Medifocus, Inc. Announces 26% Increase in Revenue in Recent Quarter and Positive Cash Flow from Operation for the Six Months Ended Sept 30, 2018
COLUMBIA, MD and Toronto, ON- November 27, 2018 – Medifocus, Inc. (OTCQX:MDFZF and TSXV:MFS.V) (“Medifocus” or the “Company”), a biotechnology company with a portfolio of medical products encompassing thermotherapy systems for the treatment of Benign Prostatic Hyperplasia (BPH) and Breast Cancer, reported a 26% increase in revenue for the quarter ending September 30, 2018, and a 14% increase for the six months ending September 30, 2018, compared to the same periods in 2017.
Prolieve® sales were $704,195 for the quarter ended September 30, 2018, compared to $557,600 for the same period in 2017. For the six months ended September 30, 2018, sales increased to $1,441,585 from $1,266,500 for the same period in 2017. Operating loss for the six months ended September 30, 2018 was reduced by 53% to $185,740, compared to $383,199 for the same period in 2017. Not only did Medifocus achieve its first ever annual positive cash flow of $21,544 from operating activities for the fiscal year ended March 31, 2018, compared to using $1,937,326 cash in operating activities during the fiscal year ended March 31, 2016, the Company also recorded a $10,151 positive cash flow from operating activities for the six months ended September 30, 2018, compared to using $83,359 and $389,268 cash in operating activities during the six months ended September 30, 2017 and September 30, 2016, respectively.
Dr. William Jow, President and Chief Executive Officer of Medifocus, commented, “Since I became CEO two years ago, we have substantially reduced operating losses by improving operational effectiveness. We are pleased to see the uptick in revenue from Prolieve® operation in the last two quarters and to achieve sustainability with positive cash flow. While we will remain vigilant on cost savings and quality, we are poised to grow our Prolieve® business by leveraging the positive clinical findings from our Post Approval Study (PAS) recently completed and accepted by the U.S. FDA. The 12-year PAS with 5-year follow-up data confirm long-term safety, efficacy and durability of Prolieve® in treating men with BPH, resulting in improved lower urinary tract symptoms, urinary flow rate, quality of life, and with minimal or no sexual side effects when compared to an untreated age-matched male population.”
About The Prolieve® Thermodilatation™ System
The Prolieve® Thermodilatation™ System offers potential relief to the millions of men who suffer from Benign Prostatic Hyperplasia (BPH), a condition that becomes common as men age. About half of men over 50 have some enlargement of the prostate gland, and this rises to about 90% among those over 70. As the prostate enlarges, it constricts the urethra, thereby restricting the passage of urine. Persistent restriction and further progression of BPH, if left untreated, often results in worsening of lower urinary tract symptoms (LUTS). Further complications of this process may result in urinary retention, bladder stones and infection, as well as compromised bladder and kidney function.
The Prolieve® System is a novel focused heat therapy which utilizes a unique combination of focused heat energy directed at the prostate in combination with a patented, water cooled and pressurized dilatation balloon to achieve immediate and long-term relief of BPH symptoms with very minimal treatment related side effects after a brief in-office procedure performed under local anesthesia. The unique advantage of this combined “heat plus compression” therapy is twofold: first, the heat denatures local tissue proteins of the (balloon) dilated urethra, resulting in an expanded and stiffened urethral lumen functioning as a biological stent. Second, the compression reduces local blood flow thus increasing the thermal efficiency of the microwave energy to achieve apoptosis and tissue ablation in the targeted prostate gland. As the transurethral microwave energy is applied to the entire prostate, a computerized feedback system involving the rectal temperature probe renders the rectal temperature not to exceed 41-42 ◦C, thus ensuring safety of the rectal wall and neurovascular bundles essential to preservation of erectile function.
About Medifocus, Inc.:
Medifocus, Inc. (TSXV-MFS, OTC-MDFZF) Medifocus, Inc. (TSXV-MFS, OTC-MDFZF) is a Biotechnology Company with a portfolio of medical technologies that utilize patented Focal Thermal Technology to treat conditions ranging from Prostate Diseases to Breast Cancer. Its Prolieve® Thermodilatation™ System offers symptomatic relief to men with Benign Prostatic Hyperplasia (BPH) through a simple, fast, in-office treatment. Prolieve® is both FDA and Medicare approved for treating symptomatic BPH with over 100,000 cases performed in the U.S. alone, and with proven long-term safety, efficacy and durability. Its APA 1000 Breast Cancer Treatment System was licensed from Massachusetts Institute of Technology and developed by the Medifocus team. The Targeted Focal Thermotherapy has been demonstrated in Phase 2 clinical trials to offer significantly better tumor shrinkage in patients treated with the combined Chemothermal therapy compared those treated with Chemotherapy alone. APA 1000 was also shown to be effective in reducing margin positivity among patients treated with such thermotherapy prior to lumpectomy.
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Forward-Looking Statements
This news release contains “forward-looking statements” and “forward-looking information”, which may not be based on historical facts. Forward-looking statements and forward-looking information, include, but are not limited to, information and statements with respect to the benefit to Medifocus’ future growth resulting from the acquisition of additional intellectual property rights, additional treatment possibilities and the expectation that sales from Prolieve® may accelerate as a consequence. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Such forward-looking statements and forward-looking information involve known and unknown risks, uncertainties and other factors that may cause the actual results events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements or forward-looking information. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements and forward-looking information. Except as required by applicable securities laws, the Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results, events or developments.
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Company Relations: Medifocus, Inc. Tel: 410-290-5734