We have now released updated information on our financial performance through the end of Fiscal 2012 and for the quarters ending September 2012 and December 2012.
We are especially proud to have turned our business around, recently reaching operational positive cash flow.
We are expecting 2013 to be a year of strong growth for our company.
As of the date of this disclosure, the Company is currently realizing daily growth in its Monthly Recurring Revenues (MRR) and in its equipment sales program due to continued success in the retail environment, online, in distribution channels, with new call center partners, and with international distribution partners.
Based on only the contracts the Company has currently signed, revenues exclusively from monthly monitoring contracts exceed our monthly expenses, putting the Company into a positive monthly operating cash flow position; a position, which grows in strength virtually every day. In addition to monthly monitoring contracts, the Company expects strong sales of MediPendant® products into its distribution network, which will add both additional revenues and gross margins to the income statement.
We expect this positive monthly operating cash flow position to continue for the foreseeable future due to the high quality and expected longevity of our customer contracts. Additionally, we expect this MRR to continue to grow on a steady basis, which will allow us to report high quality, recurring profits moving forward.
The Company’s relationship with its major retail distribution partner remains strong with sales and shipments occurring on a consistent basis. The Company will be conducting two new product promotions with this retailer beginning during the month of February 2013, which will entail both e-mails and postal service promotional material delivery to the retailer’s customers.
The Company is also realizing acceleration in its international business having recently announced two European distribution partnerships. The Company also recently announced it had signed a marketing and operations agreement with JTT-EMS LTD of Shijiazhuang, China to bring the MediPendant® personal medical alarm to the People's Republic of China. We are planning an acceleration of the marketing plan with the expectation to begin marketing under this partnership over the next few months. Additionally, we are currently in negotiations with this international partner to take a significant equity stake in the Corporation. We are in process of bidding on several additional very large contracts and we have brought on additional call center functions, which we believe will further accelerate our revenue growth.
We have signed a term sheet with the Gramercy Millennium Group. The initial $1,050,000 Series A Preferred stock investment is based on a fully diluted post-money valuation of $6,075,000. The lead investor will also have an option to invest an additional $5.1 million within six months of closing on the same terms. We are process of evaluating this investment and will be making a decision whether or not to move forward based on the best way to maximize overall shareholder value.
Over the past few months, we have significantly improved the strength of our balance sheet by paying off the vast majority of our trade payables, increasing our working capital, improving inventory levels and consolidating all of our long-term debt. We expect further balance sheet improvements over the coming weeks and months.
The Company expects calendar year 2013 to be one of continued growth in both MRR and distribution sales.
Over the past few months our business has experienced significant revenue acceleration, allowing us to reach operating cash flow positive status.
Medical Alarm Concepts Holding, Inc. expects to be operational cash flow positive for the full year of 2013 with this positive cash flow being based mainly on high quality recurring monthly revenues.
Read more: http://www.faqs.org/sec-filings/130212/MEDICA...z2gmqp1g7R
