Exhibit 99
EQUIDYNE CORPORATION
REPORTS FY 2003 FINANCIAL RESULTS
SAN DIEGO, Calif., August 28, 2003 (BW HealthWire) -- EQUIDYNE CORPORATION
(AMEX:IJX) announced today that it had filed its Form 10-KSB/A with the U.S.
Securities and Exchange Commission containing its audited financial results for
the year ended July 31, 2003. The net loss for the year was $(3,327,000), or
$(0.22) per share, compared to a net loss of $(9,478,000), or $(0.63) per share,
for the year ended July 31, 2002, a decrease of 65%. Total operating expenses
for the year were $4,465,000 compared to $13,886,000 in the prior year, a
decline of over 67%. A substantial portion of the losses in both the current
fiscal year and prior fiscal year was due to write-downs of assets in the
Company's needle-free subsidiary that cumulatively resulted in asset impairment
charges of $966,000 during the current fiscal year and $5,848,000 during the
prior fiscal year. Equidyne reported consolidated total revenues for the fiscal
year of $82,000, compared to $715,000 (including licensing revenues of $265,000)
during the prior fiscal year ended July 31, 2002, a decline of nearly 82%. The
Company had no licensing revenues during the fiscal year ended July 31, 2003.
Commenting on the results, Equidyne's CEO, Marcus Rowan, stated, "During the
past fiscal year, we enhanced Equidyne's technology portfolio available for
licensing or other strategic transactions by completing targeted product
development, obtained patent protection for the Low-Cost, Disposable Needle-Free
Injector System, filed for patent protection of the Multi-Component Ampule
technology in the U.S., and obtained 510(k) clearance from the Food and Drug
Administration (FDA) to market the needle-free INJEX 30 System for insulin
administration 'over the counter'. While accomplishing the foregoing, we were
nonetheless able to reduce our operating expenses by over 56%, from $8,038,000
in fiscal 2002 to $3,499,000 this year, continuing our program of operating
expense reduction."
"However, creating a successful business model in the needle-free industry has
remained extremely challenging with none of the public companies whose business
is based on needle-free technology achieving profitability. Indeed, two of them,
Weston Medical Group and Rosch AG Medizintechnik, filed for bankruptcy during
fiscal 2003. Consequently, we are actively seeking to license, sell or
consummate a strategic transaction involving the Company's needle-free
technology through ongoing discussions and negotiations. As we have mentioned
before, we are actively evaluating new business opportunities, investments
and/or acquisitions, and strategic alternatives with the assistance of Cypress
Associates LLC, Equidyne's independent financial advisor and investment banker,
with a goal of enhancing stockholder value."
Equidyne also reported that it had cash and short-term investments of $9.5
million and working capital of $12.4 million as of July 31, 2003. This compares
to cash and working capital of $13.1 million and $14.5 million, respectively as
of July 31, 2002.
For further information, please see the Company's Form 10-KSB which is available
over the internet at www.sec.gov or contact Jeffery Weinress, the Company's
Chief Financial Officer, at 858-587-7777.
EQUIDYNE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
July 31
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2003 2002
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(Thousands)
Assets
Cash, cash equivalents $ 9,517 $13,092
Deferred income taxes -- 1,902
Refundable income taxes 6,441 3,446
Other current assets 142 370
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Total current assets 16,100 18,829
Property and equipment, net 50 133
Deposits 5 46
Patents, net 490 1,612
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$16,645 $20,620
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Liabilities & Stockholders' Equity
Total current liabilities $ 3,706 $ 4,354
Total stockholders' equity 12,939 16,266
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Total liabilities and stockholders' equity $16,645 $20,620
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
July 31, July 31,
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2003 2002 2003 2002
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(Thousands, except per share amounts)
Total Revenues $ 18 $ 21 $ 82 $ 715
Cost of goods sold 84 179 155 839
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Gross profit (loss) (66) (158) (73) (124)
Selling, general, and administrative expenses 861 1,119 3,226 7,504
Research and development 61 137 273 534
Inventory write-down -- -- -- 295
Asset impairment 966 42 966 5,402
Other restructure charges -- -- -- 151
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Total operating expenses 1,888 1,298 4,465 13,886
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Operating loss (1,954) (1,456) (4,538) (14,010)
Other income (expenses):
Interest, net 22 62 140 441
Gain (loss) on sale of property and equipment 18 (23) 8 (23)
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40 39 148 418
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Loss before income tax benefit (1,914) (1,417) (4,390) (13,592)
Income tax benefit (325) (462) (1,063) (4,114)
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Net loss $(1,589) $ (955) $(3,327) $ (9,478)
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Net loss per common share, basic $ (0.11) $ (0.06) $ (0.22) $ (0.63)
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Net loss per common share, diluted $ (0.11) $ (0.06) $ (0.22) $ (0.63)
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About the Company:
Equidyne Corporation (www.equidyne.com), through Equidyne Systems, Inc., its
wholly-owned subsidiary based in San Diego, California, is working to capitalize
on its needle-free drug delivery systems for subcutaneous injections. The INJEX
needle-free injector is a compact, uncomplicated device that delivers a
virtually painless injection through the skin in a fraction of a second, and
eliminates needle stick and disposal problems. The INJEX System is a
comfortable, economical alternative to delivering medications using conventional
needle injections.
Certain statements contained herein and other written material and oral
statements made from time to time by us do not relate strictly to historical or
current facts. As such, they are considered 'forward-looking statements' within
the meaning of the Private Securities Litigation Reform Act of 1995 that provide
current expectations or forecasts of future events. Such statements are
typically characterized by terminology such as "believe," "anticipate,"
"should," "intend," "plan," "will," "expect," "estimate," "project," "strategy"
and similar expressions. Our forward-looking statements generally relate to our
ability to develop and execute our business plan, the prospects for future sales
of our products, the success of our international marketing activities, the
success of our strategic corporate relationships, the adoption and use of
needle-free technology and the success of our diversification and strategic
alternative initiatives. These statements are based upon assumptions and
assessments made by our management in light of its experience and its perception
of historical trends, current conditions, expected future developments and other
factors our management believes to be appropriate. These forward-looking
statements are subject to a number of risks and uncertainties, including the
following: our ability to achieve profitable operations and to maintain
sufficient cash to operate our business and meet our liquidity requirements; our
ability to obtain financing, if required, on terms acceptable to us, if at all;
the success of our research and development activities and our ability to obtain
regulatory authorizations for developed products, if any; competitive
developments affecting our current products; our ability to successfully
identify and attract strategic partners and to market both new and existing
products domestically and internationally; difficulties or delays in
manufacturing; trends toward managed care and health care cost containment;
exposure to product liability and other types of lawsuits and regulatory
proceedings; our ability to protect our intellectual property both domestically
and internationally; governmental laws and regulations affecting domestic and
foreign operations; our ability to identify and complete diversification
opportunities or strategic alternatives, including potential strategic
acquisitions, a potential sale or merger, a potential sale or license of assets,
including Equidyne's needle-free technology, and a potential liquidation; and
the impact of acquisitions, divestitures, restructurings, product withdrawals
and other unusual items, as well as other risks identified in our filings with
the Securities and Exchange Commission. Except as required by applicable law,
the Company undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.