QUEBEC, April 27 /CNW/ -- QUEBEC, April 27 /CNW Telbec/ - Victhom
Human Bionics Inc. (("Victhom") (TSXV: VHB)) today reported
its 2010 annual and fourth quarter financial results. Mr. Normand
Rivard, President and CEO of Victhom, said: "During 2010, we have
continued making progress towards our objective to bring products
from both of our divisions, the Power Knee and the Neurostep(®), to
the market and generate revenues and value for our shareholders on
a going-forward basis. Despite the delays in the development of the
Neurostep(®) System commercial version, the contribution of our
partner Otto Bock allowed our joint venture Neurostream to continue
to make good progress in preparation for the European market launch
and the start of the U.S. clinical trial". He added: "We are also
very proud of the fact that our partner Ossur has recently
announced the commercial launch of the second generation of the
Power Knee and that we already received our first royalty payments
from the sales of that product". Also, he said: "I believe the
Company is well positioned for commercial and financial success in
the future from these products". 2010 Annual and Fourth Quarter
Results For the year ended on December 31, 2010, the Company
recorded revenues of $60,143 compared with $1,570,476 in 2009,
representing a decrease of $1,510,333 or 96.2%. For the fourth
quarter of 2010, the Company recorded revenues of $18,956 compared
with $128,642 in 2009, a decrease of $109,686 or 85.3%. The
decrease is attributable to the restructuring in 2009 of our
Biotronix business and the transfer of the product support and
development activities to Ossur. R&D expenses, before tax
credits and grants, amounted to $4,913,009 for the year ended on
December 31, 2010, compared with $8,411,117 for the same period in
2009, representing a decrease of $3,498,108 or 41.6%. The decrease
is mainly due to the reduction of activities in the Biotronix
division 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 fourth quarter of 2010, R&D expenses,
before tax credits and grants, amounted to $1,245,436 compared with
$1,381,860 in 2009, a decrease of $136,424 or 9.9%. The decrease is
mainly due to lower expenditures in material and professional fees
that can be explained by the Neurostep(®) commercial version being
in the validation and verification development phase in preparation
of its registration with the European regulatory authorities. The
decrease is partially offset by the change in accounting estimate
which resulted in an increase of the amortization expenses of
property, plant and equipment and intangible assets. For the year
ended on December 31, 2010, G&A expenses, net of non-cash
stock-based compensation charges of $663, amounted to $1,714,178
compared with $2,138,258 for the same period in 2009, representing
a decrease of $424,080 or 19.8%. The decrease in G&A expenses
is mainly due to staff reduction in administrative functions and to
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 with
non-recurring professional fees of $94,424 in June 2009 related to
the completion of the transactions approved by the plan of
arrangement. For the fourth quarter of 2010, G&A expenses, net
of non-cash stock-based compensation charges of $165, amounted to
$413,143 compared with $299,487 for the same period in 2009, an
increase of $113,656 or 38.0%. The increase is mainly due to the
change in accounting estimate which resulted in an increase of the
amortization expenses of property, plant and equipment and
intangible assets. The increase is partially offset by the staff
reduction in administrative functions. For the year ended on
December 31, 2010, financial expenses, net of exchange rate gain on
preferred shares of $395,273, amounted to $1,554,741 compared with
financial expenses, net of exchange rate gains on convertible
debentures and preferred shares of $2,394,500, for the same period
in 2009, which amounted to $2,061,295, representing a decrease of
$506,554 or 24.6%. Financial expenses for the fourth quarter of
2010, net of exchange rate gain on preferred shares of $113,649,
amounted to $395,868 compared with financial expenses, net of
exchange rate gain on preferred shares of $154,116, for the same
period in 2009, which amounted to $364,520, representing an
increase of $31,348 or 8.6%. The increase is mainly explained by
higher interests on the note payable and the liability component of
the preferred shares. For the year ended on December 31, 2010, the
consolidated net loss amounted to $6,023,522 compared with a net
income of $1,685,867 for the same period in 2009, representing an
increase in loss of $7,709,389 or 457.3%. The increase is mainly
explained by the special non-cash gains of $9,796,471 on the
transactions approved by plan of arrangement in June 2009. The net
loss, net of non-cash items of $1,560,346, amounted to $4,463,176
for the year ended on December 31, 2010, compared with a net loss,
net of non-cash items of $9,213,275 for the same period in 2009,
which amounted to $7,527,408, representing a decrease of $3,064,232
or 40.7%. The decrease is mainly explained by the staff reduction
in administrative functions and 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. The net loss, net of non-cash items of $487,634, for the
fourth quarter ended on December 31, 2010, amounted to $962,073
compared with a net loss, net of non-cash items of $276,481, for
the same period in 2009, which amounted to $1,808,379, representing
a decrease of $846,306 or 46.8%. The decrease in net loss, net of
non-cash items, is mainly the result of the restructuring of the
Biotronix division and the transfer of our Neurobionix division
activities into the Neurostream joint venture, in which the Company
has a 44.4% interest. The decrease is partially offset by lower
revenues from the Biotronix division. Shareholders' equity
(deficiency) amounted to $(3,676,682) on December 31, 2010,
compared with $1,080,520 on December 31, 2009. Total assets
amounted to $8,130,753 on December 31, 2010, compared
with $10,859,697 on December 31, 2009. Financial
Situation As of December 31, 2010, the Company had $1,545,535 in
cash and short-term investments. For the year ended on December 31,
2010, the net increase in cash was $388,000 compared with a
decrease of $7,967 for the same period in 2009. During 2010, the
cash was mainly provided by the receipt of investment tax credits
receivable and a note payable from partner Otto Bock in the
Neurostream joint venture, which was 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. 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 April 27, 2011, 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 audited consolidated financial
statements ended on December 31, 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 audited consolidated financial statements.
On April 22, 2011, the number of common shares outstanding totaled
18,529,313 while 248,050 options were outstanding under the
stock option plan. The outstanding options are exercisable at a
weighted average exercise price of $6.21 per share. On April 22,
2011, the number of preferred shares outstanding totaled 18,065,361
after conversion of 3,000,000 preferred shares into common
shares during 2010 (1,877,139 in 2009). 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. To view this news release in HTML
formatting, please use the following URL:
http://www.cnw.ca/en/releases/archive/April2011/27/c7347.html table
border="0" valign="top" tr td valign="top" align="left" bSource:/b
/td td /td td Victhom Human Bionics Inc. /td /tr tr td
colspan="3" valign="top" align="left" /td /tr tr td
nowrap="nowrap" valign="top" align="left" bFor more
informa/bbtion:/bbr/ /td td br/ br/ br/ br/ /td td Normand
Rivardbr/ President & CEObr/ Victhom Human Bionics Inc.br/
Tel.: 418-872-5665 ext 107br/ Fax: 418-864-7034br/ a
href="mailto:normand.rivard@victhom.com"inormand.rivard@victhom.com/i/abr/
a href="http://www.victhom.com/"iwww.victhom.com/i/a /td /tr /table
p /p
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