MONTREAL, QUEBEC -- (Marketwired) -- 07/28/15 -- Extenway Solutions Inc. ("Extenway") (TSX VENTURE: EY) is pleased to announce the filing of the company's financial statements for the quarter and year ended April 30, 2015, together with the related management discussion and analysis (MD&A). These documents are available at www.sedar.com.
Update on current installations
On June 26, 2015, Extenway announced the closing of secured loan and secured debenture for combined gross proceeds of an amount of $1,600,000. The proceeds will be used to install bedside terminals in hospitals under existing contract. The closing of this financing also introduces Knight Therapeutics inc. as a new financial and strategic partner. Extenway now has a total of 3,257 bedside terminals in thirteen hospitals under contract in Quebec and Ontario. In addition, largely following response to tenders, Extenways has been selected for contract negotiations with another nine hospitals in Quebec and Ontario, representing a further 3,080 bedside terminals.
Mr. John McAllister, President and CEO, stated "The Company maintains a strong technological position and will benefit from the increasing number of proposals specifying medical and other applications. Over the initial ten year contract periods the 6,337 potential terminal installations should generate $65-$70 million in base revenues while enabling other potentially significant income streams."
Extenway plans to respond to additional tenders in the forthcoming twelve months, representing potential contracts for the installation and services of an additional 8,000 bedside terminals. Extenway has also begun to penetrate the US Market with its distributor, Flowcorn. Presentations to hospital groups and to Federal government entities are ongoing.
Financial statements for the quarter and year ended April 30, 2015
In the three months ended April 30, 2015 Extenway had sales of $ 373,729 and a net loss of $ 3,822,161 compared to sales of $ 216,997 and a net loss of $ 1,529,570 in the same period of the prior year. In the year ended April 30, 2015 Extenway had sales of $ 1,458,162 and a net loss of $ 7,627,227 compared to sales of $ 563,230 and a net loss of $ 4,970,236.
During the current quarter and year ended April 30, 2015 Extenway incurred an expense of $1,456,883 in relation to the conversion of convertible debentures into equity. The expense relates to the difference between the initial conversion prices embedded in the convertible debentures and the actual conversion price negotiated. The conversion reduced the Company's liabilities by $ 6,681,765. The current quarter and year also includes a non-recurring asset impairment charge of $ 620,000 compared to $ 261,000 in the prior year periods. All of these expenses are non-cash.
Excluding these items the net loss would be $ 1,745,278 and $ 5,550,344 in the three months and year ended April 30, 2015 compared to $ 1,268,570 and $ 4,709,236 in the same periods of the prior year.
About Extenway Solutions Inc.
Extenway Solutions is a supplier of client-focused solutions for the healthcare industry. Services offered by Extenway include interactive television, healthcare integrated bedside terminals for patients, internet, entertainment, content integration, advertising, education and the most promising and attractive function, the medical integrated solutions. Extenway allows organizations to optimize management and coordination of human interactions as well as communications, information and coordination. For further information, please visit extenway.com or follow us on Twitter @Extenway.
Certain statements that appear in this news release constitute forward-looking statements. These forward-looking statements relate to future financial conditions, results of operations or business of Extenway. These statements may be current expectations and estimates about the markets in which Extenway operates and management's beliefs and assumptions regarding these markets. These statements involve significant risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. The results or events predicted in forward-looking statements may differ materially from actual results or events. Extenway disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In particular, forward-looking statements do not reflect the potential impact of any merger, acquisitions or other business combinations or divestitures that may be announced or completed after such statements are made.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
President and CEO
Extenway Solutions Inc.