Dthera Sciences Announces 2017 Financial Results and Provides Business Update
SAN DIEGO, April 3, 2018 /PRNewswire/ -- Dthera Sciences (OTCQB:DTHR), a digital therapeutics company focused on developing innovative quality of life therapies for the elderly and those suffering from cognitive decline, today reported financial results and provided a business update.
Dthera Sciences Chief Executive Officer, Edward Cox, stated, "2017 was a meaningful year for Dthera as we advanced our digital therapeutic platform significantly in the lead up to the planned launch of our first product in 2018. Our digital platform has the potential to democratize effective practices, such as reminiscence therapy, that are currently impossible to scale, and make them more accessible to millions suffering from conditions such as social isolation and dementia. Importantly, we believe the benefits may also extend to caregivers, empowering them to better meet the needs of their loved ones, and potentially easing the burden of care, while providing greater peace of mind. Dthera plans to launch its first product, ReminX™, a tablet-based consumer health product designed to deliver personalized reminiscence therapy, in the second quarter of 2018."
Key Accomplishments in 2017
- Completed a proof-of-concept study for lead product, ReminX, at University of California San Diego. Study results in 14 patients suffering from dementia showed significant reductions in anxiety, depression, and overall emotional distress.
- Completed a successful beta test of Dthera's proprietary sales funnel, providing key proof points in support of achieving 2018 sales targets for ReminX.
- In September, the Company commenced trading on the OTCQB® Venture Market.
For the year ended December 31, 2017 Dthera was a development stage company and has not yet recognized any revenue. Total expenses for the year ended December 31, 2017, were $1,809,076 million, up 162% from a year ago, primarily due to the amortization of stock options as compensation and increases in consulting fees. Interest expense for the year ended December 31, 2017, totaled $185,842, a 47% increase from $126,115 in 2016, primarily due to accrued interest on notes and the full amortization of debt discounts due to payment of all convertible notes in 2018.
Dthera reported a net loss for the year ended December 31, 2017 of $2,558,547. This compared a net loss of $1,194,804, during the year ended December 31, 2016.
Liquidity and Capital Resources
At December 31, 2017, Dthera had cash and equivalents totaling $323,482, prepaid expenses of $95,176, and deposits of $2,500. This compared with cash of $12,191 and deposits of $1,000 at December 31, 2016. The increase in cash was due to a private placement offering of its securities in 2017.
The Company also raised capital via a private placement offering in 2018, and the Company believes the proceeds are sufficient to fund operations through the launch of lead product, ReminX.
Upcoming milestones for 2018 include:
- First Product Launch: Dthera plans to launch its lead product, ReminX, an artificial-intelligence-powered consumer health product designed to deliver reminiscence therapy digitally to individuals suffering from dementia from Alzheimer's disease and other neurodegenerative conditions, as well as for seniors experiencing social isolation.
The product is comprised of a proprietary software tablet, specifically designed to be robust and user-friendly to this user group, and an Artificial Intelligence chatbot called Rachel that streamlines and simplifies the process of putting content onto the platform.
The tablet sits in a charging docking station, does not have any buttons or cords to confuse or frustrate the users and automatically plays ReminX content when picked up.
The Rachel, guides family members/caregivers to upload optimal content and organizing it into an effective narrative primarily via text message. Rachel "asks" group members to add photos, videos, and audio. Proprietary emotional recognition software in the tablet provides feedback as to which content is most helpful, allowing Rachel to "learn" what works best and inform family members.
In addition to text messaging, the ReminX product has several additional channels of content collection. These include The ReminX Family Mobile App (iOS/Android), The ReminX Family Web App, and email.
ReminX will be sold on a subscription basis for $40 a month. The Company anticipates that the primary purchasers will be adult children of the elderly suffering from cognitive decline or social isolation.
- Sales Target: Dthera expects to reach 5,000 subscriptions within the first five months after launch, with well-leveraged customer acquisition cost (CAC) to long term customer value ratio (LTV).
- National Exchange Uplisting: The Company intends to up-list to a national exchange by the end of 2018.
- Pipeline Growth: Dthera intends to pursue additional uses for ReminX, as well as other medically effective therapies that will be delivered over the Dthera Delivery Platform.
About Digital Therapeutics
Digital therapeutics, a new and emerging subsection of digital health, are technologies that deliver a therapy directly to a patient via a digital interface. The sector offers the promise of scaling effective individual therapies to larger patient populations, thereby amplifying care, changing patient behavior, and reducing the cost-of-care.
About Dthera Sciences
Dthera Sciences (OTCQB:DTHR), based in San Diego, Calif., is a digital therapeutics company focused on developing innovative quality of life therapies for the elderly and those suffering from cognitive decline. The Company's lead product, ReminX, is an artificial-intelligence-powered consumer health product designed to deliver reminiscence therapy digitally to individuals suffering from dementia from Alzheimer's disease and other neurodegenerative conditions, as well as for seniors experiencing social isolation. The company plans to launch ReminX commercially in the second quarter of 2018. For more information, please visit www.dthera.com and www.reminx.com
Director, Corporate Development
SOURCE Dthera Sciences
Company Codes: OTC-PINK:DTHR, OTC-QB:DTHR