Mr. Jim Hutchens reports

IMAGIN MEDICAL REPORTS FISCAL YEAR END 2019 RESULTS

Imagin Medical Inc. has released its financial results for its fiscal year ended Sept. 30, 2019. All amounts, unless otherwise specified, are presented in accordance with international financial reporting standards (IFRS).

Select corporate developments since beginning of fiscal 2019:

• In October, 2018, Imagin welcomed Chris Bleck as a director of the company.
• In February, 2019, Imagin completed, via its optoelectronic design firm, Optel Inc., the proof-of-concept phase of the redesigned i/Blue imaging system's control unit and validated the performance of the light source and imaging modules.
• In April, 2019, Imagin completed the i/Blue system's initial functional unit, which successfully met the company's pre-established performance expectations.
• In April, 2019, Imagin welcomed world-renowned bladder cancer expert Dr. Ashish M. Kamat to its scientific board of advisers.
• In May, 2019, Imagin held private focus groups at the American Urology Association's annual meeting, where leading urologists assessed the first i/Blue functional prototype product and provided feedback that was used to finalize the i/Blue product's user needs.
• In July, 2019, Imagin reported that it had successfully advanced to the design verification stage of its iBlue system product development program.
• In both the third and fourth fiscal quarters of 2019, Imagin met with the U.S. Food and Drug Administration (FDA) to discuss the i/Blue system's premarket approval regulatory pathway for marketing authorization.
• In November, 2019, Imagin reported that its i/Blue functional units are on schedule for design verification, which is currently in progress.

"We're very pleased with the progress we have made in 2019, having completed the i/Blue system's proof-of-concept phase and progressed the system well into the functional development phase," said Jim Hutchens, Imagin's president and chief executive officer. "With the design verification stage nearing completion, we are preparing for pilot production runs in the first quarter of 2020. We are excited to build on our momentum in the new year, and continue moving the i/Blue system toward commercialization."

Summary fiscal year-end 2019 financial results

Total operating expenses for the fiscal year 2019 were $4,499,927, compared with $4,998,339 in 2018, and consisted primarily of research and development (R&D) and general and administrative (G&A) expenses. R&D expenses for the fiscal year 2019 were $3,188,202 compared with $806,849 in 2018. The increase in R&D expenses was primarily attributable to development, design, engineering, FDA (Food and Drug Administration) and regulatory expenses. G&A expenses for the fiscal year 2019 were $1,311,725 compared with $3,823,486 in 2018. The reduction in G&A expenses was primarily attributable to the decrease in consulting fees as there were no expenses related to raising capital during the fiscal year 2019.

Net loss for the fiscal year 2019 was $4,457,322, or three-cent loss per common share, compared with a net loss of $7,958,086, or seven-cent loss per common share in 2018.

Liquidity and outstanding share capital

As at Sept. 30, 2019, the company had cash of $2,272,770.

As at Dec. 24, 2019, Imagin had an unlimited number of authorized common shares with 139,060,278 common shares issued and outstanding.

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

Conference call details

Due to the holiday season, Imagin has scheduled a conference call for Tuesday, Jan. 7, 2020, at 5 p.m. Eastern Time during which the results will be discussed:

Live call:  844-602-0380 (Canada and the United States); 862-298-0970 (international)

Replay:  877-481-4010 (Canada and the United States)

Replay ID:   57013

The call will also be broadcast live and archived on the company's website under events and presentations.

About Imagin Medical Inc.

Imagin Medical is a surgical imaging company focused on advancing new methods of visualizing cancer during minimally invasive procedures.

We seek Safe Harbor.