Julian Ross, the Chief Executive Officer of Oxysure Systems Inc (OTCMKTS:OXYS) said that the company finished FY2014 strong. The focus was on creating a robust medical device base to support growth opportunities going forward.
The financial performance
Oxysure reported FY2014 revenue at $2.4 million, up 35% from 4Q2013 led by an 83% growth in revenues in the U.S. The gross margin came at 56% on an adjusted basis. The G&A expense came at $1.75 million and cash balance stood at $647,000. The company paid down all of its capital leases. In addition, the long-term debt declined 42%. Oxysure posted working capital surplus of $418,000. The total assets surged 7% to $2.5 million. The absorbed rent expense and labor cost impacted the yearly y gross profit that came at approximately $1 million, a decline of 15.7% from $1.2 million in FY2013.
Oxysure reported that the 4Q2014 was the tenth successive quarter of sales growth. For 4Q2014, revenue was $585,000, up 9% from 4Q2013. The gross profit surged by 9% and the growth in quarterly gross margin was almost the same. Out of the last ten quarters, five quarters reported triple-digit growth while four quarters posted double-digit growth.
Oxysure said that the company invested in medical device platform and have invested in growth in a planned way. The G&A expenses surged 77% to $1.7 million in FY2014. The factors responsible for rise in expenses include rise in employee stock option costs, jump in wages and salaries and rise in professional fees. The higher legal and accounting fees linked to an acquisition in 2H2014 resulted in increased professional fees. The company did reinvestments in marketing and sales and product development which surged 104% and 64% respectively. The interest expense jumped 263%.
IN last trading session, the stock price of Oxysure dropped 2.38% to close at $0.78 with share volume of 109,296.