By: Dylan Sikes - AllPennyStocks.com News

Wednesday, March 18, 2015

The Centers for Disease Control and Prevention says that there are more than 51 million impatient surgical procedures performed in the United States alone each year. Globally, the number of “major” surgeries is estimated to expand above 230 million, according to a study funded by the World Health Organization published in a June 2008 issue of The Lancet. A major surgery is defined by the study’s lead author, Dr. Thomas Weiser of the Harvard School of Public Health, as any incision, excision, manipulation or suturing of tissue occurring in an operating room and requiring local or general anesthesia or profound sedation to control pain. That data may be seven years old, but it makes a point as to how prevalent surgery is across the globe. To wit, the researchers expressed that surgical safety is a substantial global health issue, conservatively estimating that at least 3.5 million patients per year suffer post-surgery complications that could have been prevented.

A big portion of surgical safety hinges on sterilization of medical instruments throughout their life cycle. In the words of TSO3, Inc. (TSX:TOS), “Without effective sterile reprocessing, [the large number of surgeries] would not be possible.” TSO3, an acronym for “Technologies of Sterilization with Ozone,” is aiming to improve the standard for healthcare sterile reprocessing, where hospitals and clinics are challenged to balance multiple sterilization processes for various instruments.

The Quebec City-based company has developed Sterizone Technology™, the technology at the backbone of TSO3’s Sterizone® VP4 Sterilizer and Sterizone® 125L+ Sterilizer, devices that allow for the sterilization of a wide range of simple and complex devices safely and efficiently. TSO3’s patent pending Dynamic Sterilant Delivery System™ ensures the constant replenishment of sterilant through multiple successive pulsed injections, adapting to varying load contents.

The company has discontinued support on legacy products to focus on its new, superior product, the Sterizone VP4 Sterilizer, which uses vaporized hydrogen peroxide and ozone at a low temperature to underscore substantial claims of the dual sterilant device that “far surpass that of the predicate devices in terms or load flexibility, configuration and size.” In December, TSO3 received a 510(k) clearance from the US Food and Drug Administration, allowing the company to commercialize the product in the world’s largest sterilization market.

Earlier this month, TSO3 inked its first commercial agreement with Getinge Infection Control in support of the launch of the Sterizone VP4 Sterilization System in multiple markets, including North America. At nearly the same time, TSO3 completed a bought deal financing to raise C$11.5 million to solidify its books and expand marketing channels. To that point, financial results for 2014 will likely serve as a benchmark to measure growth going forward. The company announced on Wednesday its financial results for 2014, showing negligible – although much higher on a percentage basis – revenue as it transitioned its focus to VP4.

Sales for the fiscal year ended December 31, 2014 amounted to $432,987, as compared to $254,370 in 2013. The company attributed the 70% improvement to higher utilization by the users of the installed base of sterilizers leading to increased sales of consumables, as well as an increase in maintenance and compatibility testing services. Net loss for the year totaled $5.9 million, or 8 cents per share, versus a net loss of $9.3 million, or 13 cents per share, in 2013.

Preparing for what is expected to be a better year, TSO3 President and CEO Ric Rumble, commented in today’s news, “Activities surrounding the commercialization of the product, including hiring selected skill sets, have occurred and the Company is now looking to reinforce its operations in anticipation of increased volume."

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