VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 4, 2013) - Verisante Technology, Inc . (TSX VENTURE:VRS)(OTCQX:VRSEF) (the "Company" or "Verisante"), a leader in cancer detection technology, announced today that the Company has released its financial results for the first quarter ended March 31, 2013 .
Highlights of the quarter include
- First revenues from the sale of Aura™ recognized
- Official product launches for Aura™ in Canada and Germany
- Placement of Aura™ units in clinics with key opinion leaders across Canada in Vancouver, Edmonton, Calgary, and greater Toronto
"We are very pleased to report revenues from the sale of our initial production units less than three years after initially licensing the technology on which Aura™ is based," said Thomas Braun, President & CEO. "Response from initial customers and key opinion leaders has been extremely positive. Verisante has always been committed to a streamlined and cost effective path towards commercialization and we will continue our commitment to staying efficient as we move into this exciting revenue and growth phase of our business."
While Aura™ is now being used on patients by highly respected key opinion leaders across Canada, the Company continues to support the sales and marketing initiatives of its exclusive distributors and expects those efforts to begin to yield tangible sales results as existing placements establish a foundational customer base.
Revenues
Revenues are from the sale of Aura™ devices to the Company's exclusive distributors in Canada and Europe. The Company recognizes revenue when units are shipped to the distributor. For the three months ended March 31, 2013 the Company recognized revenue of $235,000 compared to $0 reported for the same period in 2012.
Expenses
Total expenses for the quarter ended March 31, 2013 were $1,214,276 as compared to $807,664 for the same period in 2012, representing an increase of $406,612. The increase in expenses from 2013 to 2012 is mainly attributed to substantial increases in salaries, professional fees, rent and general office expenses as the Company leased additional office space, manufacturing facilities and hired new personnel.
Salaries and Professional Fees increased by $210,880 as the Company required additional personnel as operations increased. Audit and accounting fees decreased slightly for the quarter, attributed mainly to the completion of conversion to IFRS.
In connection with the Company's increased operations and leasing of additional engineering and manufacturing space, rent increased by $18,903 in the three month period ending March 31,2013 over 2012.
Liquidity and Capital Resources
The Company has historically financed its operations and capital expenditures through equity financings. At March 31, 2013, the Company had cash and short term deposits of $1,188,061 as compared to cash and short term deposits of $620,763 at December 31, 2012.
At March 31, 2013, the Company had working capital of $2,042,669 compared to working capital of $2,052,321 at December 31, 2012.
Cash used in operations was $1,104,834 for the three months ended March 31, 2013, as compared to $869,858 for the same period in 2012. The increase in cash usage in 2013 as compared to 2012 is primarily the result of the Company's increased operations and purchase of parts relating to manufacturing.
Net cash provided by financing activities was $1,323,257 for the three months ended March 31, 2013, compared to cash provided of $1,855,959 for the same period in 2012. The cash from financing activities both in 2012 and 2013 are attributable to warrant and stock option exercises. Subsequent to the quarter end, the Company completed an additional equity financing for gross proceeds of $943,000.
The Company's Q1 Financials and MD&A can be found as filed at www.sedar.com and also on the Company's website at www.verisante.com .
About Verisante Technology, Inc.
Verisante is a medical device company committed to commercializing innovative systems for the early detection of cancer . The Verisante Aura™ for skin cancer detection and the Verisante Core™ series for lung, colon and cervical cancer detection utilize a proprietary cancer detection platform while the operating software and probe technology are unique to each device. The cancer detection platform was developed by the BC Cancer Agency and tested and refined at the Skin Care Centre at Vancouver General Hospital. This exclusive platform technology allows Verisante to develop and offer a range of compact, non-invasive cancer detection devices that offer physicians immediate results for many of the most common cancers. Aura™ has been approved for sale in Canada, Europe and Australia. Core™ has not yet been approved for sale.
Verisante Aura™ was awarded Popular Science Magazin e's " Best of What's New Award " for 2011, awarded a 2013 Prism Award for Innovation in Photonics and an Edison Award for Excellence in Innovation in 2013. Verisante Core™ was named one of the top 10 cancer breakthroughs of 2011 by the Canadian Cancer Society.
Forward Looking Statements
This release contains forward-looking statements, including, but not limited to, statements regarding the future commercialization of medical devices, the market demand for these products and the proprietary protections the Company will obtain with regard to the technology, all of which statements are subject to market risks, and the possibility that the Company will not be able to obtain patent protection or obtain sufficient customer demand. These statements are made based upon current expectations and actual results may differ from those projected due to a number of risks and uncertainties.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
