SOURCE: OxySure Systems, Inc.

OxySure Systems, Inc.

May 16, 2014 09:00 ET

OxySure (OXYS) Reports First Quarter 2014 Results

Growth Continues With Revenues Up 48%

FRISCO, TX--(Marketwired - May 16, 2014) - OxySure Systems, Inc. (OTCQB: OXYS) ("OxySure," or the "Company"), a global leader and medical device innovator of life-saving, easy-to-use emergency oxygen solutions with its "oxygen from powder" technology today announced financial and operating results for the first quarter 2014.

1Q 2014 Highlights :

  • Revenues were up 48% to $356,229
  • Sales & marketing expense down 18%
  • Research & development expense down 96%
  • G&A expense up 35%
  • Notes payable slightly up by $25,843 to $375,818
  • Net loss per share flat at $.01 for the quarter
  • Cartridge shipments increased 394%

Julian T. Ross, Chairman of the Board and Chief Executive Officer of OxySure stated, "We had an excellent building quarter. We have accomplished many of our goals regarding the preparation for the European market and for a potential foray into the direct to consumer market. We invested in our future, while maintaining our bottom line, and we remain on track with our goals for the rest of 2014 and beyond."

For the quarter ended March 31, 2014, revenues increased by 48% to $356,229 from $240,420 in the comparable period last year. The increase was primarily driven by a 161% increase in product sales in the United States.

For the Company's Model 615 portable emergency oxygen product, unit cartridge reorder rates continued to increase as the installed base of Model 615 increases, continuing the "sticky" customer relationship with the product upon adoption. Unit cartridge shipments exceeded unit shipments of Model 615: during the quarter ended March 31, 2014 unit cartridge shipments represented 201% of Model 615 units shipped, up from 94% during the first quarter 2012. As of March 31, 2014, replacement cartridges shipped represented 44.2% of the known Model 615 installed base, up from 35.7% as at March 31, 2013.

Sales and marketing expense was down 18% and research and development expense was down 97%; these improvements were offset by an increase in other general and administrative expense of 35% to $345,757, and an increase in interest expense to $107,607 from $28,716 in the first quarter of 2012. Of this interest amount, approximately $100,115 of interest expense is non-cash, GAAP interest, comprising $71,740 of amortization of beneficial conversion features and $28,375 in amortization of debt discount.

Net loss for the quarter ended March 31, 2014 was $376,320, or $0.01 per share, as compared to $242,152 or $0.01 per share for the quarter ended March 31, 2013. The weighted average shares outstanding were 25,889,334 and 22,665,515 for the quarters ended March 31, 2014 and 2013, respectively.

Conference Call

OxySure's CEO Julian Ross will host a conference call to discuss the Company's first quarter 2014 results.

Date: Friday, May 16, 2014

Time: 9:00 am ET

US Dial-In: 1 (800) 697-5978 US Toll Free

International Dial-In: 1 (630) 691-2750 US Toll 

Passcode: 9900 607#

For webcast link: http://www.oxysure.com/aed/index.php/investors-home

(under Investor Events)

Please dial in at least 10-minutes before the call to ensure timely participation.

About OxySure Systems, Inc.

OxySure Systems, Inc. (OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The company owns numerous issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. OxySure's products improve access to emergency oxygen that affects the survival, recovery and safety of individuals in several areas of need: (1) Public and private places and settings where medical emergencies can occur; (2) Individuals at risk for cardiac, respiratory or general medical distress needing immediate help prior to emergency medical care arrival; and (3) Those requiring immediate protection and escape from exposure situations or oxygen-deficient situations in industrial, mining, military, or other "Immediately Dangerous to Life or Health" (IDLH) environments. www.OxySure.com

Forward-Looking Statements

Statements in this earnings release that are not historical facts are considered to be forward-looking statements. Such statements include, but are not limited to, statements regarding management beliefs and expectations, based upon information available at the time the statements are made, regarding future plans, objectives and performance. All forward-looking statements are subject to risks and uncertainties, many of which are beyond management's control and actual results and performance may differ significantly from those contained in forward-looking statements. OxySure Systems, Inc. intends any forward-looking statement to be covered by the Litigation Reform Act of 1995 and is including this statement for purposes of said safe harbor provisions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. OxySure Systems, Inc. undertakes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date as of which such statements are made. A discussion of certain risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements is included in OxySure Systems, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2013.

The following files are available for download:

   
OXYSURE SYSTEMS INC.  
BALANCE SHEETS  
   March 31,  
   2014   2013  
          
ASSETS         
Current assets           
  Cash and cash equivalents  $150,669   $657,673  
  Accounts receivable, net of allowances for sales returns and allowance for doubtful accounts   319,999    47,183  
  Inventories   277,259    287,666  
  License fee receivable   463,308    500,000  
  Prepaid expenses and other current assets   50,542    107,305  
Total current assets   1,261,776    1,599,827  
            
  Property and equipment, net   129,617    70,249  
  Intangible assets, net   385,238    392,746  
  Other assets   306,122    289,532  
            
TOTAL ASSETS  $2,082,754   $2,352,354  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
Current liabilities           
  Accounts payable and accrued expenses  $352,021   $147,719  
  Related party payable   29,501    118,627  
  Deferred revenue   -    2,976  
  Capital leases - current   308,553    309,129  
  Notes payable - current, net of discount   47,103    44,000  
  Convertible notes payable, net of discount   252,643    229,903  
Total current liabilities   989,821    852,354  
            
Long-term liabilities           
  Capital leases   554    554  
  Notes payable, net of discount   76,072    76,072  
Total long-term liabilities   76,626    76,626  
            
TOTAL LIABILITIES   1,066,448    928,980  
            
COMMITMENTS AND CONTINGENCY (NOTE 9)           
            
STOCKHOLDERS' EQUITY           
  Preferred stock, par value $0.0005 per share; 25,000,000 shares authorized;           
   693,750 Series A convertible preferred shares issued and outstanding as of March 31, 2014 and 743,750 shares issued and outstanding as of December 31, 2013.   346    371  
   750 Series B convertible preferred shares issued and outstanding as of March 31, 2014 and 750 shares issued and outstanding as of December 31, 2013.   -    -  
  Common stock, par value $0.0004 per share; 100,000,000 shares authorized;            
   25,969,163 shares of voting common stock issued and outstanding as of March 31, 2014 and 25,854,307 shares issued and outstanding as of December 31, 2013   10,391    10,343  
  Additional Paid-in Capital   16,669,538    16,700,307  
  Accumulated deficit   (15,663,968 )  (15,287,647 )
            
TOTAL STOCKHOLDERS' EQUITY   1,016,307    1,423,374  
            
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $2,082,754   $2,352,354  
            
            
            
   
OXYSURE SYSTEMS INC.  
STATEMENTS OF OPERATIONS  
   
   For the three months ended March 31,  
   2014   2013  
            
            
Revenues, net  $356,229   $240,420  
  Cost of goods sold   205,590    53,181  
Gross profit   150,639    187,239  
            
Operating expenses           
  Research and development   1,541    36,711  
  Sales and marketing   87,949    107,347  
  Other general and administrative   345,757    256,617  
Loss from operations   (284,608 )  (213,436 )
            
Other income (expenses)           
  Gain on settlement of debt   16,226    -  
  Other income (expense)   (331 )  -  
  Interest expense   (107,607 )  (28,716 )
Total other income (expenses)   (91,712 )  (28,716 )
            
Net loss  $(376,320 ) $(242,152 )
            
            
  Basic net income (loss) per common share  $(0.01 ) $(0.01 )
  Diluted net income (loss) per common share  $(0.01 ) $(0.01 )
            
Weighted average common shares outstanding:           
  Basic   25,889,334    22,665,515  
  Diluted   25,889,334    22,665,515  
            
            
   
OXYSURE SYSTEMS INC.  
          
STATEMENTS OF CASH FLOWS  
   
   Three Months Ended March 31,  
   2014   2013  
            
CASH FLOWS FROM OPERATING ACTIVITIES:           
  Net income (loss)  $(376,320 ) $(169,349 )
  Adjustments to reconcile net income (loss) to net cash from operating activities:           
   Depreciation and amortization expense   12,141    35,610  
   Amortization of debt discount and beneficial conversion features   95,776    21,802  
   Expenses paid by related parties   4,374    -  
   Stock based compensation   17,588    (12,061 )
   Gain on extinguishment of debt   (16,226 )  -  
   Stock issued for services   -    19,023  
   Changes in operating assets and liabilities:           
    Accounts receivable   (272,816 )  (54,542 )
    Inventories   10,407    (142 )
    License fees receivable   36,692    -  
    Prepaid expenses and other current assets   40,173    -  
    Accounts payable and accrued liabilities   212,259    91,364  
    Deferred revenue   (2,976 )  (125,000 )
            
    NET CASH USED IN OPERATING ACTIVITIES   (238,928 )  (193,295 )
            
CASH FLOWS FROM INVESTING ACTIVITIES           
  Purchase of property and equipment   (64,000 )  (623 )
  Purchase of intangible assets   -    -  
            
    NET CASH USED IN INVESTING ACTIVITIES   (64,000 )  (623 )
            
CASH FLOWS FROM FINANCING ACTIVITIES           
  Common stock issued for cash   -    230,824  
  Series B preferred stock issued for cash and warrants   -    -  
  Common stock issued for cash and warrants   -    -  
  Cash received from related parties   -    -  
  Payments made to related parties   (93,500 )  -  
  Cash received notes payable   -    -  
  Payments made on notes payable   -    -  
  Cash received from convertible notes payable   -    28,103  
  Payments made on convertible notes payable   (110,000 )  -  
  Payments on capital leases   (576 )  12,881  
  Exercising of warrants   -    3,500  
            
    NET CASH PROVIDED BY FINANCING ACTIVITIES   (204,076 )  275,308  
            
Net change in cash and cash equivalents   (507,004 )  81,390  
            
Cash and cash equivalents, at beginning of period   657,673    13,514  
            
Cash and cash equivalents, at end of period  $150,669   $94,905  
            
Supplemental disclosure of cash flow information:           
  Cash paid during the period for:           
   Interest  $7,492   $182  
   Income taxes  $-   $-  
            
Supplemental non-cash investing and financing activities:           
   Conversion of convertible notes payable   25,000    -  
   Conversion of Series A preferred stock to common stock   25    -  
            
            
            
            



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