LOS ANGELES, CA--(Marketwire - May 17, 2010) - MMR Information Systems, Inc. (
Dear Stockholder:
Today we filed our quarterly statement for the three months ended March 31, 2010. I wanted to take this opportunity to discuss the filing and give you insight into our plans to generate revenue as we evolve into MMRGlobal.
We are well on our way towards achieving a global footprint from which we will sell our proprietary line of Personal Health Record and Professional Medical Record products and services.
Following my recent travels to China and South Africa to meet with the Chartis groups, I immediately flew to Washington, D.C., where MMR Advisor, former House Majority Leader, the Hon. Richard A. "Dick" Gephardt, and MMR Director, the Hon. Hector V. Barreto, were instrumental in arranging meetings with Senators, Congress Members and government healthcare officials including Dr. David Blumenthal, National Coordinator for Health Information Technology, as well as investors and potential strategic partners to demonstrate our cost-saving and unique technologies.
At the invitation of Mr. Barreto, who serves as Chairman of The Latino Coalition, I also introduced onstage our strategic partner, Kodak, as the new sponsor of the Coalition. Latino economic consumption is estimated to be nearing a trillion dollars annually, and we expect to be able to sell our Personal Health Record products directly into this market in conjunction with Kodak through the Coalition.
I was particularly pleased to talk at some length with former House Speaker Newt Gingrich, one of the nation's leading proponents of healthcare reform, and update him on the progress of MMR since we last met approximately three years ago.
Although we incurred a net loss of $6.5 million during the first quarter, $5.3 million of that loss represents non-cash expenses driven by $4.2 million from the application of accounting principles to value derivative liabilities and equity as well as an additional $1.0 million from stock options, warrants and common stock issued for services.
Although we disclosed an accounts payable balance of $3.0 million, $2.5 million of that balance is attributable to the reverse merger with Favrille and only $389 thousand represents MMR trade payables. Accordingly, we maintain good relationships with its vendors. In 2009, we were able to issue equity in lieu of cash to reduce liabilities by $920 thousand which included $290 thousand towards a reduction in accounts payable. We plan on using our increasing stock value to further reduce liabilities and strengthen our balance sheet.
Our ability to issue equity for services has allowed us to accumulate $878 thousand in cash which we will use to support sales of MMRPro while continuing to enhance product functionality and to exploit our biotech assets, patents and other operating expenses.
In addition, since the end of the first quarter our filing discloses subsequent events that have eliminated derivative liabilities in the amount of $3.7 million, or 36.1% which also will continue to improve our balance sheet position.
We will continue to take advantage of our stock value to improve our balance sheet and attract strategic partners and employees, consultants and management. We also plan on using our equity for Merger and Acquisition opportunities, including some currently under preliminary evaluation. All of these actions can contribute to an increase in our value for the benefit of stockholders.
Although our financial condition remains largely static as compared to a year ago, as a result of our efforts, we now are positioned to take advantage of multiple income streams that did not exist then.
During the first quarter we began the process of selling and installing the first group of 10 MMRPro systems in physician offices. The installation and sales implementation process takes approximately 6 to 10 weeks. This encompasses a checklist of more than 50 items which includes everything from where the system hardware will be located, connected and installed, a detailed analysis of office workflow, and customizing connectivity to any existing office practice management system. These initial installations are being handled by us on a direct basis. However, we receive substantial installation support from Kodak and selected Kodak resellers.
Starting in the third quarter we will be calling on physician offices throughout the United States through the nationwide Kodak reseller channel.
We also plan on building strategic relationships with hospitals to underwrite the use of MMRPro for staff physicians. This could enable staff physicians to digitize patient charts prior to admissions, streamlining the admissions process for the patients to the hospital.
In addition to its product functionality, MMRPro includes a "Stimulus Program" for healthcare professionals that creates a revenue opportunity for physicians from patient upgrades. We believe that our Stimulus Program can generate at least as much money for the average group practice over a three year term as the $44,000 that is possible through the HITECH Act over a five year period.
We retained Global Research Services LLC, a full-service clinical trials management organization, to assist us in our efforts to accelerate bringing to market its anti-CD20 monoclonal antibodies. Anti-CD20 antibodies are useful in treating B-Cell malignancies, including Non-Hodgkin's Lymphoma (NHL) and additional B-Cell mediated conditions such as rheumatoid arthritis. Global Research Services specializes in serving sponsors of Phase I-IV research. MMR's anti-CD20 antibody asset is potentially a candidate for the next generation Rituximab, marketed under the trade name Rituxan® in the United States by Biogen Idec and Genentech (wholly owned member of the Roche Group) and under the name MabThera® by Roche in the rest of the world except Japan, where it is co-marketed by Chugai and Zenyaku Kogyo Co. Ltd. Rituxan/MabThera is one of the world's most successful monoclonal antibodies with reported total sales in 2009 in excess of US$5.6 billion.
Beginning in June 2009, we filed various national phase filings from the Patent Cooperation Treaty patent application directed to the anti-CD20 monoclonal antibodies, including in the United States, Australia, Brazil, Canada, China, Europe, India, Japan, South Korea and Mexico.
We also acquired certain intellectual property rights involving B and T cell vaccine technology relating to the FavID vaccine in various stages in the United States and foreign countries through its reverse merger with Favrille. We are also in the process of filing certain patents regarding numerous aspects of the FavID vaccine. We cannot guarantee the status or issuance of any patents and patent applications. However, we are acting to pursue and maintain available intellectual property protection relating to the FavID vaccine and intellectual property portfolio in the United States and major foreign markets of interest.
We are also in the process of adding experienced venture capitalists to our Medical Board of Advisers to assist us in generating revenue through licensing agreements and milestone payments from our biotech assets and other intellectual property, which we acquired from the reverse merger with Favrille. The assets include, but are not limited to, data from our pre-merger clinical vaccine trials, the Specifid vaccine, and the anti-CD20 antibodies. Given recent developments with Dendreon and the similarities to our manufacturing process and the drug Provenge, we will continue to explore any opportunities to resurrect and or take advantage of any pre-merger assets.
As we previously disclosed, on March 22, 2010, we entered into a Master Services Agreement with Chartis International LLC ("Chartis"). Chartis provides a wide range of insurance solutions and is one of the world's leading property-casualty and general insurance organizations, with operations in over 160 countries and jurisdictions. We plan on providing MMR's secure online Personal Health Record products to Chartis policyholders worldwide starting prior to the end of this year. Initially, translations of our products are first expected to be available in English, Spanish, French, German, Italian, Japanese and Chinese.
We are also in active negotiations with a major financial institution regarding the development of paperless loan processing and delivery solutions whereby loan documents can be delivered electronically through our MyESafeDepositBox product, with resultant completed documents being filed in a permanent online MyESafeDepositBox account.
At the first of the year, we entered into a Cooperation Agreement with Unis-Tonghe Technology Co. ("Unis"). Under the Cooperation Agreement we and Unis agreed to form a joint venture in China for the purpose of deploying our personal health record services and document imaging and management solutions in China for use in the Chinese Government's comprehensive electronic medical records system. If and when the joint venture is approved by the Chinese government, Unis will own 60% and MMR will own 40%. Meanwhile we have begun to leverage our resources in China with other U.S. partners, including Kodak. As a result, we anticipate selling MMRPro through Kodak resellers throughout the Asia Pacific region in advance of a Unis MMR EMR product launch. We also believe that China will provide one of the earlier Chartis revenue streams.
We were recently profiled in the May edition of PharmaVOICE magazine regarding its products and the value to the Clinical Trials market and big Pharma. We believe we can generate revenues by using our PHR to connect patients to Clinical Trials through existing strategic partnerships and agreements. We will also offer customized tools for the Clinical Trials marketplace and plan on having them introduced starting at the Drug Information Association's Annual Meeting in Washington, D.C. June 13 to 17, 2010.
I also want to inform you of the possibility we may enter into an agreement for a standby line of credit, which will be available to us as we continue to globally expand our proprietary suite of electronic health records products. I will convey this to you immediately should we take this step, but we have made no decision as of yet as to whether to enter into such agreement.
Many of you have expressed concern about how we will finance ourselves going forward and the dilutive impact on our equity. Simply put, it takes money to make money. Last July, our stockholders approved an increase of our authorized Common Stock from 150 million shares to 650 million shares. Since that time, we have issued less than 10% of the total outstanding in additional shares; yet, our value has more than doubled. Accordingly, we are still considering all options to finance growth.
We will need to continue to meet obligations necessary to finance our growth internationally. As always, as new developments occur, I will disclose them in a timely manner.
One of the best ways to understand the value of your company is by using its products and services. Therefore, if you have not already done so, please take some time over the upcoming Memorial Day holiday to reach out to your family and friends and set up a MyMedicalRecords.com or MyESafeDepositBox.com account. You will appreciate the safety and security of having all your important documents and medical records securely stored online in the event of an emergency, and you'll be proud to be an owner of MMR and our potentially lifesaving products. Thank you for your continued support of MMR.
Sincerely,
Robert H. Lorsch
Chairman, President & Chief Executive Officer
About MMR Information Systems, Inc.
MMR Information Systems, Inc., through its wholly-owned operating subsidiary, MyMedicalRecords, Inc. ("MMR"), provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, unions and professional organizations and affinity groups. MyMedicalRecords enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. The MyMedicalRecords Personal Health Record is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients in real time. MMR is an Independent Software Vendor Partner with Kodak to deliver an integrated turnkey EMR solution for healthcare professionals. MMR is also an integrated service provider on Google Health. To learn more about MMR Information Systems, Inc. and its products, visit www.mymedicalrecords.com and view the videos at www.mymedicalrecordsonline.com/videos.
Forward-Looking Statements
Any statements contained in this press release that refer to future events or other non-historical matters are forward-looking statements, and some can be identified by the use of words (and their derivations) such as "need," "possibility," "offer," "development," "if," "negotiate," "when," "begun," "believe," "achieve," "will," "estimate," "expect," "maintain," "plan," and "continue." MMR Information Systems, Inc. disclaims any intent or obligation to revise or update any forward-looking statements. These forward-looking statements are based on MMR Information Systems, Inc.'s reasonable expectations as of the date of this press release and are subject to risks and uncertainties that could cause actual results to differ materially from current expectations. The information discussed in this release is subject to various risks and uncertainties related to changes in MMR Information Systems, Inc.'s business prospects, results of operations or financial condition, government regulation, and such other risks and uncertainties as detailed from time to time in MMR Information Systems, Inc.'s public filings with the U.S. Securities and Exchange Commission.
Contact Information:
CONTACT:
Bobbie Volman
MMR Information Systems, Inc.
(310) 476-7002, Ext. 2005
bvolman@mmrmail.com
Michael Selsman
Public Communications Co.
(310) 553-5732
ms@publiccommunications.biz