TIDMRXB
RNS Number : 8929Q
Rex Bionics PLC
05 December 2016
Rex Bionics Plc
("Rex Bionics" or the "Company")
Interim Results for the six months ending 30 September 2016
5 December 2016: Rex Bionics, (AIM: RXB) the pioneer of the
REX(TM) Robot technology that enhances the mobility of wheelchair
users, today announces its unaudited interim results for the
six-month period ending 30 September 2016.
Highlights within the six-month period:
Operational:
-- Three REX units sold or rented during the period, including
the first sale to an individual with traumatic
brain injury (TBI);
-- Release of software upgrade, to provide wide range of repeatable exercises ("Rexercises(TM) " to
enhance the value of the REX proposition - the combination of
upper and lower body exercise, as well
as walking.
-- Tri-partite memorandum of understanding signed with MAAB
International and Maxhealth Medicine Co.
Ltd in April 2016, significantly enhancing REX distribution
capacity and capability in China;
-- Agreement signed with Avicenna Partners, based in Dubai, to provide Robot Assisted Physiotherapy
with REX in the United Arab Emirates;
-- Strategic re-positioning, emphasising the unique capability
of REX for patients with the most severe
spinal cord and traumatic brain injuries, as well as
rehabilitation-resistant stroke.
Financial (unaudited):
-- Loss for the period of GBP2.64 million (6 months ended 30 September 2015: GBP2.18 million, year to 31 March
2016: GBP4.87 million);
-- Available cash reserves at 30 September 2016 GBP2.13 million
(30 September 2015: GBP3.70 million, 31
March 2016: GBP1.86 million);
-- Equity fundraising completed 10 August 2016 raising GBP2.30
million before expenses, to be used to
maintain commercial momentum during strategic re-positioning and
review of further fundraising
opportunities;
-- Fundraising included GBP1m investment by Company's Chinese
distributor Maxhealth Medicine Co. Ltd.
Post Period Highlights:
-- Final results from RAPPER II trial presented at the American Congress of Rehabilitation Medicine in
Chicago November 2016:-
o Positive results maintained
o Six out of eight sleep indicators showed improvement after a
single treatment
o Equivalent results between paraplegic and tetraplegic
volunteers
-- New investigator-led trial with REX in stroke and traumatic
brain injury started at the Australian Institute for
Neuro-rehabilitation in Melbourne, Australia October 2016;
-- Case report presented at the annual meeting of the Australian
& New Zealand Spinal Cord Society in Adelaide, Australia
November - subject experienced significant reduction in pain
following multiple sessions with REX;
-- REX order from US Army in connection with previously
announced research collaboration, shipped
October 2016.
Commenting on the interim results, Crispin Simon, Chief
Executive Officer of Rex Bionics, said:
"We made good progress in the first six months of the year -
implementing our strategy of establishing the solid foundations
required for a successful novel medical device - accumulating
clinical data, building distribution and generating market
awareness. We have built some important clinical and commercial
relationships, which we expect to yield worthwhile collaborative
initiatives in the second half of the year."
For more information, please contact:
Rex Bionics Plc
Crispin Simon, Chief Executive Officer
+44 (0) 781 086 6386
Peter Worrall, Chief Financial Officer
+44 (0)1428 645416
Stifel Nicolaus Europe Limited (NOMAD)
Jonathan Senior/Stewart Wallace/Ben Maddison
+44 (0) 20 7710 7600
Consilium Strategic Communications
Mary-Jane Elliott / Jessica Hodgson / Chris Welsh / Lindsey
Neville
+44 (0) 20 3709 5708
About Rex Bionics Plc
Rex Bionics is the pioneer of the "REX", that provides robotic
standing, walking and exercise support for wheelchair users; and
was founded by two British engineers with first-hand experience of
the needs of wheelchair users. REX is used by people who have
suffered a spinal cord injury, stroke or other traumatic brain
injury; and people with multiple sclerosis, muscular dystrophy and
cerebral palsy.
We are working with physiotherapists to develop the concept and
practice of Robot-Assisted Physiotherapy (RAP); and also offer REX
P, for use in the home, enabling customers to walk and stand with
their hands free - providing more work and recreation options.
Wheelchair users are at risk of developing numerous medical
complications from extended periods of sitting. By enabling them to
spend more time standing, walking and exercising, REX may offer
significant health benefits, including improved sleep and
maintenance of joint range, and a reduction in spasm, pain, common
abdominal problems and prescription drug use.
Our commitment to engineering excellence is complemented by a
commitment to clinical science and the RAPPER II clinical trial
results show high levels of practicality, safety and user
enthusiasm.
Our Vision is that every day, around the world, thousands of
people get relief with REX, from the harm - the pain, discomfort
and inconvenience - of neurological accidents and illnesses; and
that many will be cured.
Rex Bionics was admitted to trading on the London Stock
Exchange's AIM in 2014. REX is not registered for At-Home use in
the United States of America.
Enquiries to (info@rexbionics.com)
Chief Executive's Review
Overview
I am pleased to be able to report to shareholders on progress
over the last six months.
It has been another very busy period, with important progress on
a number of fronts, in particular the generation of clinical data
and the establishment of further commercial partnerships. However
sales volumes remain modest, despite continuing, highly positive
feedback from REX users and a growing awareness of the product in
the marketplace. It is clear, both from our own experience, as well
as that of other manufacturers of robotic rehabilitation devices,
that as with any novel medical product it takes time and investment
to create a substantial new category. We continue to believe that
this time and investment will bear fruit for our shareholders.
One of our actions during the period has therefore been to
conduct a detailed strategic review of the market, as a result of
which we have taken the decision to adopt a strategic positioning
that more explicitly promotes REX's unique potential for patients
with the most severe neurological injuries, typically people with
tetraplegia (quadriplegia) and people who have experienced a stroke
or traumatic brain injury that has proved resistant to
rehabilitation. This new positioning will be accompanied by an
increased emphasis, in our clinical trial programme, on other
indications in addition to spinal cord injury, including
neuro-degenerative diseases such as multiple sclerosis and muscular
dystrophy.
Sales and Marketing Activities
Product sales
We placed a total of three REXs during the period, comprising
two direct sales to private individuals in the UK, and a rental
agreement with Avicenna, our new commercial partner in the United
Arab Emirates. Another order, from the US Army, was also received
during the period but for logistical reasons was unable to be
shipped until after the period end.
Significantly, one of the sales was to an individual in the UK
suffering from traumatic brain injury following a road traffic
accident. This represents the first sale of a REX for an indication
other than spinal cord injury, providing an early endorsement of
our increased focus on these additional indications.
First half sales are behind budget, but working with our
commercial partners we are now beginning to generate an increasing
number of leads, giving us confidence that our full year sales will
show worthwhile year on year growth.
Distributors
From a geographical market perspective our commercial focus
continues to be the US and China. During the period our US
distributor EnableMe has been demonstrating REX at hospitals and
rehabilitation units across the US, building market awareness and
securing a number of strong leads which it is confident can be
converted into sales over the next few months. It has also gained
valuable experience about the most effective sales strategies. In
response to market feedback, we have agreed to allow clinic
customers a more extended trial period, in order to give them more
time to build the clinical and commercial case for purchasing a
REX. Over the coming months we will be working with EnableMe to
increase the availability of loan units to satisfy this
requirement.
In April 2016 we entered into a tri-partite agreement with our
Chinese distributor MAAB International and Maxhealth Medicine Co.
Ltd, an associate of MAAB, for Maxhealth to support MAAB in the
distribution of REX in the Chinese market. Based in Wuxi, Jiangsu
province, Maxhealth is an experienced distributor of high
technology medical products in China, with a portfolio of products
from leading global medical device companies such as Baxter,
Olympus and Straumann.
We are delighted that Maxhealth's capacity and expertise are now
being brought to bear on establishing REX in China, and we believe
that this will greatly enhance the Company's commercial reach in
this important market. Maxhealth is emerging as an increasingly
important partner as further evidenced by its GBP1 million
investment in the fundraising that the Company completed in August
2016.
MAAB and Maxhealth are now working jointly on the regulatory
approvals required to market REX to rehabilitation units in China.
An application was filed with the Chinese FDA earlier this year and
there continues to be constructive engagement. Clinical specialists
have also now been trained and have started to work with potential
customers with the REX units that have been imported into China to
date, demonstrating the value that REX can provide.
We also continue to explore opportunities to establish
commercial relationships in markets outside the US and China. Our
appointment of Avicenna Partners, based in Dubai, to provide Robot
Assisted Physiotherapy with REX in the United Arab Emirates,
represents the Company's first formal collaboration in the Middle
East and forms an ideal base from which to develop our business in
that region. Avicenna owns and operates the Amana Healthcare
Rehabilitation Hospital, an Abu Dhabi-based neuro-rehabilitation
clinic, and has plans to open further rehabilitation hospitals in
the UAE.
The company is also demonstrating REX at carefully-selected
clinics in Germany, a large potential market where there is some
evidence that insurers are willing to provide reimbursement for
rehabilitation devices such as REX.
Marketing activities
The Company continues to raise awareness of REX in the clinical
community by attending and presenting at medical device and
neuro-rehabilitation conferences around the world. In the last few
months we have attended major events in the US (Philadelphia,
Orlando and Chicago), Australia, New Zealand and the UK, and
numerous smaller events. Most recently we were invited to
participate in the India Tech Summit, an event jointly sponsored by
the UK and Indian Governments in New Delhi, where we were delighted
to demonstrate a REX to the British Prime Minister, The Rt Hon
Theresa May MP.
In July Sophie Morgan, our UK REX Ambassador, was one of the
presenters at the Annual Awards Dinner for Business in the
Community, a charity founded by His Royal Highness the Prince of
Wales. Sophie presented the awards standing in her REX in front of
the Prince and an audience of 1,600 senior executives, and
described how she benefits from its use.
Clinical Trials
The generation of clinical data that can be used to promote the
medical benefits of using REX continues to be an important
strategic focus for the Company.
Following the very positive results we announced in November
2015 from an interim analysis of data from the first 20 volunteers
in our RAPPER II (Robot-Assisted PhysiotheraPy Exercises with REX)
clinical trial, a second interim analysis of the results, based on
a total of 53 volunteers, was presented on 17 August 2016 at the
2016 meeting of the Military Health System Research Symposium in
Orlando, Florida, US. This second interim analysis confirmed that
the positive results seen with the first 20 volunteer cohort have
been maintained in this larger volunteer cohort, with a 96%
Treatment Success and no Serious Adverse Events.
The RAPPER II study was originally planned to look at 100
volunteers, but as a result of the strength and clarity of the data
the investigators were able to close the study in August 2016,
several months earlier than expected, after only 56 volunteers had
been recruited. Following an analysis of the final results, Quality
of Life data from the study were presented by the Principal
Physiotherapy Investigator, Jon Graham BA, MSc, MSCP, at the
American College of Rehabilitation Medicine's 93rd Annual
Conference (30 October - 4 November 2016) in Chicago, Illinois,
US.
The Chicago presentation focused on the sleep questionnaire
completed by study participants, with responses collected before
and after a single treatment with REX. In six out of the eight
statements, the responses indicated an improvement in sleep
reduction, suggesting a beneficial exercise-induced fatigue. The
greatest improvement was seen in relation to the proposition "I
felt physically tense at night", where there was a 90% improvement
in the mean score of all respondents. The next greatest
improvements were seen in "I had trouble stopping my thoughts at
bed-time"; and "Pain woke me up". It was particularly noteworthy
that the trial's 18 tetraplegic patients achieved essentially the
same results as the 38 paraplegic patients, demonstrating that the
benefits of the REX technology are available to people with more
severe injuries - including those in the upper to mid cervical
range in the spinal column.
The final step for RAPPER II is the publication of the trial
results in a peer-reviewed journal, which we expect to take place
in 2017.
Following the completion of the RAPPER II trial, the next phase
of the REX clinical strategy comprises two elements:
- the design of a trial in spinal cord injury to show that REX
has a significant and cost-justifiable medical benefit when used in
a prescribed course of treatment. In contrast to RAPPER II, which
involved a single use of REX and focused on safety and feasibility,
future trials with REX in spinal cord injury will involve a full
course of REX treatment with a therapeutically meaningful frequency
and duration;
- the establishment of trials in indications other than spinal
cord injury, for example stroke, traumatic brain injury, multiple
sclerosis and muscular dystrophy.
Plans for the next trial in spinal cord injury have not yet been
finalised. However we were delighted to announce very recently the
findings of a case report that were presented in November 2016 at
the annual meeting of the Australian & New Zealand Spinal Cord
Society, "ANZCoS", in Adelaide, Australia.
The case report, which was presented by the investigator
herself, related to a 35-year old male with a T5 level spinal cord
injury from a traumatic injury in 2006, who had been suffering with
chronic right shoulder, neck and thoracic spine pain with
intermittent headaches for the previous two years. Following a once
a week exercise regime in the REX over a 10-week period, the
subject experienced a significant reduction in pain levels as
assessed against an established pain rating scale, with a complete
resolution of headaches and neck pain and a significant reduction
in shoulder and thoracic pain.
The significance of this case report is that it represents the
first results to be presented to date from the use of REX in
multiple sessions. The investigator, Gilly Davy, Senior
Neurological Physiotherapist and Clinical Director of Connect Neuro
Physiotherapy, Auckland, New Zealand, concluded her presentation by
saying: "Standing, while completing upper body rehabilitation and
strengthening in a stand-alone robotic exercise device, can
significantly enhance neck and shoulder pain management and improve
quality of life - highlighting that robotic exercise devices can
offer a range of rehabilitation opportunities."
In relation to trials in non-spinal cord injury indications we
were also pleased to be able to announce in late October 2016 the
start of a new clinical trial in Australia in which patients who
have had a stroke or traumatic brain injury will receive
Robot-Assisted Physiotherapy with REX. This is an investigator-led
study being conducted by the Australian Institute of
Neuro-rehabilitation, Nelson Bay, New South Wales (NSW), and the
University of Newcastle, NSW, with support from The Newcastle
Permanent Charitable Foundation and from Rex itself. The trial has
received ethics clearance through the Hunter New England Human
Research Ethics Committee (Ref: 16/08/17/4.06) and will be carried
out according to the standards of the National Health and Medical
Research Council of Australia.
The intention is to recruit volunteers from the Hunter Region of
NSW who have had a stroke or head injury more than three months
previously and continue to have difficulty standing and walking.
Volunteers will be treated twice a week for twelve weeks and the
REX treatment will be supplemented by a home programme of
exercises. There is provision for MRI examination to correlate the
functional and neurological response to treatment.
More than one-third of people who survive a stroke or head
injury need help in walking and some will never regain the ability
to stand without assistance. This affects the patient's ability to
participate in rehabilitation, their long term health, and the
ability to do social, work and leisure activities.
In Australia alone there are more than 420,000 people living
with the effects of stroke, of whom 30% are of working age. Around
65% of those living with stroke also suffer a disability that
impedes their ability to carry out daily living activities
unassisted. In 2012, the total financial costs of stroke in
Australia were estimated to be A$5 billion.
The Company is currently working with rehabilitation hospitals
around the world to design and commission further studies in
indications other than spinal cord injury, and we expect to make
further announcements in relation to clinical trial strategy in the
coming months.
Technology update
During the period we released a software upgrade that enables
Therapists and users to put REX into a set of
repeatable stances and movement sequences. This REXERCISE software, whereby REX replicates manual physiotherapy movements, enhances the exercise value of REX both in clinics and for home use; and increases our competitive differentiation.
Collaboration with the US Army
In early 2016 we announced a Collaborative Research and
Development Agreement (CRADA) with the US Army Medical Research and
Materiel Command to modify the REX technology so as to enable an
evaluation of its use in the early ambulation of patients with
lower limb loss. A key element of the collaboration will be a
research programme, to be carried out at the Walter Reed National
Military Medical Center (WRNMMC), Bethesda, MD with support from
Rex Bionics, to develop design modifications to REX, specifically
to its harness system, that will enable its use by individuals who
have suffered lower limb loss. After a period of delay, the REX has
now been shipped and the project will get under way early in the
New Year.
If the objectives of the collaboration are successfully
achieved, it would represent the first use of REX in an acute care
setting, potentially opening up a substantial new market
opportunity.
Financial update
Consolidated Financial Statements
The results reported in the accompanying consolidated financial
statements for the six months to 30 September 2016 and for the six
months to 30 September 2015 are unaudited. The figures shown for
the year ended 31 March 2016 are extracted from the audited
financial statements for that period.
Consolidated Statement of Comprehensive Income
Current period product revenues amounted to GBP0.20 million (six
months ended 30 September 2015: GBP0.18 million, year ended 31
March 2016: GBP0.45 million).
The gross margin percentage was 27.6% (six months ended 30
September 2015: (42.4)%, year ended 31 March 2016: 17.3%). The
improvement over prior periods primarily reflects lower materials
costs and improved manufacturing processes, offset by the high unit
overhead costs in the start-up phase of commercial production as a
result of low production volumes as well as the adverse foreign
exchange effect caused by the fall in Sterling against the NZ
Dollar on NZD denominated manufacturing costs in New Zealand
following the "BREXIT" vote.
Other income of GBP0.11 million (six months ended 31 March 2015:
GBP0.08 million, year ended 31 March 2016: GBP0.17 million) relates
entirely to receipts under a New Zealand Government research &
development grant awarded to Rex Bionics Ltd in July 2014.
Administrative expenses for the period of GBP2.97 million (six
months ended 30 September 2015: GBP2.45m, year ended 31 March 2016:
GBP5.62 million) included research & development expenditure of
GBP0.38 million (six months ended 30 September 2015: GBP0.27
million, year ended 31 March 2016: GBP0.65 million). In addition to
higher research & development expenditure, the increase in
administrative expenses over the comparative prior year period
primarily reflected increases of GBP0.13 million in fixed asset
depreciation due to higher levels of demonstration inventory and of
GBP0.21 million in intangible asset amortisation due a change in
accounting estimate of the useful life of intangible assets that
was introduced in the full year results for the year to 31 March
2016.
The taxation credit of GBP0.16 million (six months ended 30
September 2015: 0.10 million, year ended 31 March 2016: GBP0.32
million) reflects the reduction in the deferred tax liability on
intellectual property assets of Rex Bionics Ltd capitalised
following its acquisition by the Company as a result of the
decrease in the net book value of those assets since the
acquisition date due to amortisation.
Consolidated Statement of Financial Position and Cash
The net assets of the Group at 30 September 2016 were GBP12.18
million (30 September 2015: GBP14.70
million, 31 March 2016 were GBP12.32 million). The major
elements of the decrease in net assets during
the year were:
-- Net proceeds of shares issues GBP2.00 million;
-- Net loss GBP(2.64) million;
-- Effect of foreign exchange rate changes GBP0.31 million
Net funds
Available cash reserves at 30 September 2016 of GBP2.12 million
(30 September 2015: GBP3.70 million, 31 March 2016: GBP1.86
million) comprised cash and short term deposits with maturities of
less than three months, primarily denominated in Pounds Sterling
and New Zealand Dollars. The Group had no bank borrowings at 30
September 2016 (30 September 2015: GBPNil, (31 March 2016:
GBPnil).
The major elements of the increase of GBP0.26 million in
available cash reserves during the period were net proceeds of
GBP2.00 million from the August 2016 fundraising, offset by
operating costs of GBP1.81 million and capital expenditure of
GBP0.18 million. The fall in GBP against other currencies following
BREXIT, in particular against the NZ Dollar, also led to a gain on
translation of GBP0.25 million on foreign currency denominated
balances.
EIS Relief
The August 2016 fundraising is expected to qualify for EIS
relief, although formal confirmation has still to be obtained from
HMRC.
Management change
As announced on 19 September 2016, Peter Worrall, Chief
Financial Officer, has informed the Company of his intention to
retire and to step down as a Director on 31 March 2017. Peter
joined the Board of Union MedTech, as the Company was called at
that time, in February 2013, and played a vital role in the
acquisition of our New Zealand subsidiary Rex Bionics Ltd and the
Company's IPO on AIM.
We would like to take this opportunity to thank Peter on behalf
of the Board for the exemplary dedication and professionalism that
he has shown throughout his time with Rex, and to wish him well in
his retirement.
Strategic update, funding position and outlook
The strategic review that the Company carried out during the
period has given us continued confidence that, while it is taking
longer than expected to achieve significant commercial revenues,
the market opportunity remains significant; the RAPPER II data has
shown not only that REX is safe and effective, but that user
feedback is extremely positive; and there are many wheelchair users
for whom REX is the only viable option for the achievement of an
improvement in health and fitness for work and for recreation. We
are optimistic that the resulting increased strategic focus on the
unique benefits of REX relative to competing products will lead to
improved sales performance going forwards, in particular as the
data from clinical trials in indications other than spinal cord
injury begin to come through.
A second conclusion of our review was that the capital required
by the Company appears unlikely to be readily available from new
public market portfolio investors at this time and that it is
therefore appropriate to evaluate alternative opportunities with a
view to maximising value for the shareholders and to build on the
successes to date. Our assessment of the funding environment
remains unchanged, notwithstanding the equity fundraising that we
successfully completed on 10 August 2016.
As previously announced therefore, the Company has been
evaluating a number of potential future strategic options,
including seeking alternative sources of funding, strategic
partnerships or other transactions. The participation by our
distributor Maxhealth in the August 2016 fundraising, as described
earlier in this report, is the first example of this new approach,
and other discussions remain ongoing.
At the current burn rate the net proceeds of the fundraising,
together with existing cash reserves at that time, will extend the
Company's cash runway into the second quarter of 2017, and will be
used to maintain commercial momentum during the strategic
re-positioning and review of further funding opportunities.
Additional funding will continue to be required before the end of
the current financial year, but the Board remains confident that
this will be forthcoming if the progress achieved in the
development of the business over the last period can be
maintained.
Crispin Simon
Chief Executive Officer
5 December 2016
Rex Bionics Plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2016
6 months 6 months Year
ended ended ended
30 30 31
September September March
2016 2015 2016
Note (Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
------------------------------------ ---- ----------- ----------- ---------
Revenue 196 184 451
Cost of sales (142) (262) (373)
Gross (loss) / profit 54 (78) 78
Other income 115 85 174
Administrative expenses (2,974) (2,446) (5,619)
Loss from operations 3 (2,805) (2,439) (5,367)
Interest income 5 41 61
Finance credit - 113 113
Loss on ordinary activities
before tax (2,800) (2,285) (5,193)
Tax credit 158 101 318
Loss for the period (2,642) (2,184) (4,875)
------------------------------------ ---- ----------- ----------- ---------
Other comprehensive income,
net of tax
Items that will be reclassified
subsequently to profit or
loss
Exchange differences on
translation of foreign operations 312 (565) (285)
Other comprehensive (expenses)
/ income 312 (565) (285)
Total comprehensive loss
for the period, net of tax (2,330) (2,749) (5,160)
------------------------------------ ---- ----------- ----------- ---------
Basic and diluted loss per
share - from continuing
activities (pence) 5 (13.1) (13.6) (28.8)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2016
30 September 30 September 31 March
2016 2015 2016
Note (Unaudited) (Unaudited) (Audited)
Assets GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 3,258 3,258 3,258
Other intangible assets 8,854 10,152 9,351
Property, plant and
equipment 410 280 444
------------------------------ ---- ------------ ------------ ---------
12,522 13,690 13,053
------------------------------ ---- ------------ ------------ ---------
Current assets
Inventories 616 387 416
Trade and other receivables 238 386 284
Restricted cash 197 - 168
Cash and cash equivalents 2,125 3,696 1,862
------------------------------ ---- ------------ ------------ ---------
3,176 4,469 2,730
------------------------------ ---- ------------ ------------ ---------
Total assets 15,698 18,159 15,783
------------------------------ ---- ------------ ------------ ---------
Equity and liabilities
Equity attributable
to owners of the parent
Share capital 4 15,412 14,643 14,643
Share premium 4 10,864 9,630 9,630
Share option reserve 517 293 327
Foreign currency translation
reserve 73 (519) (239)
Retained losses (14,681) (9,348) 12,039
------------------------------ ---- ------------ ------------ ---------
12,185 14,699 12,322
------------------------------ ---- ------------ ------------ ---------
Liabilities
Non-current liabilities
Deferred tax liability 2,385 2,760 2,543
------------------------------ ---- ------------ ------------ ---------
2,385 2,760 2,543
------------------------------ ---- ------------ ------------ ---------
Current liabilities
Trade and other payables 1,128 700 918
------------------------------ ---- ------------ ------------ ---------
1,128 700 918
------------------------------ ---- ------------ ------------ ---------
Total equity and liabilities 15,698 18,159 15,783
------------------------------ ---- ------------ ------------ ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2016
Foreign
Ordinary Deferred Share currency
share share Share option translation Other Retained
capital capital premium reserve reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- ---------- -------- -------- ------------ --------- -------- -------
Balance at 31
March 2014 340 - 1,247 92 - - (2,209) (530)
Comprehensive
income
Loss for the
period (2,286) (2,286)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - - (98) - - (98)
----------------------- -------- ---------- -------- -------- ------------ --------- -------- -------
Total comprehensive
loss - - - - (98) - (2,286) (2,384)
Transactions
with owners
Share-based
payment charge - - - 185 - - - 185
Issue of share
capital:
As consideration
for acquisitions 7,668 - 2,805 - - - - 10,473
To subscribers
in IPO 5,555 - 4,445 - - - - 10,000
On conversion
of loan notes
at IPO 726 - 254 - - - - 980
Share issuance
costs - - (664) - - - - (664)
----------------------- -------- ---------- -------- -------- ------------ --------- -------- -------
13,949 - 6,840 185 - - - 20,974
----------------------- -------- ---------- -------- -------- ------------ --------- -------- -------
Balance at 30
September 2014 14,289 - 8,087 277 (98) - (4,495) 18,060
Comprehensive
income
Loss for the
period - - - - - 113 (2,669) (2,556)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - - 144 - - 144
----------------------- -------- ---------- -------- -------- ------------ --------- -------- -------
Total comprehensive
loss - - - - 46 113 (2,669) (2,412)
----------------------- -------- ---------- -------- -------- ------------ --------- -------- -------
Balance at 31
March 2015 14,289 - 8,087 277 46 113 (7,164) 15,648
Comprehensive
income
Loss for the
period - - - - - (113) (2,184) (2,297)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - - (565) - - (565)
----------------------- -------- -------- ------ --- ----- ----- -------- -------
Total comprehensive
loss - - - - (565) (113) (2,184) (2,862)
Transactions
with owners
Share-based
payment charge - - - 16 - - - 16
Restructuring
of share capital (12,860) 12,860 - - - - - -
Issue of share
capital:
To subscribers
in 30 June 2015
Placing 354 - 1,543 - - - - 1,897
(12,506) 12,860 1,543 16 - - - 1,913
----------------------- -------- -------- ------ --- ----- ----- -------- -------
Balance at 30
September 2015 1,783 12,860 9,630 293 (519) - (9,348) 14,699
Comprehensive
income
Loss for the
period - - - - - 113 (2,804) (2,691)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - - 280 - - 280
----------------------- -------- -------- ------ --- ----- ----- -------- -------
Total comprehensive
loss - - - - 280 113 (2,804) (2,411)
Transactions
with owners
Share-based
payment charge - - - 34 - - - 34
----------------------- -------- -------- ------ --- ----- ----- -------- -------
- - - 34 - - - 34
----------------------- -------- -------- ------ --- ----- ----- -------- -------
Balance at 31
March 2016 1,783 12,860 9,630 327 (239) - (12,039) 12,322
Comprehensive
income
Loss for the
period - - - - - - (2,642) (2,642)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - - 312 - - 312
----------------------- -------- -------- ------ --- ----- ----- -------- -------
Total comprehensive
loss - - - - 312 - (2,642) (2,330)
Transactions
with owners
Share-based
payment charge - - - 190 - - - 190
Issue of share
capital:
To subscribers
in the August
2016 Placing 769 - 1,234 - - - - 2,003
----------------------- -------- -------- ------ --- ----- ----- -------- -------
769 - 1,234 190 - - - 2,193
----------------------- -------- -------- ------ --- ----- ----- -------- -------
Balance at 30
September 2016 2,552 12,860 10,864 517 73 - (14,681) 12,185
----------------------- -------- -------- ------ --- ----- ----- -------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2016
6 months 6 months Year
ended ended ended
30 30 31
September September March
2016 2015 2016
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
------------------------------ ----------- ----------- ---------
Cash flows from operating
activities
Loss from operations (2,805) (2,439) (5,367)
Adjustments for:
Depreciation 190 60 254
Amortisation of intangible
assets 587 378 1,187
Share based payments 190 16 50
Cash flows from operations
before changes in working
capital (1,838) (1,985) (3,876)
Decrease (increase) in
inventories (200) 107 78
(Increase) decrease in
receivables 48 (166) (64)
(Increase) in restricted
cash (29) - (168)
Increase (decrease) in
payables 210 105 322
------------------------------- ----------- ----------- ---------
Net cash outflows from
operating activities (1,809) (1,939) (3,708)
------------------------------- ----------- ----------- ---------
Cash flows from investing
activities
Interest income 5 41 61
Purchases of property,
plant and equipment (127) (148) (464)
Purchases of intangible
assets (59) (16) (44)
------------------------------- ----------- ----------- ---------
Net cash outflows from
investing activities (181) (123) (447)
------------------------------- ----------- ----------- ---------
Cash flows from financing
activities
Proceeds of share issues 2,305 2,125 2,125
Share issuance costs (302) (228) (228)
------------------------------- ----------- ----------- ---------
Net cash inflows from
financing activities 2,003 1,897 1,897
------------------------------- ----------- ----------- ---------
Net increase / (decrease)
in cash and cash equivalents 13 (165) (2,258)
------------------------------- ----------- ----------- ---------
Cash and cash equivalents
at the beginning of the
period 1,862 4,368 4,368
Effect of foreign exchange
rate change 250 (507) (248)
------------------------------- ----------- ----------- ---------
Cash and cash equivalents
at the end of the period 2,125 3,696 1,862
------------------------------- ----------- ----------- ---------
NOTES TO THE INTERIM RESULTS ANNOUNCEMENT
For the six months ended 30 September 2016
1 General information
Rex Bionics Plc (the "Company") is a public limited company
incorporated and domiciled in England and Wales (registration
number 06425793). Its registered office address and principal place
of business is 4(th) Floor, 1-3 Pemberton Row, London EC4A 3BG. The
Company's Ordinary Shares are traded on the AIM market of the
London Stock Exchange Plc under the ticker "RXB".
The principal activities of the Group are the research &
development, manufacture and commercialisation of advanced robotic
devices designed to provide physiotherapy to and improve the
physical and psychological well-being of people with major mobility
impairment as a result of spinal cord injury or other neurological
damage.
2 Basis of preparation and statement of compliance with IFRSs
The Consolidated Interim Financial Statements cover the
six-month period from 1 April 2016 to 30 September 2016 and are
unaudited. The comparative prior year figures are the unaudited
results for the six-month period to 30 September 2015.
The Consolidated Interim Financial Statements have been prepared
and approved by the directors in accordance with International
Financial Reporting Standards ('IFRS') as adopted by the European
Union ('EU'), IFRIC Interpretations and the Companies Act 2006
applicable to companies reporting under IFRS. They were approved
and authorised for issue by the Board of Directors on 2 December
2016.
The accounting policies adopted in the preparation of the
Consolidated Interim Financial Statements are consistent with those
adopted in the preparation of the Consolidated Financial Statements
for the year to 31 March 2016, which can be found on the Company's
website at www.rexbionics.com/investors.
The financial statements are presented in Thousand Pounds
Sterling (GBP'000). All amounts are rounded to the nearest thousand
Pounds unless otherwise indicated.
Going Concern
The interim financial statements have been prepared on a going
concern basis, notwithstanding the trading losses being carried
forward and the expectation that the Company will continue to make
trading losses for some time to come.
The Group and Company are currently consuming cash resources,
and will continue to do so until sales revenues are sufficiently
high to generate net cash inflows. Until the Group and Company
begin to generate positive net cash flows, they remain dependent
upon securing additional funding, primarily through the injection
of capital from share issues.
On 10 August 2016 the Company the Company completed an equity
fundraising of GBP2.3 million before expenses through a placing of
ordinary shares to new and existing investors, with the potential
to raise a further GBP2.3 million on or before 30 June 2017 to the
extent that warrants attaching to the shares issued in the
subscription are exercised.
At 30 September 2016 the Company had available cash reserves of
GBP2.1 million. The Directors anticipate obtaining further funding
from existing investors in the current financial year, including
from the exercise of the warrants, and will also seek funding from
new investors. They have a reasonable expectation that additional
funding can be raised, although there can be no certainty that
additional funds can be raised on acceptable terms or at all. This
represents the existence of a material uncertainty which may cast
significant doubt about the Group and Company's ability to continue
as a going concern and, therefore, that the Group and Company may
be unable to realise their assets and discharge their liabilities
in the normal course of business.
After taking into account current cash resources, their
expectation of being able to raise further funding during the year
to 31 March 2017, their financial forecasts for the Group and
Company and measures that can be taken to reduce expenditure in the
absence of additional funding so as to ensure that the Group and
Company will have adequate resources to continue in operational
existence for the foreseeable future (being a period of at least
twelve months from the date of this report), and after making due
and careful enquiries and considering all uncertainties, the
Directors believe that it is reasonable to continue to adopt the
going concern basis in preparing the annual report and financial
statements. The interim financial statements do not include any
adjustments that would result from the basis of preparation being
inappropriate.
3 Loss from operations
Year
6 months 6 months ended
ended 30 ended 30 31
September September March
2016 2015 2016
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
The loss from operations
is arrived at after charging
(crediting):
Depreciation of property,
plant and equipment 190 60 254
Amortisation of intangible
assets 587 378 1,187
Operating lease rentals:
land and buildings 92 62 143
Commercial vehicles 4 6 10
Research and development
costs 384 273 647
Share based compensation 190 16 50
Foreign exchange (3) - 19
4 Share capital and share premium
On 10 August 2016 the Company completed a Placing of 7,683,333
Ordinary 10p Shares to new and existing investors at a subscription
price of 30p per Ordinary Share. Subscribers in the Placing also
received one Warrant to subscribe for an Ordinary Share for each
Ordinary Share subscribed in the Placing. The Warrants may be
exercised at any time up to 30 June 2017, at an exercise price of
30p per Ordinary Share.
At 30 September 2016 the share capital of Rex Bionics Plc
consisted of fully paid Ordinary Shares with a nominal (par) value
of GBP0.10p per share and Deferred Shares with a nominal value of
GBP0.90p per share. The Deferred Shares were created on 30 June
2015 as a result of a share restructuring in which each GBP1
Ordinary Share in issue at that date was sub-divided and
re-denominated into one GBP0.10p Ordinary Share and one GBP0.90p
Deferred Share. All Ordinary Shares rank pari passu in respect of
the receipt of dividends, the repayment of capital and voting
rights at Shareholders' meetings. The Deferred Shares have no
dividend or voting rights and rank behind the Ordinary Shares in
any repayment of capital.
Ordinary Shares Deferred Shares
Number of Nominal Number of Nominal Share
shares value shares value premium
GBP GBP GBP
------------------------ --------------- ------------ --------------- ---------- ----------
Issued and fully
paid at 31 March
2015 14,289,360 14,289,360 - - 8,087,698
Share Restructuring
30 June 2015 to
replace each GBP1
Ordinary share by
1 GBP0.10p Ordinary
Share and 1 GBP0.90p
Deferred Share - (12,860,424) 14,289,360 12,860,424 -
Issue of share capital:
To subscribers in
Placing 30 June
2015 3,541,166 354,117 - - 1,770,583
Share issuance costs - - - - (227,828)
------------------------ --------------- ------------ --------------- ---------- ----------
At 30 September
2015 and 31 March
2016 17,830,526 1,783,053 14,289,360 12,860,424 9,630,453
Issue of share capital:
To subscribers in
Placing 10 August
2016 7,683,333 768,333 - - 1,536,667
Share issuance costs - (303,351)
------------------------ --------------- ------------ --------------- ---------- ----------
Issued and fully
paid at 30 September
2016 25,513,859 2,551,386 14,289,360 12,860,424 10,863,769
------------------------ --------------- ------------ --------------- ---------- ----------
5 Loss per share
Basic and diluted earnings per Ordinary Share have been
calculated using the loss attributable to shareholders of the
Parent Company as the numerator, i.e. no adjustments to loss were
necessary. At 30 September 2016 there were 2,081,765 options and
7,825,347 warrants outstanding (30 September 2015: 1,151,448
options and 142,014 warrants outstanding, 31 March 2016: 1,340,599
options and 142,014 warrants outstanding).
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Loss attributable to equity
holders in the parent:
Loss for the period (2,642) (2,184) (4,875)
Number of shares:
Weighted average number of
shares in issue during the
period 20,171,146 16,059,943 16,945,235
------------- ------------- ----------
Basic and diluted loss per
share (pence) (13.1) (13.6) (28.8)
------------- ------------- ----------
6. Share-based payment transactions
The Company issues equity-settled share-based payments to
several of its Directors, as well as employees of its subsidiaries.
In accordance with IFRS 2, for all grants of share options and
awards the cost of the equity-settled share-based payments is
measured at fair value at the date of grant.
Where employees are rewarded using share-based payments, the
fair values of employees' services are determined indirectly by
reference to the fair value of the instrument granted to the
employee. The fair value is appraised at the grant date and
excludes the impact of non-market vesting conditions. That fair
value is expensed on a straight line basis over the vesting period
for the related options based upon the Company's estimate of the
shares that will eventually vest, with a corresponding credit to
"share option reserve".
A modification to a share option is accounted for by continuing
with the existing accounting for the old option scheme and in
addition recognising the increment in fair value of the new option
scheme over the vesting periods. The incremental fair value granted
is the difference between the fair value of the replacement equity
instruments and the net fair value of the cancelled equity
instrument sat the date the replacement equity instruments are
granted.
The net fair value of the cancelled instruments is their fair
value immediately before the cancellation, less the amount of any
payment made to the employee on cancellation of the equity
instruments. No expense is recognised for awards that do not
ultimately vest as a result of the relevant employee ceasing to be
employed by the Group.
Fair value is measured using the Black Scholes Option Pricing
Model. The expected life used in the model is the expiry date of
the options. Upon exercise of share options, the proceeds received
net of any directly attributable transaction costs up to the value
of the shares issued are allocated to share capital with any excess
being recorded as share premium.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR XZLLBQLFXFBF
(END) Dow Jones Newswires
December 05, 2016 02:46 ET (07:46 GMT)
Rex Bionics (LSE:RXB)
Historical Stock Chart
From Oct 2024 to Nov 2024
Rex Bionics (LSE:RXB)
Historical Stock Chart
From Nov 2023 to Nov 2024
