QUEBEC, Aug. 26, 2011 /CNW/ -- QUEBEC, Aug. 26, 2011 /CNW Telbec/ -
Victhom Human Bionics Inc. (("Victhom") (TSXV: VHB)) today
reported its second quarter 2011 financial results. Mr. Normand
Rivard, President and CEO of Victhom, said: "The positive second
quarter financial results generated from the significant gain on
disposal of our participation in Neurostream represents a clear
confirmation of the value creation achieved by our Neurobionix
business over the last few years. Our significantly
strengthened balance sheet and reduced cost base, places us in a
strong position to leverage the royalty potential from the
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 value for our shareholders". On June 30, 2011,
the Company sold its 44.4% participation in Neurostream to a
related party to its joint venture partner 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. Second Quarter Results For
the quarter ended on June 30, 2011, the Company recorded revenues
of $36,252 compared with $27,791 for the same period in 2010,
representing an increase of $8,461 or 30.4%. The revenues for the
six-month period ended on June 30, 2011 were generated from
royalties on the Power Knee for an amount of $51,180 ($27,791 in
2010). There was $2,482 of revenues generated from other sources in
2010 while there was none for the same period in 2011. 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
June 30, 2011, tax credits amounted to $102,404 compared with
$1,126,214 for the same period in 2010, representing a decrease of
$1,023,810 or 90.9%. Tax credits amounted to $199,835 for the
six-month period ended on June 30, 2011, compared with $1,183,370
for the same period in 2010, representing a decrease of $983,535 or
83.1%. The decrease is mainly explained by amended tax credit
claims from previous years for which the Company received positive
confirmation and payment from tax authorities in May 2010. The
Company had not recognized these investment tax credits in previous
quarters since the government ruling on the nature of the claim was
uncertain. G&A expenses, for the three-month period ended on
June 30, 2011, amounted to $221,945 compared with $611,415 for the
same period in 2010, representing a decrease of $389,470 or 63.7%.
For the six-month period ended on June 30, 2011, G&A expenses
amounted to $444,925 compared with $842,291 for the same period in
2010, representing a decrease of $397,366 or 47.2%. The decrease in
G&A expenses is mainly due to non-recurring professional fees
related to amended investment tax credits, received during the
second quarter of 2010. For the three-month period ended on June
30, 2011, the consolidated net income amounted to $9,890,006
compared with a net loss of $1,473,970 for the same period in 2010,
representing an increase in net income of $11,363,976 or 771.0%.
The consolidated net income amounted to $8,769,414 for the
six-month period ended on June 30, 2011, compared with a net loss
of $3,147,312 for the same period in 2010, representing an increase
in net income of $11,916,726 or 378.6%. The increase in net income
is mainly explained by the gain on disposal of our interest in
joint venture, lower G&A expenses and a favorable exchange rate
variation on preferred shares, which was partially offset by lower
investment tax credits. Shareholders' equity amounted to $5,051,776
on June 30, 2011, compared with a shareholders' deficiency of
$3,720,264 on December 31, 2010. Total assets amounted to
$11,893,193 on June 30, 2011, compared with $8,130,753 on
December 31, 2010. Financial Situation As of June 30, 2011,
the Company had $5,692,122 in cash and short-term investments. For
the six-month period ended on June 30, 2011, the net increase in
cash was $4,146,411 compared with a net decrease of $938,027 for
the same period in 2010. During the first six months of 2011, the
cash was mainly provided by the disposal of our interest in
Neurostream joint venture, which was partially offset by cash used
for the repayment of the demand loan. As of August 22, 2011, the
Company had $2,583,427 in cash and short-term investments,
representing a decrease in cash of $3,108,695 since June 30, 2011.
The decrease is mainly due to the redemption, on July 19, 2011, of
4,685,798 Series A preferred shares for a total redemption payment
of US$ 3,092,626. On August 22, 2011, the number of common shares
outstanding totaled 18,649,613 while 226,696 options were
outstanding under the stock option plan. The outstanding options
are exercisable at a weighted average exercise price of $5.83 per
share. On August 22, 2011, the number of preferred shares
outstanding totaled 13,259,263 for a redemption amount of
US$ 8,751,114, 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/August2011/26/c6478.html
table border="0" valign="top" tr td align="left" valign="top"
bSource:/b /td td /td td Victhom Human Bionics Inc. /td /tr
tr td align="left" colspan="3" valign="top" /td /tr tr td
align="left" valign="top" bFor more information:/b br/ /td td
/td td Normand Rivardbr/ President & CEObr/ Victhom
Human Bionics Inc.br/ Tel.: 418-872-5665 ext 107br/ Fax:
418-864-7031br/ 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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