HOUSTON, May 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 Q1 2015 financial results and will hold an Investor conference call on Wednesday, May 13, 2015, at 4:20 p.m. (EDT) to discuss the Company's financial results for First Quarter 2015 and provide an update on its business initiatives.
Highlights
- Received Quad Video HALO™ Notification of an Allowance for Its U.S. Patent Application No. 13/723,372
- Improved top and bottom line both quarter over quarter and Q4 2014.
- Retired last outstanding convertible debt.
- Ended Q1 15 with a 9.7-1 Current ratio consisting of $2.04 million Current Assets and only $2.08 thousand Current Liabilities
- Ended Q1 15 with over $1.3 million in available cash and 2.17% credit facilities
Q1 2015 Financial Results
For the quarter ended March 31, 2015 versus 2014:
We recorded $877,231, in gross revenue for the three months ended March 31, 2015, offset by $460,933 of the expected settlement discount resulting in net revenue of $416,298. For the same period in 2014, gross revenue was $657,931, offset by $323,243 of standard allowance for discount, resulting in net revenue of $334,688. Revenue was positively affected by higher case volume in 2015 due to the Odessa location not being open in the first quarter of 2014. For the three months ended March 31, 2015, we managed three spine injury diagnostic centers: Houston, Texas; San Antonio, Texas; and Odessa, Texas. Service cost was $180,966 for the three months ended March 31, 2015 compared to $145,152 for the same period in 2014. The increase in service cost is attributable to the higher case volume.
During the three months ended March 31, 2015, we incurred $482,013 of operating, general and administrative expenses compared with the $573,162 for the same period in 2014. Operating, general and administrative expenses were lower for the quarter compared to 2014 primarily because of legal expenses we incurred in Florida in connection with our affiliated Florida clinics coupled with lower officer and director expenses this quarter compared to the 2014 quarter which had stock options expensed.
In the quarter ended March 31, 2015, we spent approximately $122,372 on QVH marketing and development which is included in the operating general and administrative expenses. These marketing expenses include consulting, travel, and tradeshow costs. Because we geared up our QVH plans in late 2014, there is no comparable amount to report for the first three months ended March 31, 2014. We also spent $82,468 in research and development costs on the Quad Video Halo as compared to $5,911 in 2014. Overall, we had $133,222 in non-cash operating charges in 2015 compared to $180,150 in non-cash operating expenses for the three months ended March 31, 2014.
As a result of the foregoing, we had a net loss of $345,866 or $.02 for the three months ended March 31, 2015, compared to $480,287 or $.03 of net loss for the three months ended March 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 Q1 2015 and 2014, respectively.
(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, "I am happy to say that 2015 has taken off with positive developments. In spite of the fact that we have been focusing on the launch of our QVH which spent over $200,000 in direct cash expenditures in Q1 15, we still managed to improve both top and bottom line, over last year's Q1, but also over last quarter. With the patent notification we recently received, Management feels the value of the QVH regarding 3rd party sales has increased. With all final Certifications on the QVH expected to be completed in Q3, sales will be expected to begin immediately thereafter based on preliminary indications of interest already received. Additionally, we have recently entered into three Non-Disclosure Agreements with parties interested in joining SPIN's Affiliate Spine Diagnostic financing program."
Donovan went on to say, "What has SPIN's management encouraged about the future of the Company, particularly as a public entity, is the synergism between the expected upcoming 3rd party sales of the QVH and its legacy spine treatment financing program. In the current stock market environment, investors seem to be putting large speculative premiums on companies who are developing ground breaking devices and instruments for the medical industry. Typically, young companies who manage to reach a high level of success in generating significant sales in this high margin industry, find themselves in the dilemma of 'what to do next' with the cashflow generated from the profits. They either have to put it into low yielding bank or Government deposits, pay down debt, or reinvest into improvements of the same product, take on development of new products, or in some cases sell out to larger companies. While SPIN, should we be so successful, certainly would have all the above options, it also has an excellent fifth option immediately available and that is to deploy the cash into more and larger spine injury case financing. I encourage all shareholder or interested parties to attend our Quarterly Conference Call this afternoon, or view the video replay."
Conference Call Details
Conference Call: An investor's conference call with management will be held on Wed, May 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 Wed, May 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/1540983504805671170
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID: 131-725-227
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) 929-4212Participant Access Code: 559-363-693
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.