NEWS -
Letter to Stockholders of MMR Information Systems, Inc.
LOS ANGELES, CA, May 17, 2010 (MARKETWIRE via COMTEX) -- MMR Information
Systems, Inc. (OTCBB: MMRF)
Dear Stockholder:
Today we filed our quarterly statement for the three months ended March 31,
2010. I wanted to take this opportunity to discuss the filing and give you
insight into our plans to generate revenue as we evolve into MMRGlobal.
We are well on our way towards achieving a global footprint from which we will
sell our proprietary line of Personal Health Record and Professional Medical
Record products and services.
Following my recent travels to China and South Africa to meet with the Chartis
groups, I immediately flew to Washington, D.C., where MMR Advisor, former House
Majority Leader, the Hon. Richard A. "Dick" Gephardt, and MMR Director, the Hon.
Hector V. Barreto, were instrumental in arranging meetings with Senators,
Congress Members and government healthcare officials including Dr. David
Blumenthal, National Coordinator for Health Information Technology, as well as
investors and potential strategic partners to demonstrate our cost-saving and
unique technologies.
At the invitation of Mr. Barreto, who serves as Chairman of The Latino
Coalition, I also introduced onstage our strategic partner, Kodak, as the new
sponsor of the Coalition. Latino economic consumption is estimated to be nearing
a trillion dollars annually, and we expect to be able to sell our Personal
Health Record products directly into this market in conjunction with Kodak
through the Coalition.
I was particularly pleased to talk at some length with former House Speaker Newt
Gingrich, one of the nation's leading proponents of healthcare reform, and
update him on the progress of MMR since we last met approximately three years
ago.
Although we incurred a net loss of $6.5 million during the first quarter, $5.3
million of that loss represents non-cash expenses driven by $4.2 million from
the application of accounting principles to value derivative liabilities and
equity as well as an additional $1.0 million from stock options, warrants and
common stock issued for services.
Although we disclosed an accounts payable balance of $3.0 million, $2.5 million
of that balance is attributable to the reverse merger with Favrille and only
$389 thousand represents MMR trade payables. Accordingly, we maintain good
relationships with its vendors. In 2009, we were able to issue equity in lieu of
cash to reduce liabilities by $920 thousand which included $290 thousand towards
a reduction in accounts payable. We plan on using our increasing stock value to
further reduce liabilities and strengthen our balance sheet.
Our ability to issue equity for services has allowed us to accumulate $878
thousand in cash which we will use to support sales of MMRPro while continuing
to enhance product functionality and to exploit our biotech assets, patents and
other operating expenses.
In addition, since the end of the first quarter our filing discloses subsequent
events that have eliminated derivative liabilities in the amount of $3.7
million, or 36.1% which also will continue to improve our balance sheet
position.
We will continue to take advantage of our stock value to improve our balance
sheet and attract strategic partners and employees, consultants and management.
We also plan on using our equity for Merger and Acquisition opportunities,
including some currently under preliminary evaluation. All of these actions can
contribute to an increase in our value for the benefit of stockholders.
Although our financial condition remains largely static as compared to a year
ago, as a result of our efforts, we now are positioned to take advantage of
multiple income streams that did not exist then.
During the first quarter we began the process of selling and installing the
first group of 10 MMRPro systems in physician offices. The installation and
sales implementation process takes approximately 6 to 10 weeks. This encompasses
a checklist of more than 50 items which includes everything from where the
system hardware will be located, connected and installed, a detailed analysis of
office workflow, and customizing connectivity to any existing office practice
management system. These initial installations are being handled by us on a
direct basis. However, we receive substantial installation support from Kodak
and selected Kodak resellers.
Starting in the third quarter we will be calling on physician offices throughout
the United States through the nationwide Kodak reseller channel.
We also plan on building strategic relationships with hospitals to underwrite
the use of MMRPro for staff physicians. This could enable staff physicians to
digitize patient charts prior to admissions, streamlining the admissions process
for the patients to the hospital.
In addition to its product functionality, MMRPro includes a "Stimulus Program"
for healthcare professionals that creates a revenue opportunity for physicians
from patient upgrades. We believe that our Stimulus Program can generate at
least as much money for the average group practice over a three year term as the
$44,000 that is possible through the HITECH Act over a five year period.
We retained Global Research Services LLC, a full-service clinical trials
management organization, to assist us in our efforts to accelerate bringing to
market its anti-CD20 monoclonal antibodies. Anti-CD20 antibodies are useful in
treating B-Cell malignancies, including Non-Hodgkin's Lymphoma (NHL) and
additional B-Cell mediated conditions such as rheumatoid arthritis. Global
Research Services specializes in serving sponsors of Phase I-IV research. MMR's
anti-CD20 antibody asset is potentially a candidate for the next generation
Rituximab, marketed under the trade name Rituxan(R) in the United States by
Biogen Idec and Genentech (wholly owned member of the Roche Group) and under the
name MabThera(R) by Roche in the rest of the world except Japan, where it is
co-marketed by Chugai and Zenyaku Kogyo Co. Ltd. Rituxan/MabThera is one of the
world's most successful monoclonal antibodies with reported total sales in 2009
in excess of US$5.6 billion.
Beginning in June 2009, we filed various national phase filings from the Patent
Cooperation Treaty patent application directed to the anti-CD20 monoclonal
antibodies, including in the United States, Australia, Brazil, Canada, China,
Europe, India, Japan, South Korea and Mexico.
We also acquired certain intellectual property rights involving B and T cell
vaccine technology relating to the FavID vaccine in various stages in the United
States and foreign countries through its reverse merger with Favrille. We are
also in the process of filing certain patents regarding numerous aspects of the
FavID vaccine. We cannot guarantee the status or issuance of any patents and
patent applications. However, we are acting to pursue and maintain available
intellectual property protection relating to the FavID vaccine and intellectual
property portfolio in the United States and major foreign markets of interest.
We are also in the process of adding experienced venture capitalists to our
Medical Board of Advisers to assist us in generating revenue through licensing
agreements and milestone payments from our biotech assets and other intellectual
property, which we acquired from the reverse merger with Favrille. The assets
include, but are not limited to, data from our pre-merger clinical vaccine
trials, the Specifid vaccine, and the anti-CD20 antibodies. Given recent
developments with Dendreon and the similarities to our manufacturing process and
the drug Provenge, we will continue to explore any opportunities to resurrect
and or take advantage of any pre-merger assets.
As we previously disclosed, on March 22, 2010, we entered into a Master Services
Agreement with Chartis International LLC ("Chartis"). Chartis provides a wide
range of insurance solutions and is one of the world's leading property-casualty
and general insurance organizations, with operations in over 160 countries and
jurisdictions. We plan on providing MMR's secure online Personal Health Record
products to Chartis policyholders worldwide starting prior to the end of this
year. Initially, translations of our products are first expected to be available
in English, Spanish, French, German, Italian, Japanese and Chinese.
We are also in active negotiations with a major financial institution regarding
the development of paperless loan processing and delivery solutions whereby loan
documents can be delivered electronically through our MyESafeDepositBox product,
with resultant completed documents being filed in a permanent online
MyESafeDepositBox account.
At the first of the year, we entered into a Cooperation Agreement with
Unis-Tonghe Technology Co. ("Unis"). Under the Cooperation Agreement we and Unis
agreed to form a joint venture in China for the purpose of deploying our
personal health record services and document imaging and management solutions in
China for use in the Chinese Government's comprehensive electronic medical
records system. If and when the joint venture is approved by the Chinese
government, Unis will own 60% and MMR will own 40%. Meanwhile we have begun to
leverage our resources in China with other U.S. partners, including Kodak. As a
result, we anticipate selling MMRPro through Kodak resellers throughout the Asia
Pacific region in advance of a Unis MMR EMR product launch. We also believe that
China will provide one of the earlier Chartis revenue streams.
We were recently profiled in the May edition of PharmaVOICE magazine regarding
its products and the value to the Clinical Trials market and big Pharma. We
believe we can generate revenues by using our PHR to connect patients to
Clinical Trials through existing strategic partnerships and agreements. We will
also offer customized tools for the Clinical Trials marketplace and plan on
having them introduced starting at the Drug Information Association's Annual
Meeting in Washington, D.C. June 13 to 17, 2010.
I also want to inform you of the possibility we may enter into an agreement for
a standby line of credit, which will be available to us as we continue to
globally expand our proprietary suite of electronic health records products. I
will convey this to you immediately should we take this step, but we have made
no decision as of yet as to whether to enter into such agreement.
Many of you have expressed concern about how we will finance ourselves going
forward and the dilutive impact on our equity. Simply put, it takes money to
make money. Last July, our stockholders approved an increase of our authorized
Common Stock from 150 million shares to 650 million shares. Since that time, we
have issued less than 10% of the total outstanding in additional shares; yet,
our value has more than doubled. Accordingly, we are still considering all
options to finance growth.
We will need to continue to meet obligations necessary to finance our growth
internationally. As always, as new developments occur, I will disclose them in a
timely manner.
One of the best ways to understand the value of your company is by using its
products and services. Therefore, if you have not already done so, please take
some time over the upcoming Memorial Day holiday to reach out to your family and
friends and set up a MyMedicalRecords.com or MyESafeDepositBox.com account. You
will appreciate the safety and security of having all your important documents
and medical records securely stored online in the event of an emergency, and
you'll be proud to be an owner of MMR and our potentially lifesaving products.
Thank you for your continued support of MMR.
Sincerely,
Robert H. Lorsch Chairman, President & Chief Executive Officer
About MMR Information Systems, Inc.
MMR Information Systems, Inc., through its wholly-owned operating subsidiary,
MyMedicalRecords, Inc. ("MMR"), provides secure and easy-to-use online Personal
Health Records ("PHRs") and electronic safe deposit box storage solutions,
serving consumers, healthcare professionals, employers, insurance companies,
unions and professional organizations and affinity groups. MyMedicalRecords
enables individuals and families to access their medical records and other
important documents, such as birth certificates, passports, insurance policies
and wills, anytime from anywhere using the Internet. The MyMedicalRecords
Personal Health Record is built on proprietary, patented technologies to allow
documents, images and voicemail messages to be transmitted and stored in the
system using a variety of methods, including fax, phone, or file upload without
relying on any specific electronic medical record platform to populate a user's
account. The Company's professional offering, MMRPro, is designed to give
physicians' offices an easy and cost-effective solution to digitizing
paper-based medical records and sharing them with patients in real time. MMR is
an Independent Software Vendor Partner with Kodak to deliver an integrated
turnkey EMR solution for healthcare professionals. MMR is also an integrated
service provider on Google Health. To learn more about MMR Information Systems,
Inc. and its products, visit www.mymedicalrecords.com and view the videos at
www.mymedicalrecordsonline.com/videos.
Forward-Looking Statements Any statements contained in this press release that
refer to future events or other non-historical matters are forward-looking
statements, and some can be identified by the use of words (and their
derivations) such as "need," "possibility," "offer," "development," "if,"
"negotiate," "when," "begun," "believe," "achieve," "will," "estimate,"
"expect," "maintain," "plan," and "continue." MMR Information Systems, Inc.
disclaims any intent or obligation to revise or update any forward-looking
statements. These forward-looking statements are based on MMR Information
Systems, Inc.'s reasonable expectations as of the date of this press release and
are subject to risks and uncertainties that could cause actual results to differ
materially from current expectations. The information discussed in this release
is subject to various risks and uncertainties related to changes in MMR
Information Systems, Inc.'s business prospects, results of operations or
financial condition, government regulation, and such other risks and
uncertainties as detailed from time to time in MMR Information Systems, Inc.'s
public filings with the U.S. Securities and Exchange Commission.
CONTACT:
Bobbie Volman
MMR Information Systems, Inc.
(310) 476-7002, Ext. 2005
bvolman@mmrmail.com
Michael Selsman
Public Communications Co.
(310) 553-5732
ms@publiccommunications.biz
SOURCE: MMR Information Systems, Inc.
CONTACT: mailto:bvolman@mmrmail.com
mailto:ms@publiccommunications.biz
