VirtualScopics, Inc. Reports 2015 First Quarter Financial Results; Revenues Increase 20% From 2014 First Quarter

ROCHESTER, N.Y., May 6, 2015 /PRNewswire/ -- VirtualScopics, Inc. VSCP, a leading provider of clinical trial imaging solutions, today reported financial results for the first quarter ended March 31, 2015. Revenues for the first quarter of 2015 rose 20% to $2,814,442 compared to revenues of $2,352,986 for the prior year period. The company reported a net loss for the first quarter of 2015 of $552,670, or $0.20 per share, representing a 14% improvement from a net loss of $646,373, or $0.23 per share, reported in the first quarter of 2014.

"The 20% increase in revenue during the first quarter of 2015 is the result of the company's strong performance in awards and bookings in 2014," said Eric. T. Converse, president and chief executive officer of VirtualScopics, Inc. "During the coming year, the entire VirtualScopics team is intent on continuing to improve revenues while building the company's backlog and returning the organization to profitability. We believe we are off to a great start to 2015 and look to see this continue."

Conference Call and Webcast Information

The company's management will host a conference call and webcast today at 4:30 p.m. ET to discuss the company's first quarter 2015 financial results and business outlook. The conference call dial in information, webcast URL and replay information are as follows:

Domestic Call Dial In: 877-407-8035
International Call Dial In: 201-689-8035
Conference Call ID: 13607814

An accompanying slide presentation to enhance managements' formal remarks, as well as a webcast of the call, can be accessed at the following:

A replay and slide presentation will be available one hour after the conclusion of the conference call for 90 days, and can be accessed using the following:

Replay Domestic Call Dial In: 877-660-6853
Replay International Call Dial In: 201-612-7415
Replay Conference Call ID: 13607814

The webcast and slide presentation can be accessed at the following:

About VirtualScopics, Inc.

VirtualScopics, Inc. VSCP is a leading provider of clinical trial imaging solutions to accelerate drug and medical device development. For risk-averse, time-constrained Clinical Trial Study Teams, Medical Directors and Imaging Scientists who require quality imaging data delivered on-time, within budget and on a consistent basis, VirtualScopics' clinical trial imaging solutions are an inspired true exception to commonly-accepted services provided by other clinical trial imaging providers. Because of the scientific and operational flexibility and responsiveness available, VirtualScopics' clinical trial imaging solutions deliver special performance advantages compared to other image service providers that offer common, every day clinical trial imaging services. For more information on VirtualScopics, Inc., please visit www.virtualscopics.com.

Forward-looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. These forward-looking statements include, but are not limited to, statements regarding the expected benefits of the company's investment in infrastructure, sales and marketing efforts, the increase in backlog, awards and bookings and the performance of existing projects and/or statements preceded by, followed by or that include the words "believes", "could", "expects", "anticipates", "estimates", "intends", "plans", "projects", "seeks", or similar expressions. Forward-looking statements deal with the company's current plans, intentions, beliefs and expectations. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Many of these risks and uncertainties are discussed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission (the "SEC"), and in any subsequent reports filed with the SEC, all of which are available at the SEC's website at www.sec.gov. These include without limitation: the risk of cancellation or delay of customer contracts or that contract awards do not turn into signed contracts. Other risks include the company's dependence on its largest customers and risk of contract performance, protection of our intellectual property and the risks of infringement on the intellectual property rights of others. All forward-looking statements speak only as of the date of this press release and the company undertakes no obligation to update such forward-looking statements.

For More Information, Contact:
Donna N. Stein, APR, Fellow PRSA
Managing Partner
Donna Stein & Partners
Phone: 315-361-4672
Email: dstein1@twcny.rr.com

VirtualScopics, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
(unaudited)

	*For the Three Months Ended*
	*March 31,*
	2015	2014

Revenues	$ 2,641,221	$ 2,246,954
Reimbursement revenues	173,221	106,032
Total revenues	2,814,442	2,352,986

Cost of services	1,666,644	1,489,079
Cost of reimbursement revenues	173,221	106,032
Total cost of services	1,839,865	1,595,111
Gross profit	974,577	757,875

Operating expenses
Research & development	349,837	285,896
Sales & marketing	280,397	345,077
General & administrative	799,386	687,002
Depreciation & amortization	96,972	86,502
Total operating expenses	1,526,592	1,404,477

Operating loss	( 552,015 )	( 646,602 )

Other income (expense)
Other income	259	1,037
Other expense	( 914 )	( 808 )
Total other (expense) income	( 655 )	229

Net loss	( 552,670 )	( 646,373 )

Preferred stock dividends	42,000	42,000
Net loss available to common stockholders	$ ( 594,670 )	$ ( 688,373 )


Weighted average basic and diluted shares outstanding	2,994,928	2,991,990
Basic and diluted loss per share	$ ( 0.20 )	$ ( 0.23 )

VirtualScopics, Inc.
Condensed Consolidated Balance Sheets

	*March 31,*	*December 31,*
	2015	2014
	(Unaudited)
Assets
Current assets
Cash	$ 2,393,968	$ 4,046,599
Accounts receivable, net	2,097,513	1,814,143
Prepaid expenses and other current assets	535,549	410,188
Total current assets	5,027,030	6,270,930

Patents, net	1,166,284	1,211,770
Property and equipment, net	337,174	330,873
Other assets	8,486	10,661
Total assets	$ 6,538,974	$ 7,824,234

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses	$ 1,015,871	$ 1,289,099
Accrued payroll	414,966	681,964
Unearned revenue	475,299	670,332
Dividends payable	335,333	335,333
Total current liabilities	2,241,469	2,976,728

Commitments and Contingencies

Stockholders' Equity
Convertible preferred stock, $0.001 par value; 1,000,000 shares authorized at March 31, 2015 and December 31, 2014;
Series C-1 3,000 shares authorized; issued and outstanding, 3,000 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share	3	3
Series B 6,000 shares authorized; issued and outstanding, 600 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share	1	1
Series A 8,400 shares authorized; issued and outstanding, 2,165 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share	2	2
Series C-2 3,000 shares authorized; issued and outstanding, 0 shares at March 31, 2015 and December 31, 2014; liquidation preference $1,000 per share	-	-
Common stock, $0.001 par value; 20,000,000 shares authorized;
issued and outstanding, 2,994,928 shares at March 31, 2015 and December 31, 2014	2,995	2,995
Additional paid in capital	21,977,738	21,975,069
Accumulated deficit	( 17,683,234 )	( 17,130,564 )
Total stockholders' equity	4,297,505	4,847,506

Total liabilities and stockholders' equity	$ 6,538,974	$ 7,824,234

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SOURCE VirtualScopics, Inc.

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