The Medipattern Corporation

The Medipattern Corporation

May 30, 2012 18:46 ET

Medipattern Reports Highlights and Results for Q3 2012

TORONTO, ONTARIO--(Marketwire - May 30, 2012) - The Medipattern Corporation (TSX VENTURE:MKI) ("Medipattern" or the "Company") is pleased to report third quarter highlights and results from the Company's 2012 financial year, to March 31, 2012.


  • Installed Visualize:Vascular™ in 23 facilities which have a combined total of 154 sites;
  • Established that average reimbursement across market segment (surgeons, radiologists, cardiologists and primary care physicians) is consistent with CMS (Medicare) fee schedule for all major payers;
  • Increased scanning volumes month over month [January (17), February (83) and March (248)];
  • Expanded sales into mobile diagnostic providers with multiple customers;
  • Continued Visualize:Vascular roll out expanding to the Southeastern United States;
  • Reinforced clinical performance with case study showing that Visualize:Vascular correctly identified patients with severe Stenosis that Doppler ultrasound technology did not find. Visualize:Vascular correlated to magnetic resonance angiography (MRA) and surgical findings;
  • Subsequent to the end of the quarter, Medipattern announced that it had signed a binding letter agreement with MYTRAK® Health System Inc. ("MYTRAK") to combine their technologies and launch a new personalized mobile health business called MyTrak Personal Health Solutions, focusing on monitoring physical activity for the management of Metabolic Syndrome by leveraging MYTRAK's proven wearable mobile technology platform to complement its core proprietary cardiovascular visualization and image analysis business.

"Key milestones were met in the vascular product line during the third quarter. Daily clinical use in the diagnostic imaging market of Visualize:Vascular is confirming that the product is medically beneficial, easy to use and cost effective in practice. We are extremely pleased with the growing acceptance of the product and the continued ramp up in installations and scanning volumes," stated Jeff Collins, CEO of Medipattern. "Our increased exposure to the vascular market and cardiologists has created new opportunities for Medipattern, like the recently announced MyTrak Personal Health Solutions product, which addresses external patient monitoring requirements that are not being adequately addressed in the market. We expect that the new product we are developing utilizing MyTrak Health Solutions proprietary technology will be readily accepted and fill a significant void in the patient wellness space, as well as create a significant new revenue stream for Medipattern. The potential for the Company's product offering in both the diagnostic imaging market and the patient wellness market is very strong and the Company is positioned well in both markets."

Financial Summary for Q3 Fiscal 2012:

  • Revenue totaled $11,734 (Q3 2011 - $57,929) for the fiscal quarter ended March 31, 2012, an overall decrease of 79.7%, while nine month fiscal revenues declined to $25,715, a 77.3% drop from last years' nine month total of $113,102. Subscription rental fees for both Visualize:Vascular™ and B-CAD-FOR-LIFE™ accounted for all Q3 2012 quarterly revenue (Q3 2011 - $6,647) as the Company continued to focus its core R&D resources and marketing expertise on meeting its deadlines for completion of final development and commercialization of its new vascular software Visualize:Vascular™ which was rolled out on a limited basis in June 2011. Consequently, in Q3 2012, the Company generated no licensing revenue or professional fees (Q3 2011 - $23,105 in licensing fees and $28,177 in professional fees). For the nine month period ended March 31, 2012 subscription rental fees of $25,715 also accounted for all revenue (2011 - $36,334) while $48,591 of licensing fees and $48,591 of ancillary professional fees were earned in the similar nine month period of fiscal 2011.
  • Non-interest operating expenses in Q3 2012 totaled $600,330 versus $516,794 in Q3 2011, an overall increase of 16.1%. For the nine months ended March 31, 2012 operating expenses totaled $1,870,797 compared to $1,630,785, a 14.7% increase. Despite modest increases in R&D expenses associated with the final development of Visualize:Vascular™, and higher professional fees incurred with securing the Company's patents and conversion to IFRS, the Company remains committed to controlling all discretionary spending until operating cash flow improves in response to its ongoing commercialization of its award winning software products.
  • Total interest expense (including accreted interest on Convertible Debt) for Q3 2012 increased 154.9% to $186,970 (Q3 2011 - $73,351) as a result of a late Q3 fiscal 2011 Convertible Debt financing with its associated accredit interest, and the end of the Notes interest-free period at December 31, 2011. For the nine months ended March 31, 2012 interest expenses amounted to $428,608, compared to $185,778 for fiscal 2011, a 130.8% increase.
  • In Q3 2012 the Company also recorded a fair value, non-cash gain on embedded conversion options in its 2010 Convertible Notes of $42,705 (Q3 2011 - $2,524,126 loss) with a similar gain for the nine month period of $1,400,499 in 2012 versus a loss of $2,443,700 in fiscal 2011. These fiscal 2012 gains represent a reversal of losses recorded by the Company in previous fiscal periods as a result of its conversion to IFRS and are highly sensitive to the Company's share price.
  • Resulting net loss for Q3 2012 was $742,953 ($0.01 per share basic and diluted) versus a loss of $3,055,069 ($0.05 per share basic and diluted) for Q3 2011. For the nine months ended March 31, 2012 the Company reported a net loss of $870,656 ($0.02 per share basic and diluted) versus a loss of $4,148,152 ($0.07 per share basic and diluted) for the similar nine month period of fiscal 2011.
  • As at March 31, 2012, cash and cash equivalents totaled $230,654 (June 30, 2011 - $201,703), current assets, including highly liquid short-term investments of $750,752 (June 30, 2011 - $2,567,619), were $1,490,128 (June 30, 2011 - $3,313,658) and current liabilities were $401,467 (June 30, 2011 - $352,104). Working capital at March 31, 2012 totaled $1,088,661 (June 30, 2011 - $2,961,554). At May 29, 2012, the Company estimates working capital at $625,000.

Results of Operations (note 1):


Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Licensing fees $ - $ 23,105 $ - $ 48,591
Professional fees - 28,177 - 28,177
Subscription rental fees 11,734 6,647 25,715 36,334
11,734 57,929 25,715 113,102
Research and development 283,575 231,263 788,503 695,046
Administration and product support 205,367 179,381 745,074 606,664
Sales and marketing 102,035 97,633 310,280 303,525
Interest on convertible debt 112,440 47,565 212,325 131,842
Accretion of interest on convertible debt 74,530 25,787 216,282 53,937
Loss (gain) on convertible debt conversion option (1) (42,705) 2,524,126 (1,400,499) 2,443,700
Foreign exchange loss 12,981 1,684 15,479 8,957
Investment income (2,889) (2,957) (18,013) (7,965)
Depreciation of property and equipment 9,353 8,516 26,940 25,548
754,687 3,112,997 896,371 4,261,255
Net Loss and Total Comprehensive Loss $ (742,953) $ (3,055,068) $ (870,656) $ (4,148,152)
Loss Per Share - Basic and Diluted $ (0.01) $ (0.05) $ (0.02) $ (0.07)
Weighted Average Number of Common Shares Outstanding 57,404,579 57,181,233 57,404,579 57,181,233
(1) The non-cash gain on the convertible debt conversion option represents the reversal of significant prior fiscal period losses booked in conjunction with the Company's conversion to IFRS and as outlined in further detail in note 5 to the accompanying condensed unaudited interim financial statements.

For further details concerning Medipattern's results, please see the Company's filings on SEDAR (

Upcoming Events

Annual Meeting - MHA June 6 - 7, 2012 Brewster, MA
SVU/SVS Annual Conference June 7 - 9, 2012 Baltimore, MD

About the Medipattern Corporation:

Medipattern® is a pioneer in the development of imaging software solutions that help medical practitioners to better understand lesions and critical anatomy. Medipattern uses its Cadenza™ technology to process images, finding the salient region of interest and presenting them in 2D and 3D formats that enhance the reader's perception. For more information, please visit the Company's website:

Medipattern® and B-CAD® are registered marks of The Medipattern Corporation. Visualize:Vascular™ is a trademark of the Medipattern Corporation.

Forward-looking statements

This document contains forward-looking statements relating to Medipattern's performance, operations, or business environment. These statements are based on what we believe are reasonable assumptions given currently available information and our understanding of Medipattern's current activities. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential", and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to those set forth in the Company's corporate filings (posted at In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements for any reason. Readers should not rely on forward-looking statements.

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.

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