investora2z Thursday, 10/31/13 07:22:29 AM Re: None Post # of 108 The 10K filed for the year ending July 31 reports $109,000 revenues compared to $250,000 for fiscal 2012. This large decrease primarily resulted from decrease in royalty revenues. The Exer-Rest platform unit sales for the 2013 fiscal year increased 57% over 2012, and the royalty revenue decreased due to decrease in product sales by SensorMedics. Importantly, SensorMedics indicated it will discontinue licensed product sales after current inventory is depleted. So the royalty revenue from SensorMedics is expected to be nearly zero. The total operating expenses in FY13 declined to $488,000 compared to $662,000 in FY12. The interest expense increased due to the borrowings under the $1 million revolving credit facility and $50,000 increase in notes payable. The company had $296,000 cash and positive working capital of approximately $47,000 as on July 31. The existing funds are likely to be sufficient to support its current operations in the United States and Canada through July 2014. This implies that the situation has worsened over the last few quarters and has reached a critical point. The stock is up 400% in 2013, and a large part of the move has come after investment made by Dr. Frost in April. So the positive movement is based primarily on the support of Dr. Frost. Frost's investments have done well recently, and he has also put in place some collaborations between his companies. His company Biozone Pharmaceuticals (BZNE), which owns a high potential drug delivery technology Qusomes, has got investments from two other companies OPKO Health (OPK) and MusclePharm (MSLP) where he has a stake. The technology is likely to help the two companies reduce production costs and improve efficacy of the drugs. For NIMU, however, the risk has increased significantly over the last few quarters. The main problem is that it is not likely to generate much revenues in the coming quarters.