MedX Health Corp. Results for the Third Quarter of Fiscal 2013

TSX Venture Symbol: MDX      

CUSIP #:   585090

MISSISSAUGA, ON, Nov. 12, 2013 /CNW/ - MedX Health Corp. ("MDX" or the "Company") (TSX-V: MDX) reported today its financial and operational results for the Third Quarter of fiscal 2013. All amounts are in Canadian dollars unless otherwise stated.

Third Quarter Financial Highlights

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

• Consolidated revenue decreased by 37% to $109,000 in Q3 2013 compared to $174,000 in Q3 2012;
• Consolidated Gross Profit decreased 46% to $49,000 in Q3 2013 compared to $92,000 in Q3 2012;
• Consolidated operating expenses decreased by 37% to $412,000 in Q3 2013 compared to $421,000 in Q3 2012;
• Comprehensive loss before income taxes increased by 10%, to $362,000,000 in Q3 2013 compared to comprehensive loss of $329,000 in Q3 2012;

Steve Guillen, CEO, said:  "The Third Quarter of Fiscal 2013 was another tough period and 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."

Historical information for the Three month periods ended September 30, 2013 and 2012 are as follows: (in $000's except per share figures)

	THREE MONTHS ENDED SEPTEMBER 30
	2013	2012
Revenues	109	174
Cost of goods sold	60	81
Gross profit	49	92
Expenses	412	421
Comprehensive loss	(362)	(329)
Per share (loss)	(0.01)	(0.01)

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 Nine Months ended September 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 Nine Months ended September 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.

MEDX HEALTH CORP.
Consolidated Statement of Financial Position
(Expressed in Canadian dollars)
(unaudited)
As at,		September 30, 2013		December 31, 2012 (Audited)
ASSETS		$		$
CURRENT ASSETS
	Cash	161		16,051
	Trade and other receivables (note 5)	43,151		127,450
	Inventory (note 6)	123,039		97,677
	Prepaid expenses and deposits	22,668		11,150
		189,019		252,328
PROPERTY, PLANT AND EQUIPMENT (note 7)		39,755		33,158
INTANGIBLE ASSETS (note 8)		170,717		190,217
		399,491		475,703
LIABILITIES
CURRENT LIABILITIES
	Trade and other payables (note 9)	4,460,456		3,985,297
	Demand loans	721,394		779,394
	Convertible debentures	157,385		171,118
		5,339,235		4,935,809
SHAREHOLDERS' DEFICIENCY
CAPITAL STOCK (note 10)		12,983,576		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		(20,499,574)		(19,613,639)
		(4,939,744)		(4,460,106)
		399,491		475,703
The accompanying notes are an integral part of these consolidated financial statements.

MEDX HEALTH CORP.
Consolidated Statement of Comprehensive Loss
For the periods ended September 30, 2013 and 2012
(Expressed in Canadian dollars)
(Unaudited)
	Three months ended				Nine months ended
	Sep 30, 2013		Sep 30, 2012		Sep 30, 2013		Sep 30, 2012
	$		$		$		$
SALES	109,296		173,747		419,090		534,960
COST OF SALES	59,824		81,373		193,330		228,253
GROSS PROFIT	49,472		92,374		225,760		306,707
	45%		53%		54%		57%
EXPENSES
Selling, general and administrative	434,827		368,283		1,032,395		1,236,075
Research and development costs	-		42,308		-		48,718
Interest accretion on convertible debentures	3,144		-		9,432		-
Interest on demand loans and convertible debentures	28,262		-		92,723		-
Foreign exchange loss (gain)	9,088		170		6,533		2,554
Depreciation of property, plant and equipment	2,523		2,123		6,894		6,163
Amortization of intangible assets	6,500		8,500		19,500		25,500
Loss (Gain) on debt settlement with common shares	(72,416)		-		(55,782)		39,402
	411,928		421,384		1,111,695		1,358,412
COMPREHENSIVE LOSS	(362,456)		(329,010)		(885,935)		(1,051,705)
Comprehensive loss per common shares - basic and diluted	(0.01)		(0.01)		(0.02)		(0.03)
Weighted average number of Common Shares outstanding - basic and fully diluted	44,612,084		36,341,513		41,986,241		36,129,402
The accompanying notes are an integral part of these consolidated financial statements.

MEDX HEALTH CORP.
Consolidated Statement of Cash Flows
For the periods ended September 30, 2013 and 2012
(Expressed in Canadian dollars)
(Unaudited)
							Three months ended					Nine months ended
							Sep 30, 2013		Sep 30, 2012			Sep 30, 2013			Sep 30, 2012
							$		$			$			$
CASH FLOWS FROM OPERATING ACTIVITIES
	Comprehensive loss						(362,456)		(329,010)			(885,935)			(1,051,705)
	Adjustments for non-cash items:
					Depreciation of property, plant and equipment		2,523		2,123			6,894			6,163
					Amortization of intangible assets		6,500		8,500			19,500			25,500
					Foreign exchange loss (gain)		9,088		-			6,533			-
					Loss (gain) on debt settlement with common shares		(72,416)		-			(55,782)			39,402
					Interest accretion on convertible debentures		3,144		3,144			9,432			9,432
					Accrued interest on demand loans and convertible debentures		28,262		8,528			92,723			77,115
					Trade debt settled with common shares		-		-			100,000			98,506
					Conversion of debentures		(23,165)		-			(23,165)			-
					Issuance of capital stock		362,078		-			362,078			-
					Net change in non-cash operating working capital items:
						Trade and other receivables	66,677		249			84,299			40,792
						Inventory	(1,303)		12,197			(25,362)			27,025
						Prepaid expenses and deposits	(12,385)		(22,714)			(11,518)			(40,094)
						Deferred revenue	-		(6,925)			-			(20,775)
						Trade payables and other payables	194,194		341,037			375,828			761,167
Cash flow (used in) from operating activities							(7,259)		17,129			(152,475)			(27,472)
CASH FLOWS FROM INVESTING ACTIVITIES
	Purchases of property, plant and equipment						-		(942)			(13,415)			(6,322)
	Purchase of intangible assets						-		(1,405)			-			(23,377)
Cash flow used in investing activities							-		(2,347)			(13,415)			(29,699)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from other loans						-		(23,165)			150,000			-
Cash flow used in financing activities							-		(23,165)			150,000			-
NET INCREASE (DECREASE) IN CASH							(7,259)		(8,383)			(15,890)			(57,171)
	Cash, beginning of period						7,420		9,917			16,051			58,705
CASH, END OF PERIOD							161		1,534			161			1,534
	The accompanying notes are an integral part of these consolidated financial statements.

MEDX HEALTH CORP.
Consolidated Statements of Changes in Shareholders' Deficiency
		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		5,415,145	406,296												406,296
Comprehensive loss												(885,935)			(885,935)
Balance, September 30, 2013		44,966,291	12,983,576	16,906		1,388,124		1,171,224				(20,499,574)			(4,939,744)
The accompanying notes are an integral part of these consolidated financial statements.

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.

 

 

SOURCE: MedX Health Corp.

For further information, 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