MDHI News
Medical Alarm Concepts Kicks Off Major Retail Promotion - Customer Upgrade Rate Remains Strong at Over 70%
2012-10-10 09:00 ET - News Release
KING OF PRUSSIA, Pa., Oct. 10, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today announces the commencement of a major retail promotion that will allow consumers to acquire the most advanced personal medical alarm technology on the market today at very attractive pricing. The company is also announcing today that customer contract extension rates remain very strong with over 70% of retail customers signing up for additional three, six, or twelve month commitments to begin after the initial six month contract period provided via the retail purchase. Ronald Adams, CEO, of Medical Alarm Concepts commented, "We are very proud of this promotion as it will enable those who need it, to acquire this second generation life-saving technology at a very attractive price with no installation fees, long-term contracts, or installation charges. We are providing the market place with a product we feel is clearly superior and we are providing it at a very attractive price. Medical Alarm Concepts is expecting very robust sales and strong rates of contract upgrades when this promotion kicks off on October 15th." The coupon promotion, which is available via one of the largest retailers in the country, allows for an additional $25 discount off the already very attractive pricing. The package includes the MediPendant™, six months of EMT-trained operator monitoring, replacement battery, belt, neck, and armband attachments, and a door lockbox, so medical personnel can gain access to the user's home in the event of an emergency. The Company has elected a conservative accounting treatment of upgrade revenue by not charging customer's credit cards upon initial sale, but as the contract extension period begins. Considering the company began selling these contract extensions approximately four months ago, beginning in December, Medical Alarm Concepts will begin the process of charging customers who have extended their contracts. Recognition of the revenue associated with these contract extensions will occur as the services are provided, and the cash flow associated will occur at the beginning of the customer's renewal period.
