ST. PAUL, MN--(Marketwire - May 19, 2010) - 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 Information: Contact:
Mark N. Schwartz
CEO
(651) 687-9999