General and administrative (G&A) expenses for the third quarter of 2018 were $2.1 million, a 9% decrease from G&A expenses from continuing operations of $2.3 million for the same period last year. The decrease was primarily due to decreases in non-cash stock option expense, as well as lower expenses related to payroll, accounting, consulting fees and software development. Professional fees of $785,766 represented a major component of G&A expenses in the third quarter of 2018.

In the third quarter of 2018, the company deconsolidated RoxSan Pharmacy, recognizing a gain of $5,079,416, and extinguished the debt incurred in connection with the acquisition, recognizing a gain of $22,781,281.

Net income from continuing operations for the three months ended September 30, 2018 was $25.6 million, or $0.12 per diluted common share, compared with a net loss of $3.9 million, or $0.03 per share, for the same period last year.  

Year-to-date Financial Results

Total revenues for the nine months ended September 30, 2018 were $10,749, compared to total revenues from continuing operations of $70,641 in the year-ago period. Gross loss improved to $4,758 for the first nine months of 2018, compared with a gross loss from continuing operations of $39,486 for the nine months ended September 30, 2017. Total operating expenses increased to $5.2 million in the first nine months of 2018, compared with operating expenses from continuing operations of $3.2 million in the first nine months of 2017.

The Company recorded a net operating loss from continuing operations of $5.1 million, or $0.03 per share, in the nine months ended September 30, 2018, compared with a net operating loss of $3.2 million or $0.02 per share, for the same period last year.

Business Outlook

The Company forecasts that recognizable revenues will be sufficient to achieve breakeven from operations by the end of 2019, subject to the conversion of prospective business opportunities into revenues within the period.

Intellectual Property Portfolio

Parallax's solutions are supported by its intellectual property portfolio. The Company now owns or has exclusive licenses for 8 patent families and 12 patents with 5 additional patents pending with the United States Patent & Trademark Office, along with hundreds of claims. The claims cover broad range of the Company's proprietary technologies and products. Parallax also owns 4 trademarks protecting the names of its products and identity in the marketplace.

About Parallax Health Sciences

Parallax Health Sciences is an advanced, technology-driven telehealth company that allows for cost-effective remote diagnosis, treatment and monitoring of patients through proprietary platforms of integrated products and services. The Company's interoperable novel applications provide patients point-of-care testing and monitoring with information communicated via internet-based mobile phone applications that are agnostic as to operating system and are built on highly sophisticated data analytics. Information is retrieved real-time by physicians who are monitoring patients with chronic diseases or through biometric feedback for health-related behavior modification, and is automated for integration into electronic health records. The Company's products and offerings capitalize on the digital transformation in healthcare for improved patient compliance, diagnosis and treatment, and support healthcare system cost savings and efficiencies. For more information, please visit www.parallaxcare.com.

Forward-Looking Statements

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our Form 10-K and other reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

LHA Investor Relations
Jody Cain jcain@lhai.com
Kevin McCabe kmccabe@lhai.com
310-691-7100