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.
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.
Medical Alarm Concepts Holding, Inc.
877-639-2929 Ext. 113
SOURCE Medical Alarm Concepts Holding, Inc.