CompuMed, Inc. Announces Fiscal 2021 Third Quarter Results

LOS ANGELES, Aug. 16, 2021

FISCAL 2021 THIRD QUARTER HIGHLIGHTS:

• Revenue in the quarter was $1.76 million, an increase of 8.2% sequentially and 55.1% year-over-year.
• Operating income during the quarter reached $250,000, an increase of 56.8% sequentially and 150.2% year-over-year.
• We enjoyed a great third quarter, and expect overall full year revenue growth to approximate 20%.
• At quarter end CompuMed enjoyed a cash + accounts receivable position of $3.06 million, 7.2% higher than the second quarter and 21.2% higher than one year ago.

Over the past several years, Management of CompuMed has believed that the share price would eventually fairly reflect the fundamental business performance of the Company.  Throughout this time, many shareholders have requested that rather than publish a shareholder letter as part of CompuMed's normal quarterly filing with OTC Markets, that the Company issue a press release as many publicly-traded companies do.  Although this is less common among OTC Pink sheet companies such as CompuMed, we will initiate this practice starting this quarter.  In part, with the hope that investors would place on the CompuMed common share a more appropriate value.

As regular readers of our filings know, CompuMed has approximately 40.52 million shares outstanding, together with unissued stock of 1.525 million and stock options deeply in the money in the amount of 6 million.  This approximates 48.045 million shares outstanding.  At this writing CMPD shares trade at $0.198 per share for a market capitalization of $9.5 million.  If you adjust for the cash and liquidity position seen on the below balance sheet of in excess of $3 million, the market capitalization of CompuMed net of cash is currently $6.5 million.  From the statement of operations shown below this indicates that currently CMPD shares trade at 8.3x trailing earnings.  We do not believe this is an appropriate share price reflecting the value of CompuMed's growth.

We believe it is likely that one factor contributing to the low share price is the fact that many brokerage firms today restrict their clients from buying shares in companies whose shares trade at less than $5.  Many potential investors in CompuMed are in effect 'left-out' of the market for our shares.  Our shareholders should know that CompuMed's leadership is working hard to find solutions to this problem, and we take very seriously our role in delivering value to you as owners of our Company.  We most fervently believe that the best way to add value to the owners of CompuMed is our continued focus on the growth in sales, earnings, and cash flow.  Nonetheless, we must also explore ways for the CompuMed shareholder to see these benefits reflected in the very method in which each of you determine your own return; the share price.

Below, please see the CompuMed financial statements for the Fiscal Third Quarter ended June 30, 2021.  Please note that more detailed information is provided along with financial statement footnotes in the CompuMed filings with the OTC Markets.  Below is the link to the CompuMed Investor Relations section of the Company's website which will direct you to the OTC Market filings:

https://compumedinc.com/contacts/investor-relations/