HIV infected injection drug users likely to have kidney disease: Study

March 26, 2017

NewCardio generated revenue, derived exclusively from the delivery of SOP and validation kits and services to its clinical trial service provider partners during the quarter. Revenue was $21,077 for the quarter, with no corresponding revenue in the prior year quarter. Total operating expenses were $2.7 million for the quarter, compared to $2.6 million in the second quarter last year. The Company has taken steps to strengthen its financial position by reducing cash usage from the first half level of $505,000 per month by 30-35%. In connection with his promotion to CEO, Mr. Renz implemented Company-wide salary reductions of up to 30%, negotiating similar reductions from its external consultants and vendors, and reducing discretionary spending. The measures went into effect on July 1 and are planned to be in effect for at least six months, and longer if required by the Company's cash position. For the quarter, the Company reported a net loss of $(1.5 million), or $(0.05) per fully diluted share (based on 28.5 million shares outstanding) compared to a loss of $(2.6 million), or $(0.11) per share (based on 23.8 million shares outstanding) for the same quarter last year.

"While the economic situation has had a significant impact on Phase 1 study activity, we remain well positioned to benefit once the trial activity, especially for TQT studies, returns to the pre-2009 levels and in fact believe there is a building pent-up demand for this work," Mr. Renz continued. "The efforts of the last year have yet to positively impact our financial results, but I am encouraged by our progress and believe it is only a matter of time before the industry transition to automated trials takes hold, and when it does, QTinno will be the solution of choice."

Year-to-date, the Company reported revenue of $70,118, compared to no revenue in the prior year. Year-to-date operating expenses were $5.5 million, compared to $5.0 million last year. Year-to-date, the Company's net loss $(5.8 million), or $(0.21) per share, compared to a net loss of $(4.9 million), or $(0.21) per share last year.

NewCardio entered into a new, $1.5 million, line of credit with three of its existing shareholders, one of which is represented on the Board of Directors, to strengthen its financial position.  This will allow the company further time to fully commercialize its lead solution, QTinno. The credit facility is part of a series of steps designed to improve the company's ability to identify and attract potential strategic relationships and/or investors, which will enable the company to maximize the value to be derived through continued development of its 3-D platform technology.

"QTinno represents the near-term, obvious opportunity to derive high-margin revenue from our platform technology, but it continues to be ?? by far ?? our smallest overall opportunity," Mr. Renz concluded. "Accordingly, we are working diligently to develop additional solutions based on our proven 3-D platform technology to create shareholder value and bring technological advancement to the ECG as a diagnostic tool. We are focused on identifying opportunities, either through strategic partnerships or other relationships, to raise sufficient capital that will enable us to accelerate our R&D efforts for our second and third products, CardioBip and Cardio3KG, as well as other solutions currently in the exploratory phase. The future is exciting for NewCardio, and we look forward to further innovations and accelerating growth as we continue our progress."

SOURCE NewCardio, Inc.