SANTA CLARA, Calif., Nov. 15, 2010 /PRNewswire-FirstCall/ -- NewCardio, Inc., (OTC Bulletin Board: NWCI) a cardiac diagnostic technology provider, today announced financial results for the third quarter and nine months ended September 30, 2010. More details on the financial results are available in the SEC Form 10-Q, filed today with the Securities and Exchange Commission.
"We continue to make progress in the commercialization of our initial solution, QTinno™, and in securing the strategic funding which will accelerate the development and commercialization of our 3-D platform technology solutions, including CardioBip™, the emerging opportunity in telemedicine with remote patient monitoring – and my3KG™ - whose first deployment is expected to be in the emergency room," commented Vincent Renz, NewCardio's President and CEO. "We are gaining visibility to a growing number of Phase 1 QT studies, from both current and prospective customers, and we remain optimistic regarding acceleration of revenues due to pent-up demand for these studies as the economy, and with it, the market, improve. Our initiative to identify a strategic funding partner also continues to move forward, and I am encouraged by the progress to date and continue to believe we are on the right path towards securing strategic funding to support our development and commercialization activities."
Financial ResultsNewCardio generated revenue, derived from professional services associated with the deployment of QTinno for use in the cardiac safety component of a drug development study, as well as initial per ECG revenues from the first two studies, totaling $99,210 with no corresponding revenue in the prior year quarter. Net cash used in operating activities was $852,000 in the current quarter, which is a decrease of 43% compared to $1.5 million in both the third quarter last year and the immediately prior quarter of this year, as the Company implemented an initiative to reduce its cash usage by 30-35%. For the quarter, the Company reported a net loss attributable to common shareholders of $2.5 million, or $(0.08) per fully diluted share, compared to a net loss attributable to common shareholders of $3.4 million, or $(0.14) per fully diluted share, in the third quarter last year. The net loss per share was based on 29.5 million and 23.9 million weighted average shares outstanding, respectively.
For the nine months ending September 30, 2010, the Company reported revenue of $169,328, compared to no revenue in the prior year. For the nine months ending September 30, 2010, the Company's net loss attributable to common shareholders was $8.3 million, or $(0.29) per share, compared to a net loss attributable to common shareholders of $8.3 million, or $(0.35) per share last year.
Conference CallNewCardio management will conduct a conference call to provide a corporate update and discuss progress at 1:30 p.m. PT/ 4:30 p.m. ET, Monday, November 15, 2010. Interested parties should dial 1-888-846-5003 (domestic) or 1-480-629-9856 (International) five to 10 minutes before the call. Investors will also have the opportunity to listen to the conference call and the replay on the News and Events section of the NewCardio website at http://www.newcardio.com. A replay of the call will be available by dialing 1-877-870-5176 (domestic) or 1-858-384-5517 (international) and referencing passcode 4381453.
About NewCardio, Inc.NewCardio is a cardiac diagnostic and services company developing and marketing proprietary software platform technologies to provide higher accuracy to, and increase the value of, the standard 12-lead ECG. NewCardio's 3D ECG software platform reduces the time and expense involved in assessing cardiac status while increasing the ability to diagnose clinically significant conditions which were previously difficult to detect. NewCardio's software products and services significantly improve the diagnosis and monitoring of cardiovascular disease, as well as cardiac safety assessment of drugs under development. For more information, visit www.newcardio.com.
Forward-Looking StatementsThis press release contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based on currently available information and assumptions made by management. Although we believe that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or nonoccurrence of future events. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including the potential risks and uncertainties set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009 and relate to our business plan, our business strategy, development of our proprietary technology platform and our products, timing of such development, timing and results of clinical trials, level and timing of FDA regulatory clearance or review, market acceptance of our products, protection of our intellectual property, implementation of our strategic, operating and people initiatives, benefits to be derived from personnel and directors, ability to commercialize our products, our assumptions regarding cash flow from operations and cash on-hand, the amount and timing of operating costs and capital expenditures relating to the expansion of our business, operations and infrastructure, implementation of marketing programs, our key agreements and strategic alliances, our ability to obtain additional capital as, and when, needed, and on acceptable terms and general economic conditions specific to our industry, any of which could impact sales, costs and expenses and/or planned strategies and timing. We assume no obligation to, and do not currently intend to, update these forward-looking statements.
NEWCARDIO, INC(a development stage company) CONDENSED CONSOLIDATED BALANCE SHEETSSeptember 30,
,386,007Short term investment
25,010Accounts receivable, trade
111,871Prepaid commitment fees
556,875 Total current assets
2,079,763Property, plant and equipment, net of accumulated depreciation of $138,231 and $79,041 as of September 30, 2010 and December 31, 2009, respectively
198,955Other assets:Patent costs, net
2,301,318LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities:Accounts payable and accrued expenses
-Line of credit
744,280 Total current liabilities
687,958 Total liabilities
2,990,682Preferred shares subject to liability conversion
784,010Stockholders' deficit:Preferred stock, $0.001 par value; 1,000,000 shares authorized:Preferred stock Series B, $0.001 par value; 18,000 shares designated; 12,250 and 16,435 shares issued and outstanding as of September 30, 2010 and December 31, 2009, respectively
16Preferred stock Series C, $0.001 par value; 7,000 shares designated; 2,920 and -0- shares issued and outstanding as of September 30, 2010 and December 31, 2009, respectively
-Preferred stock Series D, $0.001 par value; 1,000 shares designated; no shares issued and outstanding as of September 30, 2010 and December 31, 2009
-Common stock, $0.001 par value, 500,000,000 and 99,000,000 shares authorized as of September 30, 2010 and December 31, 2009, respectively; 29,871,857 and 24,290,279 shares issued and outstanding as of September 30, 2010 and December 31, 2009, respectively
-Additional paid in capital
29,432,680Deficit accumulated during development stage
(30,930,360) Total stockholders' deficit
(a development stage company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFrom September 7, 2004Three months ended
Nine months ended
(date of inception) through2010
September 30, 2010Revenue
9,328Cost of sales
84,468Gross (loss) profit
84,860Operating expenses:Selling, general and administrative
138,232Research and development
9,007,193 Total operating expenses
25,442,037Net loss from operations
(25,357,177)Other income (expense)Gain (loss) on change in fair value of warrant liability and reset derivative
(3,393,303)Amortization of commitment fees
(1,577,951)Other financing costs
(1,034,197)Net loss before income taxes
(36,397,579)Provision for income taxes
(36,397,579)Preferred stock dividend
(4,356,048)NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(40,753,627)Net (loss) income per share-basic and fully diluted
(0.35)Weighted average number of shares-basic and fully diluted
|SOURCE NewCardio, Inc.|
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