Welcome!

News Feed Item

Spectral Announces Third Quarter Results

TORONTO, ONTARIO -- (Marketwired) -- 11/14/17 -- Spectral Medical Inc., (TSX:EDT), a Phase III company developing the first treatment for patients with endotoxemic septic shock, today announced its unaudited financial results for the third quarter ended September 30, 2017.

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(TM) ('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
[email protected]

Ali Mahdavi
Capital Markets & Investor Relations
416-962-3300
[email protected]

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
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...