OTTAWA, May 1, 2012 /CNW/ - Annidis Corporation (TSXV:RHA), creator of the Annidis RHA™ imaging technology that assists eye-care professionals screen, detect, diagnose and manage ocular diseases including age related macular degeneration (AMD) and diabetic retinopathy, today announced its fourth quarter and year end financial and operational results for the period ended December 31, 2011.
- Revenue of $270,000 for Q4 2011 compared to $33,000 in Q4 2010
- Currently have 16 installed and committed contracts in Canada and 14 in the U.S
- Doubled the direct sales force presence in US to meet customer demand in north eastern and western U.S, adding to the current sales team in the western U.S., British Columbia, and Ontario
- In negotiations with 10 clinics in Canada and 30 clinics in the U.S.
- Pipeline of qualified customers continues to grow
- Entering into discussions for distribution in Europe and Japan
- New treatments for early stage AMD are in clinical trials and the RHA is well positioned and generating significant interest
- Clinic usage continues to increase as the eye care professionals become more comfortable with the technology and the economic model
- Completed a $2.0 million brokered private placement subsequent to quarter end
- Issued 2.1 million shares for conversion of debentures subsequent to quarter end
"Since installing an RHA in each of my clinics I have changed the way I practice. On average 22% of patients imaged have suspicious results that demand further investigation. This system has truly given me the ability to provide my patients with a higher standard of care". Dr. Randall Fuerst OD, FAAO Sacramento, CA
"The benefit of our RHA instrument is clear to eye doctors. Doctors who have been using our instrument have found patients that appear normal in a clinical exam and on conventional imaging instruments, have had previously unseen pathologies detected by the RHA." said Gerald Slemko, Chief Executive Officer of Annidis. "We have been using a multi-faceted approach to expand our market presence across North America. We are partnering with large Optometric and Medical schools which recognize the importance of Annidis retinal imaging technology for use in retinal research and for educational purposes. We believe future graduates will recognize the benefit of the RHA and will adopt our instrument upon graduation".
Mr. Slemko continued "We are generating interest among large CRO's and pharmaceutical companies developing treatments for early AMD, as our device is uniquely positioned to identify the very early onset of AMD. Our RHA platform technology is being considered by these companies for use in pre-clinical and clinical studies, which would result in acceleration of their studies. We have also made additions to our U.S. sales team for further expansion across North America, adding to current presence in New York, Philadelphia, California, Washington, Ontario and British Columbia. We are also working on expanding our current product offerings. We have developed a new technology, the Choroidoscope, which is built on the RHA platform allowing ophthalmologists to view the choroidal vasculature of the eye non-invasively (without injecting the dye). We will be introducing this new technology at The Association for Research in Vision and Ophthalmology (ARVO) in May of this year and expect to overcome all regulatory hurdles by end of Q4 2012."
The Company recorded revenues primarily earned from the deployment of medical devices for the three and twelve months ended December 31, 2011, of $270,000 and $415,000, compared to $33,000 and $57,000 for the same periods in 2010. The increase in recorded revenue is due to the higher number of revenue generating devices deployed in clinic offices during the second half of 2011.
Total operating expenses for the three and twelve months ended December 31, 2011 were $1,298,000 and $3,907,000, compared to $453,000 and $1,946,000 for the same periods in 2010. The increase is largely attributable to the investment in sales, marketing and manufacturing costs as the Company grows its sales efforts and manufacturing capabilities together with a reduction in the amount of investment tax credits recorded against R&D costs due to changes in the Company's tax status resulting from the Qualifying Transaction. General and administration expenses increased due to higher staffing levels, including related costs, and an increase in professional and consulting fees to support the growing activities of the Company.
Net loss was $1,354,000 or loss of $0.02 per share and loss of $6,359,000 or loss of $0.12 per share, for the three month and twelve month periods ended December 31, 2011, compared with the loss of $630,000 or loss of $0.02 per share and loss of $2,361,000 or loss of $0.06 per share for the corresponding periods in 2010. The increase in reported loss is primarily attributed to higher operating costs and expenses as the Company transitions from the development stage to the early commercialization stage, as well as listing expenses associated with the Qualifying Transaction.
During the three months and twelve months ended December 31, 2011, the Company used cash of $781,000 and $3,425,000 for operating activities as compared to $370,000 and $2,420,000 for the corresponding periods of 2010.
As at December 31, 2011, the Company had cash on hand of $73,000 compared to $22,000 as at December 31, 2010. In 2011, the Company raised gross proceeds of $4,346,000 from the exercise of warrants and from the issuance of shares and share unit warrants that were used to fund operating activities of the Company, repayment of promissory notes, payment of share issue costs and increase the cash position of the Company
Total current liabilities and long term liabilities were $4,786,000 at December 31, 2011, compared to $5,990,000 at December 31, 2010.
As at December 31, 2011, the Company's working capital deficiency was $2,291,000 compared to a working capital deficiency of $2,353,000 as at December 31, 2010. This decrease in the working capital deficiency is attributable to the proceeds from the issuance of share and share warrant units; the reduction in promissory notes through conversion into equity or long-term convertible promissory notes and repayment.
About Annidis Corporation
Annidis (TSX-V:RHA) is dedicated to researching and developing instrumentation to assist in the early detection and monitoring of diseases of the eye. The Company's RHATM is an ocular pathology management system that integrates advanced multi-spectral imaging and analytic software for early detection and management of ocular pathologies such as age-related macular degeneration and diabetic retinopathy. The RHA systemis the result of a multiyear research and development effort by the Annidis team in collaboration with leading eye care professionals and researchers in US and Canada including the Ottawa Eye Institute, Toronto Western Hospital and numerous eye care clinics in US and Canada.
This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope", and "continue" (or the negative thereof), and words and expressions of similar import are intended to identify forward-looking statements. Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in the Company's Annual Information Form and other such filings with Canadian securities regulatory authorities, such as the applicability of patents and proprietary technology; possible patent ligation; regulatory approval of products in development; changes in government regulation or regulatory approval processes; government and third party reimbursement; dependence on strategic partnerships; intensifying competition; rapid technological change in the industry; anticipated future losses; the ability to access capital; and the ability to attract and retain key personnel. All forward-looking information presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made.
Gerald Slemko, CEO
(416) 815-0700 ext. 264