QUEBEC, June 27, 2011 /CNW/ -- QUEBEC, June 27, 2011 /CNW Telbec/ -
Victhom Human Bionics Inc. (("Victhom") (TSXV: VHB)) today
reported its first quarter 2011 financial results. Mr. Normand
Rivard, President and CEO of Victhom, said: "Subsequent to the end
of the first quarter, the sale of our participation in the
Neurostream joint venture to our partner Otto Bock allowed us to
significantly strengthen our balance sheet while keeping good
potential for royalties to be generated from Neurostream's unique
neuromodulation technology platform. As a result, we are now well
positioned to generate revenues on a going-forward basis from
leading-edge products developed by both of our divisions, the
Neurostep(®) and the Power Knee. The fact that two global market
leaders in the prosthetic and orthotic field, Otto Bock for the
Neurostep(®) and Ossur for the Power Knee, are fully committed to
commercialize these products gives us great confidence in our
ability to generate good value for our shareholders". On June 16,
2011, the Company announced that the 44.4% participation of its
wholly-owned subsidiary, 4504054 Canada Inc., in Neurostream
Technologies, G.P. ("Neurostream") was acquired by its joint
venture partner 4491343 Canada Inc., a related party to Otto Bock
Healthcare for an aggregate consideration of $10 million in cash as
well as the payment of royalties on the future net sales of the
Neurostep(®) System and eventual monetization proceeds of the sleep
apnea and epilepsy technologies of Neurostream. The following
financial results do not take into account this transaction, which
will be reflected in our financial statements for the period ended
on June 30, 2011. First Quarter Results Revenues R&D expenses,
before tax credits, amounted to $21,657 for the three-month period
ended on March 31, 2011, compared with $70,955 for the same period
in 2010, representing a decrease of $49,298 or 69.5%. The decrease
is mainly due to the restructuring of our Biotronix business in
2009. At this time, the Company does not expect to engage in
additional and new R&D activities in the near future. For the
quarter ended on March 31, 2011, tax credits amounted to $97,431
compared with $57,156 for the same period in 2010, representing an
increase of $40,275 or 70.5%. The increase is mainly explained by
the increase in R&D expenses engaged by Neurostream, from which
Victhom is eligible for refundable investment tax credits. G&A
expenses, net of non-cash stock-based compensation charges of $104,
for the three-month period ended on March 31, 2011, amounted to
$223,718 compared with $241,825 for the same period in 2010,
representing a decrease of $18,107 or 7.5%. The decrease in G&A
expenses is mainly due to lower professional fees. For the
three-month period ended on March 31, 2011, financial expenses, net
of exchange rate gain on preferred shares of $333,892, amounted to
$352,463 compared with financial expenses, net of exchange rate
gains on preferred shares of $274,466, for the same period in 2010,
which amounted to $364,394, representing a decrease of $11,931 or
3.3%. The decrease is mainly explained by the lower interest paid
on the demand loan and the favorable exchange rate variation on
operations, partially offset by higher imputed interests on the
preferred shares. For the quarter ended on March 31, 2011, the
consolidated net loss from continuing operations amounted to
$151,691 compared with a net loss of $343,152 for the same period
in 2010, representing a decrease in net loss of $191,461 or 55.8%.
The decrease is mainly explained by a favorable exchange rate
variation on operations and preferred shares and by lower R&D
expenses mainly due to the restructuring of our Biotronix business
in 2009. For the three-month period ended on March 31, 2011, the
consolidated net loss amounted to $1,120,592 compared with a net
loss of $1,673,342 for the same period in 2010, representing a
decrease in net loss of $552,750 or 33.0%. The net loss, net of
non-cash items of $40,012, amounted to $1,080,580 for the quarter
ended on March 31, 2011, compared with a net loss, net of non-cash
items of $99,891 for the same period in 2010, which amounted to
$1,573,451, representing a decrease of $492,871 or 31.3%. The
decrease in net loss is mainly explained by the decrease in net
loss from discontinued operations for an amount of $361,289 and by
the restructuring of our Biotronix business in 2009. Shareholders'
deficiency amounted to $4,840,752 on March 31, 2011,
compared with $3,720,264 on December 31, 2010. Total assets
amounted to $7,550,965 on March 31, 2011, compared with
$8,130,753 on December 31, 2010. Financial Situation As of
March 31, 2011, the Company had $808,135 in cash and short-term
investment. For the three-month period ended on March 31, 2011, the
net decrease in cash was $1,268,594 compared with a decrease of
$683,006 for the same period in 2010. During the first quarter of
2011, the cash was mainly used for the acquisition of short-term
investment and for the repayment of the demand loan. Management
believes that, with its financial situation, 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 milestones that were due on May 1,
2010 and February 1, 2011, 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 condensed
interim consolidated financial statements ended on March 31, 2011
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 condensed financial
statements. On June 17, 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 $6.21 per
share. On June 17, 2011, the number of preferred shares outstanding
totaled 18,065,361 for a redemption amount of US$ 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 is a company which owns patents in the field of orthotics
and prosthetics ("O&P"), including intellectual property used
in the Power Knee, the world's first and only motor-powered
prosthesis for above-knee amputees, a product distributed under
license agreement by Ossur, a global leader in the O&P market.
The Company also has a royalty agreement related to the
Neurostep(®) System and neuromodulation products in other
indications (sleep apnea and epilepsy) using the Neurobionix
technology platform currently under development by Neurostream
Technologies, a General Partnership now owned by Otto Bock, a
global leader in the O&P market. 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/June2011/27/c9406.html table
border="0" valign="top" tr td align="left" valign="top"
bSource:/b /td td align="left" valign="top" Victhom Human
Bionics Inc. /td /tr tr td align="left" valign="top" bFor more
information:/bb /bb /b /td td align="left" valign="top"
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
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