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     1122  0 Kommentare LED Medical Diagnostics Inc. Reports 2014 Third Quarter Results

    BURNABY, BC--(Marketwired - November 28, 2014) - LED Medical Diagnostics Inc. (TSX VENTURE: LMD) (OTCQX: LEDIF) (FRANKFURT: LME) ("LED Medical" or the "Company") today announced its financial results for the third quarter ended September 30, 2014, reported in United States dollars and in accordance with International Financial Reporting Standards ("IFRS"). The Company's results are presented in comparison to the third quarter ended September 30, 2013. All balances are expressed in United States dollars unless otherwise stated.

    "I am pleased to announce revenue growth of 86% to $4,273,818 during the nine months ended September 30, 2014 as compared to the same prior year period. We provided annual revenue guidance of $9.0 million to $11.0 million which the Company is working diligently to achieve," states Dr. David Gane, Chief Executive Officer. "Revenue growth in 2014 is a direct result of optimizing our VELscope distribution channel and by adding new third party digital imaging product lines to complement our VELscope product offering. We have made a substantial investment in our Company which includes inventory as at September 30, 2014 to fulfil the anticipated sales orders to be received in the fourth quarter of fiscal 2014. I am proud of what we have built to date inclusive of the team assembled and the progress we have made to position ourselves to capitalize on the busy sales cycle that lays ahead until the end of the year. We are closer than ever to realizing our goal of becoming a leading player in the North American digital dental imaging market."

    Business Highlights

    Notable business developments and achievements up to the reporting date include the following:

    • On August 13, 2014, the Company announced the availability of its new digital intraoral camera, the LED IC100. Designed with simplicity, functionality and versatility in mind. The LED IC100 intraoral camera captures high-resolution images to provide practitioners with an enhanced patient education tool.
    • On August 19 2014, the Company officially introduced the LED IC200. This product is the second intraoral camera in the Company's product portfolio and is elegantly designed to acquire high-resolution intraoral and extraoral images with auto focus and a large depth of field.
    • During September 2014, the Company showcased its new Digital Imaging products at the California Dental Association (CDA) Annual Conference entitled "CDA Presents the Art and Science of Dentistry", the American Association of Oral and Maxillofacial Surgeons 94th Annual Meeting and the American Academy of Periodontology 100th Annual Meeting and Exhibition. The CDA conference alone was attended by more than 27,000 dental professionals.
    • On October 14, 2014, LED Medical announced the renewal of its exclusive international distribution agreement (outside North America) for the VELscope® Vx for a three year term with DenMat Holding LLP. This agreement requires minimum annual purchases of the VELscope® Vx product line by DenMat and is subject to another three-year extension at the mutual agreement of both parties.

    Financial Highlights

    Financial Position as at September 30 2014

    Net working capital1 as at September 30, 2014 was $2,357,635 which includes cash of $815,036.

    Three-Month Comparative Results

    The Company reported revenue of $1,628,643 for the three months ended September 30, 2014 as compared to $911,387 for the three months ended September 30, 2013. Operating loss was $1,977,051 for the three months ended September 30, 2014, as compared to a net loss of $260,326 for the three months ended September 30, 2013.

    The Company's calculated gross margin2 was 36% for the three months ended September 30, 2014, which is lower than the 64% gross margin during the three months ended September 30, 2013. Total operating expenses for the three months ended September, 2014 were $2,577,852 as compared to $840,383 for the three months ended September 30, 2013.

    EBITDA3 for the three months ended September 30, 2014 was negative $1,623,618 compared to negative $139,816 for the three months ended September 30, 2013.

    Included in the Company's net loss of $2,693,861 for the three months ended September 30, 2014 is $777,504 in mark to market adjustments on Canadian dollar denominated warrants. Exclusive of the mark to market adjustment, the Company's net loss would be $1,916,357 for the third quarter of fiscal 2014. Included in the Company's net loss of $1,959,503 for the three months ended September 30, 2013, is a loss of $2,065,653 in mark to market adjustments on Canadian dollar denominated warrants resulting in the Company's net income of $106,150 exclusive of the mark to market adjustment loss.

    Nine-Month Comparative Results

    The Company reported revenue of $4,273,818 for the nine months ended September 30, 2014 as compared to $2,303,860 for the nine months ended September 30, 2013. Operating loss was $4,816,499 for the nine months ended September 30, 2014, as compared to a net loss of $1,923,094 for the nine months ended September 30, 2013.

    The Company's calculated gross margin2 was 47% for the nine months ended September 30, 2014, which is lower than the 60% gross margin during the nine months ended September 30, 2013. Total operating expenses for the nine months ended September, 2014 were $6,812,708 as compared to $3,302,749 for the nine months ended September 30, 2013.

    EBITDA3 for the nine months ended September 30, 2014 was negative $4,061,343 compared to negative $916,082 for the nine months ended September 30, 2013.

    Included in the Company's net loss of $5,505,294 for the nine months ended September 30, 2014 is $693,979 in mark to market adjustments on Canadian dollar denominated warrants. Exclusive of the mark to market adjustment, the Company's net loss would be $4,811,315 for this fiscal 2014 period. Included in the Company's net loss of $5,494,416 for the nine months ended September 30, 2013 is $3,822,587 in mark to market adjustments on Canadian dollar denominated warrants. Exclusive of the mark to market adjustment, the Company's net loss would be $1,671,829.

    Financial Guidance for Fiscal Year 2014

    The Company is providing guidance for the full fiscal year ending December 31, 2014 ("fiscal year 2014"). This guidance is intended solely to give investors an understanding of management's expectations for the full fiscal year in light of recent industry sales trends, seasonality of the business and recognition that much of the sales generated in the dental industry occur in the fourth quarter. The guidance does not take into account, or give effect for, any events that are beyond the Company's reasonable control.

         
    Full Fiscal Year Ending December 31, 2014   Quantitative Guidance
         
    Net Revenues   $9.0M - $11.0M
         

    Financial Statements and Management's Discussion & Analysis

    Please see the interim condensed consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for more details. The interim condensed consolidated financial statements for the nine months ended September 30, 2014 and related MD&A have been reviewed and approved by the Company's Audit Committee and Board of Directors. The Company has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted to www.ledmd.com.

    About LED Medical Diagnostics Inc.

    Founded in 2003 and headquartered in Burnaby, British Columbia, Canada, LED Medical Diagnostics Inc. is a leading developer of LED-based visualization technologies for the medical industry. The Company is currently listed on the Toronto Stock Exchange (TSX-V) under the symbol "LMD", the OTCQX under the symbol "LEDIF", as well as the Frankfurt Stock Exchange under the symbol "LME". For more information, visit www.ledmd.com.

    LED Dental Inc., a wholly-owned subsidiary, is backed by an experienced leadership team dedicated to a higher level of service and support. LED Dental offers advanced diagnostic imaging equipment that seamlessly integrates into dental practices. The Company is committed to providing dental practitioners with the best technology available by identifying and adding strong products to its growing portfolio. Additionally, the company manufactures the award-winning VELscope® Vx Enhanced Oral Assessment System, the first system in the world to apply tissue fluorescence visualization technology to the oral cavity. The VELscope® Vx is now used to conduct more screenings for oral cancer and other oral mucosal diseases than any other adjunctive device. For more information, call 888.541.4614 or visit www.leddental.com.

    1 Net Working Capital is a non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. This measure does not have a comparable IFRS measure. Working capital is defined as current assets less current liabilities. The Company believes that the inclusion of this no-IFRS measure financial measure provides investors with an alternative presentation useful to investors' understanding of the Company's core operating results and trends.

    2 Gross margin is a non-IFRS measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross margin referenced here relates to revenues less cost of sales. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the operating performance of the Company.

    3 EBITDA or Earnings before Interest, Taxes Depreciation and Amortization is a non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. This measure does not have a comparable GAAP measure. EBITDA referenced here relates to net loss and comprehensive loss and excludes interest, income taxes, depreciation, amortization, finder's warrants issuance costs, stock-based compensation, deferred share unit compensation, mark to market adjustments on Canadian dollar denominated warrants, foreign exchange gain or loss and other income. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the cash operating loss of the business.

    Forward-Looking Statements

    This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation. Such forward-looking statements or information includes financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions and the Company's intention to expand its technology beyond dental applications including "costs of production", "capital expenditures", "costs and timing of the development of new products", "hedging practices", "currency exchange rate fluctuations", "requirements for additional capital", "government regulation of medical device operations" and "insurance coverage". Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "would", "could", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Persons reading this Management's Discussion and Analysis are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: economic conditions; dilution; limited history of profits and operations; operational risk; distributor risks; working capital; potential conflicts of interest; speculative investment; intellectual property risks; disruptions in production; reliance on key personnel; seasonality; management's estimates; development of new customers and products risks; stock price volatility risk; sales and marketing risk; competitors and competition risk; regulatory requirements; reliance on few suppliers; reliance on subcontractors; operating cost and quarterly results fluctuations; fluctuations in exchange rates; product liability and medical malpractice claims; access to credit and additional financing; taxation; market acceptance of the Company's products and services; customer and industry analyst perception of the Company and its technology vision and future prospects; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international operations and sales; management of growth and expansion; dependence upon key personnel and hiring; the Company not adequately protecting its intellectual property; risks related to product defects and product liability; and including, but not limited to, other factors described in the Company's reports filed on SEDAR, including its financial statements and management's discussion and analysis for the year ended December 31, 2013. In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material factors and assumptions in addition to the above factors: the Company's ability to execute on its business plan; the acceptance of the Company's products and services by its customers; the timing of execution of outstanding or potential customer contracts by the Company; the sales opportunities available to the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins. This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this Management's Discussion and Analysis are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

       
       
    LED MEDICAL DIAGNOSTICS INC.  
    Condensed Interim Consolidated Statements of Financial Position  
    (Expressed in U.S. Dollars)  
       
        September 30,
    2014
        December 31,
    2013
     
                     
    Assets                
    Current assets                
      Cash   $ 815,036     $ 4,358,986  
      Trade and other receivables     878,106       503,736  
      Inventory     2,514,870       412,307  
      Inventory held by distributor     191,165       165,832  
      Prepaid expenses and deposits     735,158       297,164  
    Total current assets     5,134,335       5,738,025  
                     
    Non-current assets                
      Letter of credit     280,000       -  
      Property and equipment     276,113       23,150  
      Patents and intellectual property     43,008       62,362  
        $ 5,733,456     $ 5,823,537  
    Liabilities and Shareholders' Deficiency                
    Current liabilities                
      Trade payables and accrued liabilities   $ 1,745,532     $ 793,046  
      Advances from distributor     671,715       495,494  
      Deferred Revenue     1,266       -  
      Current portion of finance lease obligation     4,187       3,690  
      Warrants     354,000       -  
    Total current liabilities     2,776,700       1,292,230  
                     
    Non-current liabilities                
      Long-term portion of finance lease obligation     -       3,190  
      Warrants     -       3,672,958  
    Total liabilities     2,776,700       4,968,378  
                     
    Shareholders' deficiency                
      Share capital     34,145,786       27,242,071  
      Stock-based payment reserve     1,679,550       970,004  
      Warrants reserve     4,718,328       4,724,698  
      Accumulated other comprehensive income     474,458       474,458  
      Deficit     (38,061,366 )     (32,556,072 )
          2,956,756       855,159  
        $ 5,733,456     $ 5,823,537  
                     
                     
     
     
    LED MEDICAL DIAGNOSTICS INC.
    Condensed Interim Consolidated Statements of Operations and Comprehensive Loss
    (Expressed in U.S. Dollars)
                     
        Three months ended
    September 30, 2014

      Three months ended
    September 30, 2013
      Nine months ended
    September 30, 2014

      Nine months ended
    September 30, 2013
                                     
    Revenues   $ 1,628,643     $ 911,387     $ 4,273,818     $ 2,303,860  
    Cost of goods sold     1,027,842       331,330       2,277,609       924,205  
          600,801       580,057       1,996,209       1,379,655  
                                     
    Expenses                                
      Sales and marketing     1,621,028       158,776       3,910,005       818,111  
      Research and development     215,625       121,706       721,548       322,257  
      Administration     387,766       439,391       1,425,999       1,121,264  
      Stock-based compensation     331,695       45,898       709,546       597,691  
      Deferred share unit compensation     -       65,149       -       380,580  
      Other operating expenses     21,738       9,463       45,610       62,846  
         
    2,577,852
         
     840,383
         
    6,812,708
         
     3,302,749
     
    Operating loss     (1,977,051 )     (260,326 )     (4,816,499 )     (1,923,094 )
                                     
    Other income (expenses)                                
                                     
      Mark to market adjustments on Canadian dollar denominated warrants     (777,504 )     (2,065,653 )     (693,979 )     (3,822,587 )
      Foreign exchange (loss) gain     60,694       366,435       5,184       255,364  
          (716,810 )     (1,699,218 )     (688,795 )     (3,567,223 )
    Net income (loss) before incomes taxes     (2,693,861 )     (1,959,544 )     (5,505,294 )     (5,490,317 )
    Income taxes     -       (41 )     -       4,099  
    Net income (loss) and comprehensive income (loss) for the period   $ (2,693,861 )   $ (1,959,503 )   $ (5,505,294 )   $ (5,494,416 )
                                     
    Income (loss) per share - basic and diluted     ($0.03 )     ($0.03 )     ($0.07 )     ($0.12 )
                                     
    Weighted average number of shares outstanding - basic and diluted     82,312,719       57,985,508       75,207,052       47,735,508  
                     
                                     
     
     
    LED MEDICAL DIAGNOSTICS INC.
    Consolidated Statements of Cash Flow
    (Expressed in U.S. Dollars)
     
        Three months ended
    September 30, 2014
      Three months ended
    September 30, 2013
      Nine months ended
    September 30, 2014
      Nine months ended
    September 30, 2013
    Cash flows from operating activities                                
      Net income (loss) for the period   $ (2,693,861 )   $ (1,959,503 )   $ (5,505,294 )   $ (5,494,416 )
                                     
    Adjustments to net income (loss) for items not involving cash:                                
      Depreciation of equipment     15,287       3,010       26,256       9,387  
      Amortization of intellectual property     6,451       6,453       19,354       19,354  
      Warrants issuance costs     -       -       -       34,105  
      Mark to market adjustments on Canadian dollar denominated warrants     777,504       1,679,155       693,979       3,436,089  
      Settlement of warrant liability upon exercise and expiry of warrants     2,961,577       -       3,912,642          
      Stock-based compensation     331,696       45,898       709,546       597,691  
      Unrealized foreign exchange gain     (3,020,844 )     -       (4,019,303 )     -  
          (1,622,190 )     (224,987 )     (4,162,820 )     (1,397,790 )
    Changes in working capital assets and liabilities:                                
      Trade and other receivables     (94,065 )     245,213       (374,370 )     819,092  
      Inventory     (1,129,413 )     (229,988 )     (2,102,563 )     (277,304 )
      Inventory held by distributor     (48,709 )     265,200       (25,333 )     397,200  
      Prepaid expenses and deposits     (440,583 )     (101,919 )     (717,993 )     (90,421 )
      Trade payables and accrued liabilities     260,285       (198,392 )     952,482       (312,977 )
      Advances from distributor     110,569       (494,531 )     176,221       (1,370,695 )
      Deferred revenue     (6,681 )     -       1,266       -  
    Changes in working capital assets and liabilities     (1,348,597 )     (514,417 )     (2,090,290 )     (835,105 )
    Cash flows used in operating activities     (2,970,787 )     (739,404 )     (6,253,110 )     (2,232,895 )
                                     
    Cash flows from investing activities                                
      Purchase of equipment     (98,635 )     (1,876 )     (279,220 )     (3,067 )
      Restricted cash     -       (99 )     -       173  
    Cash flows used in investing activities     (98,635 )     (1,975 )     (279,220 )     (2,894 )
                                     
    Cash flows from financing activities                                
      Issuance of common shares, net of issuance costs     -       (2,880 )     -       1,855,294  
      Issuance of share purchase warrants in private placement     -       -       -       386,497  
      Proceeds from exercise of warrants     2,047,308       -       2,991,073       -  
      Repayment of finance lease obligation     (1,250 )     (766 )     (2,693 )     (2,176 )
    Cash flows provided by (used in) financing activities     2,046,058       (3,646 )     2,988,380       2,239,615  
                                     
    (Decrease) increase in cash     (1,023,364 )     (745,025 )     (3,543,950 )     3,826  
    Cash, beginning of period     1,838,400       1,718,435       4,358,986       969,584  
    Cash, end of period   $ 815,036     $ 973,410     $ 815,036     $ 973,410  
                                     
                                     

    Contacts:

    For media relations, please contact:

    Chris Koch
    LED Dental Ltd.
    Phone: 678-293-9413
    E-Mail: chris.koch@leddental.com

    For Investor relations, please contact:

    Beverly Brooks
    Investor Relations
    LED Medical Diagnostics Inc.
    Phone: 844-952-7327
    E-Mail: investorrelations@leddental.com




    Verfasst von Marketwired
    LED Medical Diagnostics Inc. Reports 2014 Third Quarter Results BURNABY, BC--(Marketwired - November 28, 2014) - LED Medical Diagnostics Inc. (TSX VENTURE: LMD) (OTCQX: LEDIF) (FRANKFURT: LME) ("LED Medical" or the "Company") today announced its financial results for the third quarter ended September 30, 2014, …