Spine Pain Mgmt (SPIN) research, news, and more from GeoInvesting

Company description

Mon, 14 Nov 2011 05:00:00 GMT

We are a medical marketing, management, billing and collection company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our care management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe that our patient advocacy will be rewarding to patients who obtain needed relief from painful conditions.

Investor Alert

Mon, 14 Nov 2011 05:00:00 GMT

On January 19, 2010, James McKay and Celebrity Foods, Inc. filed a lawsuit against us (the Company) and William Donovan, M.D., individually, in the United States District Court, Eastern District of Pennsylvania. Based on the lawsuit, in March 2009, the plaintiffs contacted our transfer agent to have restrictive legends removed on shares the plaintiffs had previously obtained from us in connection with a stock purchase agreement. We subsequently requested that the transfer agent place a stop transfer order on the shares. The plaintiffs alleged that our actions constitute a breach of contract, fraud and/or unjust enrichment. They are seeking monetary and punitive damages, attorneys’ fees and costs, as well as a divestment of all shares and a rescission of the stock purchase agreement. We filed a motion to dismiss in April 2010. The Court ruled on this motion and dismissed all fraud counts. In July 2011, the Court granted the plaintiffs' motion for judgment on the pleadings and dismissed our counterclaim. The plaintiffs’ motion for partial summary judgment is currently pending before the Court. We have responded and are awaiting the Court's decision. Although we believe the plaintiffs’ case is without merit, there can be no assurance that the outcome of this case will be favorable to us.

On October 27, 2009, William R. Dunavant and William R. Dunavant Family Holdings, Inc. filed suit in the 55th Judicial District Court of Harris County, Texas, against us (the Company), William Donovan, M.D., Richard Specht, Rene Hamouth and Signature Stock Transfer, Inc. The suit related to a dispute regarding 2,000,000 shares of our stock that were previously issued to Mr. Dunavant while he was an officer. The case, including the original suit and the counterclaim, were scheduled to go to trial on April 23, 2012. However, the matter was settled in November 2011 through mediation (see Note 11).

Comments & Business Outlook

Mon, 14 Nov 2011 05:00:00 GMT

SPINE PAIN MANAGEMENT, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

	FOR THE THREE MONTHS ENDED SEPTEMBER 30,					FOR THE NINE MONTHS ENDED SEPTEMBER 30,
	2011			2010		2011			2010
Net revenue	$	1,770,508		$	856,097	$	3,863,003		$	2,545,740
Cost of providing services		678,200			306,000		1,499,800			993,100
Gross profit		1,092,308			550,097		2,363,203			1,552,640
Operating, general and administrative expenses		349,776			282,414		1,137,495			664,592
Income from operations		742,532			267,683		1,225,708			888,048
Other income and (expense):
Other income		4,860			208		167,840			5,198
Interest expense		(24,277	)		-		(65,381	)		-
Total other income and (expense)		(19,417	)		208		102,459			5,198
Net income	$	723,115		$	267,891	$	1,328,167		$	893,246
Net income per common share
Basic and diluted	$	0.04		$	0.02	$	0.08		$	0.05
Weighted average number of common shares outstanding:
Basic and diluted		17,384,810			17,252,853		17,397,133			17,081,078