0001096906-14-001627.txt : 20141114 0001096906-14-001627.hdr.sgml : 20141114 20141114161403 ACCESSION NUMBER: 0001096906-14-001627 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20141113 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20141114 DATE AS OF CHANGE: 20141114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BSD MEDICAL CORP CENTRAL INDEX KEY: 0000320174 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 751590407 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32526 FILM NUMBER: 141224304 BUSINESS ADDRESS: STREET 1: 2188 W 2200 SOUTH CITY: SALT LAKE CITY STATE: UT ZIP: 84119 BUSINESS PHONE: 8019725555 MAIL ADDRESS: STREET 1: 2188 WEST STREET 2: 2200 SOUTH CITY: SALT LAKE CITY STATE: UT ZIP: 84119 8-K 1 bsd.htm BSD MEDICAL CORPORATION 8K 2014-11-13 bsd.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  November 13, 2014
 
BSD MEDICAL CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
001-32526
75-1590407
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

2188 West 2200 South
Salt Lake City, Utah 84119
(Address of principal executive offices, including Zip Code)
 
Registrant’s telephone number, including area code:  (801) 972-5555
 
N/A
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
Item 2.02  Results of Operations and Financial Condition.
 
On November 13, 2014, BSD Medical Corporation (the “Company”) issued a press release reporting financial results for its fiscal year ended August 31, 2014.  A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
 
Item 9.01  Financial Statements and Exhibits.
 
(d) Exhibits.
 
Exhibit No.
  
Description
99.1
  
Press release dated November 13, 2014 regarding financial results for the fiscal year ended August 31, 2014
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
BSD MEDICAL CORPORATION
Date:  November 14, 2014
  
   
 
By:      /s/ William S. Barth
 
Name:  William S. Barth
 
Title:    Chief Financial Officer
 
 
 
 
 
 
 
 EX-99.1 2 bsdexh991.htm PRESS RELEASE DATED NOVEMBER 13, 2014 REGARDING FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED AUGUST 31, 2014 bsdexh991.htm
Exhibit 99.1
 
 
Contact: Tricia Ross
BSD MEDICAL CORPORATION
Telephone : 310-622-8226
2188 West 2200 South
Email: investor@bsdmc.com
Salt Lake City, Utah 84119-1326
NASDAQ:BSDM

For Immediate Release
 
BSD Medical Announces Fiscal Year 2014 Financial Results
 
SALT LAKE CITY, November 13, 2014 -- BSD Medical Corporation (NASDAQ:BSDM) (Company or BSD) (www.BSDMedical.com), a provider of medical systems that treat cancer and benign diseases using heat therapy, today reported financial results for its fiscal year ended August 31, 2014.
 
Financial Highlights for Fiscal Year 2014

·
Total revenues of $5.3 million, a $1.6 million increase from $3.7 million for fiscal year 2013
   
·
Total stockholders’ equity of $10.7 million
   
·
Net loss of $7.1 million compared to $8.3 million for fiscal year 2013
   
·
Solid balance sheet; cash and cash equivalents of $8.1 million and no long-term debt
 
ManagementCommentary
 
“Revenue grew by 45% in the 2014 fiscal year compared to the prior year, driven by increased sales of disposable microwave ablation antennas in Europe, fees from the MicroThermX® generator rental program, and sales of hyperthermia systems,” said Clint Carnell, CEO of BSD Medical. “BSD also achieved a number of important operational milestones this year, including obtaining regulatory import approval in China and Taiwan for the BSD-2000 and introducing MicroThermX products into several key European countries in collaboration with Terumo Europe N.V.”
 
“I am excited about the opportunity to expand sales of MicroThermX through a well-executed commercialization effort that will begin with building stronger awareness among patients, physicians and the healthcare system of the benefits of our microwave ablation system. There is significant opportunity to penetrate the U.S. market, where cancer remains the second-leading cause of death. I believe we have the right product to disrupt the current standard of care for diseased soft-tissue and can capitalize on developing trends in the healthcare system by providing cost-effective, less-invasive treatment options with MicroThermX. I look forward to sharing more specific details of our plans to capture market share in the coming months,” concluded Mr. Carnell.
 
Fiscal 2014 Financial Highlights
 
Revenues for the fiscal year ended August 31, 2014 increased $1.6 million, or 45%, to $5.3 million, compared with the fiscal year ended August 31, 2013. This increase was primarily due to increases in sales of our disposable SynchroWave antennas, increased revenue from our fee-per-use rental program for MicroThermX generators, and increases in shipments of our hyperthermia systems and was partially offset by slower sales of MicroThermX generators.
 
Gross margin was $2.4 million or 45% of revenues for fiscal 2014, and compared with $1.4 million, or 38% of revenues for fiscal 2013. The improvement in gross margin and gross margin as a percentage of sales resulted from increasing MicroThermX sales, particularly sales of consumable devices and equipment rentals as well as increased sales of our higher margin hyperthermia products.
 
Operating expenses of $9.5 million for the year ended August 31, 2014 decreased by 2% compared with the year ended August 31, 2013. Total cost of sales for fiscal 2014 was $2.9 million compared with $2.3 million for fiscal 2013, with the increase resulting primarily from increasing hyperthermia and MicroThermX antenna sales. Research and development expenses for fiscal 2014 of $2.2 million declined 2% from $2.3 million for fiscal 2013. Selling, general and administrative expenses were $7.3 million for fiscal 2014 compared with $7.4 million for fiscal 2013. While these total expenses were relatively constant from year to year, we continued to expand our MicroThermX sales and marketing activities, support personnel and related operating expenses in the current year.
 
The Company reported a net loss of $7.1 million, or $0.20 per share, for fiscal 2014, compared with a net loss of $8.3 million, or $0.26 per share, for fiscal 2013, an improvement of $1.2 million, or $0.06 per share.
 
 
 
 
 
About BSD Medical Corporation
 
BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused microwave energy and radiofrequency (RF). BSD’s product lines include ablation and hyperthermia treatment systems. BSD’s microwave ablation system has been developed as a stand-alone therapy to ablate and destroy soft tissue. The Company has developed extensive intellectual property, multiple products in the market, and well established distribution in the United States, Europe and Asia. BSD’s hyperthermia cancer treatment systems, which have been in use for several years in the United States, Europe and Asia, are used to treat certain tumors with heat (hyperthermia) while increasing the effectiveness of other therapies such as radiation therapy. Certain of the Company’s products have received regulatory approvals in the United States, Europe and China. For further information visit BSD Medical's website at www.BSDMedical.com.
 
Forward-Looking Statements
 
Statements contained in this press release that are not historical facts, including statements relating to our 2014 and 2015 plans, are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the market demand for our MicroThermX® products and the regulatory requirements we face. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date, except as required by law.

 
 
 
 
BSD MEDICAL CORPORATION
  
Balance Sheets
  
   
   
August 31,
  
ASSETS
  
2014
    
2013
  
             
Current assets:
            
Cash and cash equivalents
  
$
8,130,416
    
$
9,450,528
  
Accounts receivable, net of allowance for doubtful accounts of $20,000
    
366,887
      
899,969
  
Related party trade accounts receivable
    
8,322
      
24,201
  
Inventories, net
    
2,329,189
      
2,445,770
  
Other current assets
    
146,319
      
200,028
  
Total current assets
    
10,981,133
      
13,020,496
  
                 
Property and equipment, net
    
1,267,661
      
1,319,880
  
                 
Total assets
  
$
12,248,794
    
$
14,340,376
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
          
 
Current liabilities:
                
Accounts payable
  
$
548,897
    
$
521,417
  
Accrued liabilities
    
866,528
      
573,880
  
Note payable
    
33,279
      
-
  
Customer deposits
    
41,781
      
317,480
  
Deferred revenue – current portion
    
96,043
      
730,593
  
Total current liabilities
    
1,586,528
      
2,143,370
  
                 
Deferred revenue – net of current portion
    
-
      
53,115
  
                 
Total liabilities
    
1,586,528
      
2,196,485
  
                 
Commitments and contingencies
                
                 
Stockholders’ equity:
                
Preferred stock, $.001 par value; 10,000,000 shares authorized, no shares issued and outstanding
    
-
      
-
  
Common stock, $.001 par value, 80,000,000 shares authorized, 39,713,540 and 34,006,202 shares issued, respectively
    
39,714
      
34,007
  
Additional paid-in capital
    
63,394,556
      
57,739,056
  
Treasury stock, 24,331 shares at cost
    
(234
)
    
(234
)
Accumulated deficit
    
(52,771,770
)
    
(45,628,938
)
Total stockholders’ equity
    
10,662,266
      
12,143,891
  
Total liabilities and stockholders' equity
                
   
$
12,248,794
    
$
14,340,376
  
 
 
 
 
 
BSD MEDICAL CORPORATION
  
Statements of Comprehensive Loss
  
   
   
Years Ended August 31,
  
   
2014
    
2013
    
2012
  
Revenues:
                  
Sales
  
$
4,544,204
    
$
3,274,796
    
$
1,608,179
  
Sales to related parties
    
419,549
      
99,896
      
333,663
  
Equipment rental
    
364,600
      
298,600
      
129,350
  
Total revenues
    
5,328,353
      
3,673,292
      
2,071,192
  
                         
Cost of revenues:
                        
Cost of sales
    
2,613,921
      
2,161,967
      
1,244,290
  
Cost of related party sales
    
313,156
      
87,694
      
260,553
  
Cost of equipment rental
    
11,788
      
11,788
      
11,788
  
Total cost of revenues
    
2,938,865
      
2,261,449
      
1,516,631
  
                         
Gross margin
    
2,389,488
      
1,411,843
      
554,561
  
                         
Operating costs and expenses:
                        
Research and development
    
2,229,043
      
2,281,854
      
2,364,608
  
Selling, general and administrative
    
7,308,643
      
7,403,273
      
6,203,200
  
Total operating costs and expenses
    
9,537,686
      
9,685,127
      
8,567,808
  
                         
Loss from operations
    
(7,148,198
)
    
(8,273,284
)
    
(8,013,247
)
                         
Other income (expense):
                        
Interest income
    
22,491
      
32,225
      
59,783
  
Other expense
    
(15,125
)
    
(8,694
)
    
(6,208
)
Total other income (expense)
    
7,366
      
23,531
      
53,575
  
                         
Loss before income taxes
    
(7,140,832
)
    
(8,249,753
)
    
(7,959,672
)
                         
Income tax provision
    
(2,000
)
    
(1,938
)
    
(988
)
                         
Net loss and comprehensive loss
  
$
(7,142,832
)
  
$
(8,251,691
)
  
$
(7,960,660
)
                         
Loss per common share:
                        
Basic
  
$
(0.20
)
  
$
(0.26
)
  
$
(0.27
)
Diluted
  
$
(0.20
)
  
$
(0.26
)
  
$
(0.27
)
                         
Weighted average number of shares outstanding:
                        
Basic
    
34,967,000
      
31,414,000
      
29,717,000
  
Diluted
    
34,967,000
      
31,414,000
      
29,717,000
  
 
 
 
 
 
BSD MEDICAL CORPORATION
Statements of Cash Flows

   
Years Ended August 31,
  
   
2014
    
2013
    
2012
  
Cash flows from operating activities:
                  
Net loss
  
$
(7,142,832
)
  
$
(8,251,691
)
  
$
(7,960,660
)
Adjustments to reconcile net loss to net cash used in operating activities:
                        
Depreciation and amortization
    
125,824
      
132,153
      
151,721
  
Stock issued for services
    
180,000
      
180,002
      
180,000
  
Stock-based compensation
    
844,628
      
1,134,811
      
1,206,398
  
Loss (gain) on disposition of property and equipment
    
(30
)
    
-
      
118
  
Decrease (increase) in:
                        
Receivables
    
548,961
      
(601,326
)
    
482,743
  
Inventories
    
116,581
      
(41,813
)
    
2,257
  
Other current assets
    
53,709
      
(79,959
)
    
1,079
  
Increase (decrease) in:
                        
Accounts payable
    
27,480
      
325,663
      
(106,182
)
Accrued liabilities
    
292,648
      
149,182
      
92,694
  
Customer deposits
    
(275,699
)
    
292,500
      
24,980
  
Deferred revenue
    
(687,665
)
    
560,423
      
(11,087
)
                         
Net cash used in operating activities
    
(5,916,395
)
    
(6,200,055
)
    
(5,935,939
)
                         
Cash flows from investing activities:
                        
Purchase of property and equipment
    
(75,599
)
    
(35,562
)
    
(97,521
)
Proceeds from disposition of property and equipment
    
2,025
      
-
      
-
  
                         
Net cash used in investing activities
    
(73,574
)
    
(35,362
)
    
(97,521
)
                         
Cash flows from financing activities:
                        
Net proceeds from the sale of common stock
    
4,636,579
      
4,583,437
      
-
  
Proceeds from note payable
    
74,052
      
-
      
-
  
Payments on note payable
    
(40,774
)
    
-
      
-
  
                         
Net cash provided by financing activities
    
4,669,857
      
4,583,437
      
-
  
                         
Net increase (decrease) in cash and cash equivalents
    
(1,320,112
)
    
(1,651,980
)
    
(6,033,460
)
Cash and cash equivalents, beginning of year
    
9,450,528
      
11,102,508
      
17,135,968
  
                         
Cash and cash equivalents, end of year
  
$
8,130,416
    
$
9,450,528
    
$
11,102,508