VirtualScopics, Inc. Reports First Quarter 2014 Financial Results; Awards Outstanding And Bookings Signed More Than Tripled 201

  VirtualScopics, Inc. Reports First Quarter 2014 Financial Results; Awards
 Outstanding And Bookings Signed More Than Tripled 2013 First Quarter Levels

PR Newswire

ROCHESTER, N.Y., May 15, 2014

ROCHESTER, N.Y., May 15, 2014 /PRNewswire/ --VirtualScopics, Inc. (NASDAQ:
VSCP), a leading provider of quantitative imaging solutions, today reported
the financial results for the first quarter ended March 31, 2014. Awards
outstanding and bookings signed during the 2014 first quarter more than
tripled to $13.6 million as of March 31, 2014, as compared to $4 million
recorded as of March 31, 2013. During the first quarter of 2014,
VirtualScopics was engaged in 99 different projects as compared to 88 in the
first quarter of 2013.

"We are very pleased with these year over year comparisons," said Eric
Converse, interim president and chief executive officer. "Most importantly,
the company's business activities in the first quarter of 2014 are indicative
of the acute focus we have placed on strengthening our core business—Phase I,
Phase II and Phase III clinical trials—and the investments we have been making
in our people, infrastructure and systems to improve the quantitative imaging
solutions we offer to our customers at some of the world's largest
pharmaceutical companies and contract research organizations (CROs)."

Revenues for the first quarter of 2014 were $2,353,000 compared to revenues of
$2,533,000 reported in the first quarter of 2013, representing a 7% decline.
This decrease in revenues is related to a slowdown in the amount of new
projects awarded in 2012, the timing of the initiation of projects and the
studies that ended during 2013 and in the first three months of 2014.

"It's important to remember that a project's revenue cycle depends on a number
of factors, including the time it takes for a drug trial to begin, which
varies due to the time required to set up trial sites and to recruit
participants," explained Mr. Converse. "Also, during the life of a project,
studies, not uncommonly, expand in size, which can increase our potential
revenue. However, there are also situations when the sponsor doesn't recruit
the number of participants or set up the number of sites originally budgeted
for, or the drug simply fails and then a study could come to a premature end."

VirtualScopics reported a net loss for the first quarter of 2014 of $646,000
as compared to a net loss in the first quarter of 2013 of $1,113,000. The
decrease in the net loss is primarily attributable to decreased operating
expenses which were substantially higher last year due to professional fees to
support our personalized medicine initiative during the first quarter of 2013
as well as other, one time higher costs. However, the company anticipates
expenses to trend upwards through the remainder of 2014 due to increased
investments for growth.

"I am encouraged by the increase in RFPs, awards, bookings and number of
activities thus far in 2014 and the positive momentum created by everyone on
the VirtualScopics' team and look to see this momentum continue," Mr. Converse
said. "The international alliance we are pursuing with IXICO plc as announced
on March 7, 2014, is an opportunity for both companies to expand and enhance
their global capabilities and collective quantitative imaging solutions. By
putting our combined technologies and expertise to work in clinical trials
targeting a number of disease categories we believe we can continue to make an
even greater contribution to diagnostic imaging and a difference in the field
of healthcare."

Conference Call and Webcast Information
The company's management will host a conference call and webcast today at 8:30
a.m. ET to discuss the company's first quarter 2014 financial results and
business outlook. The conference call dial-in information, webcast url and
replay information is as follows:

  oDomestic Callers: 877-407-8035
  oInternational Callers: 201-689-8035
  oConference Call ID: 13581706

An accompanying slide presentation to enhance management's formal remarks, as
well as a webcast of the call, can be accessed at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=172692

A replay and slide presentation will be available one hour after the
conclusion of the conference call for 90 days, and can be accessed
accordingly:

  oReplay Domestic Callers: 877-660-6853
  oReplay International Callers: 201-612-7415
  oReplay Conference ID: 13581706
  oWebcast and slide presentation:
    http://www.investorcalendar.com/IC/CEPage.asp?ID=172692 

About VirtualScopics, Inc.
VirtualScopics, Inc. (NASDAQ:VSCP) is a leading provider of quantitative
imaging solutions to accelerate drug and medical device development. For
risk-adverse, time-constrained Clinical Trial Study Teams, Medical Directors
and Imaging Scientists who require quality imaging data delivered on–time,
within budget and on a consistent basis, VirtualScopics' clinical trial
imaging solutions are an inspired true exception to commonly accepted services
provided by other clinical trial imaging providers. Because of the scientific
and operational flexibility and responsiveness they can offer, VirtualScopics'
clinical trial imaging solutions deliver special performance advantages
compared to other image service providers that offer common, every day
clinical trial imaging services. For more information about VirtualScopics,
Inc., please visit www.virtualscopics.com.

Forward-looking Statements

The statements contained in this press release that are not purely historical
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended, and are intended to be covered by the safe harbors
created thereby. These forward-looking statements include, but are not limited
to, statements regarding the expected benefits of the Company's investment in
infrastructure and new customer contract signings and awards, its potential
alliance with IXICO and/or statements preceded by, followed by or that include
the words "believes," "could," "expects," "anticipates," "estimates,"
"intends," "plans," "projects," "seeks," or similar expressions.
Forward-looking statements deal with the Company's current plans, intentions,
beliefs and expectations. Investors are cautioned that all forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. Many of these
risks and uncertainties are discussed in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2013 filed with the Securities and
Exchange Commission (the "SEC"), and in any subsequent reports filed with the
SEC, all of which are available at the SEC's website at www.sec.gov. These
include without limitation: the risk of cancellation or delay of customer
contracts or specifically as it relates to contact awards, the risk that they
may not get signed. Other risks include the company's dependence on its
largest customers and risks of contract performance, protection of our
intellectual property and the risks of infringement of the intellectual
property rights of others. All forward-looking statements speak only as of the
date of this press release and the Company undertakes no obligation to update
such forward-looking statements.



Tables to Follow



VirtualScopics, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
(unaudited)
                                      For the Three Months Ended
                                      March 31,
                                      2014                 2013
Revenues                              $   2,246,954      $   2,282,831
Reimbursement revenues                106,032              249,756
 Total revenues                   2,352,986            2,532,587
Cost of services                      1,489,079            1,497,539
Cost of reimbursement revenues        106,032              249,756
 Total cost of services           1,595,111            1,747,295
 Gross profit                   757,875              785,292
Operating expenses
 Research & development              285,896              453,411
 Sales & marketing                   345,077              357,652
 General & administrative            687,002              995,302
 Depreciation & amortization         86,502               96,313
 Total operating expenses       1,404,477            1,902,678
Operating loss                        ( 646,602 )          ( 1,117,386 )
Other income (expense)
 Other income                        1,037                5,880
 Other expense                       ( 808 )              ( 1,442 )
Total other income                   229                  4,438
 Net loss                           ( 646,373 )          ( 1,112,948 )
Preferred stock dividends             42,000               42,000
Net loss available to common          $   ( 688,373 )    $ ( 1,154,948 )
stockholders
Weighted average number of common
shares outstanding
 Basic and diluted                   2,991,990            2,979,952
Basic and diluted loss per common     $     ( 0.23 )  $     ( 0.39 )
share



VirtualScopics, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
                                                March 31,       December 31,
                                                2014            2013
Assets                                          (unaudited)
Current assets
Cash                                            $  6,837,572   $  7,330,630
Accounts receivable, net                        1,642,792       1,725,070
Prepaid expenses and other current assets       432,467         397,699
 Total current assets                    8,912,831       9,453,399
Patents, net                                    1,306,034       1,334,420
Property and equipment, net                     198,171         221,700
Other assets                                    -               -
 Total assets                            10,417,036      11,009,519
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses           $   958,253  $   846,071
Accrued payroll                                 495,972         837,611
Unearned revenue                                1,028,987       745,028
Dividends payable                               293,333         293,333
 Total current liabilities               2,776,545       2,722,043
Commitments and Contingencies
Stockholders' Equity
Convertible preferred stock, $0.001 par value;
15,000,000 shares
authorized;
Series C-1; 3,000 shares authorized; issued and
outstanding,

3,000 shares at March 31, 2014 and December 31, 3               3
2013,

respectively; liquidation preference $1,000 per
share
Series B; 6,000 shares authorized; issued and
outstanding, 600

at March 31, 2014 and December 31, 2013,        1               1
liquidation

preference $1,000 per share
Series A; 8,400 shares authorized; issued and
outstanding,

2,190 at March 31, 2014 and December 31, 2013,  2               2
respectively,

liquidation preference $1,000 per share
Series C-2; 3,000 shares authorized; issued and
outstanding, 0

shares at March 31, 2014 and December 31, 2013, -               -
respectively;

liquidation preference $1,000 per share
Common stock, $0.001 par value; 85,000,000
shares authorized;
issued 2,992,853 shares at March 31, 2014 and
December 31,

2013; outstanding, 2,992,853 and 2,991,869      2,993           2,992
shares at March

31, 2014 and December 31, 2013, respectively
 Additional paid in capital                21,992,006      21,992,619
 Accumulated deficit                       ( 14,354,514 )  ( 13,708,141 )
 Total stockholders' equity              7,640,491       8,287,476
 Total liabilities and stockholders'     $ 10,417,036   $ 11,009,519
equity



For More Information, Contact:
Donna N. Stein, APR, Fellow PRSA
Managing Partner
Donna Stein & Partners
315-361-4672
Email: dstein1@twcny.rr.com

SOURCE VirtualScopics, Inc.

Website: http://www.virtualscopics.com
 
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