MINNEAPOLIS, Nov. 14, 2013 /PRNewswire/ -- Skyline Medical Inc. (OTCQB: SKLN) (the “Company”), the producer of the FDA approved STREAMWAY System for automated, direct-to-drain surgical fluid disposal that reduces the risk of exposure to hazardous waste, today reported its results for the third quarter and nine months ended September 30, 2013.
Key Highlights:
- Revenues were $107,835 and $386,418 for Q3 and first nine months of 2013, up more than 108% and 289% compared to Q3 and first nine months of 2012;
- More than 50 purchase orders were received in Q3 2013 for Skyline’s improved STREAMWAY System, scheduled for delivery in Q4 and beyond;
- Company strengthened balance sheet through conversion of all convertible notes;
- Company entered Virginia market with multi-unit purchase from Ambulatory Surgical Center;
- Skyline expanded its presence in Florida with multiple unit sale to a major hospital;
- Increased sales force to support national and international rollout of STREAMWAY System;
- National ambulatory surgical center chain client doubles initial Q2 2013 order fully replacing Skyline competitor; and
- Company became a member of Practice GreenHealth as it continues its focus on being environmentally friendly.
Third quarter revenues rose to $107,835, up more than 108% compared to $51,615 for the third quarter in 2012. Year to date revenues rose to $386,418, compared to revenues of $99,210 year to date in 2012. Gross profit for the third quarter of 2013 was $81,654, an increase from ($18,347) for the same period in 2012. The Company has been holding off on a significant backlog of purchase orders due to Skyline’s preparation for the mass production of its enhanced STREAMWAY System with the backlog contributing to expected increased revenues through Q4 and beyond.
Net loss for the third quarter of 2013 was ($3.97) million, or ($0.03) per diluted share, compared to net loss of ($2.86) million, or ($0.04) per diluted share, in the comparable period in 2012. The increase in net loss was primarily driven by an increase in General and Administrative and Sales and Marketing expenses as the Company prepares for a national rollout of the STREAMWAY System.
“A great deal of our third quarter efforts have been focused on putting the final touches on the enhanced STREAMWAY System, which we have debuted in Q4, and solidifying partnerships and trials to continue the rapid adoption of our technology throughout the United States,” said Josh Kornberg, CEO of Skyline Medical. “While our original version of the STREAMWAY System outperformed the market’s expectations after our competitor’s product was recalled last year, we are confident that the improved product is going to make the STREAMWAY System the go-to surgical fluid disposal system around the U.S. We are currently working with several national hospital and ambulatory surgical companies to ensure that is the case.”
Kornberg continued, “Now that the technological modifications of our STREAMWAY System are complete, we will prepare for mass production and be able to fulfill a large backlog of purchase orders currently in our pipeline. These orders represent approximately $2 million in revenue of which approximately $1 million will be recurring on an annualized basis. We will begin to recognize these revenues immediately as they will impact our financial results starting over the next two quarters.”
About Skyline Medical Inc.
Skyline Medical, formerly BioDrain Medical, Inc., has a fully automated, patented, FDA cleared, surgical fluid disposal system that virtually eliminates certain operating room workers’ exposure to blood, irrigation fluid and other potentially infectious fluids found in the surgical environment. Today’s manual surgical fluid handling methods of hand-carrying filled surgical fluid canisters and emptying these canisters is an exposure risk and an antiquated approach to the handling of surgical fluid waste. Skyline’s STREAMWAY System fully automates the collection, measurement and disposal of surgical fluids and is designed to result in: 1) reducing overhead costs to hospitals and surgical centers, 2) improving Occupational State and Health Association (OSHA) and other regulatory compliance agencies’ safety concerns, and 3) streamlining the efficiency and reducing the operating costs of the operating room.
Skyline’s STREAMWAY System is eco-friendly as it contributes to cleaning up the environment. Currently, approximately 50 million bloody, potentially disease infected canisters go to landfills annually in the United States. These tainted canisters can remain in landfills for years to come. With the installation of Skyline’s STREAMWAY System, the number of canisters can be significantly reduced. Skyline Medical, Inc.'s STREAMWAY System is designed to make the operating room and our environment safer, cleaner, and better. Skyline products are currently being represented by independent professional sales representatives that cater to the needs of hospitals and ambulatory surgical centers across the country. For additional information, please visit: http://www.skylinemedical.com
Forward-looking Statements
Certain of the matters discussed in this announcement contain forward-looking statements that involve material risks to and uncertainties in the Company’s business that may cause actual results to differ materially from those anticipated by the statements made herein. Such risks and uncertainties include, among other things, inability to raise sufficient additional capital to operate our business; approximately $1.4 million in debts, liabilities and cash obligations that become due over the next twelve months;unexpected costs and operating deficits, and lower than expected sales and revenues, if any; adverse economic conditions; adverse results of any legal proceedings; the volatility of our operating results and financial condition; and inability to attract or retain qualified senior management personnel, including sales and marketing personnel; our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the Company’s ability to implement its long range business plan for various applications of its technology; the Company’s ability to enter into agreements with any necessary marketing and/or distribution partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company’s technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission, which are available for review at www.sec.gov. This is not a solicitation to buy or sell securities and does not purport to be an analysis of the company’s financial position. See the Company’s most recent Annual Report on Form 10-K, as amended, and subsequent reports and other filings at www.sec.gov.
SKYLINE MEDICAL, INC. CONDENSED STATEMENTS OF OPERATIONS (USD $) | ||
Three Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue | $ 107,835 | $ 51,615 |
Cost of Goods Sold | 26,181 | 69,962 |
Gross Margin | 81,654 | (18,347) |
General and administrative expenses | 3,195,589 | 2,518,114 |
Operations expense | 354,027 | 300,719 |
Sales and marketing expense | 164,712 | 13,508 |
Interest expense | 407,516 | 23,703 |
Loss (gain) on valuation of equity-linked financial instruments | (65,287) | (18,678) |
Total expense | 4,056,557 | 2,837,366 |
Net loss available to common shareholders | $ (3,974,903) | $ (2,855,713) |
Loss per common share - basic and diluted (in dollars per share) | $ (0.03) | $ (0.04) |
Weighted average shares used in computation - basic and diluted | 136,728,212 | 79,467,603 |
SKYLINE MEDICAL, INC. CONDENSED BALANCE SHEETS (USD $) | |||
Sept. 30, 2013 | Dec. 31, 2012 | ||
ASSETS | |||
Cash | $ 328,362 | $ 13,139 | |
Accounts Receivable, net of Allowance for Doubtful Accounts of $0 in 2013 and $4,073 in 2012. | 83,191 | 39,711 | |
Inventories | 101,067 | 145,209 | |
Prepaid Expense and other assets | 34,462 | 27,409 | |
Total Current Assets | 547,082 | 225,468 | |
Fixed Assets, net | 37,491 | 3,521 | |
Intangibles, net | 52,074 | 140,588 | |
Total Assets | 636,647 | 369,577 | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||
Current portion of convertible debt, net of discounts of $0 and $21,138 | 0 | 1,081,187 | |
Convertible Notes Payable - Related Party | 0 | 0 | |
Accounts payable | 636,085 | 733,595 | |
Accrued expenses | 744,089 | 1,599,519 | |
Deferred Revenue | 5,000 | 0 | |
Total Current Liabilities | 1,385,174 | 3,414,301 | |
Long-term convertible debt | 0 | 89,300 | |
Accrued Expenses | 444,902 | 0 | |
Liability for equity-linked financial instruments | 15,219 | 169,179 | |
Total Liabilities | 1,845,295 | 3,672,780 | |
Stockholders’ Deficit: | |||
Common stock, $.01 par value, 300,000,000 authorized, 219,640,021 and 104,247,228 outstanding | 2,196,401 | 1,042,473 | |
Additional paid-in capital | 23,138,027 | 14,945,435 | |
Deficit accumulated during development stage | (26,543,076) | (19,291,111) | |
Total Stockholders’ Deficit | (1,208,648) | (3,303,203) | |
Total Liabilities and Stockholders’ Deficit | $ 636,647 | $ 369,577 | |
Public Relations Contact:
Samantha Wolf
KCSA Strategic Communications
212-896-1220
swolf@kcsa.com
Investor Relations Contacts:
Phil Carlson / Josh Dver
KCSA Strategic Communications
212-896-1233 / 212-896-1239
skyline@kcsa.com
SOURCE Skyline Medical Inc.
Help employers find you! Check out all the jobs and post your resume.
