the healthcare marketplace.
"As the mHealth market continues to evolve in
2012, we remain focused on the key elements of our mobile health
strategy, which include introducing new products and product
enhancements, creating customized portals to support mobile health
applications, and expanding our network of healthcare partners and
infield deployments," said Pak. "I believe that healthcare is
becoming unsustainable, and changes are now in place that will
impact the landscape of how healthcare will be delivered. We
believe that by focusing on care coordination through mobility, our
products can help coordinate and manage all of a patient's
care."
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB:
DVNTF) provides patented and proven secure products that enable
healthcare organizations to rapidly deploy HIPAA-compliant mobile
healthcare (mHealth) applications to power care coordination. Learn
more about Diversinet at www.diversinet.com.
The Private Securities Litigation Reform Act
of 1995 and Canadian securities laws provide a "safe harbour" for
forward-looking statements. Certain information included in this
press release (as well as information included in oral statements
or other written statements made or to be made by the company)
contains statements that are forward-looking, such as statements
relating to the success of current product offerings. Such
forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future and, accordingly, such results may differ materially
from those expressed in any forward-looking statements made by or
on behalf of the company. For a description of additional risks and
uncertainties, please refer to the company's filings with the
Securities and Exchange Commission available at www.sec.gov
and Canadian securities regulatory authorities available at
www.sedar.com.
The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
release.
DIVERSINET CORP. |
|
|
|
|
Consolidated Balance Sheets |
|
|
|
|
(In United States dollars) |
|
|
|
|
|
|
|
|
|
As at December 31 |
|
2011 |
|
2010 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
7,397,025 |
$ |
12,458,750 |
|
Accounts receivable, net |
|
287,155 |
|
75,150 |
|
Prepaid expenses |
|
64,252 |
|
52,773 |
|
Total current assets |
|
7,748,432 |
|
12,586,673 |
|
|
|
|
|
|
Property and equipment, net |
|
207,301 |
|
180,983 |
Total assets |
$ |
7,955,733 |
$ |
12,767,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
217,539 |
$ |
143,253 |
|
Accrued liabilities |
|
281,011 |
|
562,994 |
|
Deferred revenue |
|
284,583 |
|
45,167 |
|
Total current liabilities |
|
783,133 |
|
751,414 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Share capital: |
|
|
|
|
|
Authorized: |
|
|
|
|
|
|
Unlimited common shares |
|
|
|
|
|
|
Issued and outstanding: |
|
|
|
|
|
|
43,009,347 (42,285,171 - 2010) common shares |
|
85,848,861 |
|
85,583,198 |
|
Additional paid-in capital |
|
19,755,623 |
|
19,346,409 |
|
Share purchase warrants |
|
39,318 |
|
21,242 |
|
Deficit |
|
(96,950,481) |
|
(91,413,886) |
|
Accumulated other comprehensive
income: |
|
|
|
|
|
|
Cumulative translation adjustment |
|
(1,520,721) |
|
(1,520,721) |
|
Total shareholders' equity |
|
7,172,600 |
|
12,016,242 |
|
|
|
|
|
Total liabilities and shareholders'
equity |
$ |
7,955,733 |
$ |
12,767,656 |
|
|
|
|
|
|
DIVERSINET CORP. |
Consolidated Statements of Net Income (Loss) and
Comprehensive Income (Loss) |
(In United States dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31 |
|
2011 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
Revenues |
$ |
1,291,714 |
$ |
4,931,834 |
$ |
7,972,929 |
Cost of revenues |
|
104,600 |
|
22,860 |
|
175,138 |
Gross margin |
|
1,187,114 |
|
4,908,974 |
|
7,797,791 |
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
Research and development |
|
2,927,551 |
|
3,112,225 |
|
3,351,742 |
Sales and marketing |
|
1,664,996 |
|
1,783,211 |
|
1,448,000 |
General and administrative |
|
2,058,702 |
|
1,888,908 |
|
2,326,380 |
Depreciation |
|
62,967 |
|
65,788 |
|
75,559 |
|
|
6,714,216 |
|
6,850,132 |
|
7,201,681 |
|
|
|
|
|
|
|
Income (loss) before the undernoted: |
|
(5,527,102) |
|
(1,941,158) |
|
596,110 |
|
|
|
|
|
|
|
Foreign exchange gain (loss) |
|
(31,662) |
|
190,448 |
|
1,253,375 |
Interest income, net |
|
22,169 |
|
57,277 |
|
61,314 |
Other income |
|
- |
|
3,560,707 |
|
- |
Net income (loss) for the year and
comprehensive net
income (loss) |
|
(5,536,595) |
|
1,867,274 |
|
1,910,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share |
$ |
(0.13) |
$ |
0.04 |
$ |
0.04 |
Weighted average common shares outstanding |
|
42,587,632 |
|
45,029,121 |
|
47,191,669 |
Weighted average fully diluted
common shares
outstanding |
|
42,587,632 |
|
45,029,121 |
|
47,295,515 |
DIVERSINET CORP. |
|
|
|
|
|
|
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
(In United States dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31 |
|
2011 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
Cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
|
Net income (loss) for the year |
$ |
(5,536,595) |
$ |
1,867,274 |
$ |
1,910,799 |
|
Items not involving cash: |
|
|
|
|
|
|
|
|
Depreciation |
|
62,967 |
|
65,788 |
|
75,559 |
|
|
Foreign exchange gain |
|
(31,699) |
|
(167,297) |
|
(1,151,363) |
|
|
Other income |
|
- |
|
(3,060,707) |
|
- |
|
|
Stock-based compensation expense |
|
669,952 |
|
658,991 |
|
1,195,570 |
|
Changes in non-cash working
capital: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(212,005) |
|
4,567 |
|
(79,717) |
|
|
Prepaid expenses |
|
(11,479) |
|
(17,591) |
|
22,164 |
|
|
Accounts payable |
|
74,286 |
|
(5,278) |
|
(19,547) |
|
|
Accrued liabilities |
|
(258,982) |
|
266,738 |
|
(215,706) |
|
|
Deferred revenue |
|
239,416 |
|
(88,833) |
|
(2,512,356) |
|
Cash used in operations |
|
(5,004,139) |
|
(476,348) |
|
(774,597) |
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
Issue of common shares for cash |
|
- |
|
128,604 |
|
254,075 |
|
Cash provided by financing
activities |
|
- |
|
128,604 |
|
254,075 |
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(89,285) |
|
(28,645) |
|
(38,421) |
|
Cash used in investing activities |
|
(89,285) |
|
(28,645) |
|
(38,421) |
|
|
|
|
|
|
|
Foreign exchange gain on cash held in
foreign currency |
|
31,699 |
|
167,297 |
|
1,151,363 |
|
|
|
|
|
|
|
Net increase (decrease) in cash and
cash equivalents |
|
(5,061,725) |
|
(209,092) |
|
592,420 |
|
|
|
|
|
|
|
Cash and cash equivalents, beginning
of year |
|
12,458,750 |
|
12,667,842 |
|
12,075,422 |
|
|
|
|
|
|
|
Cash and cash equivalents, end of
year |
$ |
7,397,025 |
$ |
12,458,750 |
$ |
12,667,842 |
|
|
|
|
|
|
|
Supplemental cash flow
information: |
|
|
|
|
|
|
|
Interest received |
|
22,169 |
|
57,277 |
|
61,314 |
|
|
|
|
|
|
|
Supplemental disclosure relating to
non-cash financing and investing activities: |
|
|
|
|
|
|
|
Issuance of shares to employees and
Board |
|
265,663 |
|
284,750 |
|
414,188 |
|
|
|
|
|
|
|
Cash and cash equivalents is comprised
of: |
|
|
|
|
|
|
|
Cash |
|
253,715 |
|
443,684 |
|
563,471 |
|
Cash equivalents |
|
7,143,310 |
|
12,015,066 |
|
12,104,371 |
|
$ |
7,397,025 |
$ |
12,458,750 |
$ |
12,667,842 |
SOURCE Diversinet Corp.