News Column

LED Medical Diagnostics Reports 2014 First Quarter Results

June 2, 2014



Business Highlights


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


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 a - Expert dental imaging system.

On April 15, 2014, the Company announced that it entered a non-exclusive distribution partnership with Atlanta Dental Supply and Nashville Dental.

On April 22, 2014, the Company announced that the LED Imaging division of its wholly owned subsidiary, LED Dental Ltd., entered a partnership with the UT College of Dentistry. Residents and dental students will receive hands-on training with the RAYSCAN a - Expert, a multi-function digital imaging system, as part of their clinical training.

On April 24, 2014, the Company announced that the LED Imaging division of its wholly owned subsidiary, LED Dental Ltd., is launching its LED Imaging Software to integrate with the company's growing portfolio of imaging technologies.


"The first quarter of fiscal 2014 will be remembered as a time of transitioning the VELscope Vx line to an expanded and optimized distribution channel and diversifying our product portfolio to include additional digital dental imaging technologies," states Dr. David Gane, CEO of LED Medical. "Our selection of world class manufacturing partners allows us to resell the finest diagnostic dental imaging products available while leveraging our partners brand identity and significant product investments. We will continue to actively invest in our team and infrastructure throughout 2014 and look forward to launching new imaging products over the course of the year to leverage our newly created sales and marketing asset."


Financial Highlights


Financial Position as at March 31, 2014


Working capital1 as at March 31, 2014 was $3,438,228, which includes cash of $3,178,080. This is compared to working capital of $4,445,795 at December 31, 2013, which included cash of $4,358,986.


Three-Month Comparative Results


The Company reported revenue of $1,054,886 for the three months ended March 31, 2014 as compared to $309,590 for the three months ended March 31, 2013. Operating loss was $1,206,789 for the three months ended March 31, 2014, as compared to a net loss of $1,286,849 for the three months ended March 31, 2014.


The Company's calculated gross margin2 was 50% for the three months ended March 31, 2014, which is consistent with the 53% gross margin during the three months ended March 31, 2013. Total operating expenses for the three months ended March 31, 2014 were $1,736,138 as compared to $1,450,073 for the three months ended March 31, 2013, representing a 20% increase. Core operating expenses (excluding stock-based compensation, deferred share unit compensation and other operating expenses) for the three months ended March 31, 2014 were $1,534,712, as compared to $801,521 for the three months ended March 31, 2013, representing a 91% increase.



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Source: Global Data Point