Dear IDSI Shareholders,
As many of you know, I returned to the company three months ago to assumethe position of Interim CEO and Chairman of the Board; we have received manyphone calls from our shareholders asking essential questions about theCompany's direction and future. As my first priority, I have recently secureda tiered debenture for up to 2 million dollars to aid in the clinicalcollection of the PMA data and the submission of the PMA application.
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Over the past two years, the Company had installed upgraded CTLM(R)systems, a new study protocol utilizing a new intended use at 10 variousclinical sites throughout the United States. These sites are currentlygathering cancer cases and non-cancer cases required to support the intendeduse hypothesis for the PMA application. Once the data required has beenobtained it will be tested by independent radiologists, analyzed by ourbio-statisticians and formalized into the PMA application for submission tothe Food and Drug Administration (FDA). Developing an innovative medicalimaging technology is a complicated and time-consuming process. The CTLM(R)is a revolutionary diagnostic imaging device designed to detect breast cancerwithout radiation or compression. Since the development of the first CTLM(R)prototype, our engineering team has incorporated many improvements based onboth new and evolving technologies in lasers, computer processors, imagedisplay, surface-mount electronics, and software. We believe we are onschedule to complete the data collection and submit the PMA application to theFDA in its entirety by the end of this year.
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We have been fortunate enough to have a large number of longtimeshareholders. They have experienced volumes of Company history and have beenanticipating IDSI's technologic achievements and sales breakthrough. Sincecommercializing the CTLM(R) in late 2002, we sold our first CTLM(R) system inJanuary 2003. Since that sale, we sold 12 additional units. There areCTLM(R) systems sold or in clinical collaboration programs currently in China,Italy, Poland, Czech Republic, United Arab Emirates, and Malaysia. Our endusers and clinical collaboration partners worldwide have completed more than13,000 clinical scans. We have deposits for the purchase of CTLM(R) systemsfrom our distributors in Hong Kong and Turkey; and our Director of GlobalMarketing is working with our distributors to bring their earnest leads tosale before the end of the year. We anticipate the sale of eight CTLM(R)systems before the end of the year in China, Italy, and the United ArabEmirates.
Our stock price has also faced challenges over the past several years asthe Company evolved to establish itself on the market. IDSI is anequity-funded Company. Since inception, substantially all of our necessaryfunding came from the proceeds of the sale of common stock, convertiblepreferred stock and convertible debentures. The convertible securities wereall converted into common stock. In essence, our common stock is our currencyand since January 2001 we have used a series of private equity creditagreements with Charlton Avenue, LLC, an institutional investor, to raise thecapital necessary to fund the Company's operations. The use of private equitycredit agreements is dilutive as the investor sells our shares into themarket.
Cost cutting initiatives and staff reductions were initiated in April bythe time I was appointed Interim CEO and Chairman of the Board. I met withExecutive Management and we made the decision to terminate our lease pursuantto the six-month notice provision and to lease a smaller facility. Ourcurrent facility is 24,000 sq/ft with a base rent of $24,000 per month plusinsurance, taxes and maintenance, which we estimate to be $9,440 per month fora total monthly cost of $33,440. O
