LANGHORNE, Pa., April 9, 2008 (PRIME NEWSWIRE) -- Power Medical Interventions, Inc. (Nasdaq:PMII), a leader in developing and commercializing Intelligent Surgical Instruments(tm), announced that on March 31, 2008, the Company filed its annual report on Form 10-K with the Securities and Exchange Commission which included an audit report by the Company's independent auditors, Ernst & Young LLP, containing a going concern qualification.
This announcement is being made to comply with Nasdaq Marketplace Rule 4350(b)(1)(B), which requires separate disclosure in the news media of receipt of an audit opinion that contains a going concern qualification.
This announcement does not represent a change or amendment to the company's 2007 financial statements or to its 2007 Annual Report on Form 10-K, each of which disclosed the going concern qualification. The Company's financial statements for 2006 included in the registration statement for its initial public offering in October 2007, as filed with the Securities and Exchange Commission, also contained a going concern qualification.
As stated in the Company's 2007 Annual Report on Form 10-K, the Company believes that its cash and cash equivalents will be sufficient to meet its anticipated cash requirements through at least January 1, 2009, although there can be no assurance in this regard. The Company recently took steps to reduce spending which was announced in a separate press release. If necessary, the Company has the ability to further reduce spending in 2008 by controlling costs that are within management's discretion.
About Power Medical Interventions, Inc.:
Power Medical Interventions(r), Inc. is a pioneer in the design, development and manufacturing of computer-assisted, power-actuated surgical stapling products. PMI's Intelligent Surgical Instruments(tm) enable less invasive surgical techniques to benefit surgeons, patients, hospitals and healthcare networks. The company was founded in 1999, and is headquartered in Langhorne, PA with additional offices in Germany, France, and Japan. To learn more about Power Medical Interventions(r), Inc. and its products, please visit www.pmi2.com.
Safe Harbor Statement
Statements included in this press release which are not historical in nature, including statements about the adequacy of the company's cash and cash equivalents to meet its future cash requirements, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include those identified under the heading "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2007, as well as the following: we have a limited operating history and have sustained net losses in each year since our inception, which are likely to continue at least through 2008 as we continue to invest in the development of our business; we must increase our sales significantly in order to become profitable and are dependent in doing so on the success of our SurgASSIST platform and in particular of our newly released i60 and iDrive next generation products; we cannot be certain that our SurgASSIST platform will achieve the broad market acceptance necessary to develop a sustainable and profitable business; to successfully implement our business strategy, we will be required to develop and release new products and to enhance our existing products on a timely basis, and in the past, we have experienced delays in releasing new products and any future product development delays could adversely affect our results of operations; we have limited manufacturing experience and have encountered significant manufacturing difficulties in the recent past, and we may not be able to increase our production to provide an adequate supply of our products to customers; in order to achieve and sustain profitability, we must substantially improve our gross margins, and we cannot assure you that we will be able to achieve sufficient cost reductions in the manufacture of our products to achieve profitability; and we need to make significant improvements in our regulatory compliance operations and in our internal control over financial reporting as well as other improvements to our management, finance, technical and regulatory personnel, systems and facilities in order to support our expected growth.
The forward-looking statements contained in this press release are made as of the date hereof, and we do not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information or otherwise.