Annidis Corporation Reports 2013 Fourth Quarter Results and The Issuance of New Stock Options

OTTAWA, April 30, 2014 /CNW/ - Annidis Corporation (TSX Venture: RHA) ("Annidis" or the Company"), today announced its financial results for the three and twelve month periods ended December 31, 2013. The audited consolidated financial statements for the year ended December 31, 2013, and the related Management's Discussion and Analysis are available at www.sedar.com.

Annidis Corporation developed and markets imaging technologies to eye care professionals. The Annidis RHA™ instruments, which are based on Multi-Spectral Imaging ("MSI"), assists eye-care professionals in screening, diagnosing and managing ocular diseases by allowing them to view non-invasively the deepest layers of the eye.

"We spent the majority of 2013 building a strong foundation for our Company, and I am excited to announce that we are now well positioned to grow the business significantly in 2014," said Gerald Slemko, CEO of Annidis Corporation. "During the year, we continued to improve the features that our RHA Gold product provides eye care professionals, as we are committed to providing excellence to a market of over 20,000 optometric clinics in North America. We have also been working on introducing a new product, the RHA Platinum, which will further strengthen our value proposition for the ophthalmology market. During the year, we invested significantly in our sales and marketing efforts, and we have been extremely successful in working with a number of large buying groups in the United States, who have already started placing orders. As we had communicated in previous quarters, a constraining factor for the Company to grow during 2013 was access to financial resources. We overcame that factor by completing a financing agreement with Hong Kong-based YIMAI Technology International Company ("YIMAI"), which brought in $6 million into Annidis. As part of the financing agreement, we also signed a distribution agreement with YIMAI, which will help Annidis expand its presence in the Chinese market. To support the growing demand for our product in North American and also preparing for the Chinese market, we have been using proceeds from the financing in strengthening our manufacturing capacity as well as fulfilling previously received orders, which began in the first quarter of 2014, and we expect significant revenue growth in upcoming quarters as the result of this investment."

Financial Highlights

• Revenue was $319,844 and $1,066,807 for the three and twelve months ended December 31, 2013, compared to $483,394 and $1,144,077 for the same period in 2012.
• Cost of sales was $204,457 and $826,970 for the three and twelve months ended December 31, 2013, compare to $421,252 and $922,669 for the same period in 2012.
• General and administrative expenses were $107,978 and $946,592 for the three and twelve months ended December 31, 2013, compared to $552,379 and $1,461,162 for the corresponding periods in 2012.
• Research and development expenses were $275,700 and $933,266 for the three and twelve months ended December 31, 2013, compared with $183,496 and $730,285 for the same period in 2012.
• Net loss was $1,105,121 ($0.01 per share) and $4,308,582 ($0.06 per share) for the three and twelve months ended December 31, 2013, compared to a loss of $1,419,396 ($0.02 per share) and $4,544,004 ($0.07 per share) for the corresponding period in 2012.
• Net cash used in operating activities was $1,951,790 and $3,993,044 for the three and twelve months ended December 31, 2013, compared to $455,139 and $2,281,256 for the corresponding period in 2012.
• At December 31, 2013, the Company's working capital was $901,273 compared to a working capital deficiency of $1,878,018 at December 31, 2012.
• As at December 31, 2013, the Company's cash position was $1,854,534, compared to a cash position of $111,904 at December 31, 2012.

Highlights

• With the closing of the financing agreement with YIMAI, Annidis is now actively fulfilling its previously received orders and growing its installed base.
• The new RHA Platinum, targeting the ophthalmology market, enabling doctors to visualize choroidal and retinal vasculature non-invasively continue to show results in clinical testing that are significantly superior to traditional technology available in the market.
• RHA Platinum introduced at the American Academy of Ophthalmology in New Orleans in November, received extremely positive feedback and buyer interest.
• YIMAI has introduced the RHA Gold to the Chinese market and has displayed it at two major trade shows in China. The device is still pending CDFA (China Food and Drug Administration) approval, which the Company expects will be obtained in July 2014. YIMAI has purchased an additional eight units (for a total of nine) to be used in clinical trials in China, two of which were delivered in January 2014 and the remaining units in March 2014. Once CFDA approval has been obtained, YIMAI will be able to sell the units into the Chinese market.
• Continued negotiations with potential strategic partners regarding various new opportunities and uses for the MSI technology.

	Key Financial Metrics	Q4 2013	Q4 2012	% Change
	Installed Base (as of December 31)	39	27	+44%
	Revenue	$ 319,844	$483,394	-34%
	Net loss	$(1,105,121)	$(1,419,396)	+22%
	Net loss per share	$(0.01)	$(0.02)	+100%

The Company would also like to announce that, subject to the final approval of the TSX Venture Exchange, it has granted 435,000 stock options for the purchase common shares in the capital of the Company ("Common Shares") to employees, consultants and investor relations services providers of the Company. Each stock option is exercisable at a price of $0.40 per Common Share and will expire on September 30, 2016.

About Annidis Corporation

Annidis (TSX-V: RHA) has developed and is marketing a new imaging platform technology based on Multi-Spectral Imaging (MSI). This new technology is opening a new frontier in disease identification and its management. The Annidis MSI technology allows eye-care professionals to view non-invasively the deepest areas of the eye aiding eye care professionals in the early identification and treatment of debilitating eye diseases. The Company's existing RHA 2020-U Gold, used by eye care professionals as a broad based tool for detecting early-onset of eye related diseases such as Dry AMD, has a potential market of over 20,000 clinics in North America. The RHA Platinum MD will further strengthen the value proposition allowing doctors to visualize choroidal and retinal vasculature non-invasively. The RHA Platinum MD has global market potential of more than 100,000 Ophthalmologists.

This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation.  Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties.  The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope", and "continue" (or the negative thereof), and words and expressions of similar import are intended to identify forward-looking statements.  Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include those identified in the Corporation's filings with Canadian securities regulatory authorities, as well as the applicability of patents and proprietary technology; the outcome of pending corporate transactions; possible patent ligation; regulatory approval of products in development; changes in government regulation or regulatory approval processes; government and third party reimbursement; dependence on strategic partnerships; intensifying competition; rapid technological change in the industry; anticipated future losses; the ability to access capital; and the ability to attract and retain key personnel.  All forward-looking information presented herein should be considered in conjunction with such filings.  Except as required by Canadian securities laws, the Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Neither 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.

SOURCE: Annidis Corporation

Gerald Slemko, Chief Executive Officer, Annidis Corporation, [phone] ext. 239, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-995-8651, [email protected]