PRINCETON, N.J.,Nov. 15, 2011 /PRNewswire/ -- NewCardio, Inc., (OTC BB: NWCI) a cardiac diagnostic technology provider, today announced financial results for the third quarter ended September 30, 2011. More details on the financial results are available in the Company's Quarterly Report on Form 10-Q, filed yesterday with the Securities and Exchange Commission.
Highlights
- QTinno® was selected by a top 5 global pharmaceutical company for an upcoming Phase I drug safety study. Fully automated ECG analysis, empowered by QTinno, will be delivered by the ECG core lab of a top 3 Clinical Research Organization under the terms of an existing Master Services Agreement with NewCardio.
- NewCardio's strategic partner, Clinilabs, will utilize QTinno to conduct a Phase I trial of an investigational new drug under development for a central nervous system indication. The assessment of cardiac safety will be one important aspect of the trial.
Financial Results
Revenues were $10,000 for the three months ended September 30, 2011 compared to $99,000 in the three months ended September 30, 2010. There were no new studies in this latest quarter; 2010 represented professional services associated with the deployment of QTinno for use in the cardiac safety component of a drug development study, as well as initial per ECG revenues from two such studies. Gross profit (loss) was $(18,000) for the third quarter of 2011 compared to $53,000 for the third quarter of 2010. Operating expenses decreased 21% to $1,541,000 for the three months ended September 30, 2011, a decrease of $405,000 from $1,946,000 in 2010. The change is made up of both cash and non-cash (stock-based compensation and depreciation) expense. Non-cash expense totaled $966,000 in the third quarter of 2011, down $83,000 from $1,049,000 in the third quarter of 2010. Spending for the three months ended September 30, 2011 of $575,000 decreased $322,000 from $897,000 in the same period last year. This spending is primarily for human resources, both employees and consultants, and related travel expenses.
As of September 30, 2011, NewCardio had $13,000 in cash and the Company currently has no commitments for any additional capital beyond $100,000 that was received in October 2011 from a shareholder that invested in NewCardio's Series D Preferred stock last year. Management continues to work on an immediate source of financing, with this promissory note serving as a bridge in this effort. Management believes the Company requires substantial additional financing. At this time, the lack of funding is adversely impacting the Company's ability to continue operations until such time, if ever; we were to obtain additional financing. The Company continues to work with its creditors and larger shareholders to explore sources of financing to meet the Company's working capital requirements. However, there is no guarantee that such financing will become available or, if it does, that it will become available on acceptable terms, or that any additional capital we may obtain will be sufficient to meet our long-term needs. If additional capital is not available or is not available on acceptable terms, we will have to fully curtail our operations.
Management believes that current sales slowdown is primarily due to market factors and that QTinno's product features effectively meet, if not exceed, the requirements for performing cardiac safety testing for compounds in clinical development.
Shareholder Update Conference Call
NewCardio management has scheduled a conference call for Tuesday November 15, 2011, at 9 a.m. Eastern Time. To access the call dial 1-877-941-4775, or 1-480-629-9761 for international callers, and reference "NewCardio, Inc. Third Quarter 2011 Financial Results Conference Call." A replay will be available for one week following the call by dialing 1-877-870-5176, or 1-858-384-5517 for international callers; reference pin number 4487430. A live and replay Webcast of the call will be available at http://viavid.net/dce.aspx?sid=00008FFD.
About NewCardio, Inc.
NewCardio is a cardiac diagnostic and services company developing and marketing proprietary software platform technologies to provide higher accuracy to, and increase the value of, the standard 12-Lead ECG. NewCardio's 3-D ECG software platform reduces the time and expense involved in assessing cardiac status while increasing the ability to diagnose clinically significant conditions which were previously difficult to detect. NewCardio's software products and services significantly improve the diagnosis and monitoring of cardiovascular disease, as well as cardiac safety assessment of drugs under development. For more information, visit www.newcardio.com.
