QUEBEC, Nov. 29 /CNW/ -- QUEBEC, Nov. 29 /CNW Telbec/ - Victhom
Human Bionics Inc. (("Victhom", or "the Company")
(TSX-V: VHB)) today reported its third quarter 2010 financial
results. Mr. Normand Rivard, President and CEO of Victhom said:
"While Neurostream has not yet met the partnership milestone on the
product registration in Europe that was due on May 1, 2010,
Neurostream continued to make progress on the development and
registration of the commercial version of the Neurostep(®) product
with the European regulatory authorities". He added: "Concerning
the Biotronix business, our partner Ossur is in the process of
completing the Power Knee Second Generation final validation and
the full commercial launch of the product is anticipated in the
near future. Third Quarter Results For the quarter ended on
September 30, 2010, the Company recorded revenues of $10,914
compared with $264,186 in 2009, representing a decrease of $253,272
or 95.9%. The decrease is attributable to the transfer of product
support and development activities to Ossur which was completed
during the first quarter. The revenues for the nine-month period
ended on September 30, 2010 are composed of royalties on its Power
Knee II for an amount of $38,704 ($0 in 2009), of non-refundable
advance royalties for an amount of $0 ($1,393,591 in 2009), of
support activities for an amount of $0 ($16,398 in 2009), and of
other sources for an amount of $2,594 ($31,845 in 2009). R&D
expenses, before tax credits and grants, amounted to $1,071,394 for
the three-month period ended on September 30, 2010, compared with
$1,603,252 for the same period in 2009, representing a decrease of
$531,858 or 33.2%. For the nine-month period ended on September 30,
2010, R&D expenses, before tax credits and grants, amounted to
$3,667,759 compared with $7,029,257 for the same period in 2009,
representing a decrease of $3,361,498 or 47.8%. The decrease is
mainly due to the restructuring of our Biotronix business and to
the transfer of our Neurobionix division activities into the
Neurostream joint venture, in which the Company has a 44.4%
interest. For the three-month period ended on September 30, 2010,
tax credits and grants amounted to $128,771 compared with $35,018
for the same period in 2009, representing an increase of $93,753 or
267.7%. Tax credits and grants amounted to $1,312,141 for the
nine-month period ended on September 30, 2010, compared with
$694,927 for the same period in 2009, representing an increase of
$617,214 or 88.8%. The increase is mainly explained by amended tax
credit claims for previous years for which the Company received,
during the second quarter of 2010, positive confirmation and
payment from tax authorities. For the three-month period ended on
September 30, 2010, G&A expenses, net of non-cash stock-based
compensation charges of $166, amounted to $278,608 compared with
$728,311 for the same period in 2009, representing a decrease of
$449,703 or 61.7%. G&A expenses, net of non-cash stock-based
compensation of $498, for the nine-month period ended on September
30, 2010, amounted to $1,300,849 compared with $1,838,772 for the
same period in 2009, representing a decrease of $537,923 or 29.3%.
The decrease in G&A expenses is mainly due to staff reduction
in administrative functions and lower depreciation of property,
plant and equipment. The decrease is partially offset by
non-recurring professional fees of $358,048 in May 2010 related to
amended investment tax credits compared to non-recurring
professional fees of $94,424 in June 2009 related to the completion
of the transaction approved by plan of arrangement. Financial
expenses, net of exchange rate gain on preferred shares of
$279,655, for the three-month period ended on September 30, 2010,
amounted to $425,628 compared with financial expenses, net of
exchange rate gain on preferred shares of $548,525, for the same
period in 2009, which amounted to $351,883, representing an
increase of $73,745 or 21.0%. For the nine-month period ended on
September 30, 2010, financial expenses, net of exchange rate gain
on preferred shares of $281,624, amounted to $1,158,984 compared
with financial expenses, net of exchange rate gains on convertible
debentures and preferred shares of $2,240,384, for the same period
in 2009, which amounted to $1,696,776, representing a decrease of
$537,792 or 31.7%. The decrease is mainly explained by lower
interests on the liability component of the financial instruments
due to the conversion of the convertible debentures into preferred
shares on June 17, 2009. The decrease is partially offset by higher
interest on long-term debts and negative impact of foreign exchange
fluctuations on operations. For the three-month period ended on
September 30, 2010, the consolidated net loss amounted to
$1,437,244 compared with $1,752,033 for the same period in 2009,
representing a decrease of $314,789 or 18.0%, which is mainly
explained by the restructuring of our Biotronix business and the
downsizing of our administrative functions. The net loss for the
nine-month period ended on September 30, 2010 amounted to
$4,573,815 compared with a net profit of $3,770,727 for the same
period in 2009, representing a decrease of $8,344,542 or 221.3%.
The decrease is mainly explained by the special non-cash gains of
$9,974,597 on the transactions approved by plan of arrangement in
June 2009 partially offset by the R&D expenses from the
Neurobionix division which, since May 1, 2009, have been
presented using the proportionate consolidation method with a 44.4%
interest. Shareholders' equity (deficiency) amounted to
$(3,341,878) on September 30, 2010, compared with $1,080,520 on
December 31, 2009. Total assets amounted to $8,082,752 on September
30, 2010, compared with $10,859,697 on December 31, 2009.
Financial Situation As of September 30, 2010, the company had
$455,737 in cash. For the nine-month period ended on
September 30, 2010, the net decrease in cash was $654,475
compared with a decrease of $195,461 for the same period in 2009.
During the third quarter 2010, the cash was provided by a demand
loan and a note payable to Otto Bock through the Neurostream joint
venture, partially offset by cash used in operating activities. The
Company expects to incur additional expenditures to complete the
development and marketing of its Neurobionix products. The
Management believes that, with its financial situation, the parent
company Victhom will have sufficient liquidity to support its cash
flow requirements for at least the next twelve months. However,
Management believes that its joint venture Neurostream will require
additional financing to fund its continuing operations. As of
September 30, 2010, even though Neurostream had not achieved a
milestone that was due on May 1, 2010, Otto Bock has continued
funding Neurostream's operations on a voluntary basis. The outcome
of this situation is dependent on a number of factors that are not
entirely under the Company's control. As a result, there is
uncertainty as to whether the Company's joint venture will have the
ability to continue as a going concern. Even so, the unaudited
interim consolidated financial statements ended on September 30,
2010 do not reflect any adjustments that might be necessary if
Neurostream is not successful in achieving the partnership
milestones and in obtaining its required financing from its joint
venture partner. Such adjustments could be material and could have
a significant adverse effect on the Company's unaudited interim
consolidated financial statements. On November 22, 2010, the number
of common shares outstanding totaled 18,529,313 while
256,263 options were outstanding under the stock option plan.
The outstanding options are exercisable at a weighted average
exercise price of $6.08 per share. On November 22, 2010, the number
of Series A preferred shares outstanding totaled 18,065,361, for a
redemption amount of US$ 11,940,093, which can be converted
into common shares, at any time and from time to time, at the
holder's option on a 1-for-1 basis. About Victhom Victhom
discovers, develops and manufactures bionic devices involved in the
treatment of a variety of physical and physiological dysfunctions.
Victhom Biotronix business developed the Power Knee, the world's
first and only motor-powered, artificially intelligent prosthesis
for above-knee amputees. The Power Knee is commercialized by Ossur,
a global leader in the orthotics and prosthetics ("O&P")
market. Victhom also has a 44.4% interest in Neurostream
Technologies, General Partnership, a joint venture with Otto Bock
HealthCare, whose objective is to bring to market the Neurostep(®)
System, and to develop neuromodulation products in other
indications such as sleep apnea. FORWARD-LOOKING STATEMENTS Some of
the statements made herein may constitute forward-looking
statements. These statements relate to future events or our future
financial performance and involve known and unknown risks,
uncertainties and other factors that may cause Victhom's actual
results, performance or achievements to be materially different
from those expressed or implied by any of Victhom's statements.
Actual events or results may differ materially. We disclaim any
intention, and assume no obligation, to update these
forward-looking statements. p/p table valign="top" border="0"trtd
align="left"bSource:/b /td td valign="top" align="left"Victhom
Human Bionics Inc.br/ br//td/tr trtd valign="top" align="left"bFor
more information:/b br/ br/ br/ br//td td valign="top"
align="left"Normand Rivardbr/ President & CEObr/ Victhom Human
Bionics Inc. br/ Tel.: 418-872-5665 br/ Fax:
418-864-7034br/ a
href="mailto:normand.rivard@victhom.com"inormand.rivard@victhom.com/i/abr/
br/ a
href="http://www.victhom.com/"iwww.victhom.com/i/abr//td/tr/table
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