Annidis Corporation Reports 2014 Third Quarter Results

OTTAWA, Nov. 27, 2014 /CNW/ - Annidis Corporation (TSX Venture: RHA) ("Annidis" or the Company"), today announced its financial results for the three-month and nine-month periods ended September 30, 2014. The unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2014, and the related Management's Discussion and Analysis are available at www.sedar.com.

Annidis Corporation develops 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 pleased to announce that our accumulative revenue year to date surpassed the previous full year performance of the Company by almost 70%," said Gerald Slemko, CEO of Annidis Corporation. "During the quarter, our gross margin was also significantly improved, primarily due to higher average price each unit was sold, and lower average cost of the units, due to the rollout of our new Gold Machine."

"We continue to see significant opportunity in the Chinese market for our instruments," continued Gerald Slemko. "Through our distribution partner, Yimai and their affiliate NIMO, we have begun to sell our instruments in the Chinese market. We also continue to develop our international distribution strategy, and we are currently in discussion with potential partners in other countries to expand our footprint in other high growth markets."

Highlights

• During the third quarter of 2014, the Company sold eight units compared to one unit in the corresponding quarter of 2013. While sales were less than budget, the company has never been better positioned to win orders from major North American and Chinese customers.
  
  
• During the quarter, the Company received China Food and Drug Administration (CFDA) approval for its RHA^TM Gold Multi-Spectral Imaging instrument to be sold to eye-care professionals in the Chinese market.
  
  
• Concurrent with receiving CFDA approval, Annidis received a purchase order for 20 RHA instruments from its Chinese distribution partner, YIMAI.
  
  
• The Company anticipates significant demand for its technology in the Chinese market, with an estimated market size of 1,500 to 2,000 instruments.
  
  
• Annidis improved gross margin through development of the latest "Gold" model of the RHA instrument, which the Company started shipping in June. The new model incorporates a 21% reduction in manufacturing costs as well as additional features, adding to the utility of the instrument.
  
  
• The Company's new RHA Platinum, targeting the ophthalmology market is progressing well in clinical studies. Early indications are extremely positive, and continue to show results that are significantly superior to traditional technology available in the market.
  
  
• Annidis advancing negotiations with potential strategic partners on a number of opportunities central to which is Annidis' world leading MSI Technology.
  
  
• The Company continues to invest significantly in the sales and marketing efforts, building relationships with buying and support groups in the eye care space. This provides a forum to present to larger audiences and leverage the sales effort.
  
  
• The Company continues to focus on building its back order position, thus moving towards profitability. The Company currently has confirmed orders for 47 instruments to be delivered over the next few quarters.

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

Key Financial Metrics	Q3 2014	Q3 2013	% Change
Installed Base (as at September 30)	67	38	+79%
Revenue	$480,218	$255,096	+88%
Net loss	$(1,240,943)	$(1,113,439)	-11%

Financial Highlights

• Revenue grew by 88% to $480,218 for the three months ended September 30, 2014, compared to $255,096 for the same period in 2013.
  
  
• Cost of sales was $364,944 for the three months ended September 30, 2014 compared to $206,295 for the same period in 2013.
  
  
• General and administrative expenses were $343,166 for the three months ended September 30, 2014 compared to $221,323 for the corresponding period in 2013.
  
  
• Research and development expenses were $268,121 for the three months ended September 30, 2014 compared with $222,746 for the same period in 2013.
  
  
• Net loss was $1,240,943 ($0.01 per share) for the three months ended September 30, 2014 compared to a loss of $1,113,439 ($0.02 per share) for the same period in 2013.
  
  
• Net cash used in operating activities was $475,239 for the three months ended September 30, 2014, compared to $765,908 for the corresponding period in 2013.
  
  
• As at September 30, 2014, the Company's cash position was $84,666, compared to a cash position of $1,854,534 at December 31, 2013.

			Three months ended			Nine months ended
			September 30			September 30
			2014	2013		2014	2013
Revenue by Source
	Sales		$375,727	$170,003		$1,540,845	$488,156
	Rentals, support and maintenance fees		110,730	87,654		290,867	251,368
	Incentives, rebates and other		(6,239)	(2,561)		(20,523)	7,439
			$480,218	$255,096		$1,811,189	$746,963
Revenue by Geography
	United States		$264,970	$  90,020		$1,108,847	$457,877
	Canada		47,248	123,076		198,342	247,086
	China		168,000	42,000		504,000	42,000
			$480,218	$255,096		$1,811,189	$746,963

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]