OXYSURE SYSTEMS (OXYS) REPORTS FOURTH QUARTER AND FULL-YEAR 2013 RESULTS

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Conference Call at 9:00 am ET on April 16, 2014

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.”

Conference Call

OxySure’s CEO Julian Ross will host the conference call to discuss the Company’s fiscal year 2013 results.

Date:                           Wednesday, April 16, 2014

Time:                           9:00 am ET

US Dial-In:                 1 (866) 352-2112  US Toll Free

International Dial-In:  1 (630) 691-2779                   

Passcode:                    7064 119#

For webcast link:         http://www.oxysure.com/aed/index.php/investors-home

Please dial in at least 10-minutes before the call to ensure timely participation.

About OxySure Systems, Inc.

OxySure Systems, Inc. (OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The company owns numerous issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. OxySure's products improve access to emergency oxygen that affects the survival, recovery and safety of individuals in several areas of need: (1) Public and private places and settings where medical emergencies can occur; (2) Individuals at risk for cardiac, respiratory or general medical distress needing immediate help prior to emergency medical care arrival; and (3) Those requiring immediate protection and escape from exposure situations or oxygen-deficient situations in industrial, mining, military, or other "Immediately Dangerous to Life or Health" (IDLH) environments. www.OxySure.com

Forward-Looking Statements

Statements in this earnings release that are not historical facts are considered to be forward-looking statements. Such statements include, but are not limited to, statements regarding management beliefs and expectations, based upon information available at the time the statements are made, regarding future plans, objectives and performance. All forward-looking statements are subject to risks and uncertainties, many of which are beyond management’s control and actual results and performance may differ significantly from those contained in forward-looking statements. OxySure Systems, Inc. intends any forward-looking statement to be covered by the Litigation Reform Act of 1995 and is including this statement for purposes of said safe harbor provisions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. OxySure Systems, Inc. undertakes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date as of which such statements are made. A discussion of certain risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements is included in OxySure Systems, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2013.

OXYSURE SYSTEMS INC.
 BALANCE SHEETS
December 31,
2013 2012
 Restated
ASSETS
Current assets
Cash and cash equivalents  $                         657,673  $                         13,513
Accounts receivable, net of allowances for sales returns and allowance for doubtful accounts                                  47,183                                  18,486
Inventories                               287,666                               221,345
License fees receivable                               500,000                                           -  
Prepaid expenses and other current assets                                107,305                                 36,903
Total current assets                      1,599,827                        290,247
Property and equipment, net                                 70,249                                 46,489
     Intangible assets, net                               392,746                               418,478
Other assets                               289,532                                124,180
TOTAL ASSETS  $                      2,352,354  $                       879,394
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses  $                         147,719  $                       302,433
Related party payable                                 118,627                              207,472
Deferred revenue                                    2,976                              499,226
Capital leases - current                                309,129                               308,701
Notes payable - current, net of discount                                 44,000                                  31,588
Convertible notes payable, net of discount                               229,903                               367,001
Total current liabilities                               852,354                              1,716,421
Long-term liabilities
Capital leases                                       554                                   3,236
Notes payable, net of discount                                 76,072                                 76,072
Total long-term liabilities                                 76,626                                 79,308
TOTAL LIABILITIES                               928,980                            1,795,729
COMMITMENTS AND CONTINGENCY (NOTE 9)
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.0005 per share; 25,000,000 shares authorized;
743,750 Series A convertible preferred shares issued and outstanding as of December 31, 2013 and 818,750 shares issued and outstanding as of December 31, 2012.                                        371                                       409
750 Series B convertible preferred shares issued and outstanding as of December 31, 2013 and 0 shares issued and outstanding as of December 31, 2012.                                             -                                           -  
Common stock, par value $0.0004 per share; 100,000,000 shares authorized;
25,854,307 shares of voting common stock issued and outstanding as of December 31, 2013 and 22,548,678  shares issued and outstanding as of December 31, 2012                                  10,343                                   9,020
Additional Paid-in Capital                          16,700,307                          13,649,431
Accumulated deficit                        (15,287,647)                        (14,575,195)
   TOTAL STOCKHOLDERS’ EQUITY                            1,423,374                             (916,335)
TOTAL LIABILITIES  AND STOCKHOLDERS’ EQUITY  $                      2,352,354  $                       879,394

OXYSURE SYSTEMS INC.
STATEMENTS OF OPERATIONS
For the year ended December 31,
2013 2012
Restated
Revenues, net  $              1,800,327  $                 270,387
Cost of goods sold                        490,319                        143,750
Gross profit                     1,310,008                        126,637
Operating expenses
    Research and development                        356,015                          25,816
    Sales and marketing                        353,156                        131,933
Other general and administrative                     1,089,135                     1,107,076
Loss from operations                       (488,298)                    (1,138,188)
Other income (expenses)
   Other income (expense)                          25,825                        210,407
Interest expense                       (249,979)                       (217,018)
Total other income (expenses)                       (224,154)                           (6,611)
Net loss  $              (712,452)  $           (1,144,799)
Basic net income (loss) per common share  $                    (0.03)  $                    (0.06)
Diluted net income (loss) per common share  $                    (0.03)  $                    (0.06)
Weighted average common shares outstanding:
Basic                   23,754,402                   19,880,342
Diluted                   23,754,402                   19,880,342

OXYSURE SYSTEMS INC.
STATEMENTS OF CASH FLOWS
Year Ended December 31,
2013 2012
Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)  $           (712,452)  $       (1,144,799)
Adjustments to reconcile net income (loss) to net
cash from operating activities:
Depreciation and amortization expense                53,159              166,072
Amortization of debt discount and beneficial conversion features                      207,239                      202,023
Expenses paid by related parties                37,335                21,358
Gain on forgiveness of debt by related parties                         -            (163,570)
Stock based compensation                        61,480              134,257
Stock issued for services              126,756                76,376
Changes in operating assets and liabilities:
Accounts receivable          (28,697)          (15,728)
Inventories          (66,321)            26,611
Deferred license fees        (500,000)                     -
Other assets          106,148          107,530
Accounts payable and accrued liabilities          (72,601)          134,969
Deferred revenue          (72,837)            77,513
NET CASH USED IN OPERATING ACTIVITIES                    (860,791)                    (377,388)
CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of property and equipment                      (12,105)                      (32,876)
Purchase of intangible assets                (4,262)                (3,172)
NET CASH USED IN INVESTING ACTIVITIES                      (16,367)                      (36,048)
CASH FLOWS FROM FINANCING ACTIVITIES
    Common stock issued for cash                      347,364                        41,250
    Series B preferred stock issued for cash and warrants                      750,000                                 -
Common stock issued for cash and warrants              216,800                         -
Cash received from related parties                42,470              555,599
Payments made to related parties            (268,950)            (264,665)
Cash received notes payable                         -                         -
Payments made on notes payable                         -                         -
Cash received from convertible notes payable              431,500              125,000
Payments made on convertible notes payable                         -              (85,998)
Payments on capital leases                (2,254)              (18,634)
    Exercising of warrants                          4,388                          9,279
NET CASH PROVIDED BY FINANCING ACTIVITIES                   1,521,318                      361,831
Net change in cash and cash equivalents                      644,160                      (51,605)
Cash and cash equivalents, at beginning of period                        13,513                        65,118
Cash and cash equivalents, at end of period  $           657,673  $               13,513
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest  $             18,792  $                     679
Income taxes  $                        -  $                          -
Supplemental non-cash investing and financing activities:
Capitalization of deferred loan costs  $             48,012  $             144,433
Common stock issued for services and rent extension                      179,710                               -  
Common stock issued for capitalized website development costs                      114,180                        37,840
Common stock issued for capitalized URL's                               -                          33,066
Cashless exercise of warrants for forgiveness of debt                        14,700                        95,000
Conversion of notes payable                               -                          20,000
Conversion of convertible notes payable                      447,748                   2,413,841
Benefical conversion feature                      317,609                               -  
Conversion of Series A preferred stock to common stock                               38                          1,154
Conversion of accrued rent to common stock                      423,413                               -  

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