LAKE FOREST, CA, United States, via ETELIGIS INC., 01/16/2015 – – Trimedyne, Inc. (OTCQB: TMED) reported revenues of $5,461,000 for the fiscal year ended September 30, 2014, an 8.8% decrease from revenues of $5,989,000 for the prior fiscal year. The decrease was primarily due to the delay in shipments of Fibers, Needles and Switch Tips to our customers, resulting from our relocation to our smaller manufacturing facility in Irvine, California.
The Company had an operating loss of $(466,000) for the 2014 fiscal year, compared to an operating loss of $(368,000) for the prior fiscal year. The Company had a net loss of $(381,000) or (0.02) per share for the fiscal year ended September 30, 2014 as compared to a net income of 329,000 or 0.02 per share for the prior fiscal year. Our results in 2013 were benefitted by the receipt of $610,000 in non-recurring income, of which $433,000 was received from the settlement of a patent lawsuit.
For the quarter ended September 30, 2014, the Company had revenues of $1,341,000, a 6.2% increase from revenues of $1,263,000 for the same quarter of the prior year. The Company had an operating loss of $(1,000) for the quarter ended September 30, 2014, compared to an operating loss of $(71,000) for the same quarter of the prior year. The Company had net income of $7,000 or $0.00 per share for the quarter ended September 30, 2014, versus net income of $370,000 or $0.02 per share for the year earlier quarter. Our 2013 results during the quarter ended September 30, 2013, was benefitted by $433,000 in non-recurring income from the settlement of the same patent lawsuit.
The Company ended the 2014 fiscal year with cash and equivalents of $1,292,000, $ 463,000 of receivables, $1,581,000 of inventories and other current assets of $123,000, versus $278,000 of accounts payable, $628,000 of accrued expenses and other liabilities of $196,000.
We believe our existing and proposed new Lasers and our new, patented and patent pending Side Firing Needles and Fibers can be used to treat a variety of conditions affecting millions of people in the United States and in foreign countries, and we are working on a new plan to bring these products to the market.
We tried to raise capital for wholly owned subsidiaries of Trimedyne and approached a large number of venture capital funds and investment bankers, without success. Some of the investment bankers suggested that the money raising should be done by separate companies, who could more easily raise money as emerging, high-tech medical ventures.
We plan to supply our Holmium Lasers and Side Firing Fibers to one or more separate companies being organized in which we will own a 30% equity interest at nominal cost.
The first of these companies has been incorporated and is attempting to raise capital to finance one to three, 300 patient, randomized, controlled clinical trials of our Lasers, Side Firing Needles and Fibers in the treatment of one to three conditions in the gastroenterology field of medicine. The conditions they plan to treat affect millions of people in the U.S. and elsewhere and, if their clinical trials are successful, which cannot be assured, it could generate substantial sales of our Lasers and Side Firing Fibers.
However, while the stock market is at record levels, start-up companies in the health care field without any clinical data find it very difficult to raise money. Our Chairman is an experienced entrepreneur in the medical field and is guiding this first company in its money-raising efforts. In addition to his devoting a substantial amount of time, our Chairman’s family trust invested in and owns a controlling interest in this company.
Since we cannot afford to fund large, randomized, controlled clinical trials to prove the safety and efficacy of our new Lasers and Side Firing Fibers, in the treatment of multiple medical conditions in various fields of medicine, helping these separate companies may become an outlet for our products.
However, the success of their efforts to raise capital cannot be assured and, if they were able to raise capital, there is no assurance that the clinical trials of any of these separate companies will be successful.
The first of these separate companies has entered into a 20 year, Renewable, Exclusive, Worldwide Private Label and Distribution agreement with Trimedyne, under which Trimedyne will manufacture its Lasers and Side Firing Fibers for them at our GAAP cost plus 35% under their label, if their clinical trials are successful, and Trimedyne has granted this company the exclusive, worldwide right to distribute our Holmium Lasers and Side Firing Fibers in their field of medicine, subject to this company’s obtaining FDA approval or clearance and Medicare reimbursement for those conditions whose clinical trials are successful.
The first of these companies, Gastromedics, Inc., is planning a private placement of its shares in the near future. We are making this information available to assure that the above is properly disclosed to the public and to avoid trading in Trimedyne’s shares based on non-public information. If and when any of these separate companies is successful in raising sufficient capital to finance any of its proposed clinical trials of our Lasers and Side Firing Fibers, we will issue a Press Release and describe this in future SEC filings to advise you.
Trimedyne manufactures proprietary Holmium lasers and patented fiber optic laser devices for vaporizing spinal disc tissue to treat herniated or ruptured discs, fragmenting urinary stones and for use in a variety of other, minimally invasive procedures, many of which are performed on an outpatient basis at substantially less cost than conventional surgery. For product, press release, financial, SEC Reports and other information, please visit Trimedyne’s website, http://www.trimedyne.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act:
Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, including words like “expect”, “may”, “could” and others. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company’s current Form 10-K Report and subsequently filed SEC reports. There is no assurance such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
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SOURCE: Trimedyne, Inc.