LEWISVILLE, Texas--(BUSINESS WIRE)-- CareView Communications, Inc. ("CareView" or the "Company") (OTCBB:CRVW), an information technology provider to the healthcare industry, announced that it filed its Form 10-Q for the quarter ended June 30, 2011 with the Securities and Exchange Commission yesterday. CareView had previously filed a Late Filing Notification necessitated by the complexities of the accounting treatment related to the financing it received from HealthCor Management, LP and affiliates ("HealthCor") during the second quarter of 2011. The financing was structured through the issuance of senior secured convertible notes totaling $20 million and common stock purchase warrants for 11,782,859 underlying shares of the Company's Common Stock.
The HealthCor financing had a material impact on certain non-cash components of the Company’s financial statements. The transaction also included substantial increases from December 31, 2010 in cash ($14,826,553) and working capital ($15,359,276). The Company’s results of operations for the six months ended June 30, 2011 produced non-cash costs totaling $12,235,347, recorded as non-cash compensation in general and administration expense in the Company’s condensed consolidated financial statements. This non-cash expense was a major contributing factor in the Company’s net operating loss of $15,644,426 and net loss of $16,822,938 for the six month period ended June 30, 2011 as compared to a $6,124,635 loss and $8,356,235 loss, respectively, during the same period in 2010. Excluding the non-cash expense related to the HealthCor financing and all other non-cash expenses, CareView recorded a net operating loss of $2,844,857 for the six months ended June 30, 2011 compared to a net operating loss of $2,146,418 for the same period in 2010, an increase of $698,439.
HealthCor and CareView have begun negotiations to alter certain terms of the HealthCor investment. It is the intent of both HealthCor and the Company to modify the existing agreement to facilitate a change in the accounting treatment of the transaction. It is expected that this modification would substantially eliminate the Conversion Option Liability currently carried on the Company’s balance sheet. There is no guarantee that the Company and HealthCor will agree on any modification to the agreement.
The aforementioned increase in net operating loss reflects the increase in manpower and infrastructure necessary for CareView to grow its business and support operations. CareView has added significant infrastructure to facilitate its rapid growth. CEO Sam Greco stated, “It is a prime directive of this company to make sure our hospitals are provided with the support they need from us. Our assistance to them in the proper application of our products will not only save the hospitals millions of dollars, but will save thousands of lives as well.”
As a current update to CareView’s agreement with Hospital Management Associates, Inc. ("HMA") signed in March 2011, CareView has completed the installation of the infrastructure and head-end equipment in over 20 of HMA’s 59 hospitals and has installed approximately 2,000 Room Control Platforms (RCPs). The Company began generating revenues from certain HMA hospitals in July 2011 which will be reflected in the Company’s third quarter results. Due to billing cycles and installation schedules for the HMA rollout, the Company anticipates it will begin receiving the majority of the associated revenues in the fourth quarter of 2011.
The Company's current equipment level will allow it to expand to approximately 8,000 RCP installations. CareView has already placed equipment orders for an additional 4,000 RCPs which are scheduled for delivery in October 2011 which will bring its total number of RCPs to 12,000 units. CareView is in the final development stage of its next generation RCP which will lower the cost and size of each unit. The next generation RCP will be ready for deployment in early 2012 upon the completion of final field testing.
About CareView Communications, Inc.
CareView has created a proprietary high-speed data network system that can be deployed throughout a healthcare facility using the existing cable television infrastructure. This network supports CareView’s Room Control Platform and complementary suite of software applications designed to streamline workflow and improve value-added services offered to customers. Real-time bedside monitoring and point-of-care video monitoring and recording improve efficiency while limiting liability, and entertainment packages and education enhance quality of stay. This technology may also act as an interface gateway for other software systems and medical devices moving forward. CareView is dedicated to working with all types of hospitals, nursing homes, adult living centers and selected outpatient care facilities domestically and internationally. Corporate offices are located at 405 State Highway 121 Bypass, Suite B-240, Lewisville, Texas, 75067. Questions may be directed to John R. Bailey, Chief Financial Officer at (972) 943-6050. More information about the Company is available on the Company’s website at www.care-view.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities of CareView Communications, Inc. Certain statements in this release and other written or oral statements made by or on behalf of the Company are “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company’s services and projects and the Company’s continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.
CareView Communications, Inc.
John R. Bailey, 972-943-6050
Chief Financial Officer
KEYWORDS: United States North America Texas
INDUSTRY KEYWORDS: Practice Management Health Hospitals Nursing General Health Managed Care