Here is the President's letter included in the June 30,1999 financial statements:
To all Shareholders,
Pyng Technologies and its subsidiaries Pyng Medical Corp. and Canadian Custom Profiles Ltd. had a very productive quarter with important milestones reached in our medical research and development of the F.A.S.T.1 System for Adult Intraosseous Infusion. We will discuss briefly the financial report for this period and then outline specifically the progress of the medical development and the outline for the next quarter.
At the end of June 1999 Pyng Technologies had $1,796,449.00 in cash and $177,895.00 in inventory, marketable securities, and accounts receivable. Sales for the period were $83,638.00 with a gross margin of $42,085.00 prior to interest and miscellaneous income of $66,202.00. Research and development expenses related to the F.A.S.T.1â System to the end of this 9-month period were $485,888.00.
Complete details are attached in the financial statements Pyng Medical Corp. has announced that it has successfully completed its field trial work and has achieved a success rate commensurate with Pyng Medical Corp. desired goals.
Use of theF.A.S.T.1â System is still going on in selected areas such as Phoenix/Scottsdale and others as we continue to monitor and record all new use reports. The F.A.S.T. 1â System has undergone a complete design review process and we have incorporated several design improvements initiated from the field trials into our solidified design for production. A selection process corresponding with our quality assurance procedure has been initiated to identify and qualify companies for development of production tooling and design as well as actual production in injection molded parts. Contracts for this segment of production are scheduled to be in place by the end of August 1999.
It has been a long and extensive process to reach the point of going into mass production of the F.A.S.T.1 System and some would say that it has been overly extended, however, I do not agree with that. Field trials have been invaluable in analyzing the performance of the medical system and have enabled Pyng Medical Corp. to incorporate design changes, that were initiated in the field, that have enhanced the overall success rate of the F.A.S.T.1 in the emergency medical environment. We are now fully confident in delivering a product to market that has been thoroughly tested, having design changes incorporated, from the field trials that have enhanced the performance.
We are confident, given the excellent results being achieved in the field today, that the improved product, which will be mass-produced, will be very well received in the emergency medical market place.
We have been successfully evaluated at the Walter Reed Army Institute of Research and that organization has made a submission to the Journal of Trauma for publication. We have continued to introduce the F.A.S.T.1 System at specific targeted trade shows and we anticipate, once distribution agreements are in place, that they will increase, as will are overall marketing effort. We will also be seeking immediately a full time Director of Marketing to spearhead our distribution and sales efforts.
We are at this point in time negotiating with several major distributors in both Canada and the USA and upon conclusion of those contracts we will announce then accordingly. We are being selective in the distribution of the F.A.S.T.1 System also as we wish to be associated with distribution networks that are specific to the emergency medical market place and who's sales staff are fully familiar and trained in this environment.
It is our goal to reach production in the last quarter of 1999 and we expect to have cash flow from sales of F.A.S.T. 1 Systems in that time frame also.
We continue to work hard at finalizing this product to market and we appreciate all the support from our shareholders.
On behalf of the Board of Directors,
Michael W. Jacobs, President / CEO. |
