(OTC BB: IMGG)
Dean Janes, CEO & Chairman
Imaging3, Inc. (Imaging3) is a medical device manufacturer, distributor and third-party service provider. The Company has developed a technology, known as Dominion, which utilizes photo-fluoroscopy to produce three dimensional (3D) medical diagnostic images in real time. Imaging3 is also a remanufacturer of C-arms. The Company offers new, demonstration, remanufactured, refurbished and pre-owned systems in all price ranges from every manufacturer, including OEC, General Electric (GE), ISI, Philips, Siemens, FluoroScan, XiScan and Ziehm. The Company supplies full-size, compact and mini C-arms.
WSR: Good day from Wall Street. This is Juan Costello, Senior Analyst with the Wall Street Reporter. Joining us today is Dean Janes, CEO of Imaging3 Incorporated, also Chairman of the Board. The company, Imaging3, trades on the OTC Bulletin Board, the ticker symbol is IMGG. The company is a medical device manufacturer, distributor as well as a third-party service provider. Thanks for joining us today Dean.
Dean Janes: Thanks for having me.
WSR: Start off by giving us the highlights of the recently filed 10-Q.
Dean Janes: The 10-Q that we just recently filed represents our first quarter financials. As you know, we are an emerging technologies company. We fortunately have an existing business, which is C-Arms and C-Arm tables where we re-manufacture them. I believe we posted a loss, but the big picture in this company is our proprietary technology, the Dominion Vi Scanner, which is pending FDA approval, which we hope to have approved soon and head into the marketplace. So, for investors that are looking at this potential company, they need to look at the long-term picture of this — the potential of the Dominion Vi Scanner into the marketplace.
WSR: Bring us up to speed on Dominion, give us some of the uses in applications in the market as well as talk a little bit about the 3-D technology?
Dean Janes: We’re talking about a truly revolutionary product. We have two patents on this device. When we decided to go down this road, we did an extensive patent searching and found nothing in this space whatsoever, which was reaffirmed when our patents allowed on its first office action in all of its claims and subsequently, same happened with our continuation patent. There was a lot of office action in all of its claims. What this device is? It’s a circular gantry device, it scans around the body in 360 degrees, every two-tenths to eight-tenths of a second. It takes images, puts those into a 3-D construct and then again updates those every two-tenths to eight-tenths of a second thus giving you real-time 3-D imaging. Our device is portable, it plugs into regular wall power and fits through regular room doors. So, there is no exotic power requirements or construction requirements to use this device. It can be used throughout the facility in BOR and ER and interventional radiology for spinal surgery, vascular surgery, for diagnosis procedures in minimally-invasive surgical techniques. The price point of our product is very attractive as well, 550,000, which is one-third the cost of a new CT scanner. Our higher-end product also provides CT imagery as well. So, it’s a really exciting technology and a truly innovative and breakthrough technology that is pending FDA approval, which we hope to have relatively soon. We’ve taken the time to process to build our manufacturing requirements, potential customers as well as financing requirements.
WSR: Talk about some of the market trends as far as medical imaging? How well positioned the company is to capitalize on some of the emerging trends?
Dean Janes: The current trend today is the economy, it’s economy driven, but that actually works to our advantage where people are looking for bargains. They’re looking for high-value added products that don’t perform just one function and aren’t fixed into a single room. As I’ve mentioned, our product can be used for several different types of procedures both diagnostic and for interventional use. Also our product is mobile, it can be used throughout the facility. So, it’s not fixed to a single location to only perform urology. It can do urology plus interventional radiology plus surgery plus trauma. This multi-functionality adds to the attractiveness of a hospital wanting to purchase this. It can also be used in smaller surgery centers and even in a doctor’s office.
WSR: What differentiates Imaging3 from other players in your sectors, your patented technology, is it the service or both?
Dean Janes: It is. It’s a truly differentiated product. It’s the only product that performs three-dimensional imaging in real time. Every competitor out there has 3-D, but it’s all post-processing, which is usually hours or days old information. Ours is doing this in real time. We’re in three dimensions and when doctors are trying to perform procedures using a 2-D fourier system, they can only see depth or direction. They can’t see both. They can’t be able to see and guide anything invasive into the body or do diagnostic procedures without having to move you or the imaging equipment around you, whereas our device instantaneously generates these images and instantaneously updates those images in less than a second.
WSR: Talk a little about the company’s growth Dean in terms of growth, you continue to grow organically or look for M&A activities?
Dean Janes: There are some ongoing talks in M&A, but mainly we will grow organically. We will grow through the leads of the potential purchasers that we’ve been building from our trade show appearances and through our installed base. We have over 700 active customers that we’ve installed over the years since 1993. I actually founded this company to do re-manufacturing work and have a very good attractive customer base, which we can build off of from there, referrals from there, as well as actively pursuing customers. Like our trade show, we were at just last year, and we will be again at this year’s Radiological Society of North America in Chicago and attract 70,000 physicians from all over the world and we’ve been there for a few years and have attracted great interest in this product.
WSR: Walk us through your background and experience Dean as well as that of some of the key management team at Imaging3.
Dean Janes: I’m the founder of this company. I founded this company out of the back of my car in 1993 to form service and re-manufacture of X-ray equipment. I am a biomedical engineer and I work for most of the major manufacturers as either an engineer or a support technician to assist with high-end products like CT, MR and cath labs. I have my President and COO who is a UCLA grad who helps us with international distribution issues as well as partnerships for manufacturing. His name is Chris Sohn. Xavier Aguilera has over 20 plus years of experience in banking and in healthcare. He is on the boards of few banks and also few hospitals. Mike Nessen, my VP of Business Development, has been in business for decades with experience in building sales and management teams. He brings a lot to the table as well. We have a really good group of management that is focused on taking this product to the marketplace and making it a success.
WSR: Talk a little bit about what specific milestones and objectives has the management team set for the company over the next year?
Dean Janes: As far as sales?
WSR: As far as overall company objectives.
Dean Janes: Basically, we have our major milestone with FDA approval, which we hope to have relatively soon. The next milestone will be distributing the product to what we call luminary sites. We will have a dozen, half dozen sites that will be high profile sites with esteemed facilities like, I can’t really name names, but major facilities all over the United States where we can draw from their strengths as far as having the exposure into the medical community. From those sites, we’ll use those as demonstration sites to have other facilities, potential buyers go and visit, call, do site visits to see this technology in action. That’s our first year milestone of what we expect to do in sales. Now, we have many, many more sales lined up from there. We hope to have in our first year, roughly between a dozen to three dozen systems installed throughout the country. We could go much further beyond that, but I think initially, we’ll have a slower entry pace, but we’ll definitely start going into the hundreds of systems beyond that.
WSR: In terms of investors, do you believe that investors understand the general direction of the company?
Dean Janes: I believe so. We’ve had a very strong following since we became public, I think about three years ago and very strong following with investors. Many of our investors, friends, family and others that came along through our private offering have been following us before we were a public company, before we even had a patent. Obviously, they are all anxiously anticipating our FDA approval and getting ourselves towards a development company to a production company.
WSR: Once again, joining us today is Dean Janes, Founder, CEO and Chair of Imaging3 Incorporated and the company trades on the OTC Bulletin Board, ticker symbol is IMGG, once again IMGG on the OTC Bulletin Board currently trading at $0.05 a share. Before we conclude Dean, what are some of the key reasons why Imaging3 represents a good long-term investment opportunity to potential investors?
Dean Janes: That’s a really good question and I think this is a type of company every investor is looking for. A company on the verge of a major milestone and having a truly revolutionary product that’s patented and not just with a single patent but multiple patents and multiple claims. So, I think that’s really the attractive aspect. Our share price is still right now at $0.05 a share, it’s a bargain. I think this is a very attractive investment for people that are looking for a breakout company.
WSR: We certainly do look forward to continue to track the company’s growth and I’d like to thank you for taking the time to update our investors today.
Dean Janes: I appreciate you for having me.