HOUSTON, April 1, 2013 (GLOBE NEWSWIRE) -- Spine Pain Management, Inc. (OTCQX:SPIN), a technology-driven, medical service, device and healthcare solution company servicing the multi-billion dollar spine injury sector, today announced financial results for 2012.
Major Developments
- Acquired and developed to commercial standards the beta model Quad Video HALO system which recently we recently announced.
- The Continuing Learning Education (CLE) program approved by the State Bar Association of Florida for continuing attorney credit hours, centered around SPIN's HALO technology. (See recent Company PR's and website for details)
Results of Operations
We recorded $3,459,231 in net revenues with $1,468,731 in costs of services and gross profit of $1,990,500 for the year ended December 31, 2012. For the same period in 2011, we recorded $5,212,165 in net revenues with $2,120,800 in costs of services and a gross profit of $3,091,365. Revenue was down in 2012 due to multiple factors. The change in our discount rate from 50% in 2011 to 52% in 2012 resulted in a decrease in revenue previously recorded. Revenue was also negatively affected by lower case volume in 2012. Our affiliated healthcare providers accepted fewer patient cases from certain attorneys whose cases had a history of low returns. Additionally in 2012, because of the low returns we have experienced on cases of patients with minimal insurance coverage limits, our diagnostic centers performed fewer of the medically-necessary procedures needed by these patients. The lower revenue coupled with the $1.1 million in non cash charges resulted in the Company's first ever full year loss. These issues were aggressively and successfully addressed along with ancillary new products and services added which will be evidenced by first quarter 2013 results.
Operating, general and administrative expenses for the year ended December 31, 2012, were $1,898,925 as compared to $1,750,219 for the year ended December 31, 2011. The increase in operating expenses was primarily the result of additional overhead associated with opening new centers coupled with increased personnel staffing, bad debt provision, and consulting costs.
Other income (expenses) for the year ended December 31, 2012 was an expense of $521,793 as compared to expense of $26,142 for the year ended December 31, 2011. For the year ended December 31, 2012, other income of $33,436 and gain on extinguishment of debt of $95,568 was offset by $324,147 of interest expense and a litigation settlement expense of $326,650. For the same period in 2011, other income of $24,567 and gain on extinguishment of debt of $150,562 was offset by $201,271 of interest expense.
Net loss for the year ended December 31, 2012 was $430,218 or $.02 per share, compared to net income of $1,315,004 or $.08 for the year ended December 31, 2011. Lower revenue, coupled with additional personnel and non-cash charges (interest costs for stock options and stock warrants, litigation settlements, consulting, and bad debt expense) resulted in net income decreasing in 2012 from 2011. We had $1,165,836 of non-cash charges that hit the P&L in 2012 compared to $318,569 in 2011.
Cash collections received in settlements totaled $2,597,000 and $1,781,000 for the years ended December 31, 2012 and 2011, respectively.
Conference Call Details
Conference Call: An investor's conference call with management will be held on Monday April 1, at 4:15 pm 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 today, Monday April 1, at 4:15 pm 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.gotowebinar.com/register/275310070
Or if the above link doesn't work, please try the following:
http://www.JoinWebinar.com Webinar ID: 275-310-070
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.)
If you use the telephone, but 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: (415) 655-0053
Participant Access Code: 936-934-081
Conference Play Back: A video replay of the conference call presentation will be available 2 to 3 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 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.