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Verisante Technology, Inc. Announces 2014 First Quarter Results and Provides Operational Update


June 2, 2014 at 1:30 pm

VANCOUVER, BRITISH COLUMBIA - Verisante Technology, Inc. (TSX-V: VRS, OTCQX: VRSEF) (the “Company” or “Verisante”), a leader in cancer detection technology, announced today that the Company has released its financial results for the first quarter ended March 31, 2014 .

Highlights of the quarter include

“We are pleased to report continued progress with our renewed sales and marketing efforts for Aura™,” said Thomas Braun, President & CEO.  “Bringing together our own in house sales team enables us to have flexibility with pricing while controlling margins and also helps us build stronger, direct relationships with our customers. With a 3-6 month expected sales cycle for medical devices, we expect our direct sales strategy to start bringing in positive results by the second half of 2014”.

Subsequent to putting together an in-house sales and marketing team in Q1, Verisante has placed two Aura™ devices into clinics in Ontario and has received its first purchase order for the newly launched VRS product, a Raman Spectrometer designed for the research market from a research University in the United States.

Verisante also continues to streamline its production and manufacturing facilities and personnel to preserve cash and focus resources on revenue generating operations to ensure the Company continues with the most cost effective and efficient path of commercialization. 

In addition, the Company continues to prepare a submission with the FDA for Aura™ and is pursuing regulatory approvals in Brazil and Mexico.

The Company also recently completed a Core™ commercial prototype for the detection of lung cancer, which will be used to prepare Verisante’s application for regulatory approval in Canada, Europe, USA and China for the lung cancer indication.  

Revenues

Revenues are from the direct sale of an Aura™ device.  The Company normally recognizes revenue when units are shipped, however, as a result of challenges in collecting on some accounts receivables, the Company now recognizes revenue only once the substantial risk of collecting has been minimized.  The Company will also require certain customers to pay a deposit or make payment in full on any future orders before devices are shipped.  For the quarter ending March 31, 2014 the Company recognized revenue of $40,000 compared to $235,000 reported for the same period in 2013.  

The terms of sale of Aura™ devices are particular to the distribution agreements signed with each exclusive Distributor Europe.  Distributors have terms of sale which include shipping EXWorks the Company’s manufacturing warehouse and payment terms of net 30-90 days.  Devices sold directly by the Company have terms of EXWorks the Company’s manufacturing warehouse and payment terms of net 30 days.

After the Company terminated its Canadian distribution agreement to pursue direct sales of Aura™ in Canada, it made a strategic decision to not aggressively pursue sales in Canada until such time as a trained and qualified direct sales team was in place.  During the quarter ended March 31, 2014, the Company hired a Director of Sales and Canadian Sales Representative and is preparing for a full product launch of Aura™ with this direct sales team.

Expenses

Total expenses for the quarter ended March 31, 2014 was $1,055,694 as compared to $1,214,276 for the same period in 2013, representing a decrease of $158,582 or 13%.  The decrease in expenses from 2014 to 2013 is mainly attributed to a substantial decrease stock based compensation and the Company’s efforts to lower general and administrative expenses.  

Salaries remained fairly consistent over the three months ending March 31, 2014 ($257,793) as compared to the same period in 2013 ($242,626). Professional Fees (which include Investor Relations fees) decreased  by $25,467, or 17% over the three months ending March 31, 2014 as compared to the same period in 2013.  Audit and accounting fees increased significantly during the three months ending March 31, 2014 as compared to the same period in 2013, attributed mainly to the increasing complexities of accounting for manufacturing and inventory in 2013. 

In connection with the Company’s consolidation of operations, engineering and manufacturing space, rent decreased by $25,202 in the three month period ending March 31, 2014 over 2013.  

The Company’s full Q1 Financials and MD&A can be found as filed at www.sedar.com and also on the Company’s website at www.verisante.com 

About Verisante Technology, Inc.

Verisante is a medical device company committed to commercializing innovative systems for the early detection of cancer. The Verisante Aura™ for skin cancer detection and the Verisante Core™ series for lung, colon and cervical cancer detection utilize a proprietary cancer detection platform while the operating software and probe technology are unique to each device. The cancer detection platform was developed by the BC Cancer Agency and tested and refined at the Skin Care Centre at Vancouver General Hospital. This exclusive platform technology allows Verisante to develop and offer a range of compact, non-invasive cancer detection devices that offer physicians immediate results for many of the most common cancers. Aura™ has been approved for sale in Canada, Europe and Australia. Core™ has not yet been approved for sale. 

Verisante Aura™ was awarded the 2014 North American Technology Innovation of the Year Award for In Vivo Cancer Detection by Frost & Sullivan, Popular Science Magazine’s “Best of What’s New Award” for 2011, awarded a 2013 Prism Award for Innovation in Photonics and an Edison Award for Excellence in Innovation in 2013.  Verisante Core™ was named one of the top 10 cancer breakthroughs of 2011 by the Canadian Cancer Society. 

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. 

Company Contact:

Thomas Braun, President & CEO
Verisante Technology, Inc.
Telephone: (604) 605-0507
Email: info@verisante.com
Website:  www.verisante.com  
Youtube:  www.youtube.com/verisante  
Twitter: www.twitter.com/verisante
Facebook: www.facebook.com/verisante

Forward Looking Statements 

This release contains forward-looking statements, including, but not limited to, statements regarding the future commercialization of medical devices, the market demand for these products and the proprietary protections the Company will obtain with regard to the technology, all of which statements are subject to market risks, and the possibility that the Company will not be able to obtain patent protection or obtain sufficient customer demand. These statements are made based upon current expectations and actual results may differ from those projected due to a number of risks and uncertainties.

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