TORONTO,
March 4, 2013 /PRNewswire/ -
Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF), a leader in
secure mobile health that "Powers Care Coordination through
Mobility," reported its fourth quarter and fiscal 2012 results for
the period ended December 31, 2012.
All dollar amounts are in U.S. dollars.
"In 2012, Diversinet increased its profile in
the growing wireless health and mHealth marketplace," said Dr.
Hon Pak, Diversinet's CEO. "As the
mHealth market continues to evolve in 2013, we will remain focused
on the key elements of our mobile health strategy. This includes
enhancing and introducing new products and solutions, and advancing
market adoption of our technology."
Q4 and Fiscal 2012 Financial
Highlights
Revenues for the fourth quarter were $362,000 compared to $382,000 in the same year-ago period. Revenues
for the full year were $1.5 million,
compared to $1.3 million in 2011.
Net loss for the fourth quarter was $1.1 million or $(0.03) per share, compared to $1.7 million or $(0.04) per share the year-ago quarter. The net
loss in the fourth quarter 2012 included non-cash items of
$34,000 in stock-based compensation
expense, $14,000 in depreciation, and
a foreign exchange loss of $18,000.
This compares with non-cash items in the year-ago quarter of
$154,000 in stock-based compensation
expense, $16,000 in depreciation, and
a foreign exchange loss of $52,000.
Net loss for the year was $4.4 million or $(0.10) per share, compared to $5.5 million or $(0.13) per share in 2011. Included in the
full-year net income were non-cash items of $292,000 in stock-based compensation,
$55,000 in depreciation, and a
foreign exchange loss of $28,000.
This compares with non-cash items in 2011 of $670,000 in stock-based compensation,
$63,000 in depreciation, and a
foreign exchange loss of $32,000.
Cash and cash equivalents totaled $3.2 million at December
31, 2012, as compared to the previous year's balance of
$7.4 million.
2012 Operational Highlights
- Diversinet received a one-year contract renewal from the U.S.
Army's Telemedicine and Advanced Technology Research Center (part
of the U.S. Army Medical Research and Materiel Command) mCare
telehealth-outreach program for members of the military recovering
from mild traumatic brain injuries and other wounds.
- Dr. Pak was interviewed by mHealth Zone at the American
Telemedicine Association 2012 Fall Forum. He discussed his
views about the emerging mHealth market and recent developments of
Diversinet's MobiSecure technology, an enterprise-level mHealth
platform that enables care coordination and patient engagement
through developing and configuring applications.
- Diversinet's MobiSecure encryption technology became the first
mHealth platform to receive Federal Information Processing
Standards (FIPS) 140-2 validation.
- AirStrip Operations, a leading developer of first-in-class
mobile technology that enables access to live and actionable
patient data, signed a licensing agreement for the mobiSecure SDK,
enabling patient-monitoring applications with federally validated
security.
- The University of Nebraska Medical
Center (UNMC) began using Diversinet's MobiSecure® SDK on a
non-commercial basis to determine if the SDK could interface with
the UNMC's preoperative treatment algorithms. We received the 2012
CATA Alliance Award for Outstanding Product Achievement in
Healthcare. The award recognizes outstanding technology engineering
development that has resulted in the production of world-class,
field-proven products.
- We received the 2012 Canadian Advanced Technology Alliance
(CATAAlliance) Award for Outstanding Product Achievement in
Healthcare. The CATAAlliance award recognizes outstanding
technology engineering development that has resulted in the
production of world-class, field-proven products.
- In July 2012, Diversinet
appointed Bret Jorgensen as chairman
of the board. Mr. Jorgensen succeeded Albert Wahbe, who retired as chairman but
remains a member of the board. Jorgensen brings more than 20
years of experience as a healthcare entrepreneur and corporate
transformation executive to Diversinet.
- mobiHealth Walletâ„¢, a secure, personalized virtual container
for downloading, entering, managing and sharing personal health
information, was launched in the fourth quarter. mobiHealth
Wallet is compatible with the U.S. federal government's Blue Button
Initiative and supports more effective healthcare coordination,
personalization and mass customization of care.
- During Q4 2012, Diversinet undertook an initial cost reduction
plan that saw costs reduced by $750,000 on an annual basis. Furthermore,
on March 1, 2013, Alan Portela, CEO of Airstrip, resigned from
Diversinet's board of directors. Airstrip continues to be a
customer.
In February 2012,
the company's board of directors appointed Hon Pak CEO. The
board believes his leadership will continue to be important to
Diversinet's success in the healthcare marketplace.
"As the mHealth market continues to evolve in
2013, we will remain focused on the key elements of our mobile
health strategy. As we face challenges in gaining traction for the
adoption of our products, we will also be considering strategic and
operational alternatives necessary to support our ongoing
operations," said Pak.
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF) is answering the
challenges of today's healthcare landscape with a secure enterprise
mobile healthcare platform that enables interoperability, agility
and integration. This technology can be leveraged and customized
quickly to meet the ever-changing needs of healthcare organizations
and patients - driving patient, provider and payer communications
and improved outcomes while lowering costs. Learn more about
Diversinet at www.diversinet.com.
The Private Securities Litigation Reform Act
of 1995 and Canadian securities laws provide a "safe harbour" for
forward-looking statements. Certain information included in this
press release (as well as information included in oral statements
or other written statements made or to be made by the company)
contains statements that are forward-looking, such as statements
relating to the success of current product offerings. Such
forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future including the risks relating to our inability to
generate sufficient revenue to fund our operations and,
accordingly, such results may differ materially from those
expressed in any forward-looking statements made by or on behalf of
the company. For a description of additional risks and
uncertainties, please refer to the company's filings with the
Securities and Exchange Commission available at www.sec.gov
and Canadian securities regulatory authorities available at
www.sedar.com.
The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
release.
Diversinet corp.
Consolidated Balance Sheets
(In United States dollars)
|
|
|
As at December 31 |
2012 |
2011 |
Assets |
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ 3,162,316 |
$ 7,397,025 |
|
Accounts receivable,
net |
135,497 |
287,155 |
|
Tax credit
recoverable |
201,020 |
- |
|
Prepaid expenses |
65,972 |
64,252 |
|
Total current
assets |
3,564,805 |
7,748,432 |
|
|
|
|
Property and
equipment, net |
162,434 |
207,301 |
Total assets |
$
3,727,239 |
$
7,955,733 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
Current liabilities: |
|
|
|
Accounts payable |
$
165,587 |
$
217,539 |
|
Accrued
liabilities |
331,164 |
281,011 |
|
Deferred revenue |
133,950 |
284,583 |
|
Total current
liabilities |
630,701 |
783,133 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
Share capital: |
|
|
|
Authorized: |
|
|
|
|
Unlimited common shares |
|
|
|
Issued and
outstanding: |
|
|
|
43,009,347 (42,285,171
- 2010) |
|
|
|
|
common shares |
85,907,548 |
85,848,861 |
|
Additional paid-in
capital |
20,001,774 |
19,755,623 |
|
Share purchase
warrants |
26,373 |
39,318 |
|
Deficit |
(101,318,436) |
(96,950,481) |
|
Accumulated other comprehensive income: |
|
|
|
|
Cumulative translation
adjustment |
(1,520,721) |
(1,520,721) |
|
Total shareholders'
equity |
3,096,538 |
7,172,600 |
|
|
|
Total liabilities and
shareholders' equity |
$ 3,727,239 |
$ 7,955,733 |
Diversinet corp.
Consolidated Statements of Net Income (Loss) and Comprehensive
Income (Loss)
(In United States dollars)
|
|
|
|
For the year ended December 31 |
2012 |
2011 |
2010 |
|
|
|
|
Revenues |
$ 1,514,639 |
$ 1,291,714 |
$ 4,931,834 |
Cost of revenues |
140,256 |
104,600 |
22,860 |
Gross margin |
1,374,383 |
1,187,114 |
4,908,974 |
|
|
|
|
Expenses: |
|
|
|
Research and development |
2,456,140 |
2,927,551 |
3,112,225 |
Sales and marketing |
1,314,719 |
1,664,996 |
1,783,211 |
General and administrative |
1,908,291 |
2,058,702 |
1,888,908 |
Depreciation |
54,636 |
62,967 |
65,788 |
|
5,733,786 |
6,714,216 |
6,850,132 |
|
|
|
|
Income (loss) before the undernoted: |
(4,359,403) |
(5,527,102) |
(1,941,158) |
|
|
|
|
Foreign exchange gain (loss) |
(28,120) |
(31,662) |
190,448 |
Interest income, net |
19,568 |
22,169 |
57,277 |
Other income |
- |
- |
3,560,707 |
Net income (loss) for the year and
comprehensive net income (loss) |
(4,367,955) |
(5,536,595) |
1,867,274 |
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share |
$ (0.10) |
$ (0.13) |
$ 0.04 |
Weighted average common shares outstanding |
43,221,898 |
42,587,632 |
45,029,121 |
Weighted average fully diluted
common shares outstanding |
43,221,898 |
42,587,632 |
45,029,121 |
Diversinet corp.
Consolidated Statements of Cash Flows
(In United States dollars)
|
|
|
|
For the year ended December 31 |
2012 |
2011 |
2010 |
|
|
|
|
Cash provided by (used in): |
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
Net income (loss) for the year |
$ (4,367,955) |
$ (5,536,595) |
$ 1,867,274 |
|
Items not involving cash: |
|
|
|
|
|
Depreciation |
54,636 |
62,967 |
65,788 |
|
|
Foreign exchange gain |
(10,987) |
(31,699) |
(167,297) |
|
|
Other income |
- |
- |
(3,060,707) |
|
|
Stock-based compensation expense |
291,893 |
669,952 |
658,991 |
|
Changes in non-cash working
capital: |
|
|
|
|
|
Accounts receivable |
151,658 |
(212,005) |
4,567 |
|
|
Tax credit recoverable |
(201,020) |
- |
- |
|
|
Prepaid expenses |
(1,720) |
(11,479) |
(17,591) |
|
|
Accounts payable |
(51,952) |
74,286 |
(5,278) |
|
|
Accrued liabilities |
50,152 |
(258,982) |
266,738 |
|
|
Deferred revenue |
(150,633) |
239,416 |
(88,833) |
|
Cash used in operations |
(4,235,927) |
(5,004,139) |
(476,348) |
|
|
|
|
Financing activities: |
|
|
|
|
Issue of common shares for cash |
- |
- |
128,604 |
|
Cash provided by financing
activities |
- |
- |
128,604 |
|
|
|
|
Investing activities: |
|
|
|
|
Purchase of property and
equipment |
(9,769) |
(89,285) |
(28,645) |
|
Cash used in investing activities |
(9,769) |
(89,285) |
(28,645) |
|
|
|
|
Foreign exchange gain on cash held in
foreign currency |
10,987 |
31,699 |
167,297 |
|
|
|
|
Net increase (decrease) in cash and
cash equivalents |
(4,234,709) |
(5,061,725) |
(209,092) |
|
|
|
|
Cash and cash equivalents, beginning
of year |
7,397,025 |
12,458,750 |
12,667,842 |
|
|
|
|
Cash and cash equivalents, end of
year |
$ 3,162,316 |
$ 7,397,025 |
$ 12,458,750 |
|
|
|
|
Supplemental cash flow
information: |
|
|
|
|
Interest received |
19,568 |
22,169 |
57,277 |
|
|
|
|
Supplemental disclosure relating to
non-cash financing and investing activities: |
|
|
|
|
Issuance of shares to employees and
Board |
58,687 |
265,663 |
284,750 |
|
|
|
|
Cash and cash equivalents is comprised
of: |
|
|
|
|
Cash |
506,808 |
253,715 |
443,684 |
|
Cash equivalents |
2,655,508 |
7,143,310 |
12,015,066 |
|
$ 3,162,316 |
$ 7,397,025 |
$ 12,458,750 |
SOURCE Diversinet Corp.