Revenue for the three months ended September 30, 2017 was $857,000 compared to $807,000 for the same period in the preceding year.
| TORONTO, ONTARIO -- (Marketwired) -- Nov 14, 2017 -- Spectral Medical Inc. ( Financial Review Revenue for the three months ended September 30, 2017 was $857,000 compared to $807,000 for the same period in the preceding year. For the nine months ended September 30, 2017 revenues were $2,888,000 compared to $2,739,000 in the same period of 2016. Revenues for both the quarter and the year were consistent with prior year levels and this trend is expected to continue for the remainder of the year. Operating costs for the quarter ended September 30, 2017 amounted to $1,677,000 compared to $3,458,000 in 2016. Operating costs for the nine months ended were $5,785,000 a decrease of $6,135,000 from $11,920,000 for the first nine months of 2016. The decrease is almost entirely attributable to lower costs for the EUPHRATES trial. The Company continues to maintain a low cost operating structure for its base business operations. For the three months ended September 30, 2017, the Company reported a loss of $820,000 ($0.004 per share) compared to a loss of $2,633,000 ($0.01 per share) for the three months ended September 30, 2016. The loss for the nine months ended September 30, 2017 was $2,897,000 ($0.01 per share) compared to $9,125,000 ($0.04 per share) for the same nine-month period in the prior year. The Company concluded the third quarter of 2017 with cash on hand of $2,271,000 compared to $5,080,000 as of December 31, 2016. The total number of shares outstanding for the Company was 207,449,337 as at September 30, 2017. About Spectral Spectral is a Phase III company seeking U.S. FDA approval for its unique product for the treatment of patients with endotoxemic septic shock, Toraymyxin™ (‘PMX”). PMX is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream. PMX has been approved for therapeutic use in Japan and Europe, and has been used safely and effectively on more than 150,000 patients to date. In March 2009, Spectral obtained the exclusive development and commercial rights in the U.S. for PMX, and in November 2010, signed an exclusive distribution agreement for this product in Canada. Approximately 350,000 patients are diagnosed with severe sepsis and septic shock in North America each year. Spectral is listed on the Toronto Stock Exchange under the symbol EDT. For more information, please visit www.spectraldx.com Forward-looking statement Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral’s senior management as well as information currently available to it. While these assumptions were considered reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected. The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement. Spectral Medical Inc. Condensed Interim Consolidated Statements of Financial Position (Unaudited) ---------------------------------------------------------------------------- (in thousands of Canadian dollars) September 30 December 31 2017 2016 $ $ ---------------------------------------------------------------------------- Assets Current assets Cash 2,271 5,080 Trade and other receivables 739 642 Inventories 222 244 Prepayments and other assets 173 166 ---------------------------------------------------------------------------- 3,405 6,132 Non-current assets Property and equipment 564 634 Intangible asset 315 334 ---------------------------------------------------------------------------- 879 968 ---------------------------------------------------------------------------- Total assets 4,284 7,100 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities Current liabilities Trade and other payables 784 1,112 Deferred revenue 61 166 ---------------------------------------------------------------------------- Total liabilities 845 1,278 Equity Share capital 63,221 63,084 Contributed surplus 7,849 7,849 Share-based compensation 4,480 4,103 Warrants 132 132 Deficit (72,243) (69,346) ---------------------------------------------------------------------------- Total equity 3,439 5,822 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total liabilities and equity 4,284 7,100 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Spectral Medical Inc. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss For the nine months ended September 30, 2017 and 2016 (Unaudited) ---------------------------------------------------------------------------- (in thousands of Canadian dollars, except for share and per share data) Three months ended Nine months ended September 30 September 30 2017 2016 2017 2016 $ $ ---------------------------------------------------------------------------- Revenue 857 807 2,888 2,739 ---------------------------------------------------------------------------- Expenses Changes in inventories of finished goods and work- in-process 78 106 204 189 Raw materials and consumables used 56 106 167 404 Employee benefits 748 886 2,632 2,995 Product development - - 50 67 Consulting and professional fees 406 1,689 1,610 6,323 Regulatory and investor relations 59 276 220 684 Travel and entertainment 81 172 226 642 Depreciation and amortization 56 53 168 144 Foreign exchange loss 39 29 73 59 Other expenses 154 137 435 414 ---------------------------------------------------------------------------- 1,677 3,458 5,785 11,920 ---------------------------------------------------------------------------- Operating loss (820) (2,651) (2,897) (9,181) ---------------------------------------------------------------------------- Finance income - 18 - 56 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Loss and comprehensive loss for the period (820) (2,633) (2,897) (9,125) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Basic and diluted loss per common share (0.004) (0.01) (0.01) (0.04) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Weighted average number of common shares outstanding 207,446,674 206,865,470 207,288,352 203,882,419 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Spectral Medical Inc. Condensed Interim Consolidated Statements of Changes in Equity For the nine months ended September 30, 2017 and 2016 (Unaudited) ---------------------------------------------------------------------- (in thousands of Canadian dollars) Contributed Issued capital surplus Number $ $ ---------------------------------------------------------------------- Balance, January 1, 2016 190,771,405 53,058 7,849 Bought deal prospectus offering 15,106,804 9,163 - Share options exercised 887,378 479 - Broker warrants exercised 400,000 384 - Loss and comprehensive loss for the period - - - Share-based compensation - - - ---------------------------------------------------------------------- Balance, September 30, 2016 207,165,587 63,084 7,849 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Balance, January 1, 2017 207,165,587 63,084 7,849 Share options exercised 283,750 137 - Loss and comprehensive loss for the period - - - Share-based compensation - - - ---------------------------------------------------------------------- Balance, September 30, 2017 207,449,337 63,221 7,849 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Spectral Medical Inc. Condensed Interim Consolidated Statements of Changes in Equity For the nine months ended September 30, 2017 and 2016 (Unaudited) ---------------------------------------------------------------------------- (in thousands of Canadian dollars) Share-based Total compensation Warrants Deficit equity $ $ $ $ ---------------------------------------------------------------------------- Balance, January 1, 2016 3,723 - (59,197) 5,433 Bought deal prospectus offering - 236 - 9,399 Share options exercised (200) - - 279 Broker warrants exercised - (104) - 280 Loss and comprehensive loss for the period - - (9,125) (9,125) Share-based compensation 528 - - 528 ---------------------------------------------------------------------------- Balance, September 30, 2016 4,051 132 (68,322) 6,794 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Balance, January 1, 2017 4,103 132 (69,346) 5,822 Share options exercised (56) - - 81 Loss and comprehensive loss for the period - - (2,897) (2,897) Share-based compensation 433 - - 433 ---------------------------------------------------------------------------- Balance, September 30, 2017 4,480 132 (72,243) 3,439 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Spectral Medical Inc. Condensed Interim Consolidated Statements of Cash Flows For the nine months ended September 30, 2017 and 2016 (Unaudited) ---------------------------------------------------------------------------- (in thousands of Canadian dollars) Nine months ended 2017 2016 $ $ ---------------------------------------------------------------------------- Cash flow provided by (used in) Operating activities Loss and comprehensive loss for the period (2,897) (9,125) Adjustments for: Depreciation on property and equipment 149 125 Amortization of intangible asset 19 19 Share-based compensation 433 528 (Gain)loss on disposal of property and equipment (4) 6 Changes in items of working capital : Trade and other receivables (97) 50 Inventories 22 (141) Prepayments and other assets (7) (32) Trade and other payables (328) (339) Deferred revenue (105) (106) ---------------------------------------------------------------------------- Net cash used in operating activities (2,815) (9,015) Investing activities Property and equipment expenditures (90) (132) Proceeds on disposal of property and equipment 15 - ---------------------------------------------------------------------------- Net cash used in investing activities (75) (132) Financing activities Share options exercised 81 279 Bought deal prospectus offering - 9,399 Broker warrants exercised - 280 ---------------------------------------------------------------------------- Net cash provided by financing activities 81 9,958 (Decrease)increase in cash (2,809) 811 Cash, beginning of period 5,080 6,369 ---------------------------------------------------------------------------- Cash, end of period 2,271 7,180 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
Contacts: Spectral Medical Inc. Anthony Businskas Executive Vice President and CFO 416-626-3233 ext. 2200 tbusinskas@spectraldx.com Ali Mahdavi Capital Markets & Investor Relations 416-962-3300 am@spinnakercmi.com
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