Spectral Medical Inc.
TSX : EDT

Spectral Medical Inc.

November 14, 2017 08:00 ET

Spectral Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwired - Nov. 14, 2017) - Spectral Medical Inc., (TSX:EDT), a Phase III company developing the first treatment for patients with endotoxemic septic shock, today announced its unaudited financial results for the third quarter ended September 30, 2017.

Financial Review

Revenue for the three months ended September 30, 2017 was $857,000 compared to $807,000 for the same period in the preceding year. For the nine months ended September 30, 2017 revenues were $2,888,000 compared to $2,739,000 in the same period of 2016. Revenues for both the quarter and the year were consistent with prior year levels and this trend is expected to continue for the remainder of the year.

Operating costs for the quarter ended September 30, 2017 amounted to $1,677,000 compared to $3,458,000 in 2016. Operating costs for the nine months ended were $5,785,000 a decrease of $6,135,000 from $11,920,000 for the first nine months of 2016. The decrease is almost entirely attributable to lower costs for the EUPHRATES trial. The Company continues to maintain a low cost operating structure for its base business operations.

For the three months ended September 30, 2017, the Company reported a loss of $820,000 ($0.004 per share) compared to a loss of $2,633,000 ($0.01 per share) for the three months ended September 30, 2016. The loss for the nine months ended September 30, 2017 was $2,897,000 ($0.01 per share) compared to $9,125,000 ($0.04 per share) for the same nine-month period in the prior year.

The Company concluded the third quarter of 2017 with cash on hand of $2,271,000 compared to $5,080,000 as of December 31, 2016.

The total number of shares outstanding for the Company was 207,449,337 as at September 30, 2017.

About Spectral

Spectral is a Phase III company seeking U.S. FDA approval for its unique product for the treatment of patients with endotoxemic septic shock, Toraymyxin™ ('PMX"). PMX is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream.

PMX has been approved for therapeutic use in Japan and Europe, and has been used safely and effectively on more than 150,000 patients to date. In March 2009, Spectral obtained the exclusive development and commercial rights in the U.S. for PMX, and in November 2010, signed an exclusive distribution agreement for this product in Canada. Approximately 350,000 patients are diagnosed with severe sepsis and septic shock in North America each year. Spectral is listed on the Toronto Stock Exchange under the symbol EDT. For more information, please visit www.spectraldx.com

Forward-looking statement

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral's senior management as well as information currently available to it. While these assumptions were considered reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.

Spectral Medical Inc.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited)
(in thousands of Canadian dollars)
September 30
2017
December 31
2016
$ $
Assets
Current assets
Cash 2,271 5,080
Trade and other receivables 739 642
Inventories 222 244
Prepayments and other assets 173 166
3,405 6,132
Non-current assets
Property and equipment 564 634
Intangible asset 315 334
879 968
Total assets 4,284 7,100
Liabilities
Current liabilities
Trade and other payables 784 1,112
Deferred revenue 61 166
Total liabilities 845 1,278
Equity
Share capital 63,221 63,084
Contributed surplus 7,849 7,849
Share-based compensation 4,480 4,103
Warrants 132 132
Deficit (72,243 ) (69,346 )
Total equity 3,439 5,822
Total liabilities and equity 4,284 7,100
Spectral Medical Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
For the nine months ended September 30, 2017 and 2016
(Unaudited)
(in thousands of Canadian dollars, except for share and per share data)
Three months ended September 30 Nine months ended September 30
2017 2016 2017 2016
$ $
Revenue 857 807 2,888 2,739
Expenses
Changes in inventories of finished goods and work- in-process 78 106 204 189
Raw materials and consumables used 56 106 167 404
Employee benefits 748 886 2,632 2,995
Product development - - 50 67
Consulting and professional fees 406 1,689 1,610 6,323
Regulatory and investor relations 59 276 220 684
Travel and entertainment 81 172 226 642
Depreciation and amortization 56 53 168 144
Foreign exchange loss 39 29 73 59
Other expenses 154 137 435 414
1,677 3,458 5,785 11,920
Operating loss (820 ) (2,651 ) (2,897 ) (9,181 )
Finance income - 18 - 56
Loss and comprehensive loss for the period (820 ) (2,633 ) (2,897 ) (9,125 )
Basic and diluted loss per common share (0.004 ) (0.01 ) (0.01 ) (0.04 )
Weighted average number of common shares outstanding 207,446,674 206,865,470 207,288,352 203,882,419
Spectral Medical Inc.
Condensed Interim Consolidated Statements of Changes in Equity
For the nine months ended September 30, 2017 and 2016
(Unaudited)
(in thousands of Canadian dollars)
Issued capital Contributed surplus Share-based compensation Warrants Deficit Total equity
Number $ $ $ $ $ $
Balance, January 1, 2016 190,771,405 53,058 7,849 3,723 - (59,197 ) 5,433
Bought deal prospectus offering 15,106,804 9,163 - - 236 - 9,399
Share options exercised 887,378 479 - (200 ) - - 279
Broker warrants exercised 400,000 384 - - (104 ) - 280
Loss and comprehensive loss for
the period - - - - - (9,125 ) (9,125 )
Share-based compensation - - - 528 - - 528
Balance, September 30, 2016 207,165,587 63,084 7,849 4,051 132 (68,322 ) 6,794
Balance, January 1, 2017 207,165,587 63,084 7,849 4,103 132 (69,346 ) 5,822
Share options exercised 283,750 137 - (56 ) - - 81
Loss and comprehensive loss for
the period - - - - - (2,897 ) (2,897 )
Share-based compensation - - - 433 - - 433
Balance, September 30, 2017 207,449,337 63,221 7,849 4,480 132 (72,243 ) 3,439
Spectral Medical Inc.
Condensed Interim Consolidated Statements of Cash Flows
For the nine months ended September 30, 2017 and 2016
(Unaudited)
(in thousands of Canadian dollars)
Nine months ended
2017 2016
$ $
Cash flow provided by (used in)
Operating activities
Loss and comprehensive loss for the period (2,897 ) (9,125 )
Adjustments for:
Depreciation on property and equipment 149 125
Amortization of intangible asset 19 19
Share-based compensation 433 528
(Gain)loss on disposal of property and equipment (4 ) 6
Changes in items of working capital :
Trade and other receivables (97 ) 50
Inventories 22 (141 )
Prepayments and other assets (7 ) (32 )
Trade and other payables (328 ) (339 )
Deferred revenue (105 ) (106 )
Net cash used in operating activities (2,815 ) (9,015 )
Investing activities
Property and equipment expenditures (90 ) (132 )
Proceeds on disposal of property and equipment 15 -
Net cash used in investing activities (75 ) (132 )
Financing activities
Share options exercised 81 279
Bought deal prospectus offering - 9,399
Broker warrants exercised - 280
Net cash provided by financing activities 81 9,958
(Decrease)increase in cash (2,809 ) 811
Cash, beginning of period 5,080 6,369
Cash, end of period 2,271 7,180

Contact Information