MedX Health Corp. results for the Second Quarter of fiscal 2013

TSX Venture Symbol: MDX

CUSIP #:   585090

MISSISSAUGA, ON, Aug. 27, 2013 /CNW/ - MedX Health Corp. ("MDX" or the "Company") (TSX-V: MDX) reported today its financial and operational results for the Second Quarter of fiscal 2013. All amounts are in Canadian dollars unless otherwise stated.

Second Quarter Financial Highlights

The highlights for MDX, on a consolidated basis, are:

• Consolidated revenue increased by 20% to $190,000 in Q2 2013 compared to $158,000 in Q2 2012;
• Consolidated Gross Profit increased 22% to $111,920 in Q2 2013 compared to $92,000 in Q2 2012;
• Consolidated operating expenses decreased by 37% to $287,000 in Q2 2013 compared to $458,000 in Q2 2012;
• 52% decrease in consolidated net loss before income taxes to a loss of $175,000 in Q2 2013 compared to net loss of $365,000 in Q2 2012;

Steven Guillen, CEO, said:  "The Second Quarter of Fiscal 2013 continued to present many challenges while we were in the process of changing many aspects of our business strategy.  We have significantly developed and re-aligned our strategic approach to marketing which we believe will lead to major developments during the latter part of fiscal 2013 as we bring our products, especially the MoleMate™ units, to the market through new channels."

A summary of the Results for the Second Quarters of fiscal 2013 and 2012 (in thousands of dollars, except per share earnings) is included in the Table below:

	2013 - Q2	2012 - Q2
Revenues	190	158
Cost of goods sold	78	65
Gross profit (loss)	112	93
Comprehensive loss	(175)	(365)
Per share	(0.01)	(0.01)
Total assets	469	681

Consolidated Unaudited Interim Financial Statements

NOTE TO READER: The following unaudited interim financial statements are extracted from the complete unaudited interim financial statements of the Company for the Three and Six Months ended June 30, 2013, which have been filed on SEDAR together with the Management's Discussion and Analysis. References to "accompanying Notes" refer to the Notes to the unaudited interim financial statements for the Three and Six Months ended June 30, 2013 and 2012, which are filed with the Company's documents, and can be found on www.sedar.com to which the reader is referred.

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.

Certain information set out in this News Release constitutes forward-looking information.  Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of MDX as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements.  Although MDX believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct.  The forward-looking statements of MDX contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in MDX's current annual information form available at www.sedar.com.

MEDX HEALTH CORP.
Consolidated Statement of Financial Position
(Expressed in Canadian dollars)
(unaudited)
As at,		June 30, 2013		December 31, 2012
ASSETS		$		$
CURRENT ASSETS
	Cash	7,420		16,051
	Trade and other receivables (note 5)	109,828		127,450
	Inventory (note 6)	121,736		97,677
	Prepaid expenses and deposits	10,283		11,150
		249,267		252,328
PROPERTY, PLANT AND EQUIPMENT (note 7)		42,320		33,158
INTANGIBLE ASSETS (note 8)		177,217		190,217
		468,804		475,703
LIABILITIES
CURRENT LIABILITIES
	Trade and other payables (note 9)	4,228,952		3,985,297
	Demand loans (note 10)	929,394		779,394
	Convertible debentures	177,406		171,118
		5,335,752		4,935,809
SHAREHOLDERS' DEFICIENCY
CAPITAL STOCK (note 11)		12,693,913		12,577,279
EQUITY PORTION OF CONVERTIBLE DEBENTURES		16,906		16,906
WARRANTS		1,388,124		1,388,124
SHARE BASED PAYMENTS		1,171,224		1,171,224
DEFICIT		(20,137,115)		(19,613,639)
		(4,866,948)		(4,460,106)
		468,804		475,703
Approved by the Board of Directors on August 27, 2013
The accompanying notes are an integral part of these consolidated financial statements.

NOTICE TO READER: These unaudited interim financial statements have not been reviewed by the Company's Auditors

 

MEDX HEALTH CORP.
Consolidated Statement of Comprehensive Loss For the Three and Six Month periods ended June 30, 2013 and 2012
(Expressed in Canadian dollars)
(Unaudited)
			Three months ended									Six months ended
			Jun 30, 2013					Jun 30, 2012				Jun 30, 2013				Jun 30, 2012
			$					$				$				$
SALES			190,366					158,042				309,794				361,213
COST OF SALES			78,446					65,263				133,505				146,879
GROSS PROFIT			111,920					92,779				176,289				214,334
EXPENSES
Selling, general and administrative			243,241					440,962				597,568				867,792
Research and development costs			-					-				-				6,410
Interest accretion on convertible debentures			3,144					-				6,288				-
Interest on demand loans and convertible debentures			35,588					-				64,461				-
Foreign exchange loss (gain)			(4,268)					6,164				(2,556)				2,383
Depreciation of property, plant and equipment			2,522					2,057				4,371				4,040
Amortization of intangible assets			6,500					8,500				13,000				17,000
Loss on debt settlement with common shares			-					-				16,634				39,402
			286,727					457,683				699,766				937,027
COMPREHENSIVE LOSS			(174,807)					(364,904)				(523,477)				(722,693)
Comprehensive loss per common shares - basic and diluted			(0.01)					(0.01)				(0.02)				(0.02)
Weighted average number of Common Shares outstanding - basic and fully diluted			41,345,511					36,341,513				40,651,558				36,022,180
The accompanying notes are an integral part of these consolidated financial statements.

NOTICE TO READER: These unaudited interim financial statements have not been reviewed by the Company's Auditors

MEDX HEALTH CORP.
Consolidated Statement of Cash Flows For the Three and Six Month periods ended June 30, 2013 and 2012
(Expressed in Canadian dollars)
(Unaudited)
				Three months ended				Six months ended
				Jun 30, 2013		Jun 30, 2012		Jun 30, 2013			Jun 30, 2012
				$		$		$			$
CASH FLOWS FROM OPERATING ACTIVITIES
	Comprehensive loss			(174,807)		(364,904)		(523,477)			(722,693)
	Adjustments for non-cash items:
		Depreciation of property, plant and equipment		2,522		2,057		4,371			4,040
		Amortization of intangible assets		6,500		8,500		13,000			17,000
		Foreign exchange gain		(4,268)		-		(2,556)			-
		Loss on debt settlement with common shares		-		-		16,634			39,402
		Interest accretion on convertible debentures		3,144		3,144		6,288			6,288
		Accrued interest on demand loans and convertible debentures		35,588		30,694		64,461			61,124
		Trade debt settled with common shares		-		-		100,000			98,506
		Net change in non-cash operating working capital items
			Trade and other receivables	(30,084)		1,200		17,622			40,543
			Inventory	(17,003)		4,267		(24,059)			14,828
			Prepaid expenses and deposits	(942)		(5,925)		867			(17,380)
			Deferred revenue	-		(6,925)		-			(13,850)
			Trade payables and other payables	44,037		304,588		181,633			427,590
Cash flow (used in) from operating activities				(135,313)		(23,304)		(145,216)			(44,602)
CASH FLOWS FROM INVESTING ACTIVITIES
	Purchases of property, plant and equipment			(13,415)		(1,493)		(13,415)			(5,380)
	Purchase of intangible assets			-		6,227		-			(21,972)
Cash flow used in investing activities				(13,415)		4,734		(13,415)			(27,351)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from other loans			150,000		23,165		150,000			23,165
Cash flow used in financing activities				150,000		23,165		150,000			23,165
NET INCREASE (DECREASE) IN CASH				1,272		4,595		(8,631)			(48,788)
	Cash, beginning of period			6,148		5,322		16,051			58,705
CASH, END OF PERIOD				7,420		9,917		7,420			9,917
The accompanying notes are an integral part of these consolidated financial statements.

NOTICE TO READER: These unaudited interim financial statements have not been reviewed by the Company's Auditors

MEDX HEALTH CORP.
Consolidated Statements of Changes in Shareholders' Deficiency For the Three and Six Month periods ended June 30, 2013 and 2012 (Expressed in Canadian Dollars) (Unaudited)
	Capital Stock
	Number	Amount		Equity portion of convertible debentures	Warrants			Share based payments			Deficit			Total
	#	$		$	$			$			$			$
Balance, January 1, 2012	35,356,453	12,150,281		25,676	1,370,725			1,029,424			(19,074,415)			(4,498,309)
Common shares issued for debt settlement	3,862,693	335,228		-	17,399			141,800			-			494,427
Convertible debenture exercise	332,000	83,000		-	-			-			-			83,000
Value transfer on convertible debenture exercise	-	8,770		(8,770)	-			-			-			-
Comprehensive loss	-	-		-	-			-			(539,224)			(539,224)
Balance, December 31, 2012	39,551,146	12,577,279		16,906	1,388,124			1,171,224			(19,613,639)			(4,460,106)
Common shares issued for debt settlement	1,794,365	116,634		-	-			-			-			116,634
Comprehensive loss	-	-		-	-			-			(523,477)			(523,477)
Balance, June 30, 2013	41,345,511	12,693,913		16,906	1,388,124			1,171,224			(20,137,115)			(4,866,948)
The accompanying notes are an integral part of these consolidated financial statements.

NOTICE TO READER: These unaudited interim financial statements have not been reviewed by the Company's Auditors

 

 

SOURCE: MedX Health Corp.

please contact Louie Canitano, President and Chief Operating Officer at [phone] Email inquiries should be made to [email protected] and the company website is located at www.medxhealth.com.  Inquiries by direct mail should be addressed to; MedX Health 220 Superior Blvd., Mississauga, Ontario, L5T 2L2