Form 8-K VirtualScopics, Inc. For: May 06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported)

May 6, 2015

 

VIRTUALSCOPICS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other jurisdiction of incorporation)

 

000-52018	04-3007151
(Commission File Number)	(IRS Employer Identification No.)

 

500 Linden Oaks, Rochester, New York	14625
(Address of principal executive offices)	(Zip Code)

 

Registrant's telephone number, including area code

(585) 249-6231

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

INFORMATION TO BE INCLUDED IN THE REPORT

 

Section 2 – Financial Information

 

Item 2.02 Results of Operations and Financial Condition

 

On May 6, 2015, VirtualScopics, Inc. (the “Company”) issued a press release announcing the financial results for the first quarter ended March 31, 2015. A copy of the press release is attached hereto as Exhibit 99.1.

 

The information furnished pursuant to this Item 2.02 and the exhibits hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act except as shall be expressly set forth by specific reference in such filing.

 

Section 7 – Regulation FD

 

Item 7.01 Regulation FD Disclosure

 

On May 6, 2015, at 4:30 p.m. Eastern Time, VirtualScopics, Inc. held a conference call to discuss the financial results for the first quarter ended March 31, 2015. The slides attached hereto as Exhibit 99.2 were prepared in connection with the conference call.

 

The information furnished pursuant to this Item 7.01 and the exhibits hereto shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act except as shall be expressly set forth by specific reference in such filing.

 

Section  9 – Financial Statements and Exhibits

 

Item 9.01 Financial Statement and Exhibits

 

(d) Exhibits

 

99.1	Press Release, dated May 6, 2015
99.2	Slides prepared in connection with First Quarter Ended March 31, 2015 Earnings Call

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: May 6, 2015	VIRTUALSCOPICS, INC.
	By:	/s/ James Groff
	Name: Title:	James Groff Chief Financial Officer

 

 

EXHIBIT INDEX

 

Exhibit No.	Description
99.1	Press Release, dated May 6, 2015
99.2	Slides prepared in connection with First Quarter Ended March 31, 2015 Earnings Call

 

Exhibit 99.1

 

 

 

 

VIRTUALSCOPICS, INC. REPORTS 2015 FIRST QUARTER FINANCIAL RESULTS; REVENUES INCREASE 20% FROM 2014 FIRST QUARTER

 

ROCHESTER, N.Y., May 6, 2015—VirtualScopics, Inc. (NASDAQ: VSCP), a leading provider of clinical trial imaging solutions, today reported financial results for the first quarter ended March 31, 2015. Revenues for the first quarter of 2015 rose 20% to $2,814,442 compared to revenues of $2,352,986 for the prior year period. The company reported a net loss for the first quarter of 2015 of $552,670, or $0.20 per share, representing a 14% improvement from a net loss of $646,373, or $0.23 per share, reported in the first quarter of 2014.

 

“The 20% increase in revenue during the first quarter of 2015 is the result of the company’s strong performance in awards and bookings in 2014,” said Eric. T. Converse, president and chief executive officer of VirtualScopics, Inc. “During the coming year, the entire VirtualScopics team is intent on continuing to improve revenues while building the company’s backlog and returning the organization to profitability. We believe we are off to a great start to 2015 and look to see this continue.”

 

Conference Call and Webcast Information

The company’s management will host a conference call and webcast today at 4:30 p.m. ET to discuss the company’s first quarter 2015 financial results and business outlook. The conference call dial in information, webcast URL and replay information are as follows:

 

·

Domestic Call Dial In: 877-407-8035

·

International Call Dial In: 201-689-8035

·

Conference Call ID: 13607814

 

An accompanying slide presentation to enhance managements’ formal remarks, as well as a webcast of the call, can be accessed at the following:

 

·

http://virtualscopics.investorroom.com/webcasts or at:

·

http://www.investorcalendar.com/IC/CEPage.asp?ID=173951.

  

A replay and slide presentation will be available one hour after the conclusion of the conference call for 90 days, and can be accessed using the following:

 

·

Replay Domestic Call Dial In: 877-660-6853

·

Replay International Call Dial In: 201-612-7415

·

Replay Conference Call ID: 13607814

 

The webcast and slide presentation can be accessed at the following:

 

·

http://virtualscopics.investorroom.com/webcasts or at:

·

http://www.investorcalendar.com/IC/CEPage.asp?ID=173951.

 

-more-

 

 

500 Linden Oaks Ÿ Second Floor Ÿ Rochester, NY 14625 Ÿ P:585.249.6231 Ÿ
F:585.218.7350 Ÿ [email protected] Ÿ www.virtualscopics.com

 

 

 

VSCP 2015 Q1 Financial Results, page 2

 

About VirtualScopics, Inc.

VirtualScopics, Inc. (NASDAQ: VSCP) is a leading provider of clinical trial imaging solutions to

accelerate drug and medical device development. For risk-averse, time-constrained Clinical Trial Study Teams, Medical Directors and Imaging Scientists who require quality imaging data delivered on-time, within budget and on a consistent basis, VirtualScopics’ clinical trial imaging solutions are an inspired true exception to commonly-accepted services provided by other clinical trial imaging providers. Because of the scientific and operational flexibility and responsiveness available, VirtualScopics’ clinical trial imaging solutions deliver special performance advantages compared to other image service providers that offer common, every day clinical trial imaging services. For more information on VirtualScopics, Inc., please visit www.virtualscopics.com.

 

Forward-looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. These forward-looking statements include, but are not limited to, statements regarding the expected benefits of the company’s investment in infrastructure, sales and marketing efforts, the increase in backlog, awards and bookings and the performance of existing projects and/or statements preceded by, followed by or that include the words “believes”, “could”, “expects”, “anticipates”, “estimates”, “intends”, “plans”, “projects”, “seeks”, or similar expressions. Forward-looking statements deal with the company’s current plans, intentions, beliefs and expectations. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Many of these risks and uncertainties are discussed in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission (the “SEC”), and in any subsequent reports filed with the SEC, all of which are available at the SEC’s website at www.sec.gov. These include without limitation: the risk of cancellation or delay of customer contracts or that contract awards do not turn into signed contracts. Other risks include the company’s dependence on its largest customers and risk of contract performance, protection of our intellectual property and the risks of infringement on the intellectual property rights of others. All forward-looking statements speak only as of the date of this press release and the company undertakes no obligation to update such forward-looking statements.

 

 

 

-more-

 

 

500 Linden Oaks Ÿ Second Floor Ÿ Rochester, NY 14625 Ÿ P:585.249.6231 Ÿ
F:585.218.7350 Ÿ [email protected] Ÿ www.virtualscopics.com

 

 

 

For More Information, Contact:

Donna N. Stein, APR, Fellow PRSA

Managing Partner

Donna Stein & Partners

Phone: 315-361-4672

Email: [email protected]

 

Financial Tables to Follow

 

 

 

500 Linden Oaks Ÿ Second Floor Ÿ Rochester, NY 14625 Ÿ P:585.249.6231 Ÿ
F:585.218.7350 Ÿ [email protected] Ÿ www.virtualscopics.com

 

 

 

VirtualScopics, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
(unaudited)
		For the Three Months Ended
		March 31,
		2015				2014
Revenues		$	2,641,221			$	2,246,954
Reimbursement revenues			173,221				106,032
Total revenues			2,814,442				2,352,986
Cost of services			1,666,644				1,489,079
Cost of reimbursement revenues			173,221				106,032
Total cost of services			1,839,865				1,595,111
Gross profit			974,577				757,875
Operating expenses
Research & development			349,837				285,896
Sales & marketing			280,397				345,077
General & administrative			799,386				687,002
Depreciation & amortization			96,972				86,502
Total operating expenses			1,526,592				1,404,477
Operating loss			(552,015	)			(646,602	)
Other income (expense)
Other income			259				1,037
Other expense			(914	)			(808	)
Total other (expense) income			(655	)			229
Net loss			(552,670	)			(646,373	)
Preferred stock dividends			42,000				42,000
Net loss available to common stockholders		$	(594,670	)		$	(688,373	)
Weighted average basic and diluted shares outstanding			2,994,928				2,991,990
Basic and diluted loss per share		$	(0.20	)		$	(0.23	)

 

 

 

500 Linden Oaks Ÿ Second Floor Ÿ Rochester, NY 14625 Ÿ P:585.249.6231 Ÿ
F:585.218.7350 Ÿ [email protected] Ÿ www.virtualscopics.com

 

 

 

VirtualScopics, Inc.
Condensed Consolidated Balance Sheets
		March 31,				December 31,
		2015				2014
		(Unaudited)
Assets
Current assets
Cash		$	2,393,968			$	4,046,599
Accounts receivable, net			2,097,513				1,814,143
Prepaid expenses and other current assets			535,549				410,188
Total current assets			5,027,030				6,270,930
Patents, net			1,166,284				1,211,770
Property and equipment, net			337,174				330,873
Other assets			8,486				10,661
Total assets		$	6,538,974			$	7,824,234
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses		$	1,015,871			$	1,289,099
Accrued payroll			414,966				681,964
Unearned revenue			475,299				670,332
Dividends payable			335,333				335,333
Total current liabilities			2,241,469				2,976,728
Commitments and Contingencies
Stockholders' Equity
Convertible preferred stock, $0.001 par value; 1,000,000 shares authorized at March 31, 2015 and December 31, 2014;
Series C-1 3,000 shares authorized; issued and outstanding, 3,000 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share			3				3
Series B 6,000 shares authorized; issued and outstanding, 600 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share			1				1
Series A 8,400 shares authorized; issued and outstanding, 2,165 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share			2				2
Series C-2 3,000 shares authorized; issued and outstanding, 0 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share			-				-
Common stock, $0.001 par value; 20,000,000 shares authorized;
issued and outstanding, 2,994,928 shares at March 31, 2015 and December 31, 2014			2,995				2,995
Additional paid in capital			21,977,738				21,975,069
Accumulated deficit			(17,683,234	)			(17,130,564	)
Total stockholders' equity			4,297,505				4,847,506
Total liabilities and stockholders' equity		$	6,538,974			$	7,824,234

 

 

500 Linden Oaks Ÿ Second Floor Ÿ Rochester, NY 14625 Ÿ P:585.249.6231 Ÿ
F:585.218.7350 Ÿ [email protected] Ÿ www.virtualscopics.com

 

 

Exhibit 99.2

 

500 Linden Oaks, 2 nd Floor Rochester, New York 14625 (585) 249 - 6231 www.virtualscopics.com NASDAQ: VSCP First Quarter 2015 Performance Review May 6, 2015 1

The statements contained in this press release that are not purely historical are forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. These forward - looking statements include, but are not limited to, statements regarding the expected benefits of the company’s investment in infrastructure, sales and marketing efforts, the Scientific Advisory Board, backlog, awards and bookings and the performance of existing projects and/or statements preceded by, followed by or that include the words “believes,” “could,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “projects,” “seeks,” or similar expressions. Forward - looking statements deal with the company’s current plans, intentions, beliefs and expectations. Investors are cautioned that all forward - looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward - looking statements. Many of these risks and uncertainties are discussed in the company’s Annual Report on Form 10 - K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission (the “SEC” ), and in any subsequent reports filed with the SEC, all of which are available at the SEC’s website at www.sec.gov . These include without limitation: the risk of cancellation or delay of customer contracts or that contract awards do not turn into signed contracts. Other risks include the company’s dependence on its largest customers and risk of contract performance, protection of our intellectual property and the risks of infringement of the intellectual property rights of others. All forward - looking statements speak only as of the date of this press release and the company undertakes no obligation to update such forward - looking statements. 2

3 2015 2014 Change Revenues 2,814$ 2,353$ 20% Cost of Services 1,840$ 1,595$ 15% Gross Profit 974$ 758$ 28% Gross Margin 35% 32% Operating Expenses Research and Development 350$ 286$ 22% Sales and Marketing 280$ 345$ -19% General and Administrative 799$ 687$ 16% Depreciation and Amortization 97$ 87$ 11% Total Operating Expenses 1,526$ 1,405$ 9% Operating Loss (552)$ (647)$ -14% March 31, (thousands of dollars) Three Months Ended

4 March 31, December 31, 2015 2014 (Unaudited) 2,393,968$ 4,046,599$ 2,097,513 1,814,143 535,549 410,188 5,027,030 6,270,930 1,166,284 1,211,770 337,174 330,873 Other Assets 8,486 10,661 6,538,974$ 7,824,234$ 1,015,871$ 1,289,099$ 414,966 681,964 475,299 670,332 335,333 335,333 2,241,469 2,976,728 Total stockholders' equity 4,297,505 4,847,506 6,538,974$ 7,824,234$ Total liabilities and stockholders' equity Accounts payable and accrued expenses Accrued payroll Unearned revenue Dividends payable Total current liabilities Patents, net Property and equipment, net Total assets Liabilities and Stockholders’ Equity Current liabilities Total current assets Assets Current assets Cash Accounts receivable, net Prepaid expenses and other current assets

5 • Revenue Up – 20% from Q1 2014 • Losses are Lower • Focus from 2014 is Paying Off • Reporting Simple Metrics – Financial results – Backlog

• Investment in People Continues – Changing with the market needs • Investment in Efficiencies Continues – TrialTracker software shows early success • Alliance Partner Network Growing – Micron added for Asia Pacific • Strengthening Ourselves for Phase III Wins 6

• Critical Mass is Targeted – Organic growth – Potential target alliance companies • Marcum Microcap Conference – May 27th • Do What We Say We Will Do • Marketing Effort Continues – New website – Live webinar from New Hope office – Partners in Clinical Trials Conference - Boston 7

• Strategic Partnerships – Partners - not just customers • Operational Excellence – Project Management – Key industry focus – Topic of Shareholder Meeting – June 2 - Rochester • Harvest Our Investments • Exploit Our Resources 8

Your feedback is always appreciated! 9

 

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