Annidis Corporation Reports 2014 First Quarter Results

OTTAWA, May 30, 2014 /CNW/ - Annidis Corporation (TSX Venture: RHA) ("Annidis" or the Company"), today announced its financial results for the three-month period ended March 31, 2014. The unaudited condensed consolidated financial statements for the three months ended March 31, 2014, 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 are beginning to see results from significant investments we made during 2013, and we are delighted to announce that our revenue more than doubled from the same period last year and was up almost 150% from the previous quarter," said Gerald Slemko, CEO Annidis Corporation. "We continue to fulfill our previously received orders, and grow our installed base. With continued investments being made in sales and marketing, we are building the list of buying and support groups we are working with in the eye care space. This provides a forum for us to leverage our sales efforts, and we expect increased orders in upcoming months as the result of these efforts." 

Financial Highlights

• Revenue grew by 121% to $797,989 for the three months ended March 31, 2014, compared to $361,818 for the same period in 2013.
  
  
• Cost of sales was $677,082 for the three months ended March 31, 2014 compared to $317,129 for the same period in 2013.
  
• General and administrative expenses were $344,071 for the three months ended March 31, 2014 compared to $281,298 for the corresponding period in 2013.
  
• Research and development expenses were $249,968 for the three months ended March 31, 2014 compared with $219,821 for the same period in 2013.
  
• Net loss was $1,242,265 ($0.01 per share) for the three months ended March 31, 2014 compared to a loss of $966,373 ($0.01 per share) for the corresponding period in 2013.
  
• Net cash used in operating activities was $1,202,094 for the three months ended March 31, 2014, compared to $698,096 for the corresponding period in 2013.
  
• As at March 31, 2014, the Company's cash position was $580,946, compared to a cash position of $1,854,534 at December 31, 2013.

Highlights

• During the quarter, the Company sold 14 units, eight of which went to YIMAI Technology international Company ("YIMAI") in China to be used in clinical trials.
  
• The 2013 financing agreement with YIMAI brought $6 million into Annidis, and was used to strengthen the Company's sales and manufacturing capabilities to support the growing demand for the Company's product in North American and also to prepare for the Chinese market.
  
• Invested significantly in the sales and marketing efforts, and developed relationships with a number of large buying and support groups in the United States, who have already started placing orders.
  
• Continued to build its pipeline of prospective clients as the Company promoted and demonstrated the technology at a number of industry events.
  
• Finalized development of the latest "Gold" model which will start shipping in June. The new model incorporates a significant reduction in manufacturing costs as well as additional features adding to the utility of the instrument.
  
• The Company continues to focus on increasing its manufacturing capacity and building its back order position, thus moving towards profitability.
  
• The Company's new RHA Platinum, targeting the ophthalmology market, is progressing well in clinical studies, and continues to show results that are significantly superior to traditional technology available in the market.
  
• YIMAI introduced the RHA Gold to the Chinese market and has displayed it at two major trade shows in China. The device is pending CDFA (China Food and Drug Administration) approval, which the Company expects will be obtained in July 2014.
  
• Annidis continues to negotiate with potential strategic partners regarding various new opportunities and uses for the MSI technology.

The Company believes that its technology is "leading edge" and has worked to obtain endorsements of the product's capabilities from key opinion leaders in both the optometry and ophthalmology fields.

Key Financial Metrics	Q1 2014	Q1 2013	% Change
Installed Base (as at March 31)	53	36	+47%
Revenue	$ 797,989	$ 361,818	+121%
Net loss	$(1,242,265)	$(966,373)	-29%

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]