Caprius, Inc. Reports Year End Financial Results.WILMINGTON Wilmington. 1 City (1990 pop. 71,529), seat of New Castle co., NE Del., on the Delaware River and tributary streams, the Christina and the Brandywine; settled 1638, inc. as a city 1832. , Mass.--(BUSINESS WIRE)--Dec. 23, 1998--Caprius, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CAPR CAPR Colegio de Abogados de Puerto Rico (Spanish) CAPR Civil Air Patrol Regulation CAPR Computer Assisted Pipeline Review CAPR Capability Requirement CAPR Capability Request ) announced today a net loss for its fiscal year ended September September: see month. 30, 1998 of $17,518,703, or $2.49 per share. For the year, net losses include two non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $7,097,566 for purchased research and development pursuant to the merger with Advanced Mammography mammography, diagnostic procedure that uses low-dose X rays to detect abnormalities in the breasts. The early diagnosis of breast cancer made possible by the routine use of mammography for screening women increases a woman's treatment alternatives and improves her Systems and $1,900,000 for the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. related to the Company's rehabilitation rehabilitation: see physical therapy. business. Commenting on the Company, Jack Nelson, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "The Company will continue to search for strategic partners to either acquire or joint venture the future development of its Aurora Aurora, cities, United States Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. (R) technology. Although the Company was unable to complete the recent proposed sale of its technology, we intend to actively continue our search for a strategic partner." Caprius, Inc. has developed the Aurora system, a breast imaging system based on magnetic resonance imaging magnetic resonance imaging (MRI), noninvasive diagnostic technique that uses nuclear magnetic resonance to produce cross-sectional images of organs and other internal body structures. (MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. ). The Aurora is the only FDA-cleared, MRI-based, dedicated breast imaging system in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company is presently pursuing a strategy to sell or joint venture the technology with a partner. However, there can be no assurances that any transaction can be entered into or completed. Unless a transaction is completed before January January: see month. 13, 1999, the Company anticipates that the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together Report on the year ended September 30, 1998 audited financial statements will contain a paragraph expressing doubt about the company's ability to continue as a going concern. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement: The statements made in this press release which are not historical fact are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " which are based upon current expectations that include a number of risks and uncertainties. Factors that could cause actual results to differ materially from the forward-looking statements include delays in product development, lack of market acceptance of technology, technological innovations of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. and changes in health care regulations, including reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. programs. Additional factors that could potentially affect the Company's financial results may be found on the Company's filings with the Securities and Exchange Commission. -0-
CAPRIUS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Year Ended September 30,
1998 1997 1996
---------- ------------- -----------
Revenues:
Net patient
service revenues $ 3,764,189 $ 12,436,463 $ 25,480,813
Management
fees and other -- 287,315 653,425
------------ ------------ ------------
Total revenues 3,764,189 12,723,778 26,134,238
------------ ------------ ------------
Operating Expenses:
Cost of service
operations 3,616,331 8,914,513 16,205,961
Research and
development 2,950,578 -- --
Purchased research
and development 7,097,566 -- --
Selling, general
and administrative 5,166,042 3,869,788 4,254,964
Provision for bad
debt and collection
costs 340,426 926,507 2,126,471
Loss on sale of
imaging business 265,791 9,515,903 --
Write down of
intangibles 1,900,000 -- --
------------ ------------ ------------
Total operating expenses 21,336,734 23,226,711 22,587,396
------------ ------------ ------------
Operating income (loss)
from continuing
operation (17,572,545) (10,502,933) 3,546,842
Other income 3,050 214,120 126,263
Interest income 328,235 274,593 212,814
Interest expense (219,338) (977,909) (1,847,910)
------------ ------------ ------------
Income (loss) from
continuing
operations before minority
interests, equity in loss
of subsidiary and provision
for income taxes (17,460,598) (10,992,129) 2,038,009
Minority interests in
net income of consolidated
entities -- (202,234) (1,005,831)
Equity in net loss
of unconsolidated
subsidiary (67,358) (1,304,496) (2,373,580)
----------- ------------ ------------
Loss from continuing
operations before provision
for income taxes (17,527,956) (12,498,859) (1,341,402)
Provision for income
tax (expense) benefit (98,177) 103,444 (42,288)
----------- ------------ ------------
Loss from continuing
operations (17,626,133) (12,395,415) (1,383,690)
Income from operations of
discontinued division -- 30,181 (3,928,706)
Income (loss) on disposal
of discontinued division 107,430 2,690,462 (3,510,563)
----------- ------------ ------------
Net Loss $(17,518,703) $ (9,674,772) $ (8,822,959)
============ ============ =============
Income (loss) per basic
and diluted common share:
Loss from continuing
operations $ (2.51) $ (3.00) $ (0.45)
Income from operations
of discontinued division -- 0.01 (1.28)
Income (loss) on disposal
of discontinued division 0.02 0.65 (1.15)
------ ------- -------
Net loss per share $ (2.49) $ (2.34) $ (2.88)
====== ======= ========
Weighted average number
of common shares
outstanding 7,025,802 4,126,587 3,058,332
========= ========= =========
CAPRIUS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, September 30,
1998 1997
----------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,791,476 $ 9,752,768
Cash, restricted -- 1,744,967
Accounts receivable, net of reserve
for bad debts of $663,314 at
September 30, 1998 and
$612,500 at September 30, 1997 2,899,282 2,691,858
Inventory 720,858 --
Other current assets 584,875 163,433
----------- -----------
Total current assets 5,996,491 14,353,026
----------- -----------
Property and Equipment, at Cost:
Medical equipment 2,145,674 494,725
Office furniture and equipment 251,199 624,245
Other equipment 1,518,874 48,597
Leasehold improvements 1,153,576 751,394
----------- -----------
5,069,323 1,918,961
Less: accumulated depreciation
and amortization 1,824,946 618,263
----------- -----------
Total property and
equipment, at cost 3,244,377 1,300,698
----------- -----------
Other Assets:
Other intangibles, net of
accumulated amortization
of $371,698 at
September 30, 1998
and $800 at September 30, 1997 1,240,678 58,595
Goodwill, net of accumulated
amortization of $2,357,703 at
September 30, 1998
and $311,200 at September 30, 1997 1,053,797 2,383,377
Investment in and advances
to unconsolidated subsidiary -- 1,525,387
Other 32,037 213,518
----------- -----------
Total other assets 2,326,512 4,180,877
=========== ===========
$11,567,380 $19,834,601
=========== ===========
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable 810,990 462,118
Accrued expenses 964,922 949,277
Accrued compensation 388,748 212,522
Other current liabilities 53,664
Current portion of long-term debt
and capital lease obligations 915,608 550,000
----------- -----------
Total current liabilities 3,133,932 2,173,917
----------- -----------
Long-term Debt and Capital Lease
Obligations, Net of Current Portion 1,207,624 337,500
Stockholders Equity:
Preferred stock, $.01 par value
Authorized - 1,000,000 shares
Issued and outstanding - Series A,
none; Series B, convertible,
2,700 shares at September 30,
1998 and September 30, 1997 2,700,000 2,700,000
Common stock, $.01 par value
Authorized - 50,000,000 shares
Issued and outstanding - 7,369,040
shares at September 30, 1998
and 4,374,763 shares
at September 30, 1997 73,690 43,748
Additional paid-in capital 63,561,672 56,170,271
Accumulated deficit (59,107,288) (41,588,585)
Treasury stock (22,500
common shares, at cost) (2,250) (2,250)
------------ ------------
Total stockholders equity 7,225,824 17,323,184
============ ============
$ 11,567,380 $ 19,834,601
============ ============
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