ST. PAUL, MN--(Marketwire - Sep 16, 2011) - Hypertension Diagnostics, Inc. (
Revenue for FY 2011 was $1,389,181 compared to $1,383,669 for fiscal year ended June 30, 2010 ("FY 2010"), a .0.4% increase.
The Company realized net income of $406,312 for FY 2011 or $.01 per share, compared with a net loss of $989,759 for FY 2010, or $(.02) per share. The Company reported a cash balance on June 30, 2011 of $753,881, a 28% decrease compared with a cash balance of $1,053,648 on June 30, 2010.
Included in the net income for FY 2011 is a non-cash benefit of $693,750 for deferred compensation and non-cash charges of $132,395 for depreciation and stock option expense. In the net loss for FY 2010 are total non-cash charges, for deferred stock compensation, depreciation, and stock options, of $1,204,392. The benefit in FY 2011 is the result of a decrease in the Company's stock price, whereas the charge in FY 2010 is due to an increase in the Company's stock price.
As previously disclosed on the Company's Form 8-K filed with the Securities and Exchange Commission on August 30, 2011, the Company entered into and closed a definitive Asset Purchase Agreement providing for the sale of selected operating assets and a limited license to its technology to Cohn Prevention Center, LLC, ("CPC") a Minnesota company (the "Transaction"). The Chairman of CPC is Jay N. Cohn. Prior to the closing of the Transaction, Dr. Cohn was a director of the Company. Dr. Cohn recused himself from the Company's Board of Directors' review and approval of the Transaction and Dr. Cohn resigned as a Director on August 26, 2011. Additionally, Mr. Greg Guettler, President resigned as a director on August 26, 2011 and Mr. Guettler's employment with the Company was terminated effective as of the closing date of the Transaction.
HDI's corporate offices will now be located at: 10275 Wayzata Boulevard, Suite 310, Minnetonka, MN 55305.
About Hypertension Diagnostics, Inc.
Hypertension Diagnostics, Inc. ("HDI") has developed technology and owns intellectual property in medical devices for early detection and management of cardiovascular disease, which prior to August 26, 2011, it marketed in the U.S. and in 37 countries. The CVProfilor® DO- 2020 CardioVascular Profiling System, has been approved by the Food and Drug Administration (FDA), and is now being marketed by Cohn Prevention Centers LLC to primary care physicians in the U.S.
HDI's technology and intellectual property for CardioVascular Profiling Systems non-invasively measure both large and small artery elasticity. Small artery elasticity has been shown to be predictive of cardiovascular disease. Several large pharmaceutical manufacturers have used HDI's CardioVascular Profiling Systems in their multi-site clinical research trials. There are over 400 published, peer-reviewed scientific articles and presentations on HDI's methodology, which provides evidence on the validity, accuracy and reproducibility of HDI's CardioVascular Profiling technology.
Safe Harbor Statement
Forward-looking statements in this press release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not a prediction of actual future results. Actual results could differ materially from those presented and anticipated in the forward-looking statements due to the risks and uncertainties set forth in the Company's 2011 Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q, all of which were filed with the U.S. Securities and Exchange Commission, as well as others not now anticipated.
| Hypertension Diagnostics, Inc. | |||||||||
| Summary Financial Data | |||||||||
| (Unaudited) | |||||||||
| Statements of Operations | |||||||||
| |
Twelve Months Ended June 30 |
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| 2011 | 2010 | ||||||||
| Revenue: | |||||||||
| Equipment sales | $ | 1,137,300 | $ | 1,187,272 | |||||
| Equipment rental | 48,144 | 75,820 | |||||||
| Service/contract income | 203,737 | 120,577 | |||||||
| 1,389,181 | 1,383,669 | ||||||||
| Cost of Sales: | |||||||||
| Cost of Sales | 246,424 | 214,215 | |||||||
| Inventory Obsolescence Allowance | 29,424 | (234,150 | ) | ||||||
| Net Cost of Sales | 275,848 | (19,935 | ) | ||||||
| Gross Profit | 1,113,333 | 1,403,604 | |||||||
| Selling, general and administrative expenses | 717,586 | 2,402,773 | |||||||
| Operating Income (Loss) | 395,747 | (999,169 | ) | ||||||
| Other Income: | |||||||||
| Interest income | 8,033 | 9,410 | |||||||
| Miscellaneous income | 2,532 | 0 | |||||||
| Total Other Income | 10,565 | 9,410 | |||||||
| Net Income (Loss) before taxes | $ | 406,312 | $ | (989,759 | ) | ||||
| Deferred compensation expense | (693,750 | ) | 1,095,750 | ||||||
| Non-GAAP Pro-forma net income (loss) | |||||||||
| (excluding deferred compensation expense) | $ | (287,438 | ) | $ | 105,991 | ||||
| Net Income (Loss) per Common Share: | |||||||||
| Basic | $ | 0.01 | $ | (0.02 | ) | ||||
| Diluted | $ | 0.01 | $ | (0.02 | ) | ||||
| Weighted Average Common Shares Outstanding: | |||||||||
| Basic | 42,646,016 | 41,278,165 | |||||||
| Diluted | 49,982,696 | 41,278,165 | |||||||
| Balance Sheet Data | |||||||||
| June 30, 2011 | June 30, 2010 | ||||||||
| Cash and cash equivalents | $ | 753,881 | $ | 1,053,648 | |||||
| Total current assets | 1,262,643 | 1,538,712 | |||||||
| Total assets | 1,286,008 | 1,546,580 | |||||||
| Total current liabilities | 820,216 | 306,599 | |||||||
| Accumulated deficit | (28,018,054 | ) | (28,424,366 | ) | |||||
| Total shareholders' equity (deficit) | 419,363 | (146,818 | ) | ||||||
CVProfilor is a registered trademark of Hypertension Diagnostics, Inc.
Hypertension Diagnostics, HDI/PulseWave, PulseWave and CVProfile are trademarks of
Hypertension Diagnostics, Inc. All rights reserved.
Website: www.hdii.com
Contact Information:
Contact:
Mark N. Schwartz
CEO
(952) 545-2457