Parallax Health Sciences Reports First Quarter 2019 Operating and Financial Results
Revenue increased
959% and a 56% reduction in expenses over prior-year period
Records
cash sale for the first licensing of its technology
SANTA MONICA, CA / ACCESSWIRE / May
13, 2019 / Parallax Health Sciences, Inc. (OTCQB: PRLX) (”Parallax” or the ”Company”), an outcome-driven connected healthcare company, today announces operating and financial results for the three months ended March 31, 2019, and provides a business update.
“During the first quarter, we completed our first cash license agreement of our patented data-driven outcomes technology and we are beginning to aggressively pursue a number of revenue generating opportunities,” stated Paul Arena, Chief Executive Officer of Parallax Health Sciences, Inc.
“The technology development of our Fotodigm® data capture and Parallax CareTM outcomes optimization platform are on target, and we anticipate a full launch of these capabilities during the third quarter. We are pleased with our performance this quarter, particularly with strong customer demand for our Parallax CareTM outcomes optimization platform, as many hospital groups, doctor groups and community health organizations are responding with enthusiasm to our ability to capture data, report vital information, and manage and track interactive remote patient monitoring through wearables and other analog devices.”
Revenue from continuing operations for the quarter ended March 31, 2019, was $50,990, a 959% increase from revenue of $4,890 in the first quarter of 2018. Production and service delivery costs from continuing operations for the first quarter of 2019 was $5,111, versus $5,538 of production and service delivery costs for the same period in the prior year. Gross margin for the first quarter of 2019 was 90%, reflecting revenues from the technology license, net of costs.
Selling, general, and administrative, (“SG&A”) expenses for the first quarter of 2019 were $1,456,288, compared with $1,951,161 of SG&A expenses for the first quarter of 2018. The 25% decrease primarily consisted of lower non-cash stock compensation costs of $854,083.
Interest expense and discount amortization, combined, for the quarter ended March 31, 2019, were $230,434, compared with $1,658,149 for the first quarter of 2018. The decrease of $1,427,715 is primarily the result of fully amortized discounts on long-term debt related to discontinued operations, as well as the Company’s overall reduction in interest-bearing debt over the last twelve months.
The net loss for the quarter ended March 31, 2019, was $1,674,115, compared with a net loss of $3,856,469 for the same period in the prior year. The $2,182,354 or 56% decrease in net loss was the result of lowered expenses, including non-cash expenses as described above. Stockholders’ deficit for the first quarter of 2019 was $6,484,875, a $23,387,356 or 78% improvement over the last twelve months from the $29,872,231 deficit at March 31, 2018.
Business
Outlook
Parallax is developing an improved remote patient monitoring platform that deploys Software-as-a-service (“SaaS”) licensing through hospital groups, doctor groups and other channel partners for distribution. The Company’s technology has been built around a PHP core framework designed to enable healthcare companies to connect on an API friendly basis to the Parallax CareTM platform as a software module with mobile phone application capabilities into their existing Electronic Health Records, (“EHR”) systems for real-time patient data reporting.
It is expected that the new SaaS software license model and mobile applications will launch during the third quarter of 2019. More details will be provided as they become available.
Intellectual
Property Portfolio
Parallax’s solutions are supported by its intellectual property portfolio. The Company has been issued 14 patents with hundreds of claims, and has a number of additional applications for patents it anticipates will be granted, pending formal issuance by the United States Patent & Trademark Office, (“USPTO”). Additional patent applications are pending or in process for filing. The patents contain a broad range of claims covering the Company’s proprietary technologies and products. Parallax also owns two registered trademarks protecting the names of its products and identity in the marketplace, along with seven additional trademarks pending issuance.
About Parallax Health
Sciences
Parallax Health Sciences is an advanced technology, outcome-driven telehealth company that allows for cost-effective remote diagnosis, treatment and monitoring of patients through proprietary platforms of integrated products and services. The Company’s interoperable novel applications provide patients point-of-care testing and monitoring with information communicated via internet-based mobile phone applications that are agnostic as to operating system and are built on highly sophisticated data analytics. Information is retrieved real-time by physicians who are monitoring patients with chronic diseases or through biometric feedback for health-related behavior modification, and is automated for integration into electronic health records. The Company’s products and offerings capitalize on the digital transformation in healthcare for improved patient compliance, diagnosis and treatment, and support healthcare system cost savings and efficiencies. For more information, please visit www.parallaxhealthsciences.com or www.parallaxcare.com.
Forward-Looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our Form 10-K and other reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contact:
LHA Investor Relations
Jody Cain jcain@lhai.com
Kevin Mc Cabe kmccabe@lhai.com
310-691-7100
PARALLAX HEALTH SCIENCES, INC.
CONSOLIDATED BALANCE SHEETS
|
March 31,
2019 |
December 31, 2018
|
|||||
|
(Unaudited)
|
||||||
|
ASSETS
|
||||||
|
Current assets
|
||||||
|
Cash and cash equivalents
|
$ | 1,654 | $ | 262 | ||
|
Accounts receivable, net
|
25,180 | – | ||||
|
Total current assets
|
26,834 | 262 | ||||
|
Intangible assets, net
|
548,880 | 579,035 | ||||
|
Goodwill
|
785,060 | 785,060 | ||||
|
TOTAL ASSETS
|
$ | 1,360,774 | $ | 1,364,357 | ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||
|
Current liabilities
|
||||||
|
Accounts payable and accrued expenses
|
$ | 2,774,710 | $ | 2,655,138 | ||
|
Debentures, convertible
|
572,535 | 755,627 | ||||
|
Debentures, convertible, related party
|
472,471 | 428,132 | ||||
|
Note payable
|
20,000 | – | ||||
|
Notes payable, convertible
|
506,913 | 296,000 | ||||
|
Note payable, related party
|
20,000 | – | ||||
|
Related party payables
|
1,259,858 | 1,004,720 | ||||
|
Total current liabilities
|
5,626,487 | 5,139,617 | ||||
|
Long term liabilities
|
||||||
|
License fees payable
|
433,000 | 430,000 | ||||
|
Royalties payable
|
317,700 | 310,000 | ||||
|
Debentures, convertible, net of unamortized discount
|
228,150 | 226,050 | ||||
|
Notes payable, convertible
|
720,154 | 720,154 | ||||
|
Notes payable, convertible, related party
|
491,100 | 491,100 | ||||
|
Note payable, secured
|
29,058 | 28,995 | ||||
|
Total long-term liabilities
|
2,219,162 | 2,206,299 | ||||
|
Total liabilities
|
7,845,649 | 7,345,916 | ||||
|
Stockholders’ deficit
|
||||||
|
Preferred stock, $.001 par, 10,000,000 shares authorized, 977,352 and 1,013,691 issued and outstanding at March 31, 2019 and December 31, 2018, respectively
|
978 | 1,014 | ||||
|
Common stock, $.001 par, 500,000,000 and 250,000,000 shares authorized, 170,259,136 and 158,113,141 issued and outstanding at March 31, 2019 and December 31, 2018, respectively
|
170,259 | 158,113 | ||||
|
Additional paid in capital-preferred
|
1,315,689 | 1,415,653 | ||||
|
Additional paid in capital-common
|
10,974,574 | 9,715,921 | ||||
|
Accumulated deficit
|
(18,946,375 | ) | (17,272,260 | ) | ||
|
Total stockholders’ deficit
|
(6,484,875 | ) | (5,981,559 | ) | ||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$ | 1,360,774 | $ | 1,364,357 | ||
The accompanying notes in the Form 10-Q are an integral part of these consolidated financial statements.
|
2019
|
2018
|
|||||||
|
Revenue
|
$ | 50,990 | $ | 4,890 | ||||
|
Cost of sales
|
5,111 | 5,538 | ||||||
|
Gross profit (loss)
|
45,879 | (648 | ) | |||||
|
General and administrative expenses
|
1,456,288 | 1,951,161 | ||||||
|
Operating loss
|
(1,410,409 | ) | (1,951,809 | ) | ||||
|
Other income (expenses)
|
||||||||
|
Loss on settlements
|
(33,272 | ) | – | |||||
|
Discount amortization
|
(130,420 | ) | (1,335,000 | ) | ||||
|
Interest expense
|
(100,014 | ) | (323,149 | ) | ||||
|
Total other income (expenses)
|
(263,706 | ) | (1,658,149 | ) | ||||
|
Net loss – continuing operations
|
(1,674,115 | ) | (3,609,958 | ) | ||||
|
Net loss – discontinued operations
|
– | (246,511 | ) | |||||
|
Net loss
|
$ | (1,674,115 | ) | $ | (3,856,469 | ) | ||
|
Net income (loss) per common share – basic:
|
||||||||
|
Continuing operations
|
$ | (0.010 | ) | $ | (0.025 | ) | ||
|
Discontinued operations
|
– | $ | (0.002 | ) | ||||
|
Net income (loss) per common share – diluted:
|
||||||||
|
Continuing operations
|
$ | (0.007 | ) | $ | (0.017 | ) | ||
|
Discontinued operations
|
– | $ | (0.001 | ) | ||||
|
Weighted average shares outstanding – basic
|
163,836,976 | 143,173,863 | ||||||
|
Weighted average shares outstanding – diluted
|
233,000,282 | 208,385,291 | ||||||
The accompanying notes in the Form 10-Q are an integral part of these consolidated financial statements.
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