SOURCE: MMRGlobal, Inc.

MMRGlobal, Inc.

May 15, 2014 08:15 ET

MMRGlobal to Report Record Revenues From Personal Health Record Business

LOS ANGELES, CA--(Marketwired - May 15, 2014) - MMRGlobal, Inc. (OTCQB: MMRF) ("MMR" or the "Company"), a leading provider of Personal Health Records, MyEsafeDepositBox storage solutions and electronic document management systems for consumers and healthcare professionals, today announced that it will report a nearly 300% increase in revenues for the first quarter of 2014 as compared to the first quarter of 2013 driven by earnings directly attributable to sales of MMR's Health IT products and services and the Company's licensing activities. Details about the Company's quarterly financial performance is included in the Company's quarterly report on Form 10-Q for the period ended March 31, 2014, which will be filed with the United States Securities and Exchange Commission today. 

Excluding biotech revenues, this quarter is the largest quarter for revenue ever reported by the Company for its core Health IT line of business. The Company generated revenues of $485,494 for the first quarter of 2014 as compared to $122,028 for the same period in 2013, representing an increase of $363,466, or approximately 300%. Much of the revenue growth is as a result of the Company's patent licensing activities, but do not reflect significant additional revenues that the Company believes will continue to arise from such agreements in the future. In addition, the Company expects to receive an additional $500,000 in licensing fees this calendar year and more than an additional $10 million prior to the end of CY 2016 based on existing signed agreements relating to the licensing of its biotech assets.

According to MMRGlobal Chairman and CEO Robert H. Lorsch, "We expect this quarter to be the start of a trend for increasing revenue. Consumer awareness of the importance of having a PHR is being driven by hundreds of millions of dollars in advertising for HealthCare.gov. In addition, patients are being sent to eligible healthcare professionals who are required to offer Personal Health Records to at least 50% of their patients. These providers are mandated to give patients timely online access to their personal health information such as in the form of a Personal Health Record in order to receive full incentive payments under the HITECH Act's Meaningful Use requirements. We also foresee generating recurring revenue from sales through major national pharmacy retailers and other big box retailers. Additionally, we are seeing increased results from our direct-to-consumer advertising. At the same time, we are beginning to see significant interest in our MMRPro Plus document imaging and management systems for healthcare professionals."

Cash Flow and Non-Cash Expenses
During the first quarter of 2014, gross profit increased by $291,208, or approximately 304% over the same period in 2013. The Company's G&A expenses increased by $540,418, or approximately 61% in the same period primarily due to expenses attributable to legal fees necessary to enforce the Company's patents and obtain its licensing agreements. 

Non-cash adjustments in operating activities increased by $256,304 or approximately 75%, which is mainly attributable to expenditures from the application of accounting principles to expense equity, imputed interest in the sale of convertible notes, and options, warrants and common stock issued for services, among other similar types of expenses. However, the Company's net cash used in operating activities decreased by $324,943 or 42%. The Company reported current assets as of March 31, 2014 of approximately $409,000, including approximately $104,000 in cash, which represents the Company's best cash-on-hand position since the quarter ended June 30, 2012.

Research and Development Efforts; IP Portfolio Expansion

The Company also continues to strengthen, expand, and reinforce its patent portfolio. Through its wholly owned subsidiary, MyMedicalRecords, Inc., the Company announced receipt of a Notice of Allowance in March for its 11th U.S. Health IT patent from the United States Patent and Trademark Office. This most recent NOA from the USPTO as Patent Application Serial Number 12/204,498 has the potential to expand MMR's health information technology IP into accessing, collecting and managing legal records in addition to health records. The Company already owns 10 U.S. healthcare IT patents: U.S. Patent Nos. 8,121,855; 8,117,045; 8,117,646; 8,301,466; 8,321,240; 8,352,287; 8,352,288; 8,498,883; 8,626,532 and 8,645,161. These patents collectively include over 250 issued claims, along with additional applications and continuation applications pending. The Company has also received issued patents and has pending applications in 11 other countries or regional authorities of commercial interest including Australia, Canada, Singapore, New Zealand, Mexico, Hong Kong, China, Japan, South Korea, Israel, and Europe.

Although the Company's main focus is as a provider and licensor of health IT products and services, it also has a growing list of patents related to cancer-fighting anti-CD20 monoclonal antibodies under the title, "Antibodies and Methods For Making and Using Them," issued in the U.S., Mexico, Australia and South Korea with patents pending in the U.S., Australia, Brazil, Canada, China, Hong Kong, India, Europe, Japan and Korea. The Company also holds additional patents pertaining to its B-cell idiotype vaccine worldwide. 

About MMRGlobal, Inc.

MMRGlobal, Inc., through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. The MyMedicalRecords PHR enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. MyMedicalRecords is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients in real time through an integrated patient portal. Through its merger with Favrille, Inc. in January 2009, the Company acquired intellectual property biotech assets that include anti-CD20 antibodies and data and samples from its FavId™/Specifid™ vaccine clinical trials for the treatment of B-Cell Non-Hodgkin's lymphoma. To learn more about MMRGlobal, Inc. visit www.mmrglobal.com. View demos and video tutorials of the Company's products and services at www.mmrtheater.com.

Forward-Looking Statements

All statements in this press release that are not strictly historical in nature, including but not limited to future performance, management's expectations, beliefs, intentions, estimates or projections, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the MMR's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words (and their derivations) such as "need," "possibility," "potential," "intend," "offer," "development," "if," "negotiate," "when," "begun," "believe," "achieve," "will," "estimate," "expect," "maintain," "plan," and "continue," or the negative of these words. Actual outcomes and results of operations and the timing of selected events may differ materially from the results predicted, and any reported results should not be considered as an indication of future performance. Such statements are necessarily based on assumptions and estimates and are subject to various risks and uncertainties, including those relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in economic, business, industry, market, legal and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners, potential licensees, competitors and legislative, judicial and other governmental authorities and officials. Factors that could cause or contribute to such differences include, but are not limited to: unexpected outcomes with respect to intellectual property enforcement actions, claims of intellectual property infringement and general intellectual property litigation; our ability to maintain, develop, monetize and protect our patent portfolio for both MMR's health IT and biotechnology intellectual property assets in the U.S. and internationally; the timing of milestone payments in connection with licensing our intellectual property; our ability to establish and maintain strategic relationships; changes in our relationships with our licensees; the risk the MMR's products are not adopted or viewed favorably by the healthcare community and consumer retail market; business prospects, results of operations or financial condition, including variations in our quarterly operating results; risks related to the current uncertainty and instability in financial and lending markets, including global economic uncertainties; the timing and volume of sales and installations; the length of sales cycles and the installation process; the market's acceptance of new product and service introductions; competitive product offerings and promotions; changes in government laws and regulations including the 2009 HITECH Act and changes in Meaningful Use and the 2010 Affordable Care Act; future changes in tax legislation and initiatives in the healthcare industry; undetected errors in our products; the possibility of interruption at our data centers; risks related to third party vendors; risks related to obtaining and integrating third-party licensed technology; risks related to a security breach by third parties; risks associated with recruitment and retention of key personnel; other litigation matters; uncertainties associated with doing business internationally across borders and territories; and additional risks discussed in the Company's filings with the Securities and Exchange Commission. The Form 10-Q is available on the MMRGlobal Web site in the Investor Relations section. The Company is providing this information as of the date of this release and, except as required by applicable law, does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

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