During the year we removed the Safety Dental Syringe
from the market due to lack of sales and we were unable to identify a development partner for the Dual Chamber Mixing Device.
Contributing to the net loss for the six months ended June 30, 2005 was the $658,000 write-off of equipment and inventory related to Med-Design's discontinuation of production of the 1Shot(TM) Safety Dental Syringe
and the charges to cost of sales for a reserve and write-off of inventory related to the Safe-Step(R) Safety Huber Needle of $64,782.
Product costs for the first quarter, which consisted of direct and indirect costs related to Med-Design's contract manufactured products, primarily the Safe-Step(R) Safety Huber Needle, were $719,258 and included the amortization of the investment in acquired license products of approximately $125,000, a write-down of inventory for the 1Shot(TM) Safety Dental Syringe
of $193,000 and inventory obsolescence charges of $30,000 resulting from a design change relating to the Safe-Step(R) Safety Huber Needle.
Revenue for the nine months ended September 30, 2004 reflected $598,151 in sales of the Safe-Step(R) Low Profile Safety Huber Needle, $18,944 in sales of the 1Shot(TM) Safety Dental Syringe
and $331,220 in royalties from Med-Design's licensed technology.
In addition to increased revenue from our licensed products and the 1Shot Safety Dental Syringe
, we anticipate the successful completion of our development of the Pre-Filled Dual Chamber Pharmaceutical Mixing Device with Atrix Laboratories and the eventual signing of a long-term agreement for the product.
James Donegan, Chairman and Chief Executive Officer of Med-Design, commented, "This quarter was highlighted by the launch of the 1Shot(TM) Safety Dental Syringe
, Med-Design's first gross margin product.
As previously announced, the 1Shot Safety Dental Syringe
will be exclusively distributed worldwide by Sultan Chemists (Englewood, NJ), a leader in the field of infection control and oral therapeutics.
Research and development expenses increased as a result of additional personnel and regulatory costs related to the preparation of the Safety Dental Syringe
As previously announced the products covered by these options included the Safety Prefilled Vial Injector, Safety Epidural Needle, Safety Spinal Needle, Safety Cartridge Dental Syringe
, and Safety Guidewire Introducer.
These option products include the Safety Dental Syringe
, the Safety Prefilled Vial Injector, the Safety Spinal and Epidural Needles and the Safety Guidewire Introducer.
This device, along with the Protectus Safety Dental Syringe
(patent application previously announced), both employ the same spring-activated safety features as the Protectus Safety Syringe, as does the soon-to-be announced Protectus Safety Phlebotomy device.
We use a combination of 1:80,000 epinephrine and 2% lidocaine in prefilled vials mounted on a dental syringe