The Medipattern Corporation

The Medipattern Corporation

February 29, 2012 06:30 ET

Medipattern Reports Second Quarter Fiscal 2012

TORONTO, ONTARIO--(Marketwire - Feb. 29, 2012) - 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, announced second quarter results from the company's 2012 financial year, to December 31, 2011.

"Medipattern opened new market segments with its entry into the vascular arena, allowing radiologists, cardiologists, vascular surgeons, endocrinologists and primary care physicians to perform carotid duplex exams. During product launch, it became clear that 3D rendering of the lumen in carotid arteries and automatically measuring luminal reduction of the pathway to the brain could provide significant clinical value," stated Jeff Collins, President and CEO of Medipattern. "A white paper was presented at the Society of Vascular Ultrasound and later two case studies show that Visualize:Vascular™ 3D rendering extends beyond the clinical information gained from a 2D Carotid Duplex Exam. In both case studies, the Carotid Duplex Exam showed minor elevation of Stenosis in the internal carotid arteries while Visualize showed significant luminal reduction indicative of restricted blood flow to the brain. Further imaging using Computed Tomography Angiography (CTA) and Magnetic Resonance Angiography (MRA) confirmed that the results from Visualize correlated to angiography, well above the levels reported using 2D ultrasound. In each instance, Visualize gave the physician vital information which impacted patient diagnosis, resulting in a revised treatment plan and surgery. Post surgical pathology confirmed that the patients did have significant plaque which was unstable, a classification of plaque that is strongly associated with causing massive strokes. The patient treatment plan was modified to avert potential stroke. Today the patients are recovered, well and able to lead more active lives."

"We are pleased to receive acknowledgement from Aunt Minnie, the Radiology industries leading web site, of Visualize:Vascular™ as a Semi-finalist for "Best Radiology Software Product of the year in 2011. Medipattern was honored at the same level as major ultrasound vendors such as GE Healthcare and Siemens as well as major visualization companies such as TeraRecon and Vital Images."

"Medipattern continues to grow our installed base and to reach new market segments. Visualize:Vascular™ is now installed in over 20 facilities carrying the product's assistance to physician's serving primary, secondary and tertiary care facilities," Collins continued. "Bringing each new facility online to embed Visualize into their workflow requires process changes to these medical facilities. They believe that Visualize:Vascular™ is worth including in their standard protocol. Our product expansion positions the company well for the remainder of calendar year 2012."

Financial Summary for Q2 Fiscal 2012:

  • Revenue totaled $7,477 (Q2 2011 - $21,739) for the fiscal quarter ended December 31, 2011, an overall decrease of 66%, while six month fiscal revenues declined to $13,981, a 75% drop from last years' six month total of $55,173. Subscription rental fees accounted for all Q2 2012 quarterly revenue (Q2 2011 - $11,739) as the Company focused its core R&D resources and marketing expertise on meeting its deadlines for completion of final development and early commercialization of its new vascular software Visualize:Vascular™ which was rolled out on a limited basis in June 2011. In Q2 2012 the Company generated no licensing revenue or professional fees (Q2 2011 - $10,000 in licensing fees). For the six month period ended December 31, 2011 subscription rental fees also accounted for all revenue (2011 - $28,741) while $26,432 of licensing fees were earned in the similar period of fiscal 2011.
  • Non-interest operating expenses in Q2 2012 totaled $681,644 versus $588,823 in Q2 2011, an overall increase of 15.8%. For the six months ended December 31, 2011 operating expenses totaled $1,270,467 compared to $1,113,991, a 14% 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 Q2 2012 increased 112% to $121,541 (Q2 2011 - $57,103) as a result of a late fiscal 2011 Convertible Debt financing. For the six months ended December 31, 2011 interest expenses amounted to $241,638, compared to $112,427 for fiscal 2011, a 115% increase.
  • In Q2 2012 the Company also recorded a fair value, non-cash gain on embedded conversion options in its Convertible Notes of $1,318,507 (Q2 2011 - $82,541) with a similar gain for the six month period of $1,357,794 in 2012 versus $80,425 in fiscal 2011. These 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 profit for Q2 2012 was $525,392 ($0.009 per share basic and $0.008 diluted) versus a loss of $505,323 ($0.009 per share basic and diluted) for Q2 2011. For the six months ended December 31, 2011 the Company reported a net loss of $127,704 ($0.002 per share basic and diluted) versus a loss of $1,093,084 ($0.019 per share basic and diluted) for the similar six month period of fiscal 2011.
  • As at December 31, 2011, cash and cash equivalents totaled $171,431 (June 30, 2011 - $201,703), current assets, including highly liquid short-term investments of $1,471,765 (June 30, 2011 - $2,567,619), were $2,132,316 (June 30, 2011 - $3,313,658) and current liabilities were $348,810 (June 30, 2011 - $352,104). Working capital at December 31, 2011 totaled $1,783,507 (June 30, 2011 - $2,961,554). At February 28, 2012, the Company estimates working capital at $1,050,000.

Results of Operations (note 1):



Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Licensing fees $ - $ 10,000 $ - $ 26,432
Subscription rental fees 7,477 11,739 13,981 28,741
7,477 21,739 13,981 55,173
Research and development 244,398 233,719 504,928 463,783
Administration and product support 329,797 207,358 539,707 427,283
Sales and marketing 97,656 102,301 208,245 205,891
Interest on convertible debt 49,943 42,586 99,886 84,277
Accretion of interest on convertible debt 71,598 14,516 141,752 28,150
Gain on convertible debt conversion option (1) (1,318,507 ) (82,541 ) (1,357,794 ) (80,425 )
Foreign exchange loss 2,771 2,594 2,500 7,273
Investment income (5,364 ) (2,146 ) (15,126 ) (5,008 )
Depreciation of property and equipment 9,793 8,675 17,587 17,033
(517,915 ) 527,062 141,685 1,148,257
Net Income (Loss) and Total
Comprehensive Income (Loss) (1) $ 525,392 $ (505,323 ) $ (127,704 ) $ (1,093,084 )
Basic Income (Loss) Per Share $ 0.009 $ (0.009 ) $ (0.002 ) $ (0.019 )
Diluted Income (Loss) Per Share $ 0.008 $ (0.009 ) $ (0.002 ) $ (0.019 )
Weighted Average Number of
Common Shares Outstanding - Basic 57,404,579 57,154,579 57,404,579 57,154,579
Weighted Average Number of
Common Shares Outstanding - Diluted 76,864,811 66,667,489 76,864,811 66,667,489
(1) The non-cash gain on the convertible debt conversion option represents the reversal of 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 Hospital - Physician Mar 16, 2012 Waltham, MA
Leadership Conference MHA
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® is a registered mark 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.

Contact Information