FRISCO, TX, UNITED STATES, April 16, 2014 /EINPresswire.com/ -- Frisco, Texas, April 16, 2014 – OxySure Systems, Inc. (OTCQB: OXYS) (“OxySure,” or the “Company”), today announced financial and operating results for the fourth quarter and year ended December 31, 2013.

Fiscal Year 2013 Highlights:

• Revenues were $1.8 million, up 566%, led by a 787% increase in revenues in the United States
• Gross profit increased 55.4%; gross margins up to 72.8% from 46.8%
• General & administrative expenses down 3%
• Cash up to $657,673
• Notes payable down 26.3% to $349,975
• Working capital increased $2,173,647 to a surplus of $747,473
• Current ratio up to a healthy 1.88
• Stockholder equity increased by $2,339,709
• Total assets increased by $1,472,960 to $2,352,354
• Cash flows increased by $695,765
• Net loss per share for the year down to $.03 from $.06 the prior year

Julian T. Ross, Chairman of the Board and Chief Executive Officer of OxySure stated, “We finished the year strong, and our fundamentals continue to improve. We are pleased to have delivered on a number of our sales and business goals for the year, including growing our international distribution footprint, building our brand, diversifying our revenue streams and strengthening our balance sheet. I'm also very excited about the way our products are continuing to save or improve people's lives.”

For the fiscal year ended December 31, 2013, revenues increased by 566% to $1,800,327 from $270,387 in the comparable period last year. The increase was primarily driven by a 787% surge in revenues in the United States. Revenues from international markets also increased 305% to $498,286 for the year ended December 31, 2013, up from $122,900 during 2012. Sales from products for the military in connection with a teaming agreement also increased significantly to $627,200 for the twelve months ended December 31, 2013.

For the Company’s Model 615 portable emergency oxygen product, unit cartridge reorder rates continued to increase as the installed base of Model 615 increases, indicating the development of a very “sticky” customer relationship with the product upon adoption. Unit cartridge shipments for the first time exceeded unit shipments of Model 615: during fiscal year ended December 31, 2013 unit cartridge shipments represented 126% of Model 615 units shipped, up from 63% during 2012. As of December 31, 2013, replacement cartridges shipped represented 39.3% of the Model 615 installed base, up from 34.9% as at December 31, 2012. This is consistent with historical trends of rising reorders as customers become more accustomed to OxySure’s products.

Gross profit was $1,310,008 for the twelve months ended December 31, 2013, an increase of $1,183,371 or 934%, primarily due to the combined effect of an increase in service revenues and license fees, and an increase in product gross margins. Gross margin was 72.8%, up significantly from 46.8% in 2012.

Selling, general and administrative expenses for 2013 were $1,798,306 compared to $1,264,825 for fiscal year 2012. The Company increased sales and marketing expenses by 168% to $353,156 as it expanded its sales and marketing, branding and investor relations efforts. General and administrative expenses fell by 3% to $1,089,135 primarily as a result of decreases in employee stock option expense and salaries and wages, offset by increases in professional fees and rent expense.

Interest expense increased 15% from $217,018 during 2012 to $249,703 during 2013. The increase was primarily attributable to an increase of $57,637 in interest accrued on promissory notes, offset by a decrease of $25,911 in interest related to debt discount and amortization of warrant fair values.

Net loss during fiscal year ended December 31, 2013 decreased to $712,452, or $0.03 per share, as compared to $1,144,799 or $0.06 per share for fiscal year ended December 31, 2013. The weighted average shares outstanding were 23,754,402 and 19,880,342 for fiscal year 2013 and 2012, respectively.

The Company achieved significant improvements to its balance sheet. Cash was up to $657,673 at December 31, 2013 from just $13,513 at the end of 2012. Working capital increased $2,173,647 to a surplus of $747,473 from a deficit of $1,426,174 at the prior year end. The Company’s current ratio was up significantly to a healthy 1.88, up from just .17 at the prior year end.

The Company converted $462,448 of notes payable into common stock during 2013 at an aggregate conversion price of $.96 per share. Stockholder equity increased by $2,339,709 to a surplus of $1,423,374 at December 31, 2013, from a deficit of $916,335 at the end of December 31, 2012. Total assets increased by $1,472,960 to $2,352,354 at December 31, 2013, as compared to $879,394 at December 31, 2012.

Business updates

OxySure enters 2014 in a strong competitive position. Over the past twelve months, the Company has:

• Expanded its international distribution footprint significantly by adding new distributors such as Medizon B.V. for the Netherlands, Belgium and Luxembourg; Aero Healthcare in Australia and the United Kingdom; Pacific Medical Systems in Hong Kong and Macau; and Python in Chile;
• Added a comprehensive group of Automated External Defibrillators (AEDs) offerings and other complimentary products to provide its customers, distributors and agents a single source solution for medical emergency preparedness;
• Opportunistically invested in operational efficiencies; and
• Significantly improved its balance sheet to allow for more financial flexibility.

The Company plans to continue its focus on enhancing its competitive position across three areas: sales and marketing, regulatory approvals and product costs. These initiatives and investments will result in higher sales for OxySure in the future by allowing deeper and wider penetration of its existing markets, and by developing new markets, including international markets. At the same time, they will expand OxySure’s leadership position in the emergency/short duration oxygen market and the pre-hospital medical emergency market in general.

“We are excited about 2014 as we anticipate continued growth, new opportunities and even the possibility of a catalytic event,” said Mr. Ross. “We plan to continue to work hard to improve our products, our competitive position, and our category leadership, while striving to maintain our culture of innovation as we grow.

Stonegate Securities, Inc.
214-987-4121
email us here
Casey Stegman

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