COMPUMED, INC. ANNOUNCES FISCAL 2021 ANNUAL AND FOURTH QUARTER RESULTS

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CompuMed, Inc.

Dec 16, 2021, 20:47 ET

LOS ANGELES, Dec. 16, 2021 /PRNewswire/ -- CompuMed, Inc. (OTCPK: CMPD) ("CompuMed" or the "Company") is pleased to announce strong fiscal 2021 4th quarter and annual results.         

FISCAL 2021 FOURTH QUARTER AND ANNUAL HIGHLIGHTS:

  • During the fourth quarter of fiscal 2021 CompuMed management made the decision to change the way we account for certain development costs. Please see the discussion paragraph below.
  • Revenue for the 4th quarter was $1.45 million compared to $1.26 million a year ago and $6.32 million for the full year compared to $5.27 million a year ago (increases of 14.9% and 19.9% respectively).
  • Net income after the effect of the accounting change was $480,440 in the fourth quarter compared to $95,789 in the prior year and $1,067,152 for the full year compared to $338,436 in the previous year. For a detailed comparison of CompuMed financial results before and after the accounting change please see our annual report.
  • At yearend CompuMed enjoyed a cash + accounts receivable position of $3.07 million, 0.3% higher than the third quarter and 14.6% higher than one year ago.
  • At yearend CompuMed reported a book value of $3.36 million as compared to $2.28 million the prior year (an increase of 47.5%).

During the fourth quarter of fiscal 2021 CompuMed management made the decision to change the way we account for certain software development costs.  Many high technology companies with significant research and development expenses choose to capitalize rather than expense these costs.  This more appropriately reflects the value of these investments as they impact the financial performance of the Company in future years.  This accounting change had the impact of increasing CompuMed's reported earnings in the first three quarters of the Fiscal Year 2021 by $305,823. Additionally, the change resulted in an Information System Asset of $424,644 being added to the balance sheet.  For a detailed quarterly analysis of this important accounting change please see CompuMed's annual report located at:

https://compumedinc.com/contacts/investor-relations/

CompuMed is pleased to announce a coming annual shareholder's meeting.  Over the next few weeks, we will be mailing out proxy cards asking CompuMed shareholders to vote on several items.  It is important for CompuMed investors to review the proxy materials.  These materials will be available online and upon request.  Please review your proxy card carefully.  The following items will be voted on:

  • A reverse stock split of 1 share for 25 existing shares.
  • The election of our Board of Directors to a one-year term.
  • A say on pay proposal authorizing the granting of 300,000 shares (post stock split) of incentive stock to be granted at the Board of Director's discretion to individuals deemed key to CompuMed's success.
  • Amendments to CompuMed's corporate documents eliminating the preferred share classes of stock and decreasing CompuMed's post-split share authorization to 20 million shares.

The CompuMed leadership team believes that the reverse stock split may enhance the liquidity in the Company's shares.  Further, we also believe that many investors have been unable to purchase or hold shares of CompuMed in their brokerage account simply because of the share price.  We also believe that eliminating the classes of preferred stock clearly signal to the investment community the commitment of the CompuMed leadership team to the value of the common stockholder.  We appreciate your support for these important proposals.

About CompuMed, Inc.
CompuMed, Inc. (OTCPink: CMPD) Diagnostic Telemedicine services provide patients with the highest level of clinical care at reduced costs. Its telecardiology and teleradiology offerings provide real-time access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices to medical facilities anywhere in the world.  The company has been in business over 26 years and services over 1,000 clinical settings. CompuMed is headquartered in Los Angeles, CA. Visit CompuMed at www.compumedinc.com.

Forward-Looking Statements
This press release contains forward-looking statements regarding future events and the future performance of CompuMed, Inc. that involve risks and uncertainties that could materially affect actual results, including statements regarding the Company's unaudited financial results.  Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) the global impact of the pandemic outbreak of coronavirus (COVID-19) and its impact on our operations and the operations of our suppliers and clients, staffing levels and labor costs; (2) the timing and volume of business activity from our clients, our ability to continue to provide those services, and our liquidity and cash position; (3) our ability to protect the Company's net operating losses and tax benefits; (4) volatility and changes in our stock price, corporate or other market conditions; (5) the loss of, or reduction of business from, substantial clients; (6) changes in government policy or economic conditions; (7) increased competition; and (8) other factors contained in the Company's filings posted on the OTC Markets website.

SOURCE CompuMed, Inc.