BSD Medical Announces Fiscal Year 2012 Financial Results

  BSD Medical Announces Fiscal Year 2012 Financial Results

Business Wire

SALT LAKE CITY -- November 14, 2012

BSD Medical Corporation (NASDAQ: BSDM) (Company or BSD) (www.BSDMedical.com),
a leading provider of medical systems that treat cancer and benign diseases
using heat therapy, today reported financial results for its fiscal year ended
August 31, 2012, including:

  *Cash and cash equivalents of $11.1 million
  *No debt
  *Total stockholders’ equity of $14.5 million
  *Total revenues of $2,071,192 for the year ended August 31, 2012 compared
    to total revenues of $3,037,475 for the year ended August 31, 2011
  *Net loss of $7,960,660 for the year ended August 31, 2012 compared to
    $5,285,517 for the year ended August 31, 2011
  *Net cash used in operating activities of $5,935,939 for the year ended
    August 31, 2012 compared to $4,157,225 for the year ended August 31, 2011

“We made significant investments during fiscal year 2012 to expand our
MicroThermX^® Microwave Ablation System ('MicroThermX^®') business, which
contributed to the increase in our net loss and net cash used in operating
activities compared to the prior year,” said Harold Wolcott, President of the
Company. “These investments included the expansion of a fee-per-use equipment
rental program for our MicroThermX^® and important product enhancements such
as a new tabletop MicroThermX^® and a short tip SynchroWave antenna used to
deliver smaller, spherical ablation zones. We are pleased to report positive
results from these initiatives as we are experiencing increasing revenues from
sales of disposable SynchroWave antennas combined with highly profitable
equipment rental fees for our MicroThermX^®. Revenues from our MicroThermX^®
product line increased 214% during the current fiscal year compared to last
fiscal year. However, total revenues in the current fiscal year were less than
in the prior fiscal year primarily due to the sale of fewer hyperthermia
systems. We continue to have a strong balance sheet, no debt, and believe we
are sufficiently capitalized to continue our sales and marketing and product
development efforts.”

About BSD Medical Corporation

BSD Medical Corporation develops, manufactures, markets and services systems
to treat cancer and benign diseases using heat therapy delivered using focused
radiofrequency (RF) and microwave energy. BSD’s product lines include both
hyperthermia and ablation treatment systems. BSD’s hyperthermia cancer
treatment systems, which have been in use for several years in the United
States, Europe and Asia, are used to treat certain tumors with heat
(hyperthermia) while increasing the effectiveness of other therapies such as
radiation therapy. BSD’s microwave ablation system has been developed as a
stand-alone therapy to ablate and destroy soft tissue. The Company has
developed extensive intellectual property, multiple products in the market,
and well established distribution in the United States, Europe and Asia.
Certain of the Company’s products have received regulatory approvals in the
United States, Europe and China. For further information visit BSD Medical's
website at www.BSDMedical.com.

Forward-Looking Statements

Statements contained in this press release that are not historical facts,
including statements relating to our MicroThermX^® line of products, are
forward-looking statements, as defined in the Private Securities Litigation
Reform Act of 1995. All forward-looking statements are subject to risks and
uncertainties detailed in the Company's filings with the Securities and
Exchange Commission, including the market demand for our MicroThermX^®
products and the regulatory requirements we face. These forward-looking
statements speak only as of the date on which such statements are made, and
the Company undertakes no obligation to update such statements to reflect
events or circumstances arising after such date, except as required by law.


BSD MEDICAL CORPORATION
Balance Sheets
                                          
                                             August 31,
ASSETS                                       2012             2011
                                                             
Current assets:
Cash and cash equivalents                    $ 11,102,508      $ 17,135,968
Accounts receivable, net of allowance          289,587           397,264
for doubtful accounts of $20,000
Related party trade accounts receivable        33,257            408,323
Inventories, net                               2,403,957         2,406,214
Other current assets                          120,069        121,148     
Total current assets                           13,949,378        20,468,917
                                                               
Property and equipment, net                    1,412,639         1,445,897
Patents, net                                  4,032          25,092      
                                                               
                                             $ 15,366,049    $ 21,939,906  
                                                               
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                               
Current liabilities:
Accounts payable                             $ 195,754         $ 301,936
Accrued liabilities                            424,698           332,004
Customer deposits                              24,980            -
Deferred revenue – current portion            96,865         42,214      
Total current liabilities                      742,297           676,154
                                                               
Deferred revenue – net of current             126,420        192,158     
portion
                                                               
Total liabilities                             868,717        868,312     
                                                               
Commitments and contingencies
                                                               
Stockholders’ equity:
Preferred stock, $.001 par value;
10,000,000 shares authorized, no shares        -                 -
issued and outstanding
Common stock, $.001 par value,
80,000,000 shares authorized, 29,777,522       29,778            29,686
and 29,686,154 shares issued,
respectively
Additional paid-in capital                     51,845,035        50,458,729
Treasury stock, 24,331 shares at cost          (234        )     (234        )
Accumulated deficit                           (37,377,247 )   (29,416,587 )
Total stockholders’ equity                    14,497,332     21,071,594  
                                                               
                                             $ 15,366,049    $ 21,939,906  

                                                         
BSD MEDICAL CORPORATION
Statements of Comprehensive Loss
                          
                          Years Ended August 31,
                          2012             2011             2010
Revenues:
Sales                     $ 1,608,179        $ 1,863,773        $ 1,273,017
Sales to related            333,663            1,063,495          309,259
parties
Equipment rental           129,350        110,207        -          
Total revenues             2,071,192      3,037,475      1,582,276  
                                                                
Cost of revenues:
Cost of sales               1,244,290          1,074,030          1,182,328
Cost of related party       260,553            618,823            318,682
sales
Cost of equipment          11,788         20,073         -          
rental
Total cost of              1,516,631      1,712,926      1,501,010  
revenues
                                                                
Gross margin               554,561        1,324,549      81,266     
                                                                
Operating costs and
expenses:
Research and                2,364,608          1,483,659          2,429,215
development
Selling, general and       6,203,200      5,189,561      5,130,017  
administrative
Total operating costs      8,567,808      6,673,220      7,559,232  
and expenses
                                                                
Loss from operations       (8,013,247 )    (5,348,671 )    (7,477,966 )
                                                                
Other income
(expense):
Interest income             59,783             67,233             11,042
Other income               (6,208     )    (3,279     )    3,405      
(expense)
Total other income         53,575         63,954         14,447     
(expense)
                                                                
Loss before income          (7,959,672 )       (5,284,717 )       (7,463,519 )
taxes
                                                                
Income tax                 (988       )    (800       )    6,571      
(provision) benefit
                                                                
Net loss and              $ (7,960,660 )   $ (5,285,517 )   $ (7,456,948 )
comprehensive loss
                                                                
Loss per common
share:
Basic                     $ (0.27      )   $ (0.18      )   $ (0.32      )
Diluted                   $ (0.27      )   $ (0.18      )   $ (0.32      )
                                                                
Weighted average
number of shares
outstanding:
Basic                       29,717,000         28,838,000         23,257,000
Diluted                     29,717,000         28,838,000         23,257,000

                                                         
BSD MEDICAL CORPORATION
Statements of Cash Flows
                          
                          Years Ended August 31,
                          2012             2011             2010
Cash flows from
operating activities:
Net loss                  $ (7,960,660 )     $ (5,285,517 )     $ (7,456,948 )
Adjustments to
reconcile net loss to
net cash used in
operating activities:
Depreciation and          151,721              147,501            148,602
amortization
Stock issued for          180,000              150,165            150,000
services
Stock-based               1,206,398            1,064,539          990,461
compensation
Loss on disposition
of property and           118                  -                  -
equipment
Decrease (increase)
in:
Receivables               482,743              (414,223   )       (60,731    )
Income tax receivable     -                    50,000             1,365,758
Inventories               2,257                (167,960   )       (443,778   )
Other current assets      1,079                13,902             (40,514    )
Increase (decrease)
in:
Accounts payable          (106,182     )       104,854            (29,823    )
Accrued liabilities       92,694               108,084            (324,159   )
Customer deposits         24,980               -                  -
Deferred revenue          (11,087      )    71,430         21,557     
                                                                
Net cash used in          (5,935,939   )    (4,157,225 )    (5,679,575 )
operating activities
                                                                
Cash flows from
investing activities:
Purchase of property      (97,521      )    (214,554   )    (122,521   )
and equipment
                                                                
Cash flows from
financing activities:
Net proceeds from the     -                    9,702,656          6,493,723
sale of common stock
Proceeds from the         -                    2,989,406          -
exercise of warrants
Proceeds from the         -                332,120        -          
exercise of options
                                                                
Net cash provided by      -                13,024,182     6,493,723  
financing activities
                                                                
Net increase
(decrease) in cash        (6,033,460   )       8,652,403          691,627
and cash equivalents
Cash and cash
equivalents,              17,135,968       8,483,565      7,791,938  
beginning of year
                                                                
Cash and cash
equivalents, end of       $ 11,102,508    $ 17,135,968    $ 8,483,565  
year

Contact:

BSD Medical Corporation
Dennis Gauger, 801-972-5555
investor@bsdmc.com
fax: 801-972-5930
 
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