Mr. Jim Hutchens reports

IMAGIN MEDICAL REPORTS FISCAL YEAR END 2018 RESULTS

Imagin Medical Inc. has released its financial results for the year ended Sept. 30, 2018. All amounts are presented in accordance with international financial reporting standards (IFRS).

Select corporate developments since the beginning of fiscal 2018:

• Closed two non-brokered private placements for gross proceeds of $1-million and $3,942,360, respectively;
• Announced that Optel Inc., Imagin's opto-electronic design firm, will begin redesigning the i/Blue imaging system prototype for manufacturability and commercialization;
• Reported favourable results from the 10-subject, investigator-sponsored, first in-human study of the i/Blue imaging system at the University of Rochester Medical Center;
• Reported that Optel successfully completed the proof-of-concept phase of product development, verifying the performance of the two critical optical modules of the i/Blue imaging system -- the light source module and the imaging module;
• Welcomed John Vacha as chief financial officer and a director of the company, Pam Papineau as director of regulatory affairs and Chris Bleck as a director of the company;
• Uplisted the company's common shares to the OTCQB Venture Market;
• Submitted a presubmission package to the U.S. Food and Drug Administration (FDA), marking the initiation of the FDA process for the for the i/Blue imaging system.

"We continued to advance the development of the i/Blue imaging system over the past year, hitting important milestones on the path to expected commercialization in 2020," commented Jim Hutchens, Imagin's president and chief executive officer. "Our focus for the first half of 2019 will be on completing the final product, initiating clinical studies and meeting with the FDA to define the i/Blue imaging system's regulatory pathway."

Summary of fiscal 2018 financial results

Total operating expenses for fiscal 2018 were $7,958,086, compared with $1,542,102 in 2017, and consisted primarily of general and administrative (G&A) expenses and research and development (R&D) expenses. G&A expenses for the fiscal year 2018 were $4,110,139, compared with $1,016,188 in 2017. The increase in G&A expenses was primarily attributable to $1,786,998 in advisory fees and marketing costs related to private placements. R&D expenses for the fiscal year 2018 were $888,200, compared with $361,349 in 2017. The increase in R&D expenses was primarily related to the design and development work performed by Optel, engineering consulting, regulatory and quality costs, and fees related to the URMC research study.

Net other expenses, consisting almost exclusively of stock-based compensation, were $2,959,747 in fiscal 2018, compared with net other expenses of $164,565, consisting almost exclusively of stock-based compensation, in 2017.

Net loss for fiscal 2018 was $7,958,086, or seven cents loss per common share. This included approximately $4-million in non-cash expense related to stock-based compensation. For the fiscal year ended Sept. 30, 2017, the net loss was $1,542,102, or three cents loss per common share.

Liquidity and outstanding share capital

As at Sept. 30, 2018, the company had cash of $5,818,840.

As at Dec. 20, 2018, Imagin had an unlimited number of authorized common shares with 139,020,778 common shares issued and outstanding.

The company's financial statements and management's discussion and analysis are available on SEDAR.

About Imagin Medical Inc.

Imagin Medical is developing new imaging solutions for the detection and visualization of cancer. Imagin Medical believes its technology will radically improve cancer care during minimally invasive procedures, improving the surgeon's ability to visualize, identify and remove cancerous cells. Imagin Medical's initial target market is bladder cancer, the sixth most common cancer in the United States, and the costliest cancer to treat due to a greater than 50-per-cent recurrence rate.

We seek Safe Harbor.