IMI announces fiscal 2003 financial results TORONTO, May 3
/PRNewswire-FirstCall/ -- IMI International Medical Innovations
Inc. (TSX:IMI; Amex: IME), a leader in predictive medicine, today
announced audited financial results for the fiscal year ended
December 31, 2003 and provided operational highlights for fiscal
2004 to date. Fiscal 2003 Highlights "Fiscal 2003 was a year of
continued progress for IMI," said Dr. Brent Norton, President and
Chief Executive Officer. "We are continuing to gain global exposure
for IMI's cardiovascular and cancer franchises while building
awareness and acceptance of new approaches to predicting disease.
In addition, with our partner, McNeil Consumer Healthcare, we are
transitioning to commercialization with our lead cardiovascular
product. We are also actively negotiating licensing partnerships
for the U.S. and European markets." The company's consolidated loss
for the year was $4,063,000 ($0.19 per share) compared with
$4,018,000 ($0.20 per share) for the year ended December 31, 2002.
At year end, the company had cash, cash equivalents and short-term
investments totaling $6,697,000 ($10,112,000 as at December 31,
2002). Based on historic burn rates and the expectation that
revenues from partnering activities and product sales will begin in
2004, management believes the company's cash resources, together
with investment tax credits receivable, are sufficient to meet its
current operating and capital requirements. Recent Operational
Highlights On April 13, 2004 the company announced that Ron
Henriksen has agreed to join IMI's Board of Directors, pending
shareholder approval at the upcoming annual shareholders meeting to
be held on June 16, 2004. In the interim, IMI has engaged Mr.
Henriksen as a business consultant. Mr. Henriksen, a former senior
executive with Eli Lilly and Company, brings proven expertise in
the U.S. and global marketplaces, having completed more than 65
licensing, research collaboration and acquisition agreements with a
variety of partners. In late April, IMI filed a patent application
with the U.S. Patent and Trademark Office and the Canadian
Intellectual Property Office for the lab-processed format of IMI's
skin cholesterol test. The company also intends to file an
application with the European Patent Office in the near future.
Like IMI's other products, this test is administered painlessly and
rapidly at the point of care, without fasting, needles or blood
sample required. The testing procedure samples skin cells from the
palm of the hand using a specially designed applicator with
medical-grade adhesive. The test is then sent to a laboratory where
the surface is assessed for skin cholesterol and generates a
quantitative result. Also in April, IMI received notice that the
Japan Patent Office granted the company's patent application for a
screening test for the early detection of colorectal neoplasia.
This extends IMI's patent coverage in Japan, which is a major
market, while complementing the company's existing intellectual
property related to ColorectAlert(TM). Fiscal 2003 Financial Review
Research and development expenditures decreased to $1,919,000 from
$2,105,000 in fiscal 2002. Clinical trial expenses, which consist
principally of fees paid to third parties, decreased approximately
$330,000 from 2002. This resulted from changes both in the mix and
timing of various clinical trials. IMI is currently conducting at
least 15 clinical trials, but several of them are subsidized
through collaborative arrangements with third parties, thereby
significantly reducing the company's expenses. In addition, IMI
committed to several large trials near the end of the fiscal year,
and, as a result, most of those expenses will be incurred in 2004
and beyond. General and administration expenses amounted to
$2,362,000 compared with $2,141,000 in the prior year, representing
an increase of $221,000. Expenses related to registering with the
U.S. Securities and Exchange Commission (SEC) and listing on the
American Stock Exchange (Amex) amounted to approximately $179,000
for 2003 compared with $260,000 in 2002. The company's shares
commenced trading on the Amex in September 2003. Compensation
expense increased 14% or $99,000 from 2002, reflecting the addition
of one employee plus annual increases. Cash compensation for
directors' fees, which commenced in the fourth quarter of 2002,
amounted to $61,500 compared with $14,750 for 2002. Stock-based
compensation relating to administration resulted in non-cash
expenses of $255,000 compared with $36,000 in 2002. Amortization
expenses amounted to $281,000 compared with $219,000 for 2002. Of
the fiscal 2003 amount, $167,000 was amortization on capital
equipment and $114,000 was amortization on acquired technologies
($77,000 and $142,000 respectively in 2002). Additions of capital
equipment during 2003 and 2002 amounted to $386,000 and $21,000
respectively, and were primarily in support of clinical trials.
Recoveries of provincial scientific research tax credits (ITCs)
amounted to $223,000 for the year. This includes an accrual of
$180,000 for 2003. In 2002, management recorded its best estimate
of the recovery for the year. In 2003, the actual recovery for 2002
exceeded management's estimate by $43,000. Interest income was
$275,000 compared with $257,000 for 2002. Liquidity and Capital
Resources As at December 31, 2003 the company had cash, cash
equivalents and short-term investments totaling $6,697,000
($10,112,000 as at December 31, 2002). IMI invests its funds in
short-term financial instruments and marketable securities. During
fiscal 2003, the company received $238,070 from the exercise of
options, which were previously granted pursuant to the company's
stock option plan. Cash used to fund the operating activities
during the year amounted to $3,396,000 compared with $3,550,000 in
2002. The company has no long-term debt. Total assets decreased by
$3,305,000 to $8,074,000 as at December 31, 2003, from $11,379,000
at December 31, 2002. This resulted primarily from the loss for the
year. "Our clinical successes as well as the tone of our
discussions with potential partners suggest a growing awareness of
the merits of predictive medicine and support for IMI's approach to
screening for disease," said Dr. Norton. "With multiple products, a
growing body of supportive scientific data and a solid financial
foundation, IMI is increasingly well positioned in its target
markets." About IMI IMI is a world leader in predictive medicine,
dedicated to developing rapid, non-invasive tests for the early
detection of life-threatening diseases, particularly cardiovascular
disease and cancer. The company's head office is located in
Toronto, and its research and product development facility is at
McMaster University in Hamilton, Ontario. For further information,
please visit the company's website at http://www.imimedical.com/.
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IMI's Fiscal 2003 Annual Report will be mailed to shareholders of
record and posted on the company's website on May 17, 2004.
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This release contains forward-looking statements that reflect the
company's current expectation regarding future events. The
forward-looking statements involve risk and uncertainties. Actual
events could differ materially from those projected herein and
depend on a number of factors including, but not limited to,
changing market conditions, successful and timely completion of
clinical studies, uncertainties related to the regulatory approval
process, establishment of corporate alliances and other risks
detailed from time to time in the company's quarterly, annual and
other regulatory filings. Financial statements are attached to this
release. IMI International Medical Innovations Inc. Incorporated
under the laws of Canada CONSOLIDATED BALANCE SHEETS As at As at
December 31, December 31, 2003 2002 $ $
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ASSETS Current Cash and cash equivalents 61,625 150,451 Short-term
investments 6,635,135 9,961,743 Prepaid expenses and other
receivables 340,489 237,591 Investment tax credits receivable
180,000 271,000
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Total current assets 7,217,249 10,620,785
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Capital assets, net 403,205 191,632 Acquired technology, net of
accumulated amortization of $693,684 (2002 - $580,291) 453,573
566,966
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8,074,027 11,379,383
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LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable
139,435 180,303 Accrued liabilities 403,213 409,252
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Total current liabilities 542,648 589,555
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Deferred revenue 93,100 100,000
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Total liabilities 635,748 689,555
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Commitments Shareholders' equity Capital stock 24,780,846
23,785,884 Warrants 312,200 496,000 Deficit (17,654,767)
(13,592,056)
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Total shareholders' equity 7,438,279 10,689,828
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8,074,027 11,379,383
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IMI International Medical Innovations Inc. CONSOLIDATED STATEMENTS
OF LOSS AND DEFICIT 11-month Year ended Year ended period ended
December 31, December 31 December 31, 2003 2002 2001 $ $ $
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EXPENSES Research and development 1,918,800 2,104,904 2,047,116
General and administration 2,361,602 2,141,207 1,500,434
Amortization 280,777 219,466 215,236
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4,561,179 4,465,577 3,762,786
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RECOVERIES AND OTHER INCOME Investment tax credits 223,146 189,908
131,000 Interest 275,322 257,407 386,580
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498,468 447,315 517,580
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Net loss for the period (4,062,711) (4,018,262) (3,245,206)
Deficit, beginning of period (13,592,056) (9,573,794) (6,328,588)
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Deficit, end of period (17,654,767) (13,592,056) (9,573,794)
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Basic and diluted loss per share $(0.19) $(0.20) $(0.17)
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Weighted average number of common shares outstanding 20,967,677
20,406,733 19,097,390
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IMI International Medical Innovations Inc. CONSOLIDATED STATEMENTS
OF CASH FLOWS 11-month Year ended Year ended period ended December
31, December 31 December 31, 2003 2002 2001 $ $ $
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OPERATING ACTIVITIES Net loss for the period (4,062,711)
(4,018,262) (3,245,206) Add items not involving cash Amortization
280,777 219,466 215,236 Stock compensation costs included in:
Research and development expense 189,105 81,905 - General and
administration expense 255,112 36,483 - Loss on sale of capital
asset 3,873 - 1,139
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(3,333,844) (3,680,408) (3,028,831) Net change in non-cash working
capital balances related to operations (61,870) 130,841 (209,865)
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Cash used in operating activities (3,395,714) (3,549,567)
(3,238,696)
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INVESTING ACTIVITIES Short-term investments 3,326,608 (2,603,943)
642,836 Purchase of acquired technology - - (381,507) Purchase of
capital assets (385,605) (20,804) (275,492) Proceeds on sale of
capital asset 2,775 - 2,376
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Cash provided by (used in) investing activities 2,943,778
(2,624,747) (11,787)
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FINANCING ACTIVITIES Issuance of capital stock, net of issue costs
363,110 5,731,386 1,278,328
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Cash provided by financing activities 363,110 5,731,386 1,278,328
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Net decrease in cash and cash equivalents during the period
(88,826) (442,928) (1,972,155) Cash and cash equivalents, beginning
of period 150,451 593,379 2,565,534
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Cash and cash equivalents, end of period 61,625 150,451 593,379
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Represented by: Cash 61,625 148,270 376,190 Cash equivalents -
2,181 217,189
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61,625 150,451 593,379
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DATASOURCE: IMI International Medical Innovations Inc. CONTACT:
Sarah Borg-Olivier, Director, Communications, T: (416) 222-3449, ;
Ron Hosking, Vice President, Finance and CFO, T: (416) 222-3449,
Copyright