Biotonix (2010) Inc.
TSX VENTURE : BTX

Biotonix (2010) Inc.

May 26, 2011 18:48 ET

Biotonix Announces First Quarter 2011 Results

- Sustained development efforts to stimulate growth and participation in strategic trade shows

- Priority to R&D projects with a short time-to-market to secure a leading position in target markets

- Increase in sales during the 1st quarter of 2010

- Steady growth of the gross margin compared to the first quarter 2010

BROSSARD, QUEBEC--(Marketwire - May 26, 2011) - Biotonix (2010) Inc.(TSX VENTURE:BTX) a leader in postural health, today announced the financial results for the first quarter ended March 31, 2011. "We maintained our focus on sales in the fitness and corporate health markets, took part in several strategic trade shows and increased our visibility in the European media by leveraging our unique know-how. Our objective was to increase our footprint and accelerate penetration in target markets", said Louise St-Onge, CEO of Biotonix.

"According to the Center for Disease Control (CDC), inactivity accounts for 40% of costs associated with lifestyle-related chronic diseases. Biotonix's products are specifically designed to improve overall fitness and posture, while helping to prevent musculoskeletal disorders", she concluded.

HIGHLIGHTS

  • Biotonix took part in strategic trade shows addressing targeted niche markets. More specifically, the Company promoted its posture correction solutions at the Parker Seminar and its posture and fitness solutions at the IRSHA and Can-Fit Pro conventions. Biotonix also introduced its solutions to major players in the Canadian group insurance industry during the Colloque conference.

  • The Company also pursued strategic partnership opportunities with leaders in the fitness industry and with Fortune 500 companies in the corporate health and insurance sector.

  • Biotonix's President, Sylvain Guimond, DO, Ph.D., was interviewed by popular French magazines such as Glamour, Elle and Cap Santé, and will be appearing on the set of France 5 as a biomechanics expert during a health show.

  • During the first quarter, Biotonix posted a 15% increase in sales compared to the same period in 2010. In addition, gross profit rose to 53% compared to 39% at the same period last year.

  • In terms of R&D activities, Biotonix focused on developing a mobile PT concept to increase the Company's competitiveness and remain at the cutting-edge of high-end products in the fitness market. The Company also pursued the development of custom web-based solutions for Fortune 500 and insurance companies that will promote healthy living among the population.

OVERVIEW OF FINANCIAL INFORMATION

Quarter ended March 31
Unaudited
20112010
$$
Statement of Operations
Sales131,911115,098
Gross profit67,66445,032
Net loss(516,073)(626,020)
Net loss per share, basic and diluted(0.022)(0.030)
Weighted average number of shares23 094 16721,035,000
Balance sheet
Cash flow and deposits1,092,3581,864,511
Total assets1,411,4892,390,487
Long-term debt including short-term portion
20,833

66,667
Total liabilities529,197322,767
Shareholder's equity882,2922,067,487

Revenues for the quarter increased by 15%, reaching $131,911 compared to $115,098 last quarter, due in part to a change in accounting practices on a client contract. In addition, gross profit rose to 52% compared to 39% in 2010.

CASH POSITION

On the basis of current projections and cash inflows from the private financings, management believes the Company will have sufficient funds available to support its activities for the current fiscal year.

WEB-BASED SOLUTIONS FOR POSTURE CORRECTION AND FITNESS

Biotonix has developed a unique biomechanical evaluation system and method which is at the core of all its applications. The system helps health and fitness professionals to assess, improve and monitor posture and overall fitness. The Biotonix web-based imaging software system is easy to use, non-invasive and provides a complete individualized assessment of musculoskeletal form and function, postural deviation detection, and corresponding corrective exercises. To date, the Company has generated over 425,000 postural and fitness assessments, including over 1,000 world-class athletes and corporations form the Fortune 500.

FitPrint(TM)

Designed to meet the specific needs of the fitness market, FitPrint™ has the capability to assess posture as well as establish physiological age in order to improve muscular balance, performance and overall fitness, and rejuvenate the body.

Biotonix's is currently negotiating with major fitness organizations and several Fortune 500 companies.

MORE INFORMATION ON BIOTONIX

More information is available on Biotonix's website at www.biotonix.com as well as on the SEDAR website at www.sedar.com.

BIOTONIX PROFILE

Biotonix (TSX VENTURE:BTX) offers innovative health solutions for posture correction and fitness using a web-based imaging software technology. For more information please visit www.biotonix.com

BIOTONIX'S FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, no history of profitability, future financing, intellectual property and patents, key personnel, competitive marketplace, technology obsolescence, share price volatility and other risks detailed in the Company's 2010 Management Discussion & Analysis. While Biotonix anticipates that subsequent events and developments may cause its views to change, Biotonix specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.

Neither 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.

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