LOS ANGELES, CA -- (Marketwired) -- 04/02/13 -- MMRGlobal, Inc. (OTCQB: MMRF), a leading provider of Personal Health Records ("PHRs"), MyEsafeDepositBox storage solutions and electronic document management and imaging systems for healthcare professionals, today announced that it filed its Annual Report on Form 10-K for the period ended December 31, 2012 with the U.S. Securities and Exchange Commission on April 1, 2013. The Company reported a 21% reduction in operating expenses, a 24.9% reduction in G&A, a 15.1% reduction in sales and marketing expenses, a 24.3% reduction in technology and development costs, an 81% reduction in interest and finance charges, resulting in an overall reduction of net loss from $8,884,427 in 2011 to $5,902,503 in 2012, or 33.6%. The results did not include a backlog in revenues from signed agreements which represent more than $40 million in future revenues not including revenue from license agreements pertaining to the Company's Health Information Technology patents (the "MMR IP").
"Eight years ago, waiting was not an option. After watching the deregulation of AT&T and the collapse of the Bell system, I believed that the day would come when, based on the agendas set forth by the Bush and Obama administrations to force interoperability and patient engagement through the use of computerized medical records, the market would demand an efficient cost-effective way to deliver a standardized Personal Health Record to consumers. Based on expenditures of more than $40 million, and as a result of government regulations mandating that patients be provided timely online access to their personal health information under the HITECH Act, we believe our time has come. MMR is now in the process of licensing and delivering its patented Personal Health Record to the global healthcare market," said Robert H. Lorsch, MMRGlobal Chairman and CEO.
Until now, the Company has worked hard to drive consumers to use its products and services. Due to macro-economic and changing government conditions, consumers and healthcare professionals are being driven to technology that takes advantage of MMR's IP.
MMR is continuing its efforts to license to hospitals, physicians, ambulatory surgical centers, laboratory systems, pharmacies and vendors of selected health IT products and services. As part of this effort, it is actively working with two of the ten leading EHR vendors who earned 66 percent of all Medicare EHR Incentive Payments for their customers from May 2011 to September 2012. The Company is also continuing efforts to expand its significant patent portfolio with continuation applications and additional pending applications on file around the world. In the U.S., the MMR has seven U.S. patents issued under the headings, "Method and System for Providing Online Medical Records" and "Method and System for Providing Online Records," with more than 400 surrounding claims, as well as patents issued, and/or pending in numerous countries around the world, including Australia, Singapore, New Zealand, Mexico, Japan, Canada, Hong Kong, South Korea, Israel, and Europe. A special report published on January 22, 2013 concluded that the range of value for the Company's U.S. health IT patents could reach between $600 million to $1.1 billion in revenue based on what is described as conservative estimates of a market projected to reach a GDP value of $19 billion. (For additional information see http://michaelbass.com/PDF/Patent_Valuation.pdf).
The Company is also continuing its global initiative in China. Current documentation pertaining to the Henan Government Medical project will include design documentation from MMR's Personal Health Records.
MMR has also filed patent infringement claims against Walgreen Co., titled MyMedicalRecords, Inc. v. Walgreen Co., United States District Court, Central District of California, Case No. CV 13-00631 ODW (SHx) and others in which it is engaged in active settlement discussions. MMR plans on filing similar actions this quarter directed toward PHR providers, hospitals, and laboratory services providers, among others. In addition, the Company is continuing to investigate possible infringement of MMR's intellectual property in Australia and by vendors of health IT products and services in Singapore.
MyMedicalRecords, Inc. has also completed required arbitration proceedings with Surgery Center Management, LLC ("SCM") and is continuing its efforts to collect $30 million in license fees under the Settlement and Patent License Agreement for use of MMR's health information technology patents. $10 million of such fees are already past due. MMR has also filed a motion for sanctions for costs and expenses for what it believes to be caused by meritless appeals.
On the biotech front, the Company received additional patents in 2012 entitled "Antibodies and Methods for Making and Using Them" and "Method and Composition for Altering a B Cell Mediated Pathology" from the Mexican Industrial Property Institute. The first patent has special significance because it represents an anti-CD20 monoclonal antibody patent which marks the first such approval for protection of the Company's specific antibodies that have particular utility in fighting cancers. Patents for the Company's antibodies are also pending in a number of additional countries including the United States, Australia, Brazil, Canada, China, Hong Kong, India, Europe, Japan and Korea. The second Mexican patent relates to methods of manufacturing compositions for B-cell vaccines used in the fight against lymphoma and potentially other forms of cancer and is similar to those manufacturing patents issued in the U.S., including U.S. Patent No. 8,114,404 and 8,113,486 issued in the first quarter of 2012, and Singapore, and is pending in various other countries of commercial interest. Subsequently, in January 2013, the Company announced approval of its European Union patent also directed at "Method and Composition for Altering a B Cell Mediated Pathology," protecting the manufacturing of our B-cell vaccines (which was under appeal in Europe for some time). This issued patent is currently undergoing the process of validating the patent in numerous countries including the United Kingdom, France, Germany, Switzerland, Spain, Italy, the Netherlands, Denmark, Sweden, Finland, Ireland and Belgium.
In an effort to continue exploiting its biotech assets, the Company is currently looking at the possibility of entering into a transaction involving a new cancer drug in the field of Epigenetics, which was discussed in the April 1st issue of Time Magazine. Biotech ventures in publicly traded companies can carry significant valuations such as MAP Pharmaceuticals, Inc., which had no revenue, yet was sold last month to Allergan for nearly one billion dollars. Management believes that the Company's valuation should include the value of all its health IT and biotech intellectual property, similar to other IP-holding companies that have invented, license and sell their IP.
MMRGlobal, Inc., through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, retail pharmacies, and professional organizations and affinity groups. The MyMedicalRecords PHR enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. MyMedicalRecords is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients through an integrated patient portal. Through its merger with Favrille, Inc. in January 2009, the Company acquired intellectual property biotech assets that include anti-CD20 antibodies and data and samples from its FavId/Specifid vaccine clinical trials for the treatment of B-Cell Non-Hodgkin's lymphoma. To learn more about MMRGlobal, Inc. visit www.mmrglobal.com. View demos and video tutorials of the Company's products and services at www.mmrtheater.com.
All statements in this press release that are not strictly historical in nature, including, without limitation, intellectual property enforcement actions, infringement claims or litigation, intellectual property licenses, and future performance, management's expectations, beliefs, intentions, estimates or projections, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words (and their derivations) such as "need," "possibility," "potential," "intend," "offer," "development," "if," "negotiate," "when," "begun," "believe," "achieve," "will," "estimate," "expect," "maintain," "plan," and "continue," or the negative of these words. Actual outcomes and results of operations and the timing of selected events may differ materially from the results predicted, and any reported results should not be considered as an indication of future performance. Such statements are necessarily based on assumptions and estimates and are subject to various risks and uncertainties, including those relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in economic, business, industry, market, legal and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners, potential licensees, competitors and legislative, judicial and other governmental authorities and officials. Factors that could cause or contribute to such differences include, but are not limited to: unexpected outcomes with respect to intellectual property enforcement actions, claims of intellectual property infringement and general intellectual property litigation; our ability to maintain, develop, monetize and protect our patent portfolio for both the Company's health IT and biotechnology intellectual property assets in the U.S. and internationally; the timing of milestone payments in connection with licensing our intellectual property; our ability to establish and maintain strategic relationships; changes in our relationships with our licensees; the risk the Company's products are not adopted or viewed favorably by the healthcare community and consumer retail market; business prospects, results of operations or financial condition; risks related to the current uncertainty and instability in financial and lending markets, including global economic uncertainties; the timing and volume of sales and installations; the length of sales cycles and the installation process; the market's acceptance of new product and service introductions; competitive product offerings and promotions; changes in government laws and regulations including the 2009 HITECH Act and changes in Meaningful Use and the 2010 Affordable Care Act; future changes in tax legislation and initiatives in the healthcare industry; undetected errors in our products; the possibility of interruption at our data centers; risks related to third party vendors; risks related to obtaining and integrating third-party licensed technology; risks related to a security breach by third parties; risks associated with recruitment and retention of key personnel; other litigation matters; uncertainties associated with doing business internationally across borders and territories; and additional risks discussed in the Company's filings with the Securities and Exchange Commission, including disclosures about the Company's relationship with the Michael Bass Group since 2009. Additional information is set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The Company is providing this information as of the date of this release and, except as required by applicable law, does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
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