MINNEAPOLIS, Nov. 14, 2013 /PRNewswire/ -- Skyline Medical Inc. (OTCQB: SKLN) (the "Company"), the producer of the FDA approved STREAMWAY System for automated, direct-to-drain surgical fluid disposal that reduces the risk of exposure to hazardous waste, today reported its results for the third quarter and nine months ended September 30, 2013.
Third quarter revenues rose to $107,835, up more than 108% compared to $51,615 for the third quarter in 2012. Year to date revenues rose to $386,418, compared to revenues of $99,210 year to date in 2012. Gross profit for the third quarter of 2013 was $81,654, an increase from ($18,347) for the same period in 2012. The Company has been holding off on a significant backlog of purchase orders due to Skyline's preparation for the mass production of its enhanced STREAMWAY System with the backlog contributing to expected increased revenues through Q4 and beyond.
Net loss for the third quarter of 2013 was ($3.97) million, or ($0.03) per diluted share, compared to net loss of ($2.86) million, or ($0.04) per diluted share, in the comparable period in 2012. The increase in net loss was primarily driven by an increase in General and Administrative and Sales and Marketing expenses as the Company prepares for a national rollout of the STREAMWAY System.
"A great deal of our third quarter efforts have been focused on putting the final touches on the enhanced STREAMWAY System, which we have debuted in Q4, and solidifying partnerships and trials to continue the rapid adoption of our technology throughout the United States," said Josh Kornberg, CEO of Skyline Medical. "While our original version of the STREAMWAY System outperformed the market's expectations after our competitor's product was recalled last year, we are confident that the improved product is going to make the STREAMWAY System the go-to surgical fluid disposal system around the U.S. We are currently working with several national hospital and ambulatory surgical companies to ensure that is the case."
Kornberg continued, "Now that the technological modifications of our STREAMWAY System are complete, we will prepare for mass production and be able to fulfill a large backlog of purchase orders currently in our pipeline. These orders represent approximately $2 million in revenue of which approximately $1 million will be recurring on an annualized basis. We will begin to recognize these revenues immediately as they will impact our financial results starting over the next two quarters."
About Skyline Medical Inc.
Skyline Medical, formerly BioDrain Medical, Inc., has a fully automated, patented, FDA cleared, surgical fluid disposal system that virtually eliminates certain operating room workers' exposure to blood, irrigation fluid and other potentially infectious fluids found in the surgical environment. Today's manual surgical fluid handling methods of hand-carrying filled surgical fluid canisters and emptying these canisters is an exposure risk and an antiquated approach to the handling of surgical fluid waste. Skyline's STREAMWAY System fully automates the collection, measurement and disposal of surgical fluids and is designed to result in: 1) reducing overhead costs to hospitals and surgical centers, 2) improving Occupational State and Health Association (OSHA) and other regulatory compliance agencies' safety concerns, and 3) streamlining the efficiency and reducing the operating costs of the operating room.
Skyline's STREAMWAY System is eco-friendly as it contributes to cleaning up the environment. Currently, approximately 50 million bloody, potentially disease infected canisters go to landfills annually in the United States. These tainted canisters can remain in landfills for years to come. With the installation of Skyline's STREAMWAY System, the number of canisters can be significantly reduced. Skyline Medical, Inc.'s STREAMWAY System is designed to make the operating room and our environment safer, cleaner, and better. Skyline products are currently being represented by independent professional sales representatives that cater to the needs of hospitals and ambulatory surgical centers across the country. For additional information, please visit: http://www.skylinemedical.com
Certain of the matters discussed in this announcement contain forward-looking statements that involve material risks to and uncertainties in the Company's business that may cause actual results to differ materially from those anticipated by the statements made herein. Such risks and uncertainties include, among other things, inability to raise sufficient additional capital to operate our business; approximately $1.4 million in debts, liabilities and cash obligations that become due over the next twelve months; unexpected costs and operating deficits, and lower than expected sales and revenues, if any; adverse economic conditions; adverse results of any legal proceedings; the volatility of our operating results and financial condition; and inability to attract or retain qualified senior management personnel, including sales and marketing personnel; our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary marketing and/or distribution partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, which are available for review at www.sec.gov. This is not a solicitation to buy or sell securities and does not purport to be an analysis of the company's financial position. See the Company's most recent Annual Report on Form 10-K, as amended, and subsequent reports and other filings at www.sec.gov.
SKYLINE MEDICAL, INC. CONDENSED STATEMENTS OF OPERATIONS (USD $)Three Months EndedSep. 30, 2013Sep. 30, 2012Revenue$ 107,835
$ 51,615Cost of Goods Sold26,181
(18,347)General and administrative expenses3,195,589
300,719Sales and marketing expense164,712
23,703Loss (gain) on valuation of equity-linked financial instruments(65,287)
2,837,366Net loss available to common shareholders$ (3,974,903)
$ (2,855,713)Loss per common share - basic and diluted (in dollars per share)$ (0.03)
$ (0.04)Weighted average shares used in computation - basic and diluted
79,467,603 SKYLINE MEDICAL, INC. CONDENSED BALANCE SHEETS (USD $)Sept. 30, 2013Dec. 31, 2012ASSETSCash
$ 13,139Accounts Receivable, net of Allowance for Doubtful Accounts of $0 in 2013 and $4,073 in 2012.
145,209Prepaid Expense and other assets
27,409Total Current Assets547,082
225,468Fixed Assets, net
369,577LIABILITIES AND STOCKHOLDERS' DEFICITCurrent portion of convertible debt, net of discounts of $0 and $21,138
1,081,187Convertible Notes Payable - Related Party
0Total Current Liabilities1,385,174
3,414,301Long-term convertible debt
0Liability for equity-linked financial instruments
3,672,780Stockholders' Deficit:Common stock, $.01 par value, 300,000,000 authorized, 219,640,021 and 104,247,228 outstanding
1,042,473Additional paid-in capital
14,945,435Deficit accumulated during development stage
(19,291,111)Total Stockholders' Deficit(1,208,648)
(3,303,203)Total Liabilities and Stockholders' Deficit$ 636,647
Public Relations Contact:
KCSA Strategic Communications
Investor Relations Contacts:
Phil Carlson / Josh Dver
KCSA Strategic Communications
212-896-1233 / 212-896-1239
|SOURCE Skyline Medical Inc.|
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