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CardioComm Solutions, Inc. 
Management’s Discussion and Analysis 
For the quarter ended September 30, 2012
 
Management’s Discussion and Analysis 
Financial Condition and Results of Operations
 
Overall Performance 
Financial Condition: 
> Q3 2012 revenue of $178,733, a decrease of 
19% as compared to $219,520 in Q3 2011 
> Q3 2012 loss of $867,215 as compared to Q3 
2011 loss of $250,517 
> Q3 2012 net working capital of $1,331,700, 
which is an increase from the deficiency of 
$205,994 reported at 2011 year end
 
Results of Operations 
For the Three Months ended September 
30, 2012 compared to the Three Months 
ended September 30, 2011 
 
Revenue  
Revenue for the quarter ended September 30, 2012 was $178,733 compared to $219,520 for the quarter 
ended September 30, 2011, a decrease of 19%. The decrease in revenue is due to decreased hardware 
and software sales in the quarter ended September  30, 2012.  
Cost of sales
For the quarter ended September 30, 2012 the costs of sales were $11,521 as compared to $8,638 for 
the quarter ended September 30, 2011, an increase of $2,883.  The increase is due to the increase in 
the cost of hardware  associated with the  Company’s Auto Attendant product sale.  These costs are included under “Sales, service and support”, below. 
Operations  
Operations expenses were $480,904 for the quarter ended September 30, 2012, compared to $151,954 
for the quarter ended September 30, 2011, an increase of 216% due the addition of new executive 
and administrative staff salaries and office rent for Toronto premises. 
Sales, service and support  
Sales, service and support expenses were $156,473 for the quarter ended September 30, 2012, 
compared to $143,994 for the quarter ended September 30, 2011, an increase of 9%. 
Marketing  
Marketing expenses were $47,828 for the quarter ended September 30, 2012, compared to $8,230 for the quarter ended September 30, 2011, an increase of 481%.  The increase in marketing costs in Q3 2012 is mainly due to an increase in HeartCheck™ PEN related advertisement expenditures in Q3 2012 as preparations for the Q4 launch of the HeartCheck™ PEN ECG device. 
Research and development
Research and development expenses were $323,708 for the quarter ended September 30, 2012, compared to $184,669 for the quarter ended September 30, 2011, an increase of 75%. The increase in product development costs is due to increased human resources allocated to the launch of the Smart Monitoring technology, continued support of GEMS™ 4.0 and the FDA filing for GUAVA II software. Additional costs were related to HeartCheck™ PEN and new ECG device integration with GEMS™ and GlobalCardio™ products. 
Net earnings
The Company recorded a net loss of $867,215 or $0.01 loss per share for the quarter ended September 30, 2012, compared to a net loss of $250,517 or $0.00 loss per share for the quarter ended September 30, 2011. Net loss from operations increased 208% from loss of $269,327 in 2011 to $830,180.  The weighted average number of shares outstanding increased to 92,424,543 in Q3 2012 from 77,383,820 in Q3 2011 due to issuances  of shares for private placement and exercising of options and warrants. 
 
Results of Operations 
For the Nine Months ended September 
30, 2012 compared to the Nine Months 
ended September 30, 2011 
 
Revenue  
Revenue for the nine months ended September 30, 2012 was $1,110,974 compared to $975,812 for the 
nine months ended September 30, 2011, an increase of 14%. The increase in revenue is due to 
increased hardware sales in the nine months ended September 30, 2012.  
Cost of sales
For the nine months ended September 30, 2012 the costs of sales were $297,245 as compared to 
$110,059 for the nine months ended September 30, 2011, an increase of 170%.  The increase is related 
to the increase volume of acquired and then resold goods.  This value reflects the Company’s burden 
for the cost of goods.   These costs are included under “Sales, service and support”, below. 
Operations  
Operation expenses were $1,184,756 for the nine months ended September 30, 2012, compared to 
$714,169 for the nine months ended September 30, 2011, an increase of 66% due predominantly to 
increases in administrative staff and securing a full time salaried CEO.  
Sales, service and support  
Sales, service and support expenses were $750,588 for the nine months ended September 30, 2012, 
compared to $459,018 for the nine months ended September 30, 2011, an increase of 64% due to an 
increase in hardware acquisition costs as well as costs associated to an increase in salaries related to 
the HeartCheck™ and Smart Monitoring sales in additional to traditional C4, GEMS™ and Global 
Cardio™ sales efforts.   
Marketing  
Marketing expenses were $129,250 for the nine months ended September 30, 2012, compared to 
$89,781 for the nine months ended September 30, 2011, an increase of 44% related largely to HeartCheck™ brand development. 
Research and development
Research and development expenses were $1,019,134 for the nine months ended September 
30, 2012, compared to $530,822 for the nine months ended September 30, 2011, an increase of 
92%. The increase in product development costs is due to increased human resources allocated to the 
GEMS™ 4.0 and GUAVA II software rewrite projects and the development of HeartCheckTM and 
Smart Monitoring brand lines of product. 
Net earnings
CardioComm recorded a net loss of $1,807,531 or $0.02 loss per share for the nine months ended 
September 30, 2012, compared to a net loss of $586,712 or $0.01 loss per share for the nine 
months ended September 30, 2011. Net loss from operations increased 200% from loss of $598,458 
in 2011 to $1,794,021.  The weighted average number of shares outstanding increased to 89,509,413 in the nine months ended September 30, 2012 from 75,883,453 in the nine months ended September 30, 2011 due to issuances of shares for private placement and exercising of options and warrants.
 

 

 

Liquidity 
Operating Activities 
Cash outflow was $2,950,715 in the nine months ended September 30, 2012, compared to $487,071 
in the nine months ended September 30, 2011. The nine months ended September 30, 2012 had a loss 
of $1,807,531compared to loss of $586,712 in the nine months ended September 30, 2011.  The increase in cash outflow for the nine months ended September 30, 2012 is due to higher human resources costs in both operations and research and development, as well as prepayment of HeartCheck™ Pen inventory.  
Investing Activities 
Cash used for investing activities was $28,512 in the nine months ended September 30, 2012, compared to $23,223 in the nine months ended September 30, 2011.  The investing activities were due to hardware purchase and software licensing.   
Financing Activities 
Cash acquired by financing activities was $2,770,176 in the nine months ended September 30, 2012, compared to $438,291 in the nine months ended September 30, 2011.  The increase is due to private placement financing, options and warrants exercised and repayment of related party advances.
Cash Requirements 
Short-term cash requirements are primarily related to funding of operations and marketing needs. Although management is taking steps to position the Company’s operations to become cash flow positive in 2012, there is no certainty that this will occur.  Management believes that the its existing working capital, along with the proceeds from the $1,670,000 private placement in Q1 and Q2 2012 and the exercising of options and warrants, as well as the cash provided from ongoing sales, will provide sufficient funds to maintain operations to the end of 2012, by which time it is expected that revenues will increase from the sale of the new SAS based ECG software fees and the equipment / device sales under preferred distribution and OEM agreements.  Salary and expenses related to sales and marketing as well as research and development will increase in 2012.  Based on current stock valuation, management has developed access to funding vehicles based on equity and short-term loan funding.