Bioelectronics provides updates on balance sheet and FDA filings

BioElectronics CorporationAug 21 2009

BioElectronics Corp. (PINKSHEETS: BIEL), the maker of inexpensive, disposable drug-free anti-inflammatory devices, today provided the following update to its investors regarding its strengthening balance sheet and a status of FDA filings.

Balance Sheet - Over the past month, the management team of BioElectronics has taken meaningful steps to strengthen the Corporation's balance sheet. Current assets now far exceed current liabilities, allowing the Company to show a current ratio significantly above one. The current ratio is the predominantly accepted indicator of the Company's ability to meet short-term obligations. Additionally, all convertible debt has now been completely eliminated. Andrew Whelan, CEO of BioElectronics, commented, "We are very excited about the very positive changes in our balance sheet. Our growing cash balance, improved working capital situation and the elimination of all convertible debt provides us with a great deal of increased flexibility relative to our operations. When we combine these events with the recent guarantee we received from the U.S. Government's Export-Import Bank, the result is a much lower cost of capital and increased credibility for BioElectronics while we negotiate partnerships arrangements."

FDA Filings - BioElectronics continues to work with its contacts at the FDA on the Company's recently filed pre-market notification application for the Allay Period Relief product and the management team remains confident clearance will be granted. The management team has also decided on a strategy to file at least three additional separate FDA applications over the short-term. These will include separate applications for indications for heel/foot pain, general surgical recovery, and general musculoskeletal complaints. Mr. Whelan added, "We remain very confident relative to our FDA applications. We believe we are right on track with the Allay product and we are working diligently to finalize the other filings. After reviewing the extremely strong and compelling data from Dr. David Genecov's study at our 'All Hands Meeting' earlier this week, we decided it deserves a separate application, therefore we expect to file at least three more applications instead of only two. All of us at BioElectronics are very excited about these very positive trends in our business and we thank all of our investors for their loyal continuing support."