Victhom discloses 2011 annual and fourth quarter financial results
April 17 2012 - 7:03AM
PR Newswire (Canada)
QUEBEC, April 18, 2012 /CNW Telbec/ - Victhom Human Bionics Inc.
("Victhom") today reported its 2011 annual and fourth quarter
financial results. Mr. Normand Rivard, President and CEO of
Victhom, said: "During 2011, the positive 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. Furthermore, the
increase in revenues coming from royalties on the sales of the
Power Knee by our partner Ossur and the progress made by
Neurostream in the development and registration of the commercial
version of the Neurostep(®) product give 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. M. Rivard added: "Following
the sale of our participation in Neurostream, Victhom is currently
evaluating various business development opportunities to redefine
its future activities and open new value creating opportunities
beyond the realisation of the royalty revenue potential from the
leading-edge products developed to date". 2011 Annual and Fourth
Quarter Results For the year ended on December 31, 2011, the
Company recorded revenues of $83,159 compared with $60,143 for the
same period in 2010, representing an increase of $23,016 or 38.3%.
The increase is attributable to higher revenues from royalties on
the Power Knee. While there were no R&D expenses for the year
ended on December 31, 2011, R&D expenses were $49,048 for the
same period in 2010. 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 R&D activities
in the near future. For the year ended on December 31, 2011, tax
credits amounted to a negative adjustment of $56,993 compared with
tax credits of $1,703,653 for the same period in 2010, representing
a decrease in tax credits of $1,760,646 or 103.3%. The decrease in
tax credits is due to an adjustment made on our 2010 investment tax
credits receivable to reflect the actual amounts claimed on
Neurostream's R&D activities, and 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
periods since the government ruling on the nature of the claim was
uncertain. G&A expenses, for the year ended on December 31,
2011, amounted to $900,442 compared with $1,234,807 for the same
period in 2010, representing a decrease of $334,365 or 27.1%. The
decrease is mainly due to non-recurring professional fees related
to amended investment tax credits, received in May 2010. For the
year ended on December 31, 2011, financial expenses amounted to a
credit of $14,260 compared with financial expenses of $37,753 for
the same period in 2010, representing a decrease in financial
expenses of $52,013 or 137.8%. The decrease in financial expenses
is mainly explained by higher interest and financing fees in 2010
related to demand loan. For the year ended on December 31, 2011,
the consolidated net income amounted to $9,658,573 compared with a
net loss of $5,675,396 for the same period in 2010, representing an
increase in net income of $15,333,969 or 270.2%. The increase in
net income is mainly explained by the disposal of our interest in
the joint venture and the gain on reevaluation of assumptions
related to the preferred shares. The increase in net income was
partially offset by lower investment tax credits, a loss on
redemption of preferred shares and an exchange rate loss on
preferred shares. Shareholders' equity amounted to $4,982,964 on
December 31, 2011, compared with a shareholders' deficiency
(restated) of $4,888,728 on December 31, 2010. Total assets
amounted to $8,174,026 on December 31, 2011, compared with total
assets (restated) of $6,074,571 on December 31, 2010.
Financial Situation As of December 31, 2011, the Company had
$2,292,407 in cash and cash equivalents. For the year ended on
December 31, 2011, the net increase in cash and cash equivalents
was $794,195 compared with an increase of $388,000 for the same
period in 2010. During 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 redemption of a portion of
our Series A preferred shares and cash used in operating
activities. As of April 13, 2012, the Company had $2,948,285 in
cash and cash equivalents, representing an increase in cash of
$655,878 since December 31, 2011. The increase in cash was due to
the collection on February 1, 2012, of the final payment in the
amount of CAN$ 5,000,000 for the sale of our interest in
Neurostream joint venture. Consequently, the Company redeemed, on
February 22, 2012, 6,132,089 series A preferred shares for a total
redemption amount of US$ 4,047,178. On April 13, 2012, the
number of common shares outstanding totaled 19,297,654 while
167,000 options were outstanding under the stock option plan.
The outstanding options are exercisable at a weighted average
exercise price of $5.34 per share. On April 13, 2012, the number of
Series A preferred shares outstanding totaled 6,479,131 for a
redemption amount of US$ 4,276,226, 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. VICTHOM
HUMAN BIONICS INC. CONTACT: Source: Victhom Human Bionics Inc.For
more information: Normand RivardPresident & CEOVicthom Human
Bionics Inc.Tel.: (438) 380-5244Fax: (438)
381-1530normand.rivard@victhom.comwww.victhom.com
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