SALT LAKE CITY--(BUSINESS WIRE)--BSD Medical Corporation (NASDAQ: BSDM) (Company or BSD) (www.BSDMedical.com), a leading provider of medical systems that treat cancer and benign diseases using heat therapy, today reported financial results for its fiscal year ended August 31, 2012, including:
- Cash and cash equivalents of $11.1 million
- No debt
- Total stockholders’ equity of $14.5 million
- Total revenues of $2,071,192 for the year ended August 31, 2012 compared to total revenues of $3,037,475 for the year ended August 31, 2011
- Net loss of $7,960,660 for the year ended August 31, 2012 compared to $5,285,517 for the year ended August 31, 2011
- Net cash used in operating activities of $5,935,939 for the year ended August 31, 2012 compared to $4,157,225 for the year ended August 31, 2011
“We made significant investments during fiscal year 2012 to expand our MicroThermX® Microwave Ablation System ('MicroThermX®') business, which contributed to the increase in our net loss and net cash used in operating activities compared to the prior year,” said Harold Wolcott, President of the Company. “These investments included the expansion of a fee-per-use equipment rental program for our MicroThermX® and important product enhancements such as a new tabletop MicroThermX® and a short tip SynchroWave antenna used to deliver smaller, spherical ablation zones. We are pleased to report positive results from these initiatives as we are experiencing increasing revenues from sales of disposable SynchroWave antennas combined with highly profitable equipment rental fees for our MicroThermX®. Revenues from our MicroThermX® product line increased 214% during the current fiscal year compared to last fiscal year. However, total revenues in the current fiscal year were less than in the prior fiscal year primarily due to the sale of fewer hyperthermia systems. We continue to have a strong balance sheet, no debt, and believe we are sufficiently capitalized to continue our sales and marketing and product development efforts.”
About BSD Medical Corporation
BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused radiofrequency (RF) and microwave energy. BSD’s product lines include both hyperthermia and ablation treatment systems. BSD’s hyperthermia cancer treatment systems, which have been in use for several years in the United States, Europe and Asia, are used to treat certain tumors with heat (hyperthermia) while increasing the effectiveness of other therapies such as radiation therapy. BSD’s microwave ablation system has been developed as a stand-alone therapy to ablate and destroy soft tissue. The Company has developed extensive intellectual property, multiple products in the market, and well established distribution in the United States, Europe and Asia. Certain of the Company’s products have received regulatory approvals in the United States, Europe and China. For further information visit BSD Medical's website at www.BSDMedical.com.
Forward-Looking Statements
Statements contained in this press release that are not historical facts, including statements relating to our MicroThermX® line of products, are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the market demand for our MicroThermX® products and the regulatory requirements we face. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date, except as required by law.
| BSD MEDICAL CORPORATION | |||||||||
| Balance Sheets | |||||||||
| August 31, | |||||||||
| ASSETS | 2012 | 2011 | |||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 11,102,508 | $ | 17,135,968 | |||||
|
Accounts receivable, net of allowance for doubtful accounts of $20,000 |
289,587 |
397,264 |
|||||||
| Related party trade accounts receivable | 33,257 | 408,323 | |||||||
| Inventories, net | 2,403,957 | 2,406,214 | |||||||
| Other current assets | 120,069 | 121,148 | |||||||
| Total current assets | 13,949,378 | 20,468,917 | |||||||
| Property and equipment, net | 1,412,639 | 1,445,897 | |||||||
| Patents, net | 4,032 | 25,092 | |||||||
| $ | 15,366,049 | $ | 21,939,906 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 195,754 | $ | 301,936 | |||||
| Accrued liabilities | 424,698 | 332,004 | |||||||
| Customer deposits | 24,980 | - | |||||||
| Deferred revenue – current portion | 96,865 | 42,214 | |||||||
| Total current liabilities | 742,297 | 676,154 | |||||||
| Deferred revenue – net of current portion | 126,420 | 192,158 | |||||||
| Total liabilities | 868,717 | 868,312 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity: | |||||||||
|
Preferred stock, $.001 par value; 10,000,000 shares authorized, no shares issued and outstanding |
- |
- |
|||||||
|
Common stock, $.001 par value, 80,000,000 shares authorized, 29,777,522 and 29,686,154 shares issued, respectively |
29,778 |
29,686 |
|||||||
| Additional paid-in capital | 51,845,035 | 50,458,729 | |||||||
| Treasury stock, 24,331 shares at cost | (234 | ) | (234 | ) | |||||
| Accumulated deficit | (37,377,247 | ) | (29,416,587 | ) | |||||
| Total stockholders’ equity | 14,497,332 | 21,071,594 | |||||||
| $ | 15,366,049 | $ | 21,939,906 | ||||||
|
BSD MEDICAL CORPORATION |
|||||||||||||||
|
Statements of Comprehensive Loss |
|||||||||||||||
| Years Ended August 31, | |||||||||||||||
| 2012 | 2011 | 2010 | |||||||||||||
| Revenues: | |||||||||||||||
| Sales | $ | 1,608,179 | $ | 1,863,773 | $ | 1,273,017 | |||||||||
| Sales to related parties | 333,663 | 1,063,495 | 309,259 | ||||||||||||
| Equipment rental | 129,350 | 110,207 | - | ||||||||||||
| Total revenues | 2,071,192 | 3,037,475 | 1,582,276 | ||||||||||||
| Cost of revenues: | |||||||||||||||
| Cost of sales | 1,244,290 | 1,074,030 | 1,182,328 | ||||||||||||
| Cost of related party sales | 260,553 | 618,823 | 318,682 | ||||||||||||
| Cost of equipment rental | 11,788 | 20,073 | - | ||||||||||||
| Total cost of revenues | 1,516,631 | 1,712,926 | 1,501,010 | ||||||||||||
| Gross margin | 554,561 | 1,324,549 | 81,266 | ||||||||||||
| Operating costs and expenses: | |||||||||||||||
| Research and development | 2,364,608 | 1,483,659 | 2,429,215 | ||||||||||||
| Selling, general and administrative | 6,203,200 | 5,189,561 | 5,130,017 | ||||||||||||
| Total operating costs and expenses | 8,567,808 | 6,673,220 | 7,559,232 | ||||||||||||
| Loss from operations | (8,013,247 | ) | (5,348,671 | ) | (7,477,966 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest income | 59,783 | 67,233 | 11,042 | ||||||||||||
| Other income (expense) | (6,208 | ) | (3,279 | ) | 3,405 | ||||||||||
| Total other income (expense) | 53,575 | 63,954 | 14,447 | ||||||||||||
| Loss before income taxes | (7,959,672 | ) | (5,284,717 | ) | (7,463,519 | ) | |||||||||
| Income tax (provision) benefit | (988 | ) | (800 | ) | 6,571 | ||||||||||
| Net loss and comprehensive loss | $ | (7,960,660 | ) | $ | (5,285,517 | ) | $ | (7,456,948 | ) | ||||||
| Loss per common share: | |||||||||||||||
| Basic | $ | (0.27 | ) | $ | (0.18 | ) | $ | (0.32 | ) | ||||||
| Diluted | $ | (0.27 | ) | $ | (0.18 | ) | $ | (0.32 | ) | ||||||
|
Weighted average number of shares outstanding: |
|||||||||||||||
| Basic | 29,717,000 | 28,838,000 | 23,257,000 | ||||||||||||
| Diluted | 29,717,000 | 28,838,000 | 23,257,000 | ||||||||||||
|
BSD MEDICAL CORPORATION |
|||||||||||||||
|
Statements of Cash Flows |
|||||||||||||||
| Years Ended August 31, | |||||||||||||||
| 2012 | 2011 | 2010 | |||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net loss | $ (7,960,660 | ) | $ | (5,285,517 | ) | $ | (7,456,948 | ) | |||||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||||||||||
| Depreciation and amortization | 151,721 | 147,501 | 148,602 | ||||||||||||
| Stock issued for services | 180,000 | 150,165 | 150,000 | ||||||||||||
| Stock-based compensation | 1,206,398 | 1,064,539 | 990,461 | ||||||||||||
| Loss on disposition of property and equipment | 118 | - | - | ||||||||||||
| Decrease (increase) in: | |||||||||||||||
| Receivables | 482,743 | (414,223 | ) | (60,731 | ) | ||||||||||
| Income tax receivable | - | 50,000 | 1,365,758 | ||||||||||||
| Inventories | 2,257 | (167,960 | ) | (443,778 | ) | ||||||||||
| Other current assets | 1,079 | 13,902 | (40,514 | ) | |||||||||||
| Increase (decrease) in: | |||||||||||||||
| Accounts payable | (106,182 | ) | 104,854 | (29,823 | ) | ||||||||||
| Accrued liabilities | 92,694 | 108,084 | (324,159 | ) | |||||||||||
| Customer deposits | 24,980 | - | - | ||||||||||||
| Deferred revenue | (11,087 | ) | 71,430 | 21,557 | |||||||||||
| Net cash used in operating activities | (5,935,939 | ) | (4,157,225 | ) | (5,679,575 | ) | |||||||||
| Cash flows from investing activities: | |||||||||||||||
| Purchase of property and equipment | (97,521 | ) | (214,554 | ) | (122,521 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||||
| Net proceeds from the sale of common stock | - | 9,702,656 | 6,493,723 | ||||||||||||
| Proceeds from the exercise of warrants | - | 2,989,406 | - | ||||||||||||
| Proceeds from the exercise of options | - | 332,120 | - | ||||||||||||
| Net cash provided by financing activities | - | 13,024,182 | 6,493,723 | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | (6,033,460 | ) | 8,652,403 | 691,627 | |||||||||||
| Cash and cash equivalents, beginning of year | 17,135,968 | 8,483,565 | 7,791,938 | ||||||||||||
| Cash and cash equivalents, end of year | $ 11,102,508 | $ | 17,135,968 | $ | 8,483,565 | ||||||||||