SOURCE: Spine Pain Management, Inc.

January 05, 2010 16:33 ET

Update - Spine Pain Management, Inc. Is Set to Develop as Many as Ten Centers Across the U.S. Over the Next 24 Months

HOUSTON, TX--(Marketwire - January 5, 2010) - Spine Pain Management, Inc. (OTCBB: SPIN) is pleased to provide a corporate overview, as well as its strategic vision, through 2011. Based in Houston, Texas, the company delivers solutions to Spinal Health Care Providers for necessary and appropriate treatment for musculo-skeletal / spinal injury (SI) injuries resulting from traumatic accidents, in an order to maximize patient recovery. Utilizing a proven concept that has been developed and successfully deployed over the past 3 1/2 years by its founders, SPIN is now launching an aggressive nationwide "roll out" of Spine Pain Treatment Centers across the U.S. into major metropolitan cities. The initial strategy calls for the development and deployment of a minimum of seven, to as many as ten centers across the U.S. over the next 24 months.

"Based on the recent success of our first clinic in Houston, which generated Third Quarter revenues of $230,000, and net income of $119,642, we anticipate that we should be able to implement our fast-track strategy successfully and efficiently," stated William F. Donovan, M.D., the Company's Chief Executive Officer. "Partnering with prominent Spine and Orthopedic Surgeons and other local Health Care providers in each our target markets, and streamlining administration such as billing in our Houston office, should allow us to implement our 2 year, nationwide expansion in an efficient and cost effective manner, while coordinating timely, reasonable, high quality care for SI patients.

"With all this taken into consideration, SPIN should continue to meet its goals and milestone objectives, while increasing shareholder value in the months and years to come."

Industry Overview:

Musculoskeletal conditions account for more disability and more costs to the US health care system than any other condition, and with the aging of the population, this burden to society will increase. According to a report in the Journal of the American Medical Association (JAMA), the spending for Spine treatments in the United States totaled nearly $86 billion in 2005, a rise of 65 percent from 1997, after adjusting for inflation. Data from the Agency for Healthcare Research and Quality collected from 23,000 people a year from 1997 to 2005 found that people with spine problems spent about $6,096 each on medical care in 2005, compared to $3,516 in medical spending among those without spine problems. In 2005, Americans spent an estimated $20 billion on drug treatments for back and neck problems, an increase of 171 percent from 1997. Outpatient treatment for back and neck problems increased 74 percent to about $31 billion during the period. Spending for surgical procedures and other inpatient costs grew by 25 percent to about $24 billion.

Dr. Donovan went on to say: "When it comes to SI, timing is everything. We believe that our proven system, high quality care physicians and timely approach, should allow our company to emerge as an industry leader in our field and quickly become a brand name the community can trust. We believe that our goal of 7 to 10 centers over the next 24 months, and positive net income profitability in year one, is attainable through the SPIN concept."

About Spine Pain Management:

Our mission is to deliver solutions to spine surgeons, orthopedic surgeons and other health care providers for necessary and appropriate treatment for musculo-skeletal spine injuries resulting from accidents. The goal of the Company is to become a leader in providing care management services to spine surgeons and orthopedic surgeons to facilitate proper treatment of their injured clients. By providing early treatment, the Company believes that spine injuries can be managed, and injured victims can be quickly placed on the road to recovery. The Company believes its advocacy will be rewarding to patients who obtain needed relief from painful conditions. The Company provides a care management program that advocates for the injured victims by moving treatment forward to conclusion without the delay and hindrance of the legal process.

-- Insider stock transactions

Here are the SEC filed Form 4's for the CEO Dr. Donovan:

http://www.sec.gov/Archives/edgar/data/1066764/000127931109000011/xslF345X03/primary_doc.xml

http://www.sec.gov/Archives/edgar/data/1066764/000127931109000010/xslF345X03/primary_doc.xml

http://www.sec.gov/Archives/edgar/data/1066764/000127931109000007/xslF345X03/primary_doc.xml

http://www.sec.gov/Archives/edgar/data/1066764/000127931109000005/xslF345X03/primary_doc.xml

http://www.sec.gov/Archives/edgar/data/1066764/000127931109000004/xslF345X03/primary_doc.xml

http://www.sec.gov/Archives/edgar/data/1066764/000127931109000002/xslF345X03/primary_doc.xml

Legal Matters

-- We are subject to claims and legal actions that arise in the ordinary course of business. However, we are not currently subject to any claims or actions that we believe would have a material adverse effect on our financial position or results of operations.

-- In April 2009, the Company reached a settlement in the case of Martin Nathan, an attorney, who filed suit against the Company. In April 2009, the parties reached an agreement on the terms of a settlement of this matter, and the Company agreed to issue Mr. Nathan 80,000 shares of restricted common stock valued at $90,456. This amount has been accrued and reflected in the Company's statements of operations for the nine and three months ended September 30, 2009.

-- A new settlement agreement has been signed and the company is pleased to report that the settlement is significantly less than expected. No shares will be issued. First payment of $8,000 was made on December 17th, 2009.

Full financial results for the Company's quarter ended September 30, 2009, as reported to the SEC, can be accessed at http://www.sec.gov/Archives/edgar/data/1066764/000114420409058220/v164997_10q.htm. The Company's Information Statement Pursuant to Section 14(c) of the Securities Exchange Act of 1934, containing more information about the name change, as reported to the SEC, can be accessed at http://www.sec.gov/Archives/edgar/data/1066764/000114420409052775/v162218_def14c.htm. Additional information about the Company may also be found at its website at http://www.spinepaininc.com.

Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and other factors over which the Company has little or no control. The Company does not intent (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.

Contact Information

  • Contacts:
    Spine Pain Management, Inc.
    William F. Donovan, M.D.
    CEO and Director
    713-453-8551
    info@spinepaininc.com