Hypertension Diagnostics, Inc. (OTCBB: HDII) (www.hdii.com), today
announced financial results for the third quarter of fiscal year
2010 ended March 31, 2010 (Q3 2010).
Revenue for Q3 2010 totaled $126,261 compared to $64,765 for the
quarter ended March 31, 2009 (Q3 2009), which represents a 95%
increase. The Company's net loss was $334,377 for Q3 2010 or $(.01)
per share, compared with a net loss of $18,989 for Q3 2009, or
$(.00) per share. Included in the net loss for Q3 2010 are total
non-cash charges (deferred compensation, depreciation, stock
options) expenses of $229,317. In Q3 2009, total non-cash benefits
were $122,123. The increase in the Company's stock price during Q3
2010 resulted in a deferred compensation charge of $198,750. The
decrease in the Company's stock price during Q3 2009 resulted in a
deferred compensation benefit of $147,000. When deferred
compensation expense, which is largely influenced by changes in the
Company's stock price, is excluded the Company generated a non-GAAP
pro-forma net loss of $135,267 for Q3 2010 and a net loss of
$165,989 for Q3 2009.
For the nine month period ended March 31, 2010 (9 months FY
2010), total revenue was $886,661 compared to $338,484 for the nine
month period ended March 31, 2009 (9 months FY 2009), a 162%
increase. For the 9 months FY 2010, the Company incurred a net loss
of $1,347,573, including a non-cash charge of $1,400,324, or $.03
per share, compared with a net loss of $88,549, including a
non-cash benefit of $234,643, or $(.00) per share, for the 9 months
FY 2009. When deferred compensation expense, which is largely
influenced by changes in the Company's stock price, is excluded the
Company generated a non-GAAP pro-forma net loss of $25,323 for the
9 months FY 2010 and $398,299 for the 9 months FY 2009. The Company
reported a cash balance on March 31, 2010 of $942,976.
"We are pleased with the continued rebound in our sales," said
Mark Schwartz, Chairman and CEO. "Our third quarter sales results
provide encouragement that our market is recovering. We are
implementing a plan to aggressively expand our U.S. independent
distribution network. Over the next nine months, the Company's
objective is to double the number of our independent distributor
groups in the U.S.," said Schwartz.
About Hypertension Diagnostics, Inc.
Hypertension Diagnostics, Inc. ("HDI") manufactures and markets
medical devices for early detection and management of
cardiovascular disease in the U.S. and in 37 countries. Its main
product, the CVProfilor® DO-2020 CardioVascular Profiling System,
has been approved by the Food and Drug Administration (FDA), and is
being marketed to primary care physicians in the U.S. HDI's
CardioVascular Profiling Systems non-invasively measure both large
and small artery elasticity. Small artery elasticity has been shown
to be predictive of cardiovascular disease. Several large
pharmaceutical manufacturers have used HDI's CardioVascular
Profiling Systems in their multi-site clinical research trials.
There are over 300 published, peer-reviewed scientific articles and
presentations on HDI's methodology, which provides evidence on the
validity, accuracy and reproducibility of HDI's CardioVascular
Profiling technology. The technology was developed at the
University of Minnesota by a team led by world-renown cardiologist,
Dr. Jay N. Cohn.
Safe Harbor Statement
Forward-looking statements in this press release are made under
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The Company wishes to caution readers not to
place undue reliance on any forward-looking statements and to
recognize that the statements are not a prediction of actual future
results. Actual results could differ materially from those
presented and anticipated in the forward-looking statements due to
the risks and uncertainties set forth in the Company's 2009 Annual
Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q,
all of which were filed with the U.S. Securities and Exchange
Commission, as well as others not now anticipated.
Hypertension Diagnostics, Inc.
Summary Financial Data
Statements of Operations
Three Months Ended Nine Months Ended
March 31 March 31
-------------------------- --------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
Revenue:
Equipment sales $ 71,000 $ 28,000 $ 730,825 $ 206,837
Equipment rental 15,092 17,627 60,335 67,443
Warranty, parts
& supplies
income 40,169 19,138 95,501 64,204
------------ ------------ ------------ ------------
126,261 64,765 886,661 338,484
------------ ------------ ------------ ------------
Cost of Sales 23,586 27,369 99,564 99,155
------------ ------------ ------------ ------------
Gross Profit 102,675 37,396 787,097 239,329
Selling, general
and administrative
expenses 440,388 58,331 2,141,895 339,671
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Operating Income
(Loss) (337,713) (20,935) (1,354,798) (100,342)
------------ ------------ ------------ ------------
Interest income 3,336 1,946 7,225 11,793
------------ ------------ ------------ ------------
Net loss before
income taxes (334,377) (18,989) (1,347,573) (88,549)
Income Taxes - - - -
------------ ------------ ------------ ------------
Net loss $ (334,377) $ (18,989) $ (1,347,573) $ (88,549)
============ ============ ============ ============
Basic and Diluted
Net Loss per Share $ (.01) $ .00 $ (.03) $ .00
Weighted Average
Shares Outstanding
Basic & Diluted 41,238,664 40,795,820 41,142,729 40,650,494
Net income (loss) $ (334,337) $ (18,989) $ (1,347,573) $ (88,549)
Deferred
compensation
expense 198,750 (147,000) 1,322,250 (309,750)
------------ ------------ ------------ ------------
Non-GAPP Pro-forma
net income (loss)
(excluding deferred
compensation
expense) ($ 135,627) ($ 165,989) ($ 25,323) ($ 398,299)
Balance Sheet Data
March 31, 2010 June 30, 2009
-------------- -------------
Cash and cash equivalents $ 942,976 $ 697,918
Total current assets 1,244,369 1,022,528
Total assets 1,252,554 1,032,787
Total current liabilities 246,778 340,384
Accumulated deficit (28,782,180) (27,434,607)
Total shareholders' equity (609,882) 660,041
CVProfilor is a registered trademark of Hypertension
Diagnostics, Inc.
Hypertension Diagnostics, HDI/PulseWave, PulseWave and CVProfile
are trademarks of Hypertension Diagnostics, Inc. All rights
reserved.
Website: www.hdii.com
Contact: Mark N. Schwartz CEO (651) 687-9999
Hypertension Diagnositc (CE) (USOTC:HDII)
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