Flexpoint Reports Full Year 2013 Financial Results
DRAPER, Utah, April 4, 2014 /PRNewswire/ -- Flexpoint Sensor Systems, Inc. (OTCBB: FLXT) today announced total revenue of $100,754 for the year ended December 31, 2013. This compares to $47,546 in total revenue during 2012. This represents a 112% increase in revenue.
Revenue for 2013 was primarily from design and development engineering, prototype production and fully integrated products. Management anticipates that revenue will increase significantly as we complete development and begin production on new products. Revenues will also accelerate as we continue to provide engineering services and our customers continue to order existing products more frequently and in larger quantities.
Total operating costs and expenses decreased in 2013 when compared to 2012 by $375,057. The Company has also made efforts to lower administrative, marketing expense and legal expenses. Administrative and marketing expenses decreased to $681,801 for 2013 compared to $845,843 in 2012.
Net loss for the quarter was $960,459 or .02 EPS versus a net loss of $1,050,400 or .03 EPS during 2012.
Key 2013 Highlights
Through a joint development agreement with R&D Products, the Company developed and produced 20 prototype medical beds that assist in the management of bed sores. Needed adjustments can be made through relieving pressure areas to meet the required standards of care and patient comfort.
The bed technology has a commercial application that will be marketed as an in-home specialty mattress. The specialty (non-innerspring) segment of the bedding market has been growing rapidly over the past six to seven years. The Company has had some discussions with mattress companies who have expressed interest in the concept.
R&D Products anticipates applying the medical bed concept and technology to a mattress cover that can be used for both adult in-home care or nursing home facilities or on infant beds. R&D plans to market this concept in late 2014.
We have partnered with Haemoband Surgical Ltd. and have satisfactorily completed initial testing for their disposable colonoscope device, which uses Flexpoint's Bend Sensor® technology to monitor the device's position as it is administered to the patient. During 2013, we completed the first two phases of the project and received milestone payments for each phase of the development. The next phase will include several working colonoscope devices and the associated electronics in preparation for successful medical trails and gathering the information necessary for completion of the required governmental certifications. Haemoband Surgical has experience in medical markets they were the first to launch an automatic multi-action, pre-loaded disposable ligator worldwide. It is anticipated, upon approvals and certifications of the product, that we will enter into a long term Manufacturing and Supply agreement with Haemoband.
Testing to date has demonstrated the ability of Flexpoint's sensor to graphically display the shape of the colonoscope and to accurately detect any looping of the scope. Because of the large demand, and the fact that this is a disposable device, it is anticipated that Flexpoint could begin producing sensors for this device into the millions of sensors annually as acceptance and incorporation of the sensors occurs. With its Haemoband partnership, Flexpoint gains entry into an industry that will likely factor prominently in its future growth.
We continue our relationship with Intertek Industrial Corporation, a leading supplier of quality seatbelt systems and safety devices to the emergency vehicle market. Their award winning ProTek Passenger Awareness System uses our Bend Sensor® technology to enhance the safety of passengers and personnel in emergency vehicles. Intertek continues to issue purchase orders ranging from fifty to 100 fully integrated units every six to eight months. We have also received inquiries regarding similar systems for other emergency vehicles as well as school buses.
During the last half of the year, the Company began working with a shoe supplier to develop a sensor system that would provide real time feedback and analysis on balance, performance and cadence to runners and other athletes. Utilizing Flexpoint's patented Bend Sensor® technology several sensors located within the shoe provide real-time feedback of a runner's performance that can be utilized for training and teaching proper technique that will aid in the prevention of injuries.
The system will provide real time analysis showing balance, performance and other pertinent data relating to performance of the individual. Other metrics like cadence, ground contact time, the time the foot is not in contact with the ground; shoe loading and unloading profiles and information critical to training and injury prevention can be measured and captured for later review and analysis. Running information can be easily integrated into social media and training logs for quick feedback and analysis.
The electronics include miniaturized printed circuit boards, a wireless communication system, blue tooth technologies, wireless rechargeable batteries and "smart phone" interface. Although the original devise was developed to be used in running shoes, the Company has been contacted to incorporate the shoe technology into a golf training tool that will include golf clubs fitted with our sensors.
During the first half of 2014 the Company anticipates receiving up to $85,000 in revenues to further develop our shoe application and electronics, with the anticipation that by the third quarter we will be producing multiple sensors for the golf industry.
For the past several years we have been in negotiations with several Tier 1 suppliers and OEMs and have proved the benefit and capabilities of the Bend Sensor® Technology in the automotive industry. A major automobile manufacture has partnered with a Tier 1 supplier and are in the final stages of approving our patented horn switch to replace their existing technology.
During the year we received an additional purchase order from a major Tier One supplier in conjunction with a Fortune 100 Auto maker for completion of horn switch systems to be installed in a limited number of automobiles to complete in-vehicle testing. The testing began in October 2013 and the purpose of the tests was to collect additional data and give designers and engineers within the automaker an opportunity to experience the system in an automobile in actual usage situations. This has allowed them a "hands on" experience with the technology prior to their designating the system for incorporation into future vehicle programs. Once it has been incorporated into a specific platform, we will work to get the models identified and have it pulled forward for a drop in application so that the field testing and verification can be completed. It is expected that as development of the initial horn switch is completed and the first units integrated into existing production, the project will be expanded to integrate control switches onto the horn pad, and that the application could be expanded to additional models of automobiles and light trucks. The volumes associated with an automotive platform can range from 150,000 to 4 million vehicles and a product launch in a platform can consist of 50,000 to 100,000 vehicles during the "shake out period", and then incorporated into the entire platform.
MANUFACTURING AND DISTRIBUTION
Automobile manufacturers, Tier 1 suppliers and many international companies require all manufactured parts be manufactured in ISO/TS-16949 certified facilities.
We have entered into a manufacturing and supply partnership with the Walker Components Group. The partnership includes manufacturing, assembly and component acquisition services and is a key step toward finalizing deals with major companies who are working with Flexpoint, HTK, Intertek and others on various projects. The logistical concerns associated with producing these products on a large scale will be comfortably met through this partnership.
"Overall, the company is pleased by the important milestones achieved since the beginning of the 2013. Based upon our current purchase orders and anticipated purchase orders over the next twelve months our projected revenues during 2014 should be sufficient to cover our projected operations based on our current burn rate," stated Clark Mower, Flexpoint CEO.
Flexpoint Sensor Systems (OTCBB: FLXT) is an innovative technology firm specializing in developing products that feature the Company's patented Bend Sensor® and related technology. The Bend Sensor® is a groundbreaking sensing solution that is revolutionizing applications in the automotive, safety, medical and industrial industries. The Bend Sensor's single-layer, thin film construction cuts costs and mechanical bulk while introducing a range of functions and stylistic design possibilities that have never before been available in sensing technology. Flexpoint's technology and expertise have been recognized by the world's elite business and academic innovators for over 17 years. The company is setting a new standard for sensing solutions in the "smart" age of technology.
This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include, among others, certain risks associated with the operation of the company described above. The Company's actual results could differ materially from expected results.
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