The Medipattern Corporation ("Medipattern") (TSX VENTURE:MKI), a pioneer in the
development of medical imaging software solutions that help medical
practitioners to better understand lesions and critical anatomy, announced
second quarter results from the company's 2012 financial year, to December 31,
2011.
"Medipattern opened new market segments with its entry into the vascular arena,
allowing radiologists, cardiologists, vascular surgeons, endocrinologists and
primary care physicians to perform carotid duplex exams. During product launch,
it became clear that 3D rendering of the lumen in carotid arteries and
automatically measuring luminal reduction of the pathway to the brain could
provide significant clinical value," stated Jeff Collins, President and CEO of
Medipattern. "A white paper was presented at the Society of Vascular Ultrasound
and later two case studies show that Visualize:Vascular(TM) 3D rendering extends
beyond the clinical information gained from a 2D Carotid Duplex Exam. In both
case studies, the Carotid Duplex Exam showed minor elevation of Stenosis in the
internal carotid arteries while Visualize showed significant luminal reduction
indicative of restricted blood flow to the brain. Further imaging using Computed
Tomography Angiography (CTA) and Magnetic Resonance Angiography (MRA) confirmed
that the results from Visualize correlated to angiography, well above the levels
reported using 2D ultrasound. In each instance, Visualize gave the physician
vital information which impacted patient diagnosis, resulting in a revised
treatment plan and surgery. Post surgical pathology confirmed that the patients
did have significant plaque which was unstable, a classification of plaque that
is strongly associated with causing massive strokes. The patient treatment plan
was modified to avert potential stroke. Today the patients are recovered, well
and able to lead more active lives."
"We are pleased to receive acknowledgement from Aunt Minnie, the Radiology
industries leading web site, of Visualize:Vascular(TM) as a Semi-finalist for
"Best Radiology Software Product of the year in 2011. Medipattern was honored at
the same level as major ultrasound vendors such as GE Healthcare and Siemens as
well as major visualization companies such as TeraRecon and Vital Images."
"Medipattern continues to grow our installed base and to reach new market
segments. Visualize:Vascular(TM) is now installed in over 20 facilities carrying
the product's assistance to physician's serving primary, secondary and tertiary
care facilities," Collins continued. "Bringing each new facility online to embed
Visualize into their workflow requires process changes to these medical
facilities. They believe that Visualize:Vascular(TM) is worth including in their
standard protocol. Our product expansion positions the company well for the
remainder of calendar year 2012."
Financial Summary for Q2 Fiscal 2012:
-- Revenue totaled $7,477 (Q2 2011 - $21,739) for the fiscal quarter ended
December 31, 2011, an overall decrease of 66%, while six month fiscal
revenues declined to $13,981, a 75% drop from last years' six month
total of $55,173. Subscription rental fees accounted for all Q2 2012
quarterly revenue (Q2 2011 - $11,739) as the Company focused its core
R&D resources and marketing expertise on meeting its deadlines for
completion of final development and early commercialization of its new
vascular software Visualize:Vascular(TM) which was rolled out on a
limited basis in June 2011. In Q2 2012 the Company generated no
licensing revenue or professional fees (Q2 2011 - $10,000 in licensing
fees). For the six month period ended December 31, 2011 subscription
rental fees also accounted for all revenue (2011 - $28,741) while
$26,432 of licensing fees were earned in the similar period of fiscal
2011.
-- Non-interest operating expenses in Q2 2012 totaled $681,644 versus
$588,823 in Q2 2011, an overall increase of 15.8%. For the six months
ended December 31, 2011 operating expenses totaled $1,270,467 compared
to $1,113,991, a 14% increase. Despite modest increases in R&D expenses
associated with the final development of Visualize:Vascular(TM), and
higher professional fees incurred with securing the Company's patents
and conversion to IFRS, the Company remains committed to controlling all
discretionary spending until operating cash flow improves in response to
its ongoing commercialization of its award winning software products.
-- Total interest expense (including accreted interest on Convertible Debt)
for Q2 2012 increased 112% to $121,541 (Q2 2011 - $57,103) as a result
of a late fiscal 2011 Convertible Debt financing. For the six months
ended December 31, 2011 interest expenses amounted to $241,638, compared
to $112,427 for fiscal 2011, a 115% increase.
-- In Q2 2012 the Company also recorded a fair value, non-cash gain on
embedded conversion options in its Convertible Notes of $1,318,507 (Q2
2011 - $82,541) with a similar gain for the six month period of
$1,357,794 in 2012 versus $80,425 in fiscal 2011. These gains represent
a reversal of losses recorded by the Company in previous fiscal periods
as a result of its conversion to IFRS and are highly sensitive to the
Company's share price.
-- Resulting net profit for Q2 2012 was $525,392 ($0.009 per share basic
and $0.008 diluted) versus a loss of $505,323 ($0.009 per share basic
and diluted) for Q2 2011. For the six months ended December 31, 2011 the
Company reported a net loss of $127,704 ($0.002 per share basic and
diluted) versus a loss of $1,093,084 ($0.019 per share basic and
diluted) for the similar six month period of fiscal 2011.
-- As at December 31, 2011, cash and cash equivalents totaled $171,431
(June 30, 2011 - $201,703), current assets, including highly liquid
short-term investments of $1,471,765 (June 30, 2011 - $2,567,619), were
$2,132,316 (June 30, 2011 - $3,313,658) and current liabilities were
$348,810 (June 30, 2011 - $352,104). Working capital at December 31,
2011 totaled $1,783,507 (June 30, 2011 - $2,961,554). At February 28,
2012, the Company estimates working capital at $1,050,000.
Results of Operations (note 1):
THE MEDIPATTERN CORPORATION
UNAUDITED STATEMENT OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)
FOR THE THREE and SIX MONTHS ENDED DECEMBER 31, 2011 AND 2010
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
--------------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Licensing fees $ - $ 10,000 $ - $ 26,432
Subscription
rental fees 7,477 11,739 13,981 28,741
--------------------------------------------------------
7,477 21,739 13,981 55,173
--------------------------------------------------------
Expenses
Research and
development 244,398 233,719 504,928 463,783
Administration and
product support 329,797 207,358 539,707 427,283
Sales and
marketing 97,656 102,301 208,245 205,891
Interest on
convertible debt 49,943 42,586 99,886 84,277
Accretion of
interest on
convertible debt 71,598 14,516 141,752 28,150
Gain on
convertible debt
conversion option
(1) (1,318,507) (82,541) (1,357,794) (80,425)
Foreign exchange
loss 2,771 2,594 2,500 7,273
Investment income (5,364) (2,146) (15,126) (5,008)
Depreciation of
property and
equipment 9,793 8,675 17,587 17,033
--------------------------------------------------------
(517,915) 527,062 141,685 1,148,257
--------------------------------------------------------
Net Income (Loss)
and Total
Comprehensive Income
(Loss) (1) $ 525,392 $ (505,323) $ (127,704) $ (1,093,084)
--------------------------------------------------------
Basic Income (Loss)
Per Share $ 0.009 $ (0.009) $ (0.002) $ (0.019)
--------------------------------------------------------
Diluted Income
(Loss) Per Share $ 0.008 $ (0.009) $ (0.002) $ (0.019)
--------------------------------------------------------
Weighted Average
Number of
Common Shares
Outstanding -
Basic 57,404,579 57,154,579 57,404,579 57,154,579
--------------------------------------------------------
Weighted Average
Number of
Common Shares
Outstanding -
Diluted 76,864,811 66,667,489 76,864,811 66,667,489
--------------------------------------------------------
(1) The non-cash gain on the convertible debt conversion option represents
the reversal of prior fiscal period losses booked in conjunction with the
Company's conversion to IFRS and as outlined in further detail in note 5 to
the accompanying condensed unaudited interim financial statements.
For further details concerning Medipattern's results, please see the Company's
filings on SEDAR. (www.sedar.com).
Upcoming Events
Annual Hospital - Physician Mar 16, 2012 Waltham, MA
Leadership Conference MHA
Annual Meeting - MHA June 6 - 7, 2012 Brewster, MA
SVU/SVS Annual Conference June 7 - 9, 2012 Baltimore, MD
About the Medipattern Corporation:
Medipattern(R) is a pioneer in the development of imaging software solutions
that help medical practitioners to better understand lesions and critical
anatomy. Medipattern uses its Cadenza(TM) technology to process images, finding
the salient region of interest and presenting them in 2D and 3D formats that
enhance the reader's perception. For more information, please visit the
Company's website: www.medipattern.com.
Medipattern(R) is a registered mark of The Medipattern Corporation.
Visualize:Vascular(TM) is a trademark of the Medipattern Corporation.
Forward-looking statements
This document contains forward-looking statements relating to Medipattern's
performance, operations, or business environment. These statements are based on
what we believe are reasonable assumptions given currently available information
and our understanding of Medipattern's current activities. We have tried,
whenever possible, to identify these forward-looking statements using words such
as "anticipates", "believes", "estimates", "expects", "plans", "intends",
"potential", and similar expressions. Forward-looking statements are not
guarantees of future performance and involve risks and uncertainties that are
difficult to predict or control. A number of factors could cause actual outcomes
and results to differ materially from those expressed in forward-looking
statements. These factors include but are not limited to those set forth in the
Company's corporate filings, (posted at www.sedar.com). In addition, these
forward-looking statements relate to the date on which they are made. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements for any reason. Readers should not rely on
forward-looking statements.
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