BioTonix Announces Second Quarter 2010 Results and Review of Activities
Published: Aug 13, 2010
BOUCHERVILLE, QUEBEC--(Marketwire - August 13, 2010) - Biotonix (2010) Inc. (TSX VENTURE: BTX)
- Management focuses on business development activities and execution to fuel future growth
- Conclusion of a strategic alliance with Dartfish, a sports analysis video software provider, to collaborate on business opportunities in the fitness and health markets
Biotonix (2010) Inc. (TSX VENTURE: BTX) ("Biotonix"), a leader in postural health and fitness, today announced the financial results for the second quarter ended June 30, 2010, and a review of its activities.
"The fitness and sports markets were our main focus during the second quarter with the conclusion of two deals with fitness chains Movaxion and Club Med Gym, and the launch of GolfPrint™, our new postural assessment solution for golf. We pursue our implementation efforts in the golf segment and have added resources to our sales force to better tackle the fitness segment '', said Louise St-Onge, CEO of Biotonix. "While these deals have been signed this past quarter and recently new accounts for GolfPrint™, they have not translated yet into revenue for the Company. Based on our experience, we observe a lag period of about six months for implementation and training. We are confident these new contracts and other future agreements, as well as our recent investments in business development will allow us to reach our 2010 growth objective in web-based software sales'', added Mrs. St-Onge.
Also, we have concluded a strategic alliance with video analysis solutions developer Dartfish, to complement our respective solutions with the goal of optimizing healthcare and fitness professionals' work with athletes and patients", she concluded.
"Biotonix's software solutions are based on postural or fitness assessments conducted by healthcare or fitness professionals while Dartfish's applications enable the same professionals to work with their clients using dynamic video analysis. We believe there are great synergies between Biotonix and Dartfish in serving our sports and healthcare clienteles as some of our solutions are complementary'', said Victor Bergonzoli, CEO of Dartfish.
SECOND QUARTER 2010 HIGHLIGHTS
-- On June 16, Biotonix launched GolfPrint™, its new postural assessment solution intended to enhance golfer's performance. -- On June 10, the Company concluded an agreement with Club Med Gym, fitness leader in France since 30 years, for a custom solution with FitPrint™, its posture and fitness assessment software. -- On May 18, Biotonix concluded an agreement with golf professional Daniel Langevin to collaborate on the R&D and business development of GolfPrint™, its new postural assessment solution intended to enhance golfer's performance. -- On April 29, Biotonix concluded an agreement with Movaxion, Quebec's leading group of independent gyms, for the implementation of a custom solution with FitPrint™, its posture and fitness assessment software solution.SELECTED FINANCIAL INFORMATION
Three months ended June 30 --------------------------- 2010 $ ------------------------------------- Revenue 124,579 Net loss (986,094) Cash 1,073,561Management is executing to the strategy articulated in connection with becoming a public company. One-time costs related to the transaction and stock options granted totalling $383,229 were incurred during the quarter. Business development activities are focused on meetings with potential clients in the sports, healthcare and fitness markets but haven't translated yet into revenue for the Company. Sales and marketing expenses, including a new hire, have increased to support these business development activities. While new contracts with customers have been signed, it is estimated based on past experience and implementation requirements, that there is an approximate lag-time of six months before the new contracts start to generate revenue.
Management believes the Company will have sufficient funds available to support its activities for the fiscal year 2010. In addition, the Company expects to receive at the beginning of the third quarter an amount of $458,000 related to certain tax reimbursements that it is entitled to.
OUTSTANDING SHARE DATA
As of June 30, 2010, the Company had 21,160,000 common shares issued and outstanding. As of June 30, 2010, the number of common shares that would be issued upon stock options conversion is 1,965,000.
WEB-BASED SOLUTIONS FOR POSTURE CORRECTION AND FITNESS
Biotonix has developed a unique biomechanical evaluation system and method which is at the core of all its applications. The system helps health and fitness professionals to assess, improve and monitor posture and overall fitness. The Biotonix web-based imaging software system is easy to use, non-invasive and provides a complete individualized assessment of musculoskeletal form and function, postural deviation detection, and corresponding corrective exercises. To date, the Company has generated over 350,000 postural and fitness assessments, including over 1,000 world-class athletes.
According to Golf Quebec and the Federation Quebecoise de Golf, over 1,000,000 Quebecers played at least one golf game in 2009 and over 600,000 played at least five times. Out of the 381 listed golf clubs in Quebec and the Ottawa region, 270 are members of Golf Quebec.
Biotonix recently launched GolfPrint™, its customized posture evaluation solution for golfing. The new solution assesses static golf posture, body alignment and other important parameters that may enhance golfers' performance. The Company is currently pursuing its implementation efforts across Quebec and abroad. The solution has been adopted by golf clubs such as Club de Golf Laprairie, Club de Golf Venise, Club de Golf la Tempete and Club de Golf St-Hyacinthe. Biotonix intends to commercialize GolfPrint™ in the U.S. and in Europe. The Company is a partner of the Association des Directeurs Generaux de Clubs de Golf du Quebec (ADGCGQ).
According to IHRSA, 15% of Canadians have a fitness club membership. In Canada, members number 4,635,000 across 5,047 clubs, which represents a USD 1.89 billion industry (1). Designed to meet the specific needs of the fitness market, FitPrint™ has the capability to assess posture as well as establish physiological age in order to improve muscular balance, performance and overall fitness, and rejuvenate the body.
Biotonix concluded agreements for custom solutions with FitPrint™, its posture and fitness assessment software, with fitness chains Movaxion in Quebec and Club Med Gym in France. The Company is currently in discussions with other fitness organizations and expects to conclude some agreements during the second half of 2010.
R&D PROGRAM: NOVEL ORTHOTICS FOR THE BACK AND FOOT
Combining orthotic devices with physical exercise can overcome some practical limitations which can occur when relying solely on a corrective exercise program. Using the postural and biomechanical assessment data generated by the Biotonix system, the Company's aim is to manufacture and deliver adjustable orthotics for the back and custom-made orthotics for the foot, using new technological and manufacturing processes. Biotonix has initiated the patent application process to protect the intellectual property related to its orthotic devices under development.
The primary focus for 2010 will be on the postural alignment table which is currently at the first prototype development stage. The Company expects to initiate a clinical trial for the use of its postural alignment table during the second half of 2010.
2010 SECOND QUARTER RESULTS AVAILABLE
The quarterly unaudited interim financial statements and management's discussion and analysis for the three and six months periods ended June 30, 2010, of Biotonix (2010) Inc., compared to the unaudited quarterly financial results for the three and six months periods ended June 30, 2009 of the private company 32527326 Canada Inc. (formerly Biotonix Inc.), following the March 18, 2010 reverse takeover are available on Biotonix's website at www.biotonix.com as well as on the SEDAR website at www.sedar.com
Dartfish is a high growth, video-centric and customer driven company which develops applications to use video and video enriched content in professional and communities' workflows. By providing cutting-edge video and enrichment functionalities in easy-to-use applications, Dartfish makes the power of video accessible and sets the de facto video standard across industries like sports, education and healthcare. For more information visit www.dartfish.com or Dartfish TV at www.dartfish.tv
Biotonix (TSX VENTURE: BTX) offers innovative health solutions for posture correction and fitness using a web-based imaging software technology. Biotonix is currently developing novel orthotics for the back and foot, also geared specifically toward improving posture. For more information please visit www.biotonix.com or www.golfprint.ca
BIOTONIX'S FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, no history of profitability, future financing, intellectual property and patents, key personnel, competitive marketplace, technology obsolescence, share price volatility and other risks detailed from time to time in the Company's filings. While Biotonix anticipates that subsequent events and developments may cause its views to change, Biotonix specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws
Neither 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 release.
514-840-0004 ext 229
Julie M. Thibodeau, B.Sc., MBA
VP, Corporate communications and investor relations
514-840-0004 ext 223