LOS ANGELES, Aug. 19, 2003 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced its results for the quarter and six-month period ended June 30, 2003.
Net revenues were $1,527,645, an increase of 68% or $1,036,124, for the six-month period ended June 30, 2003, as compared to revenues of $491,521 for the six months ended June 30, 2002. Revenues in 2003 increased as a result of new business, and as a result of the acquisition of KR Johnson & Associates, which occurred in the third quarter of 2002.
Operating expenses for the six months ended June 30, 2003 were $1,991,330, compared to $512,308 for the six months ended June 30, 2002. Operating expenses increased in 2003 over 2002 due to expenses related to servicing new business, incorporation of the operating expenses of the acquired KR Johnson & Associates, costs associated with merging Practice Xpert into Thaon Communications, and costs associated with being a publicly traded company. Also, during the six-month period the Company incurred certain expenses at it began to put into place its national sales and marketing strategy, incurred expenses related to its continued pursuit of acquisition opportunities, and continued to incur expenses related to the ongoing development of its patent-pending patent encounter software.
The net loss for the six months ended June 30, 2003 was $1,044,140, or a basic and diluted net loss per common share of $0.13, compared to a net income of $236,256, or a basic and diluted net income per common share of $0.03 for the comparable six months in 2002. The net loss for the six-month period includes $378,795 in expenses for consultants, advisors and attorneys paid in common stock, a $116,761 loss recorded on a note that was retired through the issuance of common stock, $208,627 in accrued dividends on Preferred Stock which are payable in common stock, at the Company's option, and $240,193 recorded as a loss on discontinued operations and related to the business of Thaon Communications prior to its merger with Practice Xpert. The net income for the six-month period in 2002 included a gain on the settlement of debt of $305,968.
As of June 30, 2003 the Company had 26 physician practices as customers, which included 50 physicians, and had 26 hand-held devices utilizing its PXpert patient encounter system being used, and paid for, by those customers.
Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "Revenues are clearly going in the right direction. Our business strategy calls for growth both through acquisition and from internally generated sales, and we have achieved both of those during the past six months. However, that is only the beginning. As previously announced we closed another acquisition at the end of July, and currently are in the final document stage on another acquisition. As our base of business grows we expect to be able to amortize our corporate overhead, including our technology team and our sales and marketing efforts, across a broader revenue base, and ultimately drive profits on the corporate level. We are pleased that both of our two key operating subsidiaries, Healthcare Administrative Management and KR Johnson & Associates, generated positive earnings before the addition of corporate overhead."
Mr. Doctor continued, "Further, we are very fortunate that we have been able to recruit a number of very talented members to our team who are working for stock. Even though the issuance of stock to these individuals appears as an expense on the income statement, it does not require cash, which we can conserve for making acquisitions, and it demonstrates the faith and belief these individuals have in our business plan and strategy. Using stock has allowed us to assemble a team of professionals with broad experience in companies well past our current stage of development. It is this team that will drive deployment of our technology and revenues going forward."
About PracticeXpert, Inc.
PracticeXpert, Inc., a healthcare technology and services company, is in the business of developing and deploying systems, technologies and services designed to improve operational efficiencies, reduce billing errors and enhance cash flow for medical practitioners. Its services revolve around its flagship patent-pending hand-held patient encounter system, PXpert(tm), and include medical billing, collections, transcription, clinical trial accruals, contracting and practice management. For additional information visit www.pxservices.com.
Note: Any statements released by PracticeXpert, Inc. that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.
PRACTICEXPERT, INC.
(Formerly, Thaon Communications, Inc.)
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
For the three month period For the six month period
ended June 30, ended June 30,
2003 2002 2003 2002
----------- ----------- ---------- -----------
Net revenue $ 924,172 $ 283,081 $1,527,645 $ 491,521
Operating
expenses 1,306,309 275,033 1,991,330 512,308
----------- ----------- ---------- -----------
Income (loss)
from
operations (382,137) 8,048 (463,685) (20,787)
Non-operating
Income (expense):
Gain (loss) on
settlement of
debts (116,761) -- (116,761) 305,968
Gain on disposal
of asset 32,478 -- 32,478 --
Interest income 1,901 -- 2,255 --
Interest expense (29,683) (46,056) (47,232) (46,525)
----------- ----------- ---------- -----------
Total
non-operating
income (expense) (112,065) (46,056) (129,260) 259,443
----------- ----------- ---------- ----------
Income (loss)
from continuing
operations
before income
taxes (494,202) (38,008) (592,945) 238,656
Income taxes 5,649 800 7,249 2,400
----------- ----------- ---------- -----------
Loss from
continuing
operations (499,851) (38,808) (600,194) 236,256
Discontinued
operations
(Note 10):
Income from
operations of
discontinued
subsidiary
(Less
applicable
income
taxes of
$3,249) 4,874 -- 4,874 --
Gain (loss)
on disposal
of subsidiary,
net 7,878 -- (240,193) --
----------- ----------- ----------- -----------
Income (loss)
on disposal
of subsidiary,
net 12,752 -- (235,319) --
Net income
(loss) (487,099) (38,808) (835,513) 236,256
Dividend
requirement
for preferred
stock (189,627) -- ( 208,627) --
----------- ----------- ----------- -----------
Net income (loss)
applicable to
common
shareholders $ (676,726) $ (38,808) $(1,044,140) $ 236,256
=========== =========== =========== ===========
Basic and
diluted
weighted
average
number of
common stock
outstanding (a) 8,350,378 8,311,619 8,350,378 8,311,619
=========== =========== ========== ===========
Basic and diluted
net income
(loss) per
share $ (0.08) $ (0.00) $ (0.13) $ 0.03
=========== ========== ========== ===========
(a) The basic and diluted net loss per share has been
restated to retroactively effect 20:1 reverse split on
July 21, 2003.
Weighted average number of shares used to compute basic
and diluted loss per share is the same since the effect
of dilutive securities is anti-dilutive.