HOUSTON, May 15, 2014 (GLOBE NEWSWIRE) -- Spine Pain Management, Inc. (OTCQB:SPIN), a technology-driven, medical service, device and healthcare solution company servicing the multi-billion dollar spine injury sector, today announced financial results for the first quarter 2014.
The Company recorded $657,931, in gross revenue for the three months ended March 31, 2014, offset by $323,243 of the expected settlement discount resulting in net revenue of $344,688. For the same period in 2013, gross revenue was $2,102,929, offset by $1, 059,728 of standard allowance for discount, resulting in net revenue of $1, 043,201. Revenue was negatively affected by lower case volume in 2014 due to multiple factors. In January 2014 we made the decision to cease managing centers in Florida and terminated our affiliation with our healthcare provider in the state. Also in January 2014, the Company made the decision to discontinue doing business in McAllen, Texas in connection with what the Company believed was an isolated situation which increased competition in the area. We have no revenue from our Florida or McAllen affiliates for the three months ended March 31, 2014. As a result of the foregoing, we had a net loss of $480,287 or $.025 per share for the three months ended March 31, 2014, with non-cash charges totaling $230,149, compared to $.002 of net income for the three months ended March 31, 2013, with non-cash charges of $260,621.
Dr. William Donovan, CEO stated, "When I first decided to bring public SPIN's business model several years ago, it was at that time and still is unique in the public company sector; effectively meaning there were no other companies to learn from. Throughout this time we have had our ups and downs; yet in spite of the recent 'downs' the resilience of the core business model has unquestionably grown the company considerably with minimal outside funding as witnessed by its current balance sheet and only a handful of small quarterly losses over the years. Already the Company is quickly seeing positive results from changes made in Q2 which should be evident in the Q2 14 reported results." Donovan went on to say, "As you can also see below, we have taken our proprietary HALO which was originally developed for internal use, but thanks to a rapidly growing need for worldwide Medical 'transparency', may be on the verge of becoming a 'game changer.' I cordially invite all shareholders and interested parties to attend our quarterly interactive conference call to learn more about the Company."
Major Transition Underway, New Programs Implemented.
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As discussed in the last CC, primarily due to Florida's difficult personal injury case environment, whereby victims must first go to a certified medical facility before filing, reducing the overall settlement possibility, SPIN ceased funding Florida cases Jan. 1st as well as in McAllen, TX due to what the Company feels was an isolated competition situation.
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Historically, approximately 40% of funding went into Florida and 30% to McAllen. All prior cases funded are unaffected and are being, or awaiting collection. For SEC reporting, SPIN books Net Revenues on a formula at the time of funding, so termination of funding in these areas would expect an immediate proportional reduction in Revenues and respective earnings.
- With no Funding provided to the FL or McAllen affiliates, SPIN can and is now deploying its cash into new more lucrative markets, as witnessed in its recent PR announcing a LOI with a new Midland-Odessa affiliate, with no negative affect other than short term loss of Revenues and Earnings. Additional locations are soon anticipated.
Business Model Expansion
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Until now, SPIN restricted its funding mostly to "Injection" procedures only. Beginning in the current Q2, we have expanded our funding to include selective MRI and Surgical funding as well.
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The medical portion which typically shares in a third of smaller settlements after attorney expenses; is further broken down into three or four segments. Therapy, MRI, Injections, and if needed Surgery. Most cases start with several months of Therapy to establish whether soft tissue or more serious spine damage has occurred. If the latter, the next step is MRI. SPIN is now selectively funding the MRI portion on specific cases using the latest MRI technology which is attracting higher value cases.
- Surgery is typically only involved in the larger cases with higher insurance limits. Should a case qualify, SPIN is prepared to selectively fund such cases. While percentage returns are less, surgery is usually the last step and done just months before final settlement. SPIN has already actively participated in both new Segments in this Q2.
Third Party Commercialization of SPIN's Proprietary Quad Video HALO™
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To date SPIN has expended in excess of $400,000 as well as considerable man-hours in commercializing and exposing its HALO to prospective buyers. With the favorable reception, along with modification suggestions received from its participation in three major trade shows, what was once thought to be an "interesting" potential revenue source is now appearing to be a potential "game changer" for "Transparency" in the multi-billion dollar C-Arm Fluoroscopy procedure segment.
- FDA Review and the UL testing process has been initiated with approval expected later this year. Preliminary review by counsel indicates the HALO should qualify as a Class I, 510(k) exempt medical device. This certification will facilitate sales to third party buyers.
Conference Call Details
Conference Call: An investor's conference call with management will be held on Thursday, May 15, at 4:20 p.m. (EDT). The call will be video WebCast with a short live Power Point Presentation followed by Q & A. The call may be accessed either by phone alone, which will not allow asking questions, or by phone and/or VOIP with headset after internet log-in with an on screen provided Audio Pin # which will allow verbally asking questions. Questions can also be typed into an online chat screen at any time during the presentation or Q & A period.
Access to the Call: To use the internet link, you must register prior to access. So we suggest you complete the registration and get your log-in information in advance of the start of the presentation. You can register at any time. As mentioned above, the call is Thursday, May 15, at 4:20 p.m. (EDT).
Click or paste the link below in your browser for registration and web access to the presentation and follow the online instructions:
https://www3.gotomeeting.com/register/423192782
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID: 423-192-782
Telephone Dial-in and/or VOIP which provides Q&A: To verbally ask a question using your telephone, you must be online at the presentation website during the internet presentation where a unique Audio PIN # will be provided to you on screen after you log-in to the presentation console. You must use the pin to hear the call on the phone. During the presentation, all will be muted until the Q&A portion.
The Q & A will be moderated, but without an operator, and will be open to all questions after the formal presentations. Review this short YouTube tutorial video for pointers on how to use the Webinar Features. (This is just a demo. Do not use the numbers or codes on this demo. Use what is provided above.)
YouTube webinar instructions: http://youtu.be/n7b1VHDwwD4
If you use the telephone, but are NOT also online, you will be able to hear the presentation plus Q & A, but will remain in "listen only" mode for the duration of the call.
Conference Dial-in Number: +1 (415) 655-0061Participant Access Code: 384-587-251
Conference Play Back: A video replay of the conference call presentation will be available several hours after the completion of the call at the company website:
http://www.spinepaininc.com/investor-information.php
About Spine Pain Management, Inc:
We are a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our care management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe that our services and technology brings strong transparency and impartiality to all parties involved in the settlement of patient cases.
In addition, we are the owners and developers of the Quad Video HALO™, the latest hardware/software advancement in providing video transparency to medical procedures using C-Arm Fluoroscopy.
Additional information about the company, along with a video can be found at its website at www.spinepaininc.com.
Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare services demands, changes in healthcare practices, government regulation, and other factors over which the company has little or no control. The company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.