It is actually 6000 units
ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2004.
2004 has been an excellent year for your company and we have much good news to report. We have
achieved major productivity gains, lowered the cost of production, decreased our corporate liabilities,
restructured our marketing and sales direction, and increased our sales in a major way in fiscal 2004. We
expect to continue to do so in fiscal 2005 with a dedicated team who have worked very hard to bring your
company to the forefront in development, manufacturing, and sales of emergency medical products for the
pre-hospital, hospital, and military markets.
Several major milestones for Pyng Medical Corp were achieved as follows:
· A major increase in sales with the delivery of over 35,000 F.A.S.T.1 TM Systems since production
commenced in 2001. This makes us the largest supplier of Sternal IO Systems in the emergency
medical field.
· Successfully established broader, more effective patents to protect our intellectual property in the
U.S.A. Europe, Mexico, and Canada.
· A substantial increase in production and production staff has contributed to increases in our margins
and positioned the Company to grow to forecast sales increases.
· Our Quality System has been upgraded and is current to all U.S.A., European and Canadian
standards, specifically including ISO 9001:2000, ISO 13485:2003 CMDCAS, ISO 13485:2003 UKAS,
MDD 93/42/EEC Excluding Annex II for CE Mark, and F.D.A CFR 820 Quality Management Systems.
· Product improvements and manufacturing process enhancements have been initiated in our
Engineering Department.
Increased Sales Forecasted to Accelerate in North American and
International Civilian and Military Markets
Sales in the military and the civilian markets expanded as sales continued for the sixth straight quarter for the
F.A.S.T.1 TM product line in the United States. We are investing in further sales and marketing staff, planning
activities to further increase sales and increase the rate of sales growth in all sectors.
We delivered an estimated 6,000 units (40% of total units shipped) to the U.S. Military during the 2004 fiscal
year and F.A.S.T.1 TM military sales are expected to continue their current strength. We have delivered our
first orders to the U.S. Marine Corp. and we anticipate that the F.A.S.T.1 TM System will be included in more
US military medical kits this year. We have noticed an expansion of sales beyond our initial military clients,
the US Special Forces, and have delivered to the US Navy, Army, Air Force and Marines. The Company has
launched a focused program to train the US military training institutions who, in turn, train the US military
medics. The F.A.S.T.1TM is now part of the 91W curriculum and in excess of 3,000 medics per month
graduate from this training program, now fully trained in the use of the F.A.S.T.1TM
Our expanding distribution base for the civilian market has also shown substantial growth this year and we
see continued growth well into the future as the F.A.S.T.1 TM System gains market momentum and more and
PYNG MEDICAL CORP.
# 7 – 13511 Crestwood Place, Richmond, B.C.
Canada. V6V 2E9
Phone: (604) 303-7964
Fax: (604) 303- 7987 Website: pyng.com
more civilian sites adopt this life saving/time saving medical technology. The emergency medical community
is one that relies heavily on user feedback for new technologies and each emergency medical service that
adopts the F.A.S.T.1 TM System exposes the product to emergency wards in hospitals and additional
members of the medical community, increasing awareness, and the willingness to adopt the new process.
We have also achieved exciting milestones in Europe. In England we have delivered initial products for
evaluation by the British Military as well as several civilian air ambulance groups. The same applies to
Benelux (Holland, Belgium, and Luxemburg) where evaluations on the product are being made in Antwerp
and Amsterdam. We have appointed a representative in Austria, where evaluations are being carried . We
now have distribution channels through Fenton Pharmaceuticals in England, Innomed Corp. in Benelux,
Clinotech Diagnostics in Turkey, and Packan Kar Nima in Iran to help expand the market into Europe and the
Middle East. We will continue to expand into these areas by appointing distribution channels that meet our
requirements and the particular EMS market characteristics of each country.
The Board of Directors has embarked upon a new program to seek out strategic opportunities for
partnerships and new product developments. Although the company is currently generating positive cash
flow, this plan will require additional capital. We are currently investigating various methods of raising this
capital to achieve strategic goals, including:
· To accelerate the current engineering process of manufacturing cost reduction from new lower cost
sources of components and manufacturing process efficiency enhancements;
· To continue with product enhancements to our flagship product the F.A.S.T.1TM based on feedback from
field use and at the request of large volume purchasers like the USA military;
· To complete the development of the re-useable cartridge version of a new intraosseous device;
· To increase our sales and marketing capabilities with the hiring of additional marketing staff and sales
staff focused on Europe, Middle East and Latin America;
· To embark on a plan of strategic acquisitions and mergers, targeted at companies with complementary
products and capabilities in the medical device field;
· To investigate other opportunities where our patents could be used to develop new products, either
alone or with other partners.
We are excited by the prospects for the ensuing year and are hopeful that our accomplishments to date and
our goals for the future will add considerable market value for our shareholders as the Company continues to
grow. I would like to personally extend my thanks to the board of directors, management and all of our staff
for their hard work over the past year and to the shareholders who have provided support over the years for
all our efforts.
On behalf of the Board
/s/ Michael W. Jacobs
Chairman and Chief Executive Officer |
