The Medipattern Corporation

The Medipattern Corporation

October 27, 2011 18:49 ET

Medipattern Reports Results for Fiscal 2011

TORONTO, ONTARIO--(Marketwire - Oct. 27, 2011) -

Attention: Business/Financial Editors:

The Medipattern Corporation ("Medipattern") (TSX VENTURE:MKI), a pioneer in the development of medical imaging software solutions that help medical practitioners to better understand lesions and critical anatomy, today announced its business highlights and financial results for the fiscal year ended June 30, 2011.

Jeff Collins, CEO of Medipattern, commented "In line with our corporate technology initiatives of last year, we received FDA clearance and entered the Vascular Market as planned in June of 2011 with the roll-out of our Visualize:Vascular™ product in Chicago at the Society of Vascular Ultrasound Annual Meeting and Conference. Our initial limited commercial launch during the summer of 2011 has been as planned and we are continuing to our full commercial launch phase where we will add more resellers and commercial support personnel such as applications trainers, begin our new marketing campaign as seen through our recent changes in our web site, and go live with our planned electronic infrastructure to support commercialization."

"Although the B-CAD® for breast ultrasound and for breast Magnetic Resonance Imaging (MRI) product family has not yet generated a sustainable revenue stream, several programs utilizing these technologies are underway with various Original Equipment Manufacturers and may provide additional traction for the products beginning in the latter part of 2012. We have continued to control costs and add only to areas that support sales in order to conserve our cash as revenues ramp up from Visualize:Vascular™ in the second half of 2012," concluded Collins.

Business Highlights of Fiscal 2011:

  • September 22, 2010 – Medipattern's core technology "system and method of computer-aided detection (CAD)" received United States Patent # 7,783,094.

  • February 17, 2011 – Medipattern receives U.S. Food and Drug Administration 510(k) clearance for Visualize:Vascular™.

  • March 3, 2011 – Medipattern signs teaming agreement with TomTec Imaging Systems GmbH, a worldwide leader in providing 2D-, 3D- and 4D- solutions to the medical ultrasound market, where TomTec will integrate Medipattern's B-CAD® breast imaging software into its Image-Arena™ Platform Suite.

  • March 14, 2011 – Medipattern closes a $3,000,000 secured, convertible note financing.

  • June 14, 2011 – Medipattern announces Ultrasound Solutions Corporation, a leading ultrasound sales and service provider with a distribution network stretching from Virginia, Ohio and Michigan through Maine, will promote Medipattern's vascular products to its 650+ dedicated cardiovascular clients.

  • June 17, 2011 - Medipattern announces that the Research Paper "Three Dimensional Reconstruction of the Vessel Lumen as an Adjunct to the Cerebrovascular Duplex Equation" presented to the Annual Meeting of the Societies of Vascular Surgeons and Vascular Ultrasound, by its authors' Dr. Porreca, Dr. Rodriguez-Wong and Mr. J.P. Hughes, found a statistically significant correlation in measurement in the reduction of lumen between Medipattern's Visualize:Vascular™ software and traditional color flow Doppler ultrasound.

  • June 29, 2011 – Medipattern initiates commercial roll-out of its Visualize:Vascular™ 3D carotid artery ultrasound software.

Financial Highlights for Fiscal 2011:
  • Revenue totaled $156,034 (2010 - $304,935) for the fiscal year ended June 30, 2011 (fiscal 2011), an overall decrease of 49%. Licensing fees from B-CAD®totaled $52,970 compared to $272,573 for the fiscal year ended June 30, 2010 (fiscal 2010), an 81% decrease which reflected 2010's $250,000 one time software technology licensing contract for B-CADmri™. Subscription rental fees from B-CAD-FOR-LIFE™ increased by $15,373, or 48%, to $47,735 (2010 – $32,362). Professional fees of $55,329 were earned in fiscal 2011 (2010 - $nil) as the Company utilized internal programming expertise to augment cash flow by helping external customers with software development. Throughout fiscal 2011 the Company's core R&D resources remained focused on meeting its deadlines for completion of internal development and commercialization of its new vascular software Visualize:Vascular™ which was rolled out in June 2011;

  • Non-interest operating expenses in fiscal 2011 totaled $2,217,942 versus $2,897,368 in fiscal 2010, an overall decline of 23%, as 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 for fiscal 2011 increased to $322,938 (2010 - $28,313) as a result of two Convertible Debt financings in late fiscal 2010 and in March of 2011;

  • Resulting net loss for the 2011 fiscal year was $2,384,846 ($0.04 per share) versus $ 2,620,746 ($0.05 per share) for fiscal 2010;

  • As at June 30, 2011, cash and cash equivalents totaled $201,703 (2010 - $269,329), current assets, including highly liquid short-term investments of $2,567,619 (2010 - $1,250,000), were $3,313,658 (2010 - $2,070,913) and current liabilities were $352,104 (2010 - $377,443). Working capital at June 30, 2011 totaled $2,961,554 (2010 - $1,693,470). At September 30, 2011, the Company estimates working capital at $2,110,000.

Results of Operations:
2011 2010
Licensing fees $ 52,970 $ 272,573
Professional fees 55,329 -
Subscription rental fees 47,735 32,362
156,034 304,935
Research and development 877,252 929,788
Administration and product support 938,108 1,114,295
Sales and marketing 370,992 806,129
Interest on convertible debt 179,406 18,305
Accreted interest on convertible debt 143,532 10,008
Foreign exchange loss 12,919 8,224
Investment income (16,182 ) (3,859 )
Amortization of property and equipment 34,853 42,791
2,540,880 2,925,681
NET LOSS AND COMPREHENSIVE LOSS $ (2,384,846 ) $ (2,620,746 )
LOSS PER SHARE - basic and diluted $ (0.04 ) $ (0.05 )

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

2011 Upcoming Events:

  • Veith 38th Annual Symposium, November 16 to 20 with partner Navix

  • RSNA (Radiological Society of North America), November 27 to December 2, 2011, Chicago, IL, with partners TomTec and PenRad

About The Medipattern Corporation:

Medipattern® (TSX VENTURE:MKI) 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:

B-CAD® and Medipattern® are a registered trademarks of The Medipattern Corporation. Visualize:Vascular™, Cadenza™ and B-CADmri™ are trademarks 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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