ST. PAUL, MN--(Marketwire - November 06, 2009) - Hypertension Diagnostics, Inc. (OTCBB: HDII), today announced financial results for the first quarter (Q1) of fiscal year 2010 ended September 30, 2009.
Revenue for Q1 2010 totaled $302,075 compared to $136,512 for Q1 2009 ending September 30, 2008, which represents a 121% increase. While the Company incurred a net loss of $780,067 for Q1 2010 or $(.02) per share, compared with net income of $121,605 for Q1 2008, or $.00 per share, included in the net loss for Q1 2010 are total non-cash charges (deferred stock compensation, depreciation, stock options) of $788,190. Therefore, the Company was profitable in the quarter before non-cash charges. The large increase in non-cash charges was a direct result of the rise in Company’s stock price which increased from $0.03 at the beginning of the quarter to $0.14 as the end of the quarter. This increase in stock price impacts the amount of the non-cash deferred stock compensation charge. Included in the net income for Q1 2009 are total non-cash benefits of $204,032, the result of a decline in the Company’s stock price during last year’s first quarter which created a non-cash benefit for the non-cash charge of deferred stock compensation. The Company reported a cash balance on September 30, 2009 of $963,948, a 38% increase compared with a cash balance of $697,918 on June 30, 2009.
“Our first quarter sales continued to rebound and we are pleased by the revenue growth,” said Mark Schwartz, Chairman and CEO. Q1 revenue from the sale of the Company’s research product used in the START substudy funded by the National Institutes of Health (NIH) was $98,745. Revenue for the first quarter from non-START sources was $203,330, a 49% increase from the prior year’s first quarter total revenue and a 23% increase from the fourth quarter’s total revenue of $164,691. The Company expects to complete shipment of the remaining START units by the end of the second quarter.
“The outlook for the second quarter is encouraging, based on preliminary results of the number of non-START units sold. In October, it would appear that for the calendar year so far, we have set a record,” concluded Mr. Schwartz.
Forward-looking statements in this press release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not a prediction of actual future results. Actual results could differ materially from those presented and anticipated in the forward-looking statements due to the risks and uncertainties set forth in the Company’s 2009 Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q, all of which were filed with the U.S. Securities and Exchange Commission, as well as others not now anticipated.
Hypertension Diagnostics, Inc. Summary Financial Data (Unaudited) Statements of Operations September 30 ---------------------- 2009 2008 ---------- ---------- Revenue: Equipment sales $ 254,235 $ 82,000 Equipment rental 25,161 25,697 Service/contract income 22,679 28,815 ---------- ---------- 302,075 136,512 Cost of Sales: Cost of Sales 50,622 45,508 Inventory Reserve Allowance (17,838) (9,361) ---------- ---------- Net Cost of Sales 32,784 36,147 ---------- ---------- Gross Profit 269,291 100,365 Expenses: Selling, general and administrative 1,050,841 (14,756) ---------- ---------- Total Expenses 1,050,841 (14,756) ---------- ---------- Operating Income or (Loss) (781,550) 115,121 Other Income: Interest income 1,483 6,484 ---------- ---------- Total Other Income 1,483 6,484 ---------- ---------- Net Income (Loss) before taxes (780,067) 121,605 ---------- ---------- Income taxes - - ---------- ---------- Net Income (Loss) (780,067) 121,605 ========== ========== Basic and Diluted Net Loss per Share $ (0.02) $ .00 Basic and Diluted Weighted Average Shares Outstanding 40,973,711 40,363,001 Balance Sheet Data September 30, June 30, 2009 2009 ------------ ------------ Cash and cash equivalents $ 963,948 $ 697,918 Total current assets 1,268,769 1,022,528 Total assets 1,277,588 1,032,787 Total current liabilities 328,327 119,884 Accumulated deficit (28,214,674) (27,434,607) Total shareholders’ equity (97,151) 660,041
CVProfilor is a registered trademark of Hypertension Diagnostics, Inc.
Hypertension Diagnostics, HDI/PulseWave, PulseWave and CVProfile are trademarks of Hypertension Diagnostics, Inc. All rights reserved.
Website: www.hdii.com
Contact:
Mark N. Schwartz
CEO
(651) 687-9999
