TORONTO, ONTARIO – CardioComm Solutions, Inc. (TSX VENTURE:EKG) (“CardioComm Solutions” or the “Company”) a consistent, global medical provider of consumer heart monitoring and medical electrocardiogram (“ECG”) software solutions, today released its 2016 year end financials and confirms its strongest fiscal performance yet.
The Company’s management has worked to successfully reduce expenses while maintaining overall revenue generation through a series of consolidations and cost containment efforts. A summary of the SEDAR posted financials shows 2016 revenue was largely maintained with a minimal reduction of 9.8% against a marked 33% reduction in operating expenses. Of note, the year to date loss of 2016 versus 2015 was reduced by 96% with a reported net loss of only $1,574 in the fourth quarter and a cumulative 2016 year end net loss of only $23,057. Operationally, the Company was cash flow positive for the last six months of 2016.
CardioComm did see a shift in the percentage of total revenue generated from hardware versus software sales. Hardware revenue represented 32% of overall revenue in 2015 and 27% in 2016 while software revenue increased from 27% in 2015 to 33% in 2016. Software sales increased in absolute value as well by 13% in 2016 versus 2015 which speaks to the Company’s recognized core competency and strategic market position as an innovator in ECG device communications, ECG data management solutions and ECG review and interpretation solutions. The Company confirms its future direction and growth area will be as a device agnostic medical ECG, and soon additional other biometrics, device enabler and software developer of solutions for hospitals, clinics, medical practitioners and consumers.
While sales of the consumer USB-connected HeartCheck™ ECG PEN were down, sales of the medical HeartCheck™ ECG Monitor and hospital use arrhythmia monitors were up in 2016. CardioComm acknowledges that sales of the consumer based HeartCheck™ ECG PEN product have been softer than expected and relates this to the consumer market seeking lower cost, BT-enabled and Smartphone-connected devices that resemble more a wellness product than a medical device. With this in mind, the Company has reported they will interface with other device manufacturers to provide the consumer market access to Windows and Apple compatible, PC and Smartphone connected, wired and wireless, ECG monitoring devices, supported by CardioComm’s software credibility to provide a unique and affordable, holistic end-to-end solution. New product introductions will target well-developed health, wellness, sports and medical self-monitoring, tele-med and remote medical monitoring markets. An example of this can be seen in the Company’s most recent press release confirming that a 12 lead ECG shirt will be added to the list of supported medical devices. All CardioComm software technologies are already FDA and Health Canada cleared which will further streamline regulatory review procedures with a potential for shortened review cycle times all which should support a faster go- to-market strategy for new HeartCheck™ branded devices.
Other noteworthy findings were: the report of an $8.225M carry forward tax credit, that may be applied against future profits and/or leveraged in joint venture relationships; and, the December 2016 refinancing of the Company’s prior debit of $900,000 was replaced with a smaller debt load of only $600,000. Of note is at least half of the new debt is held by friends, family and staff of the Company.
CardioComm has earned the ISO 13485 certification, is HPB approved, HIPAA compliant and holds clearances for the sale of its HeartCheck™ technologies from the European Union (CE Mark), Australia (TGA), the USA (FDA), China (CFDA) and Canada (Health Canada).
To learn more about the CardioComm Solutions’ products please see the Company’s websites www.theheartcheck.com and www.cardiocommsolutions.com or contact the Company at sales@cardiocommsolutions.com.
