Parallax Health Sciences Reports Third Quarter 2019 Financial Results

SANTA MONICA, Calif., Nov. 18, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Parallax Health Sciences, Inc. (OTCQB: PRLX) (“Parallax”), an outcome-driven connected healthcare company, reports financial results for the three and nine months ended September 30, 2019 and provides a business update. 
“We are continuing to make progress, and our third quarter shows improvement in revenues and a reduction in expenses, while we reduced our shareholders deficit to under $5 million from more than $28 million in less than two years since December 31, 2017.  We have positioned Parallax and its operating subsidiaries for accelerated growth, and upon completion of additional financial engineering, we expect the Company’s financial performance to demonstrate marked improvement in the future,” stated Paul Arena, Chief Executive Officer of Parallax Health Sciences. “In addition, we are getting ready to launch our service offerings across a number of verticals with a software-as-a-service (SaaS) business model to provide recurring revenues.  We also continue to execute strategic intellectual property licenses that are highly profitable to us, and give us a further upside through royalty revenues in the future.”“The global IoT in the healthcare market size is projected to reach over US$500 billion by 2025, expanding at a compounded annual growth rate of nearly 20% over that same period. Our technology platform provides vital outcomes optimization, as well as measurement and interventional tools, that are poised to meet the scale and extraordinary demands of our growing marketplace,” Mr. Arena added. “Our platform is ubiquitous, connecting to all IoT devices, and is the only platform that enables legacy and non-IoT diagnostic and biometric measurement devices to deliver data to the cloud. Our Good Health Outcomes platform has been developed to address the nearly US$1 trillion in waste in the US medical system by addressing patients’ adherence to medical and pharmaceutical regimens.” Third Quarter Financial Highlights
Total revenues from continuing operations for the three months ended September 30, 2019 were $25,855, compared with total revenues of $990 for the third quarter of 2018. A net loss from continuing operations of $2.4 million was recognized for the third quarter of 2019, or $0.01 per diluted share, compared with a net profit from continuing operations for the third quarter of 2018 of $25.0 million, or $0.12 per diluted share. The $27.4 million difference in net income from continuing operations is primarily due to extraordinary gains from the disposal of a subsidiary, and related extinguished debt, recognized during the 2018 fiscal year.Cost of sales from continuing operations for the third quarter of 2019 were $3,899, compared with cost of sales of $5,230 for the same period last year. The decrease is due to lower expenses related to the human capital necessary to facilitate the effective delivery of the Company’s remote patient monitoring and related services to its customers.  Gross profit for the third quarter of 2019 was $21,956, an improvement from a gross loss from continuing operations of ($4,240) in the quarter ended September 30, 2018.General and administrative (G&A) expenses for the third quarter of 2019 were $1.9 million, a 10% decrease from G&A expenses from continuing operations of $2.1 million for the same period last year. The decrease was primarily due to a reduction in legal and professional fees of $300,401. Stock compensation of $1.15 million represented a major component of G&A expenses in the third quarter of 2019.In the third quarter of 2018, the Company deconsolidated RoxSan Pharmacy, recognizing a gain of $5,079,416, as well as a gain of $22,781,281 from the debt extinguished in connection with the subsidiary.Net income (loss) from continuing operations for the three months ended September 30, 2019 was ($2.4) million, or ($0.01) per diluted common share, compared with net income of $25.0 million, or $0.17 per share, for the same period last year. Year-to-date Financial Results
Total revenues from continuing operations for the nine months ended September 30, 2019 were $77,745, compared to total revenues from continuing operations of $10,749 for the same period last year. The increase in revenues is primarily due to licensing fees collected in the current year.  Gross profit increased to $64,874 for the nine months ended September 30, 2019, compared with a gross (loss) from continuing operations of ($4,758) for the nine months ended September 30, 2018, an improvement of $69,632.  Total operating expenses decreased to $5.20 million for the nine months ended September 30, 2019, compared with operating expenses from continuing operations of $5.25 million for the same period last year.The Company recorded a net operating loss from continuing operations of $5.1 million, or $0.02 per diluted share, for the nine months ended September 30, 2019, compared with a net operating loss of $5.2 million or $0.03 per diluted share, for the same period last year.Discount amortization and interest expense decreased significantly, from $4.5 million for the nine months ended September 30, 2018, to $0.5 million for the current year, a reduction of over $4.0 million.A net loss of $6.5 million was recognized for the nine months ended September 30, 2019, compared to net income of $17 million for the same period last year.  Excluding the extraordinary gains of $28 million recognized in the prior year, the net loss for the current year was reduced by $4.2 million.Business Outlook
The Company forecasts that recognizable revenues will be sufficient to achieve breakeven from operations by the end of 2020, subject to the conversion of prospective business opportunities into revenues within the period.Intellectual Property Portfolio
Parallax’s solutions are supported by its intellectual property portfolio. The Company now owns or has exclusive licenses for 5 patent families and 15 patents with 6 additional patents pending with the United States Patent & Trademark Office, along with hundreds of claims. The claims cover a broad range of the Company’s proprietary technologies and products. Parallax also owns 4 trademarks protecting the names of its products and identity in the marketplace.About Parallax Health Sciences
Parallax Health Sciences is an advanced technology, outcome-driven telehealth company that allows for cost-effective remote diagnosis, treatment and monitoring of patients through proprietary platforms of integrated products and services. The Company’s interoperable novel applications provide patients point-of-care testing and monitoring with information communicated via internet-based mobile phone applications that are agnostic as to operating system and are built on highly sophisticated data analytics. Information is retrieved real-time by physicians who are monitoring patients with chronic diseases or through biometric feedback for health-related behavior modification, and is automated for integration into electronic health records. The Company’s products and offerings capitalize on the digital transformation in healthcare for improved patient compliance, diagnosis and treatment, and support healthcare system cost savings and efficiencies. For more information, please visit www.parallaxhealthsciences.com or www.parallaxcare.com.Forward-Looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our Form 10-K and other reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.Investor Contact:The accompanying notes are an integral part of these consolidated financial statements.The accompanying notes are an integral part of these consolidated financial statementsThe accompanying notes are an integral part of these consolidated financial statements