WELLINGTON, Fla., Sept. 19 /PRNewswire-FirstCall/ -- The Quantum Group, Inc. (http://www.quantummd.com/) announced today that the Company is filing Amendment No. 1 (the "Amended Report") to its Annual Report on Form 10-KSB filed with the Securities and Exchange Commission (the "SEC") on February 13, 2008 (the "Original Report") for the year ended October 31, 2007 and Amendments to its Quarterly Reports for the fiscal periods ended January 31, 2008 and April 30, 2008. The Amended Reports amend and restate the consolidated financial statements and Management's Discussion and Analysis as filed in the Original Reports.
The nature and scope of restatements are discussed in Note 2 to the consolidated financial statements. The financial statements included in the Original Report have been restated to reflect (i) the appropriate allocation of the components of Company securities offered in connection with various private placements dated August 29, 2006, December 18, 2006 and March 29, 2007. The securities included secured convertible debentures with a beneficial conversion feature and common stock, and (ii) the resulting amortization of the corresponding costs. In addition, the Company updated and corrected revenue and medical cost disclosures as it received notification from one of the health plan (HMO/Payer) partners of the Company that it had reported to a regulatory agency that the Company was not "at risk" during the fiscal year ended October 31, 2007, which was contrary to subsequent information provided to the Company. The "at risk" transactions related to the health plan in question have been reversed and the correct "not at risk" revenue and expenses have been recorded for the fiscal period in question. For detailed discussion of the effect of these matters, refer to the "Restatement" discussion appearing on page 27 of the Amended Report.
The Explanatory Note to the Amended Report sets forth the specific sections of the Original Report that have been amended and restated in the Amended Report. Other than such sections and amended and restated presentations, the Amended Report continues to describe conditions as of the Original Report. Further, the Amended Report does not purport to update or modify disclosures contained in the Original Report to reflect events that occurred following the filing date thereof. Accordingly, the Amended Report should be read in conjunction with our public filings made with the Securities and Exchange Commission subsequent to the filing of the Original Report.
The Original Report reported total revenues recorded $4,565,140 in fiscal year 2007 and the Company has restated this number to $4,262,595. Further, the Company reported a net loss of $11,260,100 as compared to the restated figure of $10,563,212. The previously stated per share loss was $6.55 for fiscal year 2007 and has been restated to $6.14.
Subsequently, the Original Report 10-QSB for the 1st Quarter of Fiscal Year 2008 stated total revenues of $2,935,955 and has been restated to $2,739,475. The net loss in the Original Report stated $6,946,016 and has been restated to $10,689,225 and the loss per share was updated from $1.20 in the Original Report to $1.85 in the restatement.
Finally, the Original Report 10-QSB for the 2nd Quarter of Fiscal Year 2008 recorded year-to-date total revenues of $7,188,753. This figure has been restated to $6,514,763. The Original report further noted a net loss of $11,849,989 and the Company has restated this number to $15,616,019. The loss per share has been updated from $1.62 to $2.14 in the restated filing.
Full details and copies of the above mentioned filings are available at http://www.sec.gov/ or via the Investor Relations link of http://www.quantummd.com/.
About The Quantum Group, Inc.
The Quantum Group provides business process solutions, service chain management, strategic consulting and leading edge technology innovations to the healthcare industry.
Through our dynamic patient-centric architecture, we empower the communication that is critical for the coordination of care and take aim at the $600 billion inefficiency gap in the United States healthcare industry. We are guided by a mission to develop efficiencies, improve the quality of patient care and achieve cost reductions for the nation's largest and fastest growing industry.
We have developed leading-edge technology with the creation and deployment of a series of innovative patent-pending initiatives. Through approximately 2,000 healthcare providers and multiple insurance company relationships under management, we are positioned to be a catalyst for change to the Florida healthcare industry.
Certain statements contained in this news release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to substantial uncertainties and risks in part detailed in the respective company's Securities and Exchange Commission 10-KSB, 10-QSB, S-8 and 8-K filings (and amendments thereto) that may cause actual results to materially differ from projections. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "may," "anticipates," "believes," "should," "intends," "estimates" and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. Such risk factors include, without limitation, the ability of the Company to properly execute its business model, to raise substantial and immediate additional capital to implement its business model, to attract and retain executive, management and operational personnel, to negotiate favorable current debt and future capital raises, to negotiate favorable agreements with a diversified provider base and to continue to supply the services needed by its HMO clients as well physician clients. The Company does not undertake any obligation to publicly update any forward-looking statements. There can be no assurance that the provisional patents discussed in this press release will be granted by the US Patent and Trademark Office, or, if they are granted, they will not be challenged by third parties, or if not that we will be able to effectively use or commercialize such patents and/or we may not have the resources to deploy such technology. As a result, investors should not place undue reliance on these forward-looking statements.
FOR MORE INFORMATION, PLEASE CONTACT:
PR Financial Marketing
Jim Blackman: 713-256-0369
