OXYSURE SYSTEMS REPORTS FOURTH QUARTER AND FULL-YEAR 2012 RESULTS

Conference Call at 4:45 pm ET on April 1, 2013

Frisco, Texas, April 1, 2013 – OxySure®Systems, Inc. (OXYS: OTCQB) (“OxySure,” or the “Company”), today reported financial and operating results for the fourth quarter and year ended December 31, 2012.

Fiscal Year 2012 Highlights :

  • Revenues increased 46%, led by an 43% increase in product sales in the United States
  • Gross profit increased 113%; gross margins up from 44.2% to 64.6%
  • General & administrative expenses down 14%
  • Interest expense down by $401,594 or 66%
  • Notes payable decreased by $2,252,789
  • Stockholder equity increased by  $2,125,014
  • Cash outflows from operations increased by $569,004
  • Net loss per share for the year down from $.10 to $.04

Julian T. Ross, Chairman of the Board and Chief Executive Officer of OxySure stated, “We continued to build our brand and increase sales in our commercial market segment. We added Global Industrial, a division of Systemax and AED Professionals in the U.S. and Aero Healthcare to sell our products in Australia, New Zealand and the U.K. We have opportunistically invested in our sales and marketing initiatives, which include the addition of three territory representatives and several agents. These investments are just beginning to show results and we expect to see the financial contribution from these efforts accelerate in future quarters.”

For the fiscal year ended December 31, 2012, revenues increased by 46% to $269,697 from $185,209 in the comparable period last year. The increase was driven by a 43% increase in product sales in the United States. In fiscal year 2012, the Company added a significant new distributor in the AED sector, expanding its presence in the “AED companion market.” While revenues from K-12 education markets remained stable, revenues from international customers were strong, increasing by approximately 49% compared to 2011. The Company also expanded its commercial customer base, adding Halliburton, Oshkosh, Kinder Morgan, and Four Seasons to its growing list of marquee customers. Unit cartridge reorder rates were especially encouraging, representing approximately 35% of base unit sales for a 24-month sample period ending December 2012. This is consistent with historical trends of rising reorders as customers become more accustomed to OxySure’s products.

Gross profit was $174,110 for the twelve months ended December 31, 2012, an increase of 113%, primarily due to the combined effect of an increase in service revenues, and an increase in product gross margins. Gross margin was 64.6%, up significantly from 44.2% in 2011.

Selling, general and administrative expenses were $1,020,298 compared to $1,150,786 for fiscal year 2011. The Company increased sales and marketing expenses by 405% to $76,427 as it expanded its sales, branding and investor relations efforts. General and administrative expenses fell by 14% to $943,872 as a result of primarily as a result of a decrease in depreciation expense and employee stock option expense, offset by an increase in amortization expense.

Interest expense fell 66% from $608,316 during 2011 to $206,722 during 2012.

Net loss decreased to $828,272, or $0.04 per share, compared to $1,532,399 or $0.10 per share. The weighted average shares outstanding were 19,862,088 and 15,930,327 for fiscal year 2012 and 2011, respectively. The Company converted $2,433,850 of notes payable into common stock during 2012 at an aggregate conversion price of $1.42 per share.

Total assets increased by $267,863 to $1,215,797 at December 31, 2012. The Company increased its cash outflows from operations by $569,004 primarily as a result of the combined effects of a reduction in net loss, and an improvement in amortization expense. The Company is opportunistically evaluating various debt and equity options to finance its growth.

Business updates

OxySure enters 2013 in a strong competitive position. Over the past twelve months, the Company has:

  • Expanded its distribution footprint significantly in the U.S. and internationally by adding new distributors such as Global Industrial, a division of Systemax, Amazon and AED Professionals;
  • Added a comprehensive group of Automated External Defibrillators (AEDs) offerings to provide its customers, distributors and agents a total solution for medical emergency preparedness;
  • Opportunistically invested in operational efficiencies; and
  • Significantly reduced its debt  to allow for more financial flexibility.

The Company will 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 if its existing markets, and by developing new 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 strive to maintain our culture of innovation by developing new products and by combining them with complimentary, third party products in high growth markets, such as our six new brands of AEDs and related AED accessories,” concluded Mr. Ross. “We will continue to enter new markets and adjunct product categories by leveraging our core technology and sales infrastructure.”

Conference Call

OxySure’s CEO Julian Ross will host the conference call to discuss the Company’s fiscal year 2012 results.

Date:                                     Monday, April 1, 2013

Time:                                     4:45 pm ET

US Dial-In:                           1-877-317-6776

International Dial-In:      1-412-317-6776                

Conference ID:                 OxySure

Webcast:                             http://webcast.mzvaluemonitor.com/Cover.aspx?PlatformId=1063

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

A playback of the call will be available until 11:30 am ET on April 9, 2013. To listen, call +1-877-344-7529 within the United States or +1-412-317-0088 when calling internationally. Please use the replay PIN number 10026840. The playback of the call will also be made available on the investor relations section of the Company’s website.

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, 2012.

OXYSURE SYSTEMS INC.
 BALANCE SHEETS
December 31,
2012 2011
ASSETS
Current assets
Cash and cash equivalents $              13,514  $              65,118
Accounts receivable, net of allowances for sales returns and allowance for doubtful accounts 18,487                        2,758
Inventories 221,345                    247,956
Prepaid expenses and other current assets                              -                                  -
Total current assets                253,346                315,833
Property and equipment, net 27,599 133,659
   Intangible assets, net 418,479 445,168
Other assets 516,373                      53,274
TOTAL ASSETS  $         1,215,797  $            947,934
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses 595,655  $                245,340
Capital leases - current 296,116                    327,939
Notes payable - current 398,589                 1,565,059
Deferred revenue 499,225                    421,713
Total current liabilities                 1,789,585                 2,560,051
Long-term liabilities
Capital leases 2,265                        2,632
Notes payable 76,072                 1,162,390
Total long-term liabilities                      78,337                 1,165,022
TOTAL LIABILITIES                 1,867,922                 3,725,073
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.0005 per share; 25,000,000 shares authorized; 818,750 Series A convertible preferred shares issued and outstanding as of December 31, 2012 and 3,126,434 shares issued and outstanding as of December 31, 2011. 409                        1,563
Common stock, par value $0.0004 per share; 100,000,000 shares authorized; 22,548,678 shares of voting stock issued and outstanding as of December 31, 2012 and 16,519,865 shares issued and outstanding as of December 31, 2011 9,016                        6,608
Additional Paid-in Capital 13,597,117               10,645,347
Accumulated deficit (14,258,667)             (13,430,659)
TOTAL LIABILITIES  AND STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME                  (652,125)               (2,777,139)
TOTAL LIABILITIES  AND STOCKHOLDERS’ EQUITY  $         1,215,797  $            947,934
OXYSURE SYSTEMS INC.
STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
For the year ended December 31,
2012 2011
Revenues, net  $                    269,697  $                    185,209
Cost of goods sold                          95,587                        103,389
Gross profit                        174,110                          81,820
Operating expenses
Selling, general and administrative                     1,020,298                     1,150,786
Loss from operating expenses                       (846,188)                    (1,068,966)
Other income (expenses)
   Other income (expense)                        224,639                        144,882
Interest expense                       (206,722)                       (608,316)
Total other income (expenses)                          17,917                       (463,434)
Net loss                       (828,271)                    (1,532,399)
Accumulated deficit - beginning of the period                  (13,430,659)                  (11,898,260)
Prior period adjustments                               263                                    -
Accumulated deficit - end of the period  $              (14,258,667)  $              (13,430,659)
Basic net income (loss) per common share  $                         (0.04)  $                         (0.10)
Diluted net income (loss) per common share  $                         (0.04)  $                         (0.10)
Weighted average common shares outstanding:
Basic                   19,862,088                   15,930,327
Diluted                   19,862,088                   15,930,327
OXYSURE SYSTEMS INC.
STATEMENTS OF CASH FLOWS
Year Ended December 31,
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss  $          (828,271)  $       (1,532,399)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation                    138,936                    174,173
Amortization                      54,834                      29,766
Prior period adjustment                           263                                -
Amortization of debt discount                    189,611                    546,104
Changes in deferred rent                      65,079                    (18,106)
Issuance of common stock warrants in connection with license agreements                                -                                -
Issuance of common stock options to employees as compensation                        7,999                    104,419
Issuance of common stock options and warrants in exchange for services                      20,748                      29,354
Changes in current assets and liabilities:
Accounts receivable                    (15,729)                      (2,409)
Inventory                      26,611                    (20,265)
Prepaid expenses and other current assets                                -                    (40,666)
Accounts payable and accrued liabilities                    141,950                  (125,491)
Deferred revenue                      77,512                    166,058
NET CASH USED IN OPERATING ACTIVITIES                  (120,457)                  (689,461)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible assets                      (3,172)                      (1,231)
Other assets                                -                    (40,142)
Purchases of property and equipment                    (32,876)                      (3,435)
NET CASH USED IN INVESTING ACTIVITIES                    (36,048)                    (44,808)
CASH FLOWS FROM FINANCING ACTIVITIES
Loan proceeds, net                      (8,549)                    763,940
Payment of capital leases                    (32,190)                    (27,810)
Issuance of common stock for cash                      41,250 -
Proceeds from exercise of common stock options and warrants                    104,390                      23,370
NET CASH PROVIDED BY FINANCING ACTIVITIES                    104,901                    759,500
Net decrease in cash and cash equivalents                    (51,604)                      25,231
Cash and cash equivalents, at beginning of period                      65,118                      39,887
Cash and cash equivalents, at end of period  $              13,514  $              65,118
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest  $                   679  $                4,368
Income taxes  $                        -  $                        -
Supplemental non-cash investing and financing activities:
Promissory subordinated convertible notes issued in connection  $                        -    $            200,100
with rent satisfaction agreements
Issuance of common stock upon conversion of convertible notes  $         2,433,850  $            465,969
Promissory subordinated convertible note issued in connection with
   with distribution agreement and licensing agreement
Issuance of common stock warrants in connection with  $                        -    $            458,114
convertible notes
Issuance of common stock upon conversion of preferred stock  $         2,307,684  $                        -  
Website development with financing arrangement  $            143,286  $                        -  
Issuance of common stock for assets acquired  $              95,062  $                        -  
Issuance of common stock in connection with deferred loan costs  $            249,723  $                        -  

Contacts:

Investor Relations, US West:
MZ North America
Ted Haberfield, President
Tel: +1-760-755-2716
Email: thaberfield@mzgroup.us
Web: www.mzgroup.us

Media Relations:
Chris Castaldo
Tel: +1-516-656-0217
Email: chriscastaldo@aol.com

Investor Relations, US East:
Barwicki Investor Relations
Andrew Barwicki, President
Email: andrew@barwicki.com

Tags:

About Us

OxySure Systems, Inc. is a Frisco, Texas-based medical technology company that focuses on the design, manufacture and distribution of specialty medical and respiratory 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 public settings.

Subscribe