HOUSTON, Nov. 14, 2014 (GLOBE NEWSWIRE) -- Spine Pain Management, Inc. (OTCQB:SPIN), a technology-driven, medical service, device and healthcare solution company servicing the multi-billion dollar spine injury sector, today announced financial results for the third quarter of 2014.
- Company Appoints David Spencer to Position of President of its Quad Video HALO™ (QVH) Subsidiary
- SPIN's largest Outside Shareholder and debt holder Added to Board of Directors
- $2 million Revolving Credit Facility with Wells Fargo with LIBOR based interest rate (currently 2.16%) facilitated by largest shareholder now in place.
- $1 million 12% long term debt from largest shareholder reduced to $500,000 at 6% and extended to August 2016. (See 10Q for details)
Results of Operations
Comparison of the three month period ended September 30, 2014 with the three month period ended September 30, 2013.
We recorded $1,130,636 in gross revenue for the three months ended September 30, 2014, offset by $590,117 of the expected settlement discount resulting in net revenue of $540,519. For the same period in 2013, gross revenue was $2,002,259, offset by $995,690 of the expected settlement discount, resulting in net revenue of $1,006,569. The decrease in revenue is due to fewer affiliates. We currently fund three spine injury diagnostic centers in the United States, which are located in Houston, Texas; Odessa, Texas; and San Antonio, Texas. While we funded less centers for the three months ended September 30, 2014, compared to same period in 2013, the revenue mix had higher priced procedures in 2014 period.
Service cost was $241,592 for the three months ended September 30, 2014 compared to $407,838 for the same period in 2013. The decrease is due mainly to the number of affiliate locations we had in 2013 compared to 2014.
During the three months ended September 30, 2014, we incurred $599,511 of operating, general and administrative expenses compared with the $456,619 for the same period in 2013. The main reason for the increase is the expenditures of approximately $141,000 spent on the development of the Quad Video HALO and the development of a sales force. The increase is attributable to increases, in travel expenses of approximately $16,000, QVH marketing of $68,000, $52,000 in consulting costs, $16,000 in research and development, and legal fees of $10,000, depreciation of $17,000, warehouse expense of $6,000, insurance expense of $5,000 coupled with decreases of investor relations by $3,000, and decrease of $51,000 in director and officer non-cash compensation and other increases in net general and administrative expenses of approximately $7,000.
As a result of the foregoing, we had net loss of $394,030 for the three months ended September 30, 2014, compared to a net income of $131,237 for the three months ended September 30, 2013.
Dr. William Donovan stated; "As discussed last quarter, year over year quarterly comparisons are still being negatively affected by the decision in January of this year to terminate our relationships with three Florida Centers and the McAllen TX center which historically made up some 70% of past revenues. However, by closing these centers and focusing on deploying our strong assets on both a concentrated effort to rapidly modify and deploy our latest QVH as a 3rd party tool to bring transparency to the spine related personal injury case sector, but also to new Affiliates with higher profitability potential, we were able to attract a strong financial ally who has also joined the Board of Directors."
Dr. Donovan went on to say; "Procedure funding and therefore revenues remained at a low level in Q3 as we repositioned the Company and available cash for a much more selective and efficient use of funds. This is to be accomplished by adding future physician affiliates and the roll out of the new QVH 4.0 to 3rd parties. The $1.5 million balance of our $2 million credit facility was available at quarters end."
Conference Call Information.
Conference Call: An investor's conference call with management will be held on Friday, Nov. 14, at 4:20 p.m. (EST). The call will be video WebCast with a short live Power Point Presentation followed by Q & A. The call may be accessed either by phone alone, which will not allow asking questions, or by phone and/or VOIP with headset after internet log-in with an on screen provided Audio Pin # which will allow verbally asking questions. Questions can also be typed into an online chat screen at any time during the presentation or Q & A period.
Access to the Call: To use the internet link, you must register prior to access. So we suggest you complete the registration and get your log-in information in advance of the start of the presentation. You can register at any time. As mentioned above, the call is Friday Nov. 14, at 4:20 p.m. (EST).
Click or paste the link below in your browser for registration and web access to the presentation and follow the online instructions:
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http://www.joinwebinar.com Webinar ID: 135-026-299
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YouTube webinar instructions: http://youtu.be/n7b1VHDwwD4
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Conference Dial-in Number: +1 (702) 489-0001
Participant Access Code: 465-643-677
Conference Play Back: A video replay of the conference call presentation will be available several hours after the completion of the call at the company website:
About Spine Pain Management, Inc:
We are a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our care management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe that our services and technology brings strong transparency and impartiality to all parties involved in the settlement of patient cases.
Additional information about the company, along with a video can be found at its website at www.spinepaininc.com.
Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare services demands, changes in healthcare practices, government regulation, and other factors over which the company has little or no control. The company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.
CONTACT: Dr. William F. Donovan Chairman, President & CEO Spine Pain Management, Inc. 713 521-4220Source:Spine Pain Management, Inc.