one problem is that coii is taking off.....
coii will be a 5 bagger over next 6 months
August 16, 1999 Dear Shareholders;
Things have been very busy at CTI and it is past time to provide you an update on company activities. Since the last shareholder letter there have been many important events.
SEC Filings: CTI has submitted regular quarterly filings (10Q?s) with the Securities and Exchange Commission as required to maintain our fully reporting status. We are currently preparing the necessary annual filing (10K) which will include a full independent audit of all our financial
records. This will be filed by the mandated September 30 deadline. In addition we have filed revisions to the SB-2. This is an update to the filing accepted by the SEC in January and was done to change the names under which some shares of stock are registered. This was necessary to facilitate the substitution of a new major investor in the place of an old one. No new
shares were registered. Copies of all these filings are available through the SEC's EDGAR system.
Funding Status: CTI has an established funding source for up to $7.5M. To date we have received $1.5M from that source. The remainder remains available and will be drawn upon as needed in the coming months. This is sufficient funding to complete ongoing clinical trials and data submission
to the FDA. In addition, we continue to evaluate periodic offers of additional funding for opportunities that would be beneficial for the company.
Thermal Medical Imaging: As you know, CTI established Thermal Medical Imaging, Inc as a subsidiary in 1996 to explore the use of Computerized Thermal Imaging technology for breast cancer detection. Having met many of the goals established at that time, we are now in the process of consolidating TMI back into CTI. The formal name of TMI has been changed to
Computerized Thermal Imaging Company. The TMI Detroit office has been closed and all TMI operations consolidated to CTI's Layton, Utah offices. Several new staff members have been added in Layton to absorb the increased workload.
Clinical Trial: Clinical trials are continuing. We recently announced the addition of the Layhey Clinic in Boston which brings us to a total of five clinical sites operating. Although in the Layhey announcement we indicated that it would be the last clinical trial site required, we are evaluating
opening additional sites. These sites may make limited contribution to the trial at this late date but would serve to expose additional clinics to our technology, would help gain additional valuable clinical experience as well as pre-position additional equipment for revenue generating clinical use
once FDA approval is received. Further announcements will be made as plans are finalized.
Workers Compensation: With the breast cancer initiative moving along well, we have recently expanded our efforts in the Workers Compensation area. We believe that our Computerized Thermal Imaging technology has great application in the area of confirming and classifying lower back and repetitive motion injuries. We have been received with genuine interest by
those in the industry responsible for eliminating fraudulent workers compensation claims. This will be an area of future announcements.
Foreign Equipment Sales: We are continuing to explore foreign market interest in our technology. We have encountered great interest in both South America and the Middle East. Our agents are continuing to work in these areas. This will also be an area of future announcements.
FDA Approval: We were excited to announce earlier this year that we have received FDA approval to use their experimental Modular Pre-Market Approval Application process. The first module is in final internal review and will be submitted to the FDA in the near future. The other modules will follow thereafter.
I, along with members of my technical staff from CTI, TRW and Battelle, met with members of the FDA management and staff within the last few days to review status of our company, our product, the clinical trials and our pending modular submissions. We had a wide-ranging discussion including a number of items pertaining to the analysis and preparation of clinical data for submittal. I found the FDA staff very knowledgeable, cooperative and willing to provide assistance as we approach the final stages of the clinical trial and approval process. CTI clearly retains the responsibility
to show that our system is effective and was developed and tested properly. I expect the FDA to conduct its normal new product review. However, approaching this review with the level of mutual understanding and the spirit of cooperation that we have achieved will be very positive for us.
I would encourage you to continue to monitor our Web site at www.cti-net.com for developments and announcements.
Except for historical information contained herein, the matters discussed in this letter are forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to technical risks associated with new technology development, government regulatory approvals or continued working capital. Additional information concerning factors that could cause actual results to differ materially from
those in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of these filings may be obtained by contacting the Company or the SEC.
Sincerely,
David Packer, President
Computerized Thermal Imaging |
