LOS ANGELES, CA--(Marketwire - Jun 25, 2012) - MMRGlobal, Inc. (OTCBB: MMRF)
As we move into the second half of 2012, I wanted to take this opportunity to update you on the business of our business and the Company's continued prospects for growth as a leading health IT provider using our patented technologies to connect patients with physicians and help save lives in the event of an emergency.
Last week, we had a very successful Annual Meeting of Stockholders. The Company received overwhelming response and support on all proposals. Two-hundred sixty-six million shares were voted out of a total of 374 million, the results of which will be announced in an 8-K. Shortly after the Annual Meeting, the Company held a meeting of the Board of Directors during which the Board approved a plan that allows directors and officers, not including Chairman & CEO Robert H. Lorsch, and others (the "Holders"), to exchange outstanding debt, out-of pocket expenses and fees owed them by the Company for shares of its Common Stock at more than 150 percent over the closing price of the Company's Common Stock on the date of the Annual Meeting, or June 20. The Company believes that the Holders will forgive an aggregate total debt of approximately $390,000.
We continue to believe that the Company is tremendously undervalued given the range of our products, services and intellectual property in health IT and values of our biotechnology assets and license agreements. Moreover, regardless of any Supreme Court decision on the individual insurance mandate under the Affordable Care Act, MMRGlobal continues to be well-positioned to benefit from the HITECH Act and its incentivizing healthcare professionals to convert to digitized medical records covering, more specifically, core requirements pertaining to the need to provide patients with timely online access to their medical records by 2014.
The Company's global portfolio of patents entitled "Method and System for Providing Online Medical Records" represents a significant competitive barrier to entry in the Personal Health Records business and the fax transmission of medical records in and out of Electronic Medical Record systems. According to reports from consultants, there are more than 100 PHR systems and 500 EMR systems that are potentially infringing on patents issued, pending or applied for that are owned by MMRGlobal. Moreover, with our three issued patents in MMR's health IT patent portfolio, and, based on the projected growth of the Personal Health Records and digitized medical records business, we are formulating plans to exploit licensing revenue and, where necessary, pursue patent infringements. We realize that this will be time-consuming and expensive, however, the potential upside could be significant and we have already demonstrated the value proposition with existing agreements and revenues.
Following is a brief summary of recent news and transactions we are working on as well as other announcements previously reported and available at the MMRGlobal's Investor Relations website:
After nearly three years of development, the Company is deploying the modules that will enable physicians to receive and send faxes from inside an EMR. The Company is already incorporating its EMR/EHR Fax Communications Gateway in 4medica's Certified for Meaningful Use Integrated Electronic Health Record (4medica iEHR®) starting this week. 4medica provides the industry's leading cloud clinical integration platform and solutions and our program is already beginning to generate revenue for the Company.
This follows the integration of the Company's MMRPatientView portal and MyMedicalRecords Personal Health Record with Interbit Data's NetDelivery and Document Manager Products to offer a proprietary solution that will create immediate revenue streams when patients upgrade from MMRPatientView to the full-featured MyMedicalRecords PHR. The MMR-Interbit Data module is certified for meaningful use with MEDITECH EMR systems, and the Company believes that it can also work with virtually any EMR platform.
The Company has always positioned its MMRPro document management and imaging system as an entry level solution for any healthcare professional moving to a fully-functional Electronic Medical Records or Electronic Health Records system. MMR has spent millions of dollars on software, hardware and intellectual property to integrate its products and services so they can seamlessly work as needed where needed, connecting doctors and patients throughout the care cycle.
We continue to sell MMRPro to healthcare professionals throughout the United States and the business is growing. MMRPro is continuing to generate revenue quarter over quarter and has recently demonstrated significant value in Ambulatory Surgery Centers where dozens of surgeons work in the same facility.
Internationally, the Company has sold MMRPro to a physician group practice in the Philippines, which is being used to make presentations to the Government and other private physician practices and hospitals. We are working through challenges with export and import regulations, which we believe will be manageable. At the same time, the Company is in the beginning process of installing MMRPro at St. Helen's Hospital in the UK.
As announced in a news release on May 2, the Company is also actively working with the B. Riley & Co. banking team on the exploitation of MMR's health IT products and services, including patents and intellectual property. B. Riley is also exploring opportunities for the licensing or sale of the Company's biotech-related assets, which include anti-CD20 antibodies and patents, data and patient samples from pre-Merger Favrille's FavId™/Specifid™ vaccine clinical trials and other IP created at a development cost of more than $140 million.
We are actively working with E-mail Frequency and its partners, AmeriDoc™ and National Benefit Builders, Inc., on embedding MyMedicalRecords in benefit programs as part of a suite of healthcare products and services. These programs also started generating revenue last year. David Loftus, Founder and Managing Partner of E-mail Frequency, is one of the largest shareholders of MMR.
We have recently concluded negotiations with a national fitness chain to offer Personal Health Records with memberships to promote safety in the clubs. We have also entered into agreements with a group of trailer parks to offer the sale of PHRs to the mobile community as part of a lease or parcel purchase. The Company plans on expanding that program throughout the tenant-landlord community. This ensures management at these facilities has emergency tenant information in the event of a disaster or medical emergency. Both these programs will begin operating in the third quarter.
The Company has been distributing 10,000 Prepaid Personal Health Record cards to VIDA Senior Resource, Inc., a family owned and operated community resource organization that provides senior home care services nationwide through a network of certified owned and operated agencies. Our revenue sharing arrangement with VIDA and its affiliates include incentives for management and in-home workers for enrolling clients and inputting health records data into a client's PHR as authorized. We believe that this program will generate revenue starting immediately.
The Company has generated $850,000 in milestone payments from its pre-Merger Favrille biotech assets, and although biotech licensing agreements of this kind take time, we are anticipating additional payments in the future of at least $10 million, as called for in a license agreement.
We are continuing to work with major telecommunications companies to bring the MyMedicalRecords Personal Health Record to Smartphones. We continue to be actively involved in meetings with Verizon. The Company believes that its patents give us a competitive advantage when negotiating services with the major carriers since many cell phones can now receive fax.
Through the Company's relationship with ng Connect and Alcatel-Lucent, we have launched a Telemedicine reporting module inside the MyMedicalRecords PHR. We are working on identifying strategic partners to send medical information through our portal.
We recently announced a new business arrangement with Fujitsu Computer Products of America, Inc., one of the world leaders in scanning solutions, which incorporates MMRPro with their new ScanSnap N1800 Network Scanner. Utilizing a proprietary interface created by DocuFi™, the document imaging solution offers smaller physician offices MMRPro as a lower cost service alternative.
We continue to work with Chartis on opportunities to launch our services worldwide and project announcements affecting revenue from Europe later this year.
We are working with representatives of the American Red Cross on how to use MyMedicalRecords as a fundraising tool while enabling people to be better prepared in a disaster.
We are actively working with the National Rifle Association (NRA) to expand our affiliation and broaden usage for increased revenues from our existing NRA member program.
In China, our Joint Venture with Unis-Tonghe has received the approvals necessary to start our business in Henan Province, population 100 million. Mr. Luo, Vice President and Chairman of Unisoft Group, was our guest following our Stockholders' Meeting, during which time we discussed the next steps to begin selling Personal Health Records with the assistance of Alcatel- Lucent in China.
There is a very active market for Personal Health Records in Australia where MMR holds dominant patents in the market. This includes integrating Telemedicine applications, document management solutions and sales of affinity programs, more of which will be announced by our Australian partners in the coming months. The Company has begun generating revenue from minimum performance guarantees already this year.
Earlier this year, the Company introduced the first Prepaid Personal Health Record card designed for retail. MMR is currently in the process of building a swipe activation platform to launch the product in the mass market retail environment. The Company is designing the packaging and infrastructure to support swipe activation of our Prepaid Personal Health Records cards, similar to the technologies used in the activation and billing patent described as US Patent Number 5,903,633 originally invented by the Company's CEO Robert Lorsch. As a result, the Company projects that, prior to the end of the year, consumers will be able to purchase cards in national retailer test programs.
Many of our stockholders may have noticed a surge of articles and blogs providing stepped-up media exposure on the importance of Personal Health Records. It does take a village and a vision to create products and services more than five years in advance of them becoming an integrated part of our lives. We started patenting our health IT services in 2005 when they were a vision originated in the Bush administration. Our original concept was to enable consumers to have full access to all their important medical information to reduce healthcare costs and save lives. Despite the fact that the revenue cycle is slow, the growth of health IT is very much like a "Hockey Stick" approach to revenue growth. In providing a consumer perspective on Personal Health Records last week in New Zealand (where MMR's patent for providing online medical records has been issued), Ernie Newman, Chair of the National IT Health Board Consumer Panel, presented some of the following thoughts: "A personal 'Shared Care Record' for everyone by 2014: A set of core health information; Accessible by every clinician we deal with, irrespective of the setting; Accessible to ourselves; Including some/all of: Clinical notes, test results, radiography, list of medications, allergies, referrals/discharges, etc.; Expectation that scope of the data will grow over time"... and addressing "The Massive Benefits of Personal Health Records On Line: Better care arising from better-informed professionals; More self-care arising from better informed patients -- wellness as well as health; Opens door for more effective ways to deliver health services."
We connect patients and their physicians and vice versa through health IT. Yet we face many of the challenges in an emerging growth market where the consumer has yet to realize the critical importance of our products and services. We believe this is changing, however, as the natural progression of healthcare evolves and the growing acceptance of using online services to maintain medical data combine to create a tipping point for widespread usage. And though MMR is still a small company in a giant marketplace, we already have the products and surrounding IP representing an opportunity for investors in a very exciting market.
All in all, this is shaping up to be a meaningful year for MMRGlobal. Thank you, as always, to our stockholders, our executive and technical teams, customers, employees and associates, and our friends around the world for your continued support.
Very truly yours,
Robert H. Lorsch
Chairman & Chief Executive Officer
About MMRGlobal, Inc.
MMRGlobal, 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, financial institutions, and professional organizations and affinity groups. The MyMedicalRecords PHR 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. MyMedicalRecords 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 through an integrated patient portal. Through its merger with Favrille, Inc. in January 2009, the Company acquired intellectual property biotech assets that include anti-CD20 antibodies and data and samples from its FavId™/Specifid™ vaccine clinical trials for the treatment of B-Cell Non-Hodgkin's lymphoma. To learn more about MMRGlobal, Inc. and its products, visit www.mmrglobal.com.
Statements in this press release that are not strictly historical in nature, whether or not such statement relates directly to the Company's future performance, management's expectations, beliefs, intentions, estimates or projections, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. 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," "intend" and "continue," or the negative of these words. Factors that could cause or contribute to such differences include, but are not limited to, the prosecution of our patents; licensing, defending, protecting and maximizing the value of our biotechnology and health information technology intellectual property; the risk the Company's products are not adopted or viewed favorably by the healthcare community and retail market; business prospects, results of operations or financial condition, including variations in our quarterly and year-end operating results; risks related to the current uncertainty and instability in financial and lending markets, including global economic uncertainties; timing and volume of sales and installations; length of sales cycles and the installation process; timing of new program launches; market acceptance of new product introductions, including the Prepaid Personal Health Record card; ability to establish and maintain strategic relationships; relationships with licensees; competitive product offerings and promotions; changes in government laws and regulations and future changes in tax legislation and initiatives in the healthcare industry; undetected errors in our products; possibility of interruption at our data centers; risks related to third party vendors; risks related to obtaining and integrating third-party licensed technology; acceptance of the Company's marketing and promotional campaigns; risks related to a security breach by third parties; litigation matters; risks associated with recruitment and retention of key personnel; uncertainties associated with doing business internationally across borders and territories; and additional risks discussed in the Company's filings with the Securities and Exchange Commission. The Company is providing this information as of the date of this release and, except as required by law, does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.