KING OF PRUSSIA, Pa.,
April 3, 2013 /PRNewswire/
-- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK),
today provided an update on business and financial activities
during the March 2013 quarter and
updated investors relative to expectations for the rest of
2013.
"Our business has clearly turned the corner with operational
positive cash flow occurring during the recently completed
March 2013 quarter," commented Ronnie
Adams CEO. "We expect this operational profitability to be
sustainable as we have built our business mainly on high-margin
recurring revenues. Our investors should expect a
continuation of the dramatic strengthening of our balance sheet
that has occurred over the past few quarters. Over the next
few months, we expect to emerge as a fast growing, fully reporting,
profitable small company free of all long-term debentures and with
a near zero balance on our credit line."
Debt Forgiveness - Management has successfully negotiated with a
debt holder to cancel approximately $236,397 of debt. No shares, warrants or options
were granted in exchange for this cancellation. This debt
cancellation will likely result in a large one-time gain during the
March 2013 quarter and will
significantly improve balance sheet ratios.
March 2013 Positive Operating Cash
Flow - The Company successfully completed a strong quarter ending
March 31, 2013. The Quarter was
noteworthy due to the continued ramp in Monthly Recurring Revenues
(MRR) and the positive operating cash flow that resulted.
Major Health Care Insurance Provider Signed - Medical Alarm
Concepts recently announced the signing of a major diversified
national healthcare insurer that will offer the Company's
MediPendant® product and monthly monitoring services to subscribers
of selected healthcare programs. Additionally, the product
will be included in the insurance carrier's dual demonstration
program (Medicaid and Medicare) related contracts on which it may
bid. Please see the recent SEC filing on Form 8-K for
additional information.
Retail Promotional Activities – During the March quarter the
Company successfully completed a retail promotion with its large
discount warehouse chain partner. An additional program began over
the weekend and is expected to run through April 21st. The Company has now
received 21 product reviews on the retailer's website, 17 of which
are "5 out of 5 Star" ratings. The average rating is "4.5
Stars" out of 5 Stars.
JTT-EMS Strategic Investment – During the Quarter the Company
received an investment led by strategic partner, JTT-EMS LTD of
Shijiazhuang, China. Under
the terms of the investment, JTT-EMS purchased restricted common
stock, which it plans to hold as a long-term investment. The
financing, including additional investments by current
shareholders, will total approximately $330,000. There were no warrants or options
associated with this investment.
Rebuilding of Inventory – An additional 2,200 MediPendants® were
ordered from the factory during the quarter in order to meet the
continued growing demand. The Company expects that additional
orders will need to be placed in the very near future as demand
continues to grow.
Expectation for the Rest of 2013 - Management believes the MRR
will continue to grow at a rapid pace and that the Company will see
sustainable positive operating cash flow throughout the year. This
past week, recently obtained new capital was deployed to retain new
accountants and SEC-oriented corporate counsel to complete the
process of returning to fully reporting status.
Additional information on the MediPendant® can be viewed at
www.MediPendant.com.
About MDHI
Medical Alarm Concepts Holdings, Inc. (MAC) develops and
manufactures innovative products and practical solutions within the
framework of a vast growing marketplace. MediPendant's® patented
two-way voice technology enables the user to speak and listen
directly through the pendant no matter where the user may be in and
around their home. MediPendant® service also includes advanced
features such as three-way calling that enables the operator to
link loved ones directly into the emergency call in real time.
Text message alerts are also standard, and are used to inform
loved ones that the user has contacted an operator or has requested
assistance. A standard PERS system does not enable the user to
speak and listen through the pendant, thus limiting them to a small
area in their home. There is always the risk that the user will not
be heard by the call center operator if they are not within a short
range of the base station.
Safe Harbor Statement
Statements in this
press release that are not statements of historical or current fact
constitute "forward-looking statements." Such forward-looking
statements involve known and unknown risks, uncertainties and other
unknown factors that could cause the Company's actual operating
results to be materially different from any historical results or
from any future results expressed or implied by such
forward-looking statements. In addition to statements that
explicitly describe these risks and uncertainties, readers are
urged to consider statements that contain terms such as "believes,"
"belief," "expects," "expect," "intends," "intend," "anticipate,"
"anticipates," "plans," "plan," to be uncertain and
forward-looking. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that
are described from time to time in the Company's filings with
Securities and Exchange Commission.
Contact:
Medical Alarm Concepts Holding, Inc.
877-639-2929 Ext. 113
SOURCE Medical Alarm Concepts Holding, Inc.