SURGILIGHT FRAUD REPORT web.archive.org
AN INSIGHTFUL INVESTMENT (back to top)
By Geoffrey J. Eiten, Publisher
The market for laser applications in the ophthalmology and dermatology industries is enormous, and SurgiLight, Inc. has the innovative technology to assume a position of leadership.
The Company’s research and development of infrared laser technology has paid off in three patents pending on devices used in vision correction, microsurgery and LASIK (Laser in-situ Keratomileusis), and the treatment of presbyopia (age-induced farsightedness).
Currently, the Company is in full commercialization of these devices, as well as a UV (ultraviolet) device designed for the treatment of psoriasis and vitiligo. SurgiLight has shrewdly freed itself from the need to pay royalties to competitors; with its move to infrared technology it has created a body of treatment around its own proprietary technology which it can, in turn, license to others.
This is, indeed, the premise behind its marketing of the devices here in the United States. While the Company will continue to sell the devices to individual physicians internationally, within this country it will make them available as integral parts of its chain of Laser Eye Centers.
The Company also reaps revenue benefits from usage royalties paid by hospitals and medical centers. Revenues from replacement of component parts will provide long-term income.
As the Company leverages its technology and marketing strategies to realize its twin goals of marketshare and expansion, shareholders should continue to see strong gains in revenues and profits in the foreseeable future.
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CORPORATE PROFILE (back to top)
In January, 2000, SurgiLight spun off its Cosmetic Mobile Laser Centers and Thermal Infrared Technology division, to focus completely on developing technology for the fast growing industry of providing lasers for the ophthalmology and dermatology markets.
Currently, the Company has patents pending on three new infrared laser devices:
Model IR-3000, an infrared laser for treatment of presbyopia and use in microsurgery
Model IR-3001, an infrared laser for vision correction, and
Model LPD-100, a third device for presbyopia currently being tested in Venezuela.
A decade of research and development by the Company’s key personnel has resulted in its position as a world-leader in groundbreaking technology, including:
the first Infrared Laser (IR) for LASIK,
the first system for Presbyopia correction, and
the first UV-laser for treatment of psoriasis and vitiligo.
SurgiLight is also the only company that has the in-house UV and IR technology expertise to support its 18 operating Laser Eye Centers.
Since acquiring the Laser Center chain twelve months ago, SurgiLight reports a threefold increase in the number of procedures performed, from 40 to 120 eyes.
Although the Company will market its infrared lasers to individual ophthalmologists in the international market, it will license the devices through an expanding number of Laser Centers here in the United States.
SurgiLight believes that its infrared laser devices hold benefits for patients as well as for medical professionals.
Infrared lasers are ‘cold’ lasers; that is, they generate less heat and do not invade the eye the way UV, or ‘thermal’ lasers do. As a result, there is more efficient healing, less regression, and fewer mutagenic effects after infrared procedures.
The Company hopes to penetrate the ophthalmologic market by focusing on 1-2% of individuals aged 44-60, almost 100% of which can be expected to develop presbyopia, or age-incurred farsightedness. That market alone translates into approximately $3 billion dollars in revenues from procedures.
In dermatology, the Company hopes to realize 10-15% marketshare of the potential $120 million psoriasis and vitiligo treatment revenues.
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STOCK INFORMATION (back to top)
Business: Infrared LaserTechnology for Ophthalmology and Dermatology
AMEX Symbol: SRGL
Click here for updated stock information
Common Shares Outstanding: 21.38 million
Estimated Public Float: 2.2 million
Insider Ownership: 75%
Fiscal Year End: December
Employees: 17
Market Makers: 8
Company Contacts: Investor Relations:
Surgilight, Inc. OTC Financial Network
12001 Science Drive 1040 Great Plain Ave.
Suite 140 2nd Floor
Orlando, FL 32826 Needham, MA 02492
(407) 482-4555 781-444-6100 ext. 13
Surgilight@aol.com geiten@nfnonline.com
Dr. J.T. Lin Geoffrey J. Eiten
800-640-2656 ext. 13
Chairman & President President
Questions? Contact OTC Financial Network at 800-878-9460/781-444-6100 ext. 13 or see web.archive.org and web.archive.org.
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FINANCIAL PROFILE & ANALYSIS (back to top)
9MtFY1999 9MtFY1998 % Change
Revenues $2,300,000 $734,000 221%
Net income (loss) $207,000 ($97,000) 313%
* Revenues and net income for the nine months ended September 30, 1999.
SurgiLight has devoted ten years to research and
development and is now in its commercialization phase.
The Company’s patented infrared laser technology eliminates the need to pay heavy patent and licensing fees for ultraviolet laser technology developed by IBM.
In the first nine months of 1999, the Company increased its revenues 221% over the same period in 1998. It increased net income a remarkable 313%, from a loss of $97,000 in the first nine months of 1998, to a gain of $207,000 in the same period in 1999.
The potential market for ophthalmologic applications is estimated at $150 billion in the U.S. alone, with dermatological applications estimated at over $120 million annually.
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MARKET OPPORTUNITIES (back to top)
With unique patented laser technology in place, SurgiLight is poised for a two-pronged approach to profits. The Company has developed ‘cold’ laser treatments for applications in both the ophthalmology and dermatology marketplaces.
‘Cold’ is the differential factor that distinguishes SurgiLight’s technology from existing leaders in the laser-correction industry. The Company’s products, the IR-3000 and the IR-3001, operate on an infrared technology base, rather than an ultraviolet base as do all its competitors for LASIK and presbyopia.
In addition to establishing Surgilight as an innovator of new laser technology, the development of non-thermal lasers frees the Company from the burden of paying patent and licensing fees to IBM, the owner of ultraviolet laser technology patents.
And the patient benefits as well. The IR-3001’s infrared beam generates far less heat than other conventional infrared lasers. The result: minimized thermal excitation, triggering only a few microns of tissue damage, as compared to the few hundred microns of thermal damage caused by other infrared lasers.
Within the ophthalmology industry, various applications exist for Surgilight’s technology. The potential market is staggering. For treatment of presbyopia alone, revenues are estimated at $150 billion in the U.S. and $1.5 trillion worldwide. Cataract correction and microsurgery constitute additional revenue streams, which will be augmented by royalty fees charged to the surgeons who perform the procedures.
Dermatologic laser applications represent yet another area of profit for SurgiLight, through treatment of the disorders psoriasis and vitiligo. Procedure revenues in this industry are estimated at over $120 million annually.
Through sales of its equipment and royalty fees, Surgilight projects a 1- 2% share of the ophthalmology market, and a 10-15% share in the dermatology treatment industry.
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PIONEERING TECHNOLOGY (back to top)
The following technologies have been pioneered through ten years of dedicated research and development:
1991-92: The world’s first solid-state UV Laser
1992-92: Design and invention of the Mini-Excimer Laser
1994: Design and invention of the Scanning Laser
1996-97: SmartScan for topo-linked LASIK System
1998-99: World’s first IR-laser for LASIK**
1998-99: World’s first device for Laser Presbyopia Reversal (LPR)**
1998-99: World’s first UV-laser for Psoriasis and Vitiligo treatments
** Patents Pending
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RECENT DEVELOPMENTS (back to top)
February 2000
Announces Submission of Application for NASDAQ Market Listing - The Company believes that it is fully qualified and fits all the criteria necessary for inclusion on the NASDAQ National Market.
January 2000
Obtains Exclusive Marketing License for New Waterjet Devices for Ophthalmic Applications. The devices, HydroKeratome and Pulsatome, are used for vision correction and cataract surgery. The Company believes that more than 100 waterjet devices may be sold within one year from FDA approval, and anticipates long term recurring income from the consumable parts associated with the devices.
Focuses on New Infrared IR Laser Technologies and Hires Key Industry Professional. The Board of Directors approves the spin off of two divisions not associated with the Company’s core technology, and hires a Senior Vice President and Chief Operating Officer, Timothy J. Shea. Shea is responsible for corporate operations, clinical research, FDA regulatory submissions, and assists the President in the daily operations of the Company. The spin-off allows the Company to focus on development of its two new infrared (IR) laser based systems for vision correction.
Board of Directors approves a 2 for 1 split of its common stock, in response to a growing market demand for those shares. After the split, the Company will have total outstanding shares of 21.6 million.
Submits a Clinical Trial Protocol to Mt. Sinai Hospital in New York for a new ophthalmologic procedure called Laser Presbyopia Reversal (LPR). The Company believes its new treatment offers advantages over non-laser methods including faster, more precise healing, with less regression and less mutagenic effects after surgery.
December 1999
Submits 510K Premarket Notification for UV Laser Phototherapy with Clinical Results from Mt. Sinai Hospital in New York. The UV-308 excimer laser treats skin disorders including psoriasis and vitiligo. SurgiLight is one of two companies treating psoriasis with UV lasers, and the only provider of UV laser treatment for vitiligo.
Company Announces Two New Technologies for Infrared Laser Vision Correction. The Model IR-3000 is designed for microsurgery and presbyopia procedures. The IR-3001 will be used for vision correction, including LASIK and presbyopia procedures.
Third Quarter 1999 Results Show Record Sales and Earnings. Results for the nine months ending September 30, 1999 showed an increase of approximately 220% in revenues over the same period in 1998.
November 1999
SurgiLight Mergers Complete. Company announces that it has completed mergers that include medical laser and infrared technologies, laser eye centers, and mobile cosmetic centers. SurgiLight is fully SEC reporting and traded on the OTC Bulletin Board. The Company is currently focusing on the development of new infrared (IR) lasers for vision correction.
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MANAGEMENT (back to top)
Dr. J.T. Lin, President and Chief Executive Officer, founded SurgiLight in 1998. He is the inventor of the scanning laser for vision correction (1994), and the solid-state UV-laser for PRK (1992). In 1991, Dr. Lin founded LaserSight, after four years as an Associate Professor at the University of Central Florida’s Laser Center. Throughout his twenty year career in laser developments, he has published over 80 professional papers and books in his field.
Dr. M.W. Hwang, Vice President of Research and Development, has pioneered topography-linked laser vision correction using the most advanced software for customized corneal reshaping. Dr. Hwang has a Ph.D. in Electrical Engineering and has more than 10 years experience in new laser development.
Timothy J. Shea, Senior Vice President and Chief Operating Officer, prior to joining SurgiLight, was President of the Medical Division at Laser Analytics, Inc. He has almost two decades of experience in the public and private medical laser and electro-optic industry, focusing on the design, development, commercialization and regulatory submissions of a variety of medical and scientific lasers and accessories.
Dr. Raymond Gailitis, Medical Director, is an internationally recognized ophthalmologist and member of several distinguished professional associations. He has more than 5 years’ experience in refractive surgery and has authored more than 16 publications, including the pioneer paper, with Drs. Lin and Waring in 1991, for a solid-state UV laser for vision correction.
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MARKET STRATEGIES (back to top)
In the first quarter of the fiscal year, SurgiLight has rededicated itself to the research and development of new, innovative ‘cold’, or infrared (IR) laser technology. Concurrently, the Company will continue the successful commercialization of existing devices and technology, and increase its lucrative Laser Eye Center holdings through nationwide expansion.
Of all the applications possible for lasers (both Ultraviolet and Infrared) in the medical marketplace, those related to ophthalmology and dermatology represent by far the largest opportunity for revenue.
SurgiLight is poised to take distinct advantage of this situation. The Company hopes to achieve a 1- 2% marketshare of the potential $150 billion (U.S.) revenues from ophthalmology procedures, such as microsurgery, treatment of presbyopia, and vision correction with its three new devices.
The fact that its devices do not rely on UV technology translates into freedom from licensing and patent fees to competitors like IBM and VISX. In addition, Infrared technology holds benefits for the patient -- more rapid healing and less mutagenic effects than UV lasers. Thus the Company’s devices can be marketed as advantageous to both the medical profession and its clients.
SurgiLight will continue to offer its devices on an individual basis to physicians outside the United States, but will market them as an integral part of Laser Eye Centers throughout the nation, thus insuring revenue generation through usage fees. Further long term revenues will be generated through replacement sales for various components of the devices.
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INVESTMENT HIGHLIGHTS (back to top)
Since its inception in 1998, SurgiLight has positioned itself as the developer and sole proprietor of Infrared (IR) Laser Technology for application in ophthalmology and dermatology,, and as the only provider of both the traditional UV and its newly developed IR laser technologies for vision correction and surgery.
Within one year - 1998 to 1999 - the Company moved from research and development into a full commercialization phase, turning its financial standing around completely with a 220% growth in revenue.
Because SurgiLight’s newest products are infrared based, the Company can avoid heavy licensing and patent fees for utilizing the UV and excimer technology owned by IBM and other competitors.
The market for the Company’s technology in presbyopia corrections has been estimated at $150 billion in the United States, with a worldwide market of $1.5 trillion. In addition to market share in those revenues, SurgiLight will incur long-term recurring revenues from procedure and/or royalty fees collected from users of their technology. The Company currently has contracts with 18 hospitals who are using its scanning lasers.
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LASER EYE CENTERS (back to top)
SurgiLight currently operates 18 Laser Eye Centers (LEC) worldwide, using the most advanced systems.
SurgiLight’s international LECs now offer the new Laser Presbyopia Reversal (LPR) procedure using the Company’s patent pending technologies. Clinical studies in the U.S. will begin in the near future.
The LEC at Ft. Lauderdale-Plantation is a state-of-the-art facility with over 25 certified MDs providing highest quality LASIK procedures.
In addition to the LEC procedure income, the Company is continuing to receive income from the cosmetic mobile laser centers.
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DISCLAIMER (back to top)
This is a publication of OTC Financial Network, a financial communications and investor relations company. OTC Financial Network, a division of National Financial Communications Corporation serves as special advisor to the featured Company and has received fees for services, including a fee of three thousand free trading shares for the writing, preparation and distribution of this report. This is not an offer to buy or sell securities. Information or opinions in this report are presented solely for informative purposes, and are not intended nor should they be construed as investment advice. Companies mentioned herein may carry a high investment risk; readers should carefully review the companies thoroughly with their registered investment advisor or registered stockbroker. The analysis contained herein does not purport to be a complete study of the featured Company or other companies mentioned. Information used and statements of fact have been obtained from the featured Company and other sources, but not verified nor guaranteed by OTC Financial Network as to completeness or accuracy. Such information is subject to change without notice. Opinions stated herein may be solely OTC Financial Network's or the indicated sources, and not necessarily those of the featured Company. Officers, directors, and employees of OTC Financial Network and financial analysts mentioned, and members of their families may hold a position and may from time to time trade in these securities for their own accounts. Specific information in this regard will be furnished upon request. Trademarks are the property of their respective owners. © 2000 OTC Financial Network. All rights reserved. Duplication of this report without the expressed written permission of OTC Financial Network is strictly prohibited. To be placed on OTC Financial Network's mailing list, call: 781-444-6100 or see web.archive.org. |
