Mr. Jim Hutchens reports

IMAGIN MEDICAL REPORTS FISCAL 2020 FIRST QUARTER RESULTS

Imagin Medical Inc. has released its financial results for the three months ended Dec. 31, 2019.

Recent corporate developments:

• On Dec. 10, 2019, Imagin Medical presented at the inaugural BioTuesdays Pre-JPM Virtual Conference.
• Imagin completed design verification of its i/Blue imaging system functional unit on Dec. 31, 2019, as scheduled. Imagin's design partner, Optel Inc., confirmed that the key device performance characteristics have met technical design specifications using various testing techniques.
• On Jan. 20, 2020, Imagin closed an oversubscribed non-brokered private placement for gross proceeds of $1,914,000.
• On Jan. 23, 2020, Imagin announced the highlights of its 2019 development achievements, as well as its plans for 2020.
• On Feb. 17, 2020, Imagin Medical presented at the Noble Capital Markets' 16th Annual Small & Microcap Investor Conference.

"As we have been preparing to initiate pilot production runs of the i/Blue imaging system, we have also made additional progress in finalizing our regulatory plan," said Jim Hutchens, Imagin's president and chief executive officer. "We have a very positive outlook for 2020 and look forward to updating our stakeholders as we continue moving this groundbreaking technology toward commercialization."

Summary fiscal 2020 first quarter financial results

Total operating expenses for the first quarter of fiscal 2020 were $1,241,938, compared with $1,011,586 for the same quarter in 2019, and consisted primarily of research and development (R&D) and general and administrative (G&A) expenses. R&D expenses for the first quarter of fiscal 2020 were $639,178 compared with $354,400 in the same quarter in 2019. The increase in R&D was primarily attributable to development, design, engineering and regulatory expenses. G&A expenses for the first quarter of fiscal 2020 were $324,907, compared with $546,445 for the same quarter in 2019. The decrease in G&A expenses was primarily attributable to a $129,173, $40,679 and $51,394 decrease in consulting, legal, and accounting and management fees, respectively.

Net loss for the three months ended Dec. 31, 2019, was $1,241,659, or one-cent loss per common share, compared with a net loss of $1,011,586, or one-cent loss per common share for the three months ended Dec. 31, 2018.

Liquidity and outstanding share capital

As at Dec. 31, 2019, the company had cash of $1,046,392, which did not include gross proceeds of $1,914,000 raised by the company in its January, 2020, offering.

As at Feb. 27, 2020, Imagin had an unlimited number of authorized common shares with 177,340,278 common shares issued and outstanding.

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

Conference call details

Imagin is pleased to invite all interested parties to participate in a conference call today, Feb. 27, 2020, at 5 p.m. ET during which the results will be discussed.

Live call:  844-369-8770 (Canada and the United States); 862-298-0840 (international)

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

Replay ID:  33144

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

About Imagin Medical Inc.

Imagin Medical is a surgical imaging company that is focused on advancing new methods of visualizing cancer during minimally invasive procedures. The company's initial focus is bladder cancer.

We seek Safe Harbor.