MedX Health Corp. (“MedX” or the “Company”) (TSX-V: MDX) announced its results for the year ended December 31, 2020, which are also available on SEDAR (www.sedar.com).
The Company reported revenue of $530,066 for the year ended December 31, 2020, compared with revenue of $860,248 for the year ended December 31, 2019. Revenues from the Company’s SIAscopy®/DermSecure® products were up 37% from 2019, while sales for the therapeutic laser product line was 54% lower than the prior year, impacted significantly by COVID-19. The Company reported a loss for the year ended December 31, 2020 of $3,199,476 or $0.02 per share compared with a loss of $3,276,350, or $0.02 per share for the year ended December 31, 2019.
For the three months ended December 31, 2020, the Company reported revenue of $192,181, compared with revenue of $181,362 reported in the three-month period in 2019. Revenue was higher than 2019 for the SIAscopy® product line in the fourth quarter, while sales of therapeutic lasers were lower for the three-month period. The loss for the three months ended December 31, 2020 was $667,305 or $0.00 per share, compared with a loss of $1,189,458, or $0.00 per share for the three-month period ended December 31, 2019.
“While 2020 revenue was negatively impacted by COVID-19 due to restrictions on travel and some marketing activities, we have made significant and important progress in a number of facets of our business,” noted Rob von der Porten, Chairman and acting CEO of MedX. “We secured a distribution partner in Brazil, launched a DermSecure® platform in Europe and made progress in negotiations for a test program with medical centers in the US. We also started working with a patient-paid clinic in Canada which unfortunately has been primarily closed due to governmental mandated lockdowns. Furthermore, we strengthened our operations with experienced team additions, and we commenced a financing initiative late in 2020 which we successfully closed in the first quarter of 2021. We see that as an indication of the confidence that investors have in our telemedicine technology. We believe that we are now in a position to execute on scaling our DermSecure® telemedicine platform in our existing markets and seeing its implementation in new ones. We are encouraged by the growing level of awareness of DermSecure® and are seeing more opportunities to integrate the platform with recognized leading companies around the world,” Mr. von der Porten continued.
2020 Operational Highlights:
During 2020, MedX focused on the Company’s dermatological services and products, DermSecure® and SIAscopy®. The Company strengthened its leadership and management teams, adding medical device and healthcare growth company expertise with the appointments of Wayne Cockburn and Anthony Milonas to its Board of Directors. Nationally renowned dermatologist Dr. Trevor Champagne was selected as Chair of the Company’s Scientific Medical Advisory Board to advise MedX on product development and innovation initiatives including assessing the use of SIAscopy® images in an Artificial Intelligence application. Skin care and medical aesthetic equipment and technology professional, Chantal Ward was added as Director, Dermatological Services. Additionally, the Company made leadership appointments to augment revenue growth and build MedX’s global partnership network; Damon Goodwin was named as Global Director of Sales, Nick Hoffman as Director, Business Development overseeing Regulatory and Operations, and Naman Demaghlatrous as Managing Director, Europe, Middle East & Africa (“EMEA”).
Regulatory approval for the Company’s SIAscopy® on DermSecure® was received in Brazil and an exclusive distribution agreement was signed to launch the platform and obtain regulatory approval in Mexico. The Company’s international footprint further expanded with the rollout of DermSecure® in the Netherlands. Targeting the North American market, MedX also announced a sales agency agreement with specialty medical device distribution group Ziemer Professional Corp., which installed the SIAscopy® on DermSecure® telemedicine platform in a number of clinics in Ontario and Saskatchewan; this initiative has been heavily, though temporarily impacted by COVID-related lockdowns.
Subsequent Events to the Fourth Quarter & Year End 2020:
In February 2021, the Company announced the closing of a non-brokered private placement of convertible debenture loan notes for gross proceeds of $4 million. The Company will continue to invest in the DermSecure® platform and to further the development of its sales initiatives and advance the DermSecure® platform to a wider global network.
The Company continued to increase its presence in North America by entering a Memorandum of Understanding (“MOU”) with Empower Clinics. The MOU involves a four-month pilot program at two Empower clinics in Ontario with plans for a broader North American roll-out pending the pilot’s anticipated successful completion.
MedX, headquartered in Mississauga, Ontario, is a leading medical device and software company focused on skin health with its SIAscopy® on DermSecure® telemedicine platform, utilizing its SIAscopy® technology. SIAscopy® is also imbedded in SIAMETRICS®, a well-regarded research system used to assess treatment effectiveness of a variety of skin conditions, including burns. The Company’s SIAscope® and other devices are manufactured in its ISO 13485 certified facility. The SIAscope® is a hand-held device that uses patented technology utilizing light and its remittance to view up to 2 mm beneath suspicious moles and lesions in a pain free, non-invasive manner, with the Company’s software then creating real-time images for physicians and dermatologists to evaluate all types of moles or lesions within seconds. These products are Health Canada, FDA, TGA and CE cleared for use in Canada, the US, Australia, New Zealand, the European Union, Turkey and Brazil. DermSecure® meets all privacy, security and relevant regulatory requirements in Canada, the US, Brazil, and the EU. MedX also designs, manufactures and distributes quality photobiomodulation therapeutic and dental lasers to provide drug-free and non-invasive treatment of tissue damage and pain. www.medxhealth.com.
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company’s limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company’s projections or forward-looking statements. All forward looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
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