Welcome!

News Feed Item

LED Medical Diagnostics Inc. Reports 2013 Fourth Quarter and Full Year Results

BURNABY, BRITISH COLUMBIA -- (Marketwired) -- 04/15/14 -- LED Medical Diagnostics Inc. (TSX VENTURE: LMD)(OTCQX: LEDIF)(FRANKFURT: LME) ("LED Medical" or the "Company") today announced its financial results for the fourth quarter and full year ended December 31, 2013, reported in United States dollars and in accordance with International Financial Reporting Standards ("IFRS"). The Company's results are presented in comparison to the fourth quarter and full year ended December 31, 2012. All balances are expressed in United States dollars unless otherwise stated.

Business Highlights

Notable business developments and achievements up to the reporting date included the following:


--  On December 3, 2013, the Company announced that it entered a non-
    exclusive distribution partnership with Burkhart Dental Supply in the
    United States market.
--  On December 10, 2013, the Company announced that it entered a non-
    exclusive distribution partnership with Benco Dental Supply in the
    United States market.
--  On January 14, 2014, the Company announced that it signed an agreement
    with the BC Cancer Agency ("BCCA") to create and commercialize a
    progression-risk assessment test for oral cancer. The test is based on a
    quantifiable genetic phenomenon known as "Loss of Heterozygosity" or
    "LOH".
--  On January 21, 2014, the Company announced that it entered a non-
    exclusive distribution partnership with Patterson Dental in the United
    States and Canadian markets.
--  On February 25, 2014, the Company announced the appointment of Lamar
    Roberts as president of its wholly owned US subsidiary LED Dental Ltd.
--  On March 26, 2014, the Company announced the appointment of Dr. Jeffrey
    Brooks as vice president of imaging of its wholly owned subsidiary LED
    Dental Ltd.
--  On April 2, 2014, the Company announced that its wholly owned US
    operating subsidiary, LED Dental Ltd. released a new brand initiative to
    further its goal of providing advanced imaging technologies to dental
    and specialty practices in the United States and Canada. The branding
    initiative includes a new logo to further unify the business under the
    LED Imaging name.
--  On April 3, 2014 the Company announced that the LED Imaging division of
    its wholly owned subsidiary, LED Dental Ltd., is partnering with Ray
    Co., Ltd., a subsidiary of Samsung, to sell, install and provide support
    for the RAYSCAN alpha - Expert dental imaging system.

"2014 is expected to be a transformational year for LED as our new management team expands our VELscope distribution network and transitions the Company from a single product strategy to a diverse portfolio of digital imaging products," said the Company's CEO, Dr. David Gane. "The execution of our strategy, which will take an investment in time and capital in the current year, is designed to position the Company for long-term, sustainable growth and success as a leading player in the dental imaging market."

Financial Highlights

Financial Position as at December 31, 2013

Working capital as at December 31, 2013 was $4,445,795, which includes cash of $4,358,986. This is compared to negative working capital of $96,749 at December 31, 2012, which included cash of $969,584.

Three-Month Comparative Results

The Company reported revenue of $215,714 for the three months ended December 31, 2013 as compared to $1,389,994 for the three months ended December 31, 2012. Net loss was $1,460,801 for the three months ended December 31, 2013, as compared to a net loss of $174,630 for the three months ended December 31, 2013.

Inclusive of accounting adjustments, the Company's calculated gross margin was 51% for the three months ended December 31, 2013, which is slightly higher as compared to 46% in the three months ended December 31, 2012. Total operating expenses for the three months ended December 31, 2013 were $1,509,487 as compared to $740,547 for the three months ended December 31, 2012, representing a 108% increase. Core operating expenses (excluding stock-based compensation, deferred share unit compensation and other operating expenses) for the three months ended December 31, 2013 were $1,209,950, as compared to $725,989 for the three months ended December 31, 2012, representing a 67% increase.

EBITDA for the three months ended December 31, 2013 was negative $1,238,255 compared to negative $83,502 for the three months ended December 31, 2012.

Twelve-Month Comparative Results

The Company reported revenue of $2,519,574 for the year ended December 31, 2013 as compared to $6,312,754 for the year ended December 31, 2012. Net loss was $6,955,217 for the year ended December 31, 2013 as compared to a net loss of $866,933 for the year ended December 31, 2012.

Gross margin was 46% for the year ended December 31, 2013, a decrease from 57% in the year ended December 31, 2012. Total operating expenses for the year ended December 31, 2013, were $4,812,236 as compared to $4,355,188 for the year ended December 31, 2012, representing a 10% increase. Core operating expenses (excluding stock-based compensation, deferred share unit compensation and other operating expenses) for the year ended December 31, 2013 were $3,291,582, as compared to $4,295,412 for the year ended December 31, 2012, representing a 23% decrease.

EBITDA for the year ended December 31, 2013 was negative $2,120,231, as compared to negative $728,135 for the year ended December 31, 2012.

Financial Statements and Management's Discussion & Analysis

Please see the audited consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for more details. The audited consolidated financial statements for the year ended December 31, 2013 and related MD&A have been reviewed and approved by the Company's Audit Committee and Board of Directors. The Company has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted to www.ledmd.com.

Non-IFRS Measures

The following and preceding discussion of financial results includes references to Gross Margin, EBITDA, Core Operating Expenses and Working Capital, which are non-IFRS financial measures. The measure of gross margin is provided as management believes this is a good indicator in evaluating the operating performance of the Company. EBITDA is defined as net loss and comprehensive loss and excludes interest; income taxes; depreciation; amortization; finder's warrants issuance costs; stock-based compensation; deferred share unit compensation; mark to market adjustments on Canadian dollar denominated warrants; foreign exchange gain or loss; and other income. The measure of working capital is provided as management believes this is a good indicator of the operating liquidity available to the Company.

Forward-Looking Statements

This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward- looking information under applicable Canadian securities legislation. Such forward-looking statements or information includes financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions and the Company's intention to expand its technology beyond dental applications including "costs of production", "capital expenditures", "costs and timing of the development of new products", "hedging practices", "currency exchange rate fluctuations", "requirements for additional capital", "government regulation of medical device operations" and "insurance coverage". Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "would", "could", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Persons reading this Management's Discussion and Analysis are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different.

Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: economic conditions; dilution; limited history of profits and operations; operational risk; distributor risks; working capital; potential conflicts of interest; speculative investment; intellectual property risks; disruptions in production; reliance on key personnel; seasonality; management's estimates; development of new customers and products risks; stock price volatility risk; sales and marketing risk; competitors and competition risk; regulatory requirements; reliance on few suppliers; reliance on subcontractors; operating cost and quarterly results fluctuations; fluctuations in exchange rates; product liability and medical malpractice claims; access to credit and additional financing; taxation; market acceptance of the Company's products and services; customer and industry analyst perception of the Company and its technology vision and future prospects; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international operations and sales; management of growth and expansion; dependence upon key personnel and hiring; the Company not adequately protecting its intellectual property; risks related to product defects and product liability; and including, but not limited to, other factors described in the Company's reports filed on SEDAR, including its financial statements and management's discussion and analysis for the year ended December 31, 2013.

In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material factors and assumptions in addition to the above factors: the Company's ability to execute on its business plan; the acceptance of the Company's products and services by its customers; the timing of execution of outstanding or potential customer contracts by the Company; the sales opportunities available to the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins. This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this Management's Discussion and Analysis are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

About LED Medical Diagnostics Inc.

Founded in 2003 and headquartered in Burnaby, British Columbia, Canada, LED Medical Diagnostics Inc. is a leading developer of LED- based visualization technologies for the medical industry. The Company is currently listed on the Toronto Stock Exchange (TSX-V) under the symbol "LMD", the OTCQX under the symbol "LEDIF", as well as the Frankfurt Stock Exchange under the symbol "LME". For more information, visit www.ledmd.com.

LED Dental Inc., a wholly-owned subsidiary, is backed by an experienced leadership team dedicated to a higher level of service and support. LED Dental offers advanced diagnostic imaging equipment that seamlessly integrates into dental practices. The Company is committed to providing dental practitioners with the best technology available by identifying and adding strong products to its growing portfolio. Additionally, the company manufactures the award-winning VELscope® Vx Enhanced Oral Assessment System, the first system in the world to apply tissue fluorescence visualization technology to the oral cavity. The VELscope® Vx is now used to conduct more screenings for oral cancer and other oral mucosal diseases than any other adjunctive device. For more information, call 888.541.4614 or visit www.leddental.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



LED MEDICAL DIAGNOSTICS INC.
Consolidated Statements of Financial Position
(Expressed in U.S. Dollars)

                                               December 31,    December 31,
                                       Notes           2013            2012
----------------------------------------------------------------------------

Assets
Current assets
  Cash                                         $  4,358,986    $    969,584
  Restricted cash                          4              -           5,026
  Trade and other receivables              5        503,736       1,514,577
  Inventory                                         412,307         296,467
  Inventory held by distributor            6        165,832         518,400
  Prepaid expenses and deposits                     297,164          69,300
                                            --------------------------------
Total current assets                              5,738,025       3,373,354

Non-current assets
  Property and equipment                   7         23,150          28,015
  Patents and intellectual property        8         62,362          88,167
                                            --------------------------------
                                               $  5,823,537    $  3,489,536
----------------------------------------------------------------------------

Liabilities and Shareholders'
 Deficiency
Current liabilities
  Trade payables and accrued
   liabilities                             9   $    793,046    $  1,689,009
  Advances from distributor                6        495,494       1,778,112
  Current portion of finance lease
   obligation                             10          3,690           2,982
                                            --------------------------------
Total current liabilities                         1,292,230       3,470,103

Non-current liabilities
  Long-term portion of finance lease
   obligation                             10          3,190           6,879
  Warrants                                12      3,672,958         140,467
                                            --------------------------------
Total liabilities                                 4,968,378       3,617,449
                                            --------------------------------

Shareholders' Deficiency
  Share capital                           13     27,242,071      24,658,241
  Stock-based payment reserve             14        970,004          62,495
  Warrants reserve                                4,724,698         277,748
  Accumulated other comprehensive
   income                                           474,458         474,458
  Deficit                                       (32,556,072)    (25,600,855)
                                            --------------------------------
                                                    855,159        (127,913)
                                            --------------------------------
                                               $  5,823,537    $  3,489,536
============================================================================


LED MEDICAL DIAGNOSTICS INC.
Consolidated Statements of Financial Position
(Expressed in U.S. Dollars)

                     Three months  Three months
                            ended         ended    Year ended    Year ended
                         December      December  December 31,  December 31,
                         31, 2013      31, 2012          2013          2012
                     -------------------------------------------------------
Revenues             $    215,714  $  1,389,994  $  2,519,574  $  6,312,754
Cost of goods sold        424,018       747,510     1,348,223     2,745,477
                     -------------------------------------------------------
                         (208,304)      642,484     1,171,351     3,567,277
                     -------------------------------------------------------

Expenses
  Sales and marketing     434,577       349,248     1,252,688     2,564,798
  Research and
   development            120,623        94,980       442,880       523,492
  Administration          474,750       281,761     1,596,014     1,207,122
  Stock-based
   compensation           309,818             -       907,509             -
  Deferred share unit
   compensation          (149,967)            -       230,613             -
  Other operating
   expenses               319,686        14,558       382,532        59,776
                     -------------------------------------------------------
                        1,509,487       740,547     4,812,236     4,355,188
                     -------------------------------------------------------
Operating loss         (1,717,791)      (98,063)   (3,640,885)     (787,911)
                     -------------------------------------------------------

Other expenses
  Mark to market
   adjustments on
   Canadian               545,259       (77,729)   (3,277,328)       (3,843)
  dollar denominated
   warrants
  Foreign exchange
   (loss) gain           (280,322)        1,161       (24,958)      (64,511)
  Other income                  -            91             -         2,172
                     -------------------------------------------------------
                          264,937       (76,477)   (3,302,286)      (66,182)
                     -------------------------------------------------------
Net loss and
 comprehensive loss
 before income taxes   (1,452,854)     (174,540)   (6,943,171)     (854,093)

Income taxes                7,947                      12,046        12,840
                     -------------------------------------------------------

Net loss and
 comprehensive loss
 for the year        $ (1,460,801) $   (174,540) $ (6,955,217) $   (866,933)
============================================================================


LED MEDICAL DIAGNOSTICS INC.
Consolidated Statements of Cash Flow
(Expressed in U.S. Dollars)


                      Three months  Three months                 Year ended
                             ended         ended    Year ended     December
                      December 31,      December  December 31,          31,
                              2013      31, 2012          2013         2012
                     -------------------------------------------------------
Net loss for the year  ($1,460,801) $   (174,539) $ (6,955,217) $  (866,933)
Adjustments to net
 loss for items not
 involving cash:
  Depreciation of
   equipment                 3,209         8,107        12,596       33,971
  Amortization of
   intellectual
   property                  6,451         6,451        25,805       25,805
  Warrants issuance
   costs                   310,026             -       344,131            -
  Loss on disposal of
   assets                        -             -             -          702
  Accrued interest on
   shareholder loans             -            31             -        2,614
  Mark to market
   adjustments on
   Canadian dollar
   denominated
   warrants                 96,402        77,729     3,022,165        3,843

  Deferred share unit
   compensation            230,613             -       230,613            -
  Stock-based
   compensation            309,818             -       907,509            -
                     -------------------------------------------------------
                          (504,282)      (82,221)   (1,902,072)    (799,998)
                     -------------------------------------------------------
Changes in working
 capital assets and
 liabilities:
  Receivables              191,749      (620,813)    1,010,841   (1,215,855)
  Inventory                161,464       153,538      (115,840)     474,150
  Inventory held by
   distributor             (44,632)            -       352,568      (51,047)
  Prepayments             (137,443)       42,956      (227,864)        (703)
  Trades payable and
   accrued
   liabilities            (582,986)        4,269      (895,963)     290,024
  Advances from
   distributor              88,077             -    (1,282,618)     320,750
                     -------------------------------------------------------
Changes in working
 capital assets and
 liabilities              (323,771)     (420,050)   (1,158,876)    (182,681)
                     -------------------------------------------------------
Cash flows used in
 operating activities     (828,053)     (502,271)   (3,060,948)    (982,679)
                     -------------------------------------------------------
Cash flows from
 investing activities
  Purchase of
   equipment                (4,664)       (4,098)       (7,731)     (16,758)
  Restricted cash            4,853            59         5,026       19,556
                     -------------------------------------------------------
Cash flows (used in)
 provided by
 investing activities          189        (4,039)       (2,705)       2,798
                     -------------------------------------------------------
Cash flows from
 financing activities
  Issuance of common
   shares, net of
   issuance costs        4,209,809     1,081,513     6,451,600    1,081,513
  Issuance of share
   purchase warrants
   in private
   placement                 4,436             -         4,436            -
  Repayment of
   finance lease
   obligation                 (805)         (651)       (2,981)      (2,410)
  Repayment of
   shareholder loans             -           (31)            -     (105,410)
                     -------------------------------------------------------
Cash flows (used in)
 provided by
 financing activities    4,213,440     1,080,831     6,453,055      973,693
                     -------------------------------------------------------

Increase (decrease)
 in cash                 3,385,576       574,521     3,389,402       (6,188)
Cash, beginning of
 year                      973,410       395,063       969,584      975,772
                     -------------------------------------------------------
Cash, end of year     $  4,358,986  $    969,584  $  4,358,986  $   969,584
============================================================================

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...