HOUSTON, March 31, 2015 (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, will hold an Investor conference call on Tuesday, March 31, at 4:20 p.m. (EDT) to discuss the Company's financial results for its full year 2014 and provide an update on its business initiatives.
For the year ended December 31, 2014 versus 2013:
We recorded $2,046,977 in net revenues with $980,811 in costs of services and gross profit of $1,066,166 for the year ended December 31, 2014. For the year ended December 31, 2013, we recorded $3,299,928 in net revenues with $1,320,348 in costs of services and gross profit of $1,979,580. Revenue was negatively affected by lower case volume in 2014 due to multiple factors. In January 2014 we made the decision to cease financing centers in Florida and terminated our affiliation with our healthcare provider in the state. This decision was made due to the state's difficult personal injury case environment, coupled with our Florida affiliate's bankruptcy (the bankruptcy court has deemed the previously issued letters of protection we obtained through this affiliate will remain our property and should be unaffected by the bankruptcy). Also in January 2014, we made the decision to discontinue doing business in McAllen, Texas in connection with increased competition in the area. We have no revenue from our Florida or McAllen affiliates for the twelve months ended December 31, 2014.
We recognize revenue by reference to "net revenue," which is gross amounts billed using CPT (Current Procedural Terminology) codes less account discounts that are expected to result when individual cases are ultimately settled. A discount rate of 52%, based on settled patient cases, was used to determine net revenue during 2014 and 2013, respectively. Accordingly, we had gross revenues of $4,239,164 with net revenues of $2,046,977 for the year ended December 31, 2014, versus gross revenues of $6,695,289 with net revenues of $3,299,928 for the year ended December 31, 2013.
Expenses
For the year ended December 31, 2014 versus 2013:
Operating, general and administrative expenses for the year ended December 31, 2014 were $2,493,555 as compared to $2,270,230 for the year ended December 31, 2013. The increase in operating expenses was primarily the result of additional overhead associated with our Quad Video marketing, development, and consulting costs.
Net Income or Loss
For the year ended December 31, 2014 versus 2013:
Net loss for the year ended December 31, 2014 was $1,692,658, or $.09 per share compared to net loss of $626,071, or $.03 per share for the year ended December 31, 2013. Lower revenue, due to closing the Florida and McAllen affiliates, coupled with additional personnel to develop and market the Quad Video Halo, resulted in net loss increasing in 2014 from 2013.
During the year ended December 31, 2014, our operations focused on continued development of our spine injury diagnostic business, coupled with the commercial development of our Quad Video Halo for sale to healthcare providers. We incurred charges in re-designing the equipment plus marketing costs for personnel. We also incurred costs in preparing our warehouse for testing of our equipment. In 2014, the operating, general and administrative costs pertaining to the Quad Video Halo totaled $405,008.
Major Developments and Milestones
- 1,703 Cases Settled to date with cash received surpassing $11 million; leaving 2,414 cases already funded awaiting Settlement.
- To maximize potential Shareholder Value, established our patent pending, Quad Video HALO (QVH) in a wholly owned subsidiary and appointed David Spencer, lead development Consultant as President of the new subsidiary.
- Opened a Development, Assembly and Warehouse Facility for QVH in Houston, Texas.
- Retained Cooper Consulting (CCS), a 30 year old Houston based firm specializing in advising and assisting in the development and certification of Medical Related Devices.
- Increased QVH potential with "undocked" software supported versions for full Operating Room use allowing expansion into "Mass Tort" and Hospital "Risk" management.
- Structured and received a $2 million Revolving Bank Credit Facility (interest rate was 2.16% at year end) with Wells Fargo Bank- $1.5 million available at year end.
- Restructured, extended and reduced interest rate from 12% to 6% on $500,000 loan.
- Early retired $200,000 of a $500,000 12% note in 2014, and retired the $300,000 balance in March 2015.
- Ongoing negotiations to add two new SPIN Affiliate's in Q2 2015.
- Anticipate imminent approval of patent for QVH from US Patent and Trademark Office.
- QVH, Inc. retained by Florida "Mass Tort" law firm to document faulty Hip Replacement surgery in Q2 2015.
Spine Pain Management's CEO, Dr. William Donovan stated, "As mentioned above, year over year financial comparisons were negatively affected by the decision in January of 2014 to terminate our relationships with three Florida Centers and the McAllen, TX center which historically made up some 37% of past revenues. However, closing these centers and deploying our time and strong assets on rapidly modifying and deploying our now completed latest QVH, has allowed our legacy Procedure Funding to begin picking up in Q1 2015 and also gave us the opportunity to expand QVH and the legal/medical transparency it provides to a much broader section of the Medical industry.
Dr. Donovan went on to say, "In a very short time we have taken our QVH from a 'home grown --job specific" transparency technology, to what is now a tool that can be used throughout the broad spectrum of medical procedures, from non-invasive injections to major surgery. The QVH is all about transparency, which provides comfort to the patient and medical provider alike. To assist in the monumental task of full commercialization, from final design through accreditation, we retained CCS in Sept. 2014. I am pleased that Tommy Cooper, CEO of CCS will be attending today's conference call as a panelist. He will have some comments and be available for questions."
Tommy Cooper, CEO of CCS added, "Timing is everything in development and introduction of devices used in a medical environment. With legal liability a major fast rising cost to hospitals and medical practitioners, the Quad Video HALO, developed by SPIN is a much needed, robust, transparency and documentation technology whose time has come. I am both happy and proud that CCS was asked last September to assist in both validity testing and now marshalling the now completed device through regulatory testing to receive both 'Certification to Medical Safety Standards' for domestic use, and the 'CE Mark' for EU markets."
More information on Cooper Consulting Service can be found on their Company website:
http://www.cooperconsultingservice.com/
Conference Call Details
Conference Call: An investor's conference call with management will be held on Tuesday, March 31, 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 Tuesday, March 31, 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://attendee.gotowebinar.com/register/4257906422951513602
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID: 130-841-395
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) 655-0059
Participant Access Code: 630-481-343
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:
www.spinepaininc.com/investor-information.php" rel="nofollow">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.