HOUSTON, Aug. 13, 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, reports Q2 2015 financial results and will hold an Investor conference call on Thursday, August 13, 2015, at 4:20 p.m. (EDT) to discuss the Company's financial results for Second Quarter 2015 and provide an update on its business initiatives.
Q2 Highlights and Subsequent Events
- Quad Video HALO™ (QVH) received a broad final U.S. Patent Application No. 9,084,577 B2
- QVH V. 3.0 finalized, submitted and is now in its final stages of EMC/EMI product safety testing for both foreign and domestic certification
- Successful first trial of "un-docked" model of QVH3 outside of fluoroscopy in major surgical procedure
- Opened a new pain injection affiliate center in Tyler, TX on June 28th
- Improved top and bottom line Q2 over Q1 2015 by 36% and 38%- loss per share decreased from $.02 to $.01
- Ended Q2 15 with a 9.7-1 current ratio consisting of $1,815,270 current assets and only $66,515 current liabilities
- Ended Q2 15 with over $1.14 million in available cash and 2.17% credit facilities
Q2 2015 Financial Results
Comparison of the three month period ended June 30, 2015 with the three month period ended June 30, 2014.
We recorded $1,083,138 in gross revenue for the three months ended June 30, 2015, offset by $514,965 of the expected settlement discount resulting in net revenue of $568,173. For the same period in 2014, gross revenue was $1,767,599, offset by $907,939 of the expected settlement discount, resulting in net revenue of $859,860. We are currently affiliated with three spine injury diagnostic centers in the United States, which are located in Houston, Texas; Odessa, Texas; and San Antonio, Texas. We had two large surgical procedures in the second quarter of 2014 that generated $148,000 in revenue that were not duplicated in 2015.
Service cost was $232,541 for the three months ended June 30, 2015 compared to $423,651 for the same period in 2014. The decrease is due mainly to lower volume.
During the three months ended June 30, 2015, we incurred $479,236 of operating, general and administrative expenses compared with the $526,400 for the same period in 2014. The decrease is attributable to decreases in (i) directors and officer compensation of approximately $62,000, (ii) marketing costs of approximately $30,000, (iii) payroll of approximately $14,000, (iv) bad debt expenses of approximately $15,000 and (v) legal expenses of approximately $12,000, coupled with an increase of (i) approximately $56,000 in consulting costs, (ii) travel costs of approximately $21,000, (iii) rent expense of approximately $6,000, and (iv) other net general and administrative expenses of approximately $3,000.
During the three months ended June 30, 2015, we incurred $93,530 of research and development expenses compared with the $6,558 for the same period in 2014. The increase is attributable to the engineering and testing fees paid to verify the Quad Video Halo ("QVH") meets the United Laboratories (UL) requirements for medical equipment to be used in hospitals, surgery centers, and other healthcare facilities. We believe without this testing currently being performed, the QVH will not be accepted into certain healthcare markets.
As a result of the foregoing, we had net loss of $250,184 for the three months ended June 30, 2015, compared to a net loss of $153,245 for the three months ended June 30, 2014.
(The full SEC Filing form 10Q 2015 can be found at: http://www.sec.gov/cgi-bin/browse-edgar?company=Spine+Pain+m&owner=exclude&action=getcompany )
Spine Pain Management's CEO, Dr. William Donovan stated, "While I am somewhat pleased that the trend in our core finance business has now been improving for three consecutive quarters in both top and bottom line, I am most happy to say with the finalizing and submission of our QVH for certification testing, management can now get back to growing the core business, both in existing locations and new affiliate additions. While Tyler was officially on-board in late June, it did not start procedures until Q3. Also, due to an unexpected situation, a Houston treatment clinic that was scheduled for late June had to be postponed until early Q3, moving a significant amount of revenues that would have added to Q2 forward to Q3. While Q2 15, seemed to have a significant drop in revenues from Q2 14, the higher revenue last year was caused by two special short term situations in that quarter whereby we funded two high dollar surgeries that we knew would pay back quickly, but at a much reduced rate of return. While they were funded and re-paid as expected, we have not replicated that activity since, preferring to maintain our liquidity for higher margin treatments as we now begin to open new centers with the completion of our QVH3. We anticipate opening at least two more new centers over the next few months."
Donovan went on to say, "As you will hear in more detail on the Conference Call, the push-back of maybe a month from our original expected QVH certification date, has not been caused by any significant problems in testing, but more so by the decision to go for as broad a global certification as reasonably possible due to our now much broader market. As we have said in the past, the potential market for our 'Fluoroscope docked' QVH (QVH fixed to the lens of a fluoroscope), while easily numbering in the billions of dollars based on as many as 100,000 fluoroscopes in use worldwide, could easily jump by ten-fold or more if expanded to full surgical environments. The decision was made to attempt modification for the surgical market due to 3rd party requests. Based on recent successful modifications to the QVH, we were able to develop a non-docked version suitable for use in virtually any surgical operating room environment. Thanks to one of the high profile surgeons who suggested we attempt the modification, along with the hard work of our QVH team, we quickly and successfully completed the modification. Shortly thereafter, we were invited to test the new system with this surgeon on a multi-hour operating room procedure at a major northern hospital with no fluoroscope involved. I am happy to say the doctor was quite pleased with the outcome of this trial and has encouraged us to expand our penetration into this many times larger market. This in turn caused management to go for more intensive EMC/EMI testing which is now past the difficult electronics and compatibility phase and is in the final safety phase. Based on our consultant's report, our expectations are for maybe another two to three weeks for final approval."
Conference Call Details
Conference Call: An investor's conference call with management will be held on Thursday, August 13, 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, August 13, 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/7621620358357103873
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID: 133-908-259
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 (213) 929-4212
Participant Access Code: 202-605-139
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.
Additional information about the company, along with a video replay of most recent Investor Conference Call can be found at its website at www.spinepaininc.com.
About Quad Video HALO, Inc.:
In addition, we are the owners and developers of the patented Quad Video HALO (TM), a highly scalable video integrated operating room technology that meets the demands of medical practices and major hospital systems using the latest tele-medicine hardware/software advancement in providing video transparency to both invasive and minimally invasive medical procedures.
Additional information about QVH, can be found at its website at www.QuadVideoHalo.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, and 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.