TIDMTYR TIDMTYRU
RNS Number : 8455U
TyraTech, Inc.
12 April 2016
Strictly embargoed until 07.01: 12 April 2016
TyraTech, Inc.
("TyraTech" or the "Company")
Final Results
TyraTech, Inc. (AIM: TYR and TYRU), a life sciences technology
company focused on nature-derived insect and parasite control
products, announces their final results for the year ended 31
December 2015.
Commenting on the results Alan Reade, outgoing Chairman
said:
"2015 has been a step change year for the business with a large
increase in year on year revenues and healthy gross margins. This
change has been driven by the continued commercialisation of the
Vamousse(R) head lice treatment and shampoo formulations. This will
be further accelerated in 2016 by broader distribution, geographic
expansion and the launch of the PureScience(TM) range in the Animal
Health sector."
He added: "The opportunity for 2016 is clear. Growth will be
driven by further product launches of Vamousse into existing
markets and by extending the geographies in which we sell these
products. We also plan to support the wider marketing of
Guardian(R) and we will see the first sales benefits of PureScience
coming through."
Operational Highlights
-- Market penetration of Vamousse significantly expanded across
key US and UK territories with number of retail chains stocking
products adding to over 24,000 stores in the US and over 7,800 in
the UK - including Walmart, Walgreens, CVS and Rite Aid in US and
Superdrug, Boots, Sainsbury's and Tesco stores in the UK
-- Vamousse is the number one non-pesticide brand in the USA and
the fastest growing head lice brand
-- Launched Vamousse Protective Shampoo at Walmart
-- Award winning marketing campaign in the UK (Independent Community Pharmacy Award)
-- Guardian personal mosquito and tick repellent ranked number
one non-pesticide repellent selling on Amazon.com
-- Received two new patents from the United States and
international patent offices for the Company's novel pest control
compositions
Financial Highlights
-- Gross revenue was $7.4 million in 2015 up from $4.9 million in 2014.
-- Gross product revenue was $7.1 million (2014: $2.8 million) an increase of 154%.
-- Gross profit increased to $4.6 million with gross margins of
68.9% (2014: $3.5 million and 74.9%)
-- Net loss, before and after taxes, significantly reduced to $2.3 million (2014:$5.1 million )
-- Cash and cash equivalents at 31 December 2015 increased to $4.0 million (2014: $2.2 million)
-- Operating costs and expenses reduced to $7.1 million (2014: $8.5 million)
-- Net cash used in operations decreased to $2.8 million (2014: $7.2 million)
-- Successful placing during the period, generating $4.5 million
in net proceeds from stock issuances
Post Period Highlights
-- Listing of Vamousse with Rite Aid, the fourth's biggest
pharmacy chain in the US with more than 4,500 stores
-- CVS listed, in addition to Vamousse Treatment, Vamousse
Protective Shampoo and Vamousse Elimination Powder, become the
first major national retail chain to propose the full Vamousse
solution to control head lice infestations
-- First major expansion into Europe beside the UK, with the
launch of the full range of Vamousse and Guardian products in
France
-- Addition of Morrison as a new retail chain in the UK for Vamousse
-- Agreement signed with MWI Animal Health (NASDAQ: ABC), the
leading animal health distribution company in the US to distribute
PureScience
-- Launch of PureScience brand for Animal Health market,
initially targeted at the poultry production facilities in the
US
-- Appointment of Erica H. Boisvert as CFO
-- Appointment of José Barella as Non-Executive Chairman. Alan
Reade, former Non-Executive Chairman steps down to Non-Executive
director.
Bruno Jactel, CEO TyraTech commented:
"I would like to thank Alan Reade for his invaluable
contribution as Chairman and his visionary guidance that put
TyraTech on the path to success. I also welcome Jose Barella as our
new Non-Executive Chairman and want to renew my gratitude to the
Board for its support.
"Additionally, I would like to highlight our strategic approach
and our single-minded focus on its implementation. We made good
progress in 2015 and the Board of Directors is confident that we
will continue to grow sales of our existing products as well as
deliver innovative new products to the benefit of our customers,
shareholders and partners."
*-ends-*
For further information please visit: www.tyratech.com or
contact:
TyraTech Inc.
Bruno Jactel, Chief Executive Tel: +1 919 415
Officer 4340
Erica Boisvert, Chief Financial Tel: +1 919 415
Officer 4287
SPARK Advisory Partners Limited
(Nominated Adviser) Tel: +44 20 3368
Matt Davis / Mark Brady 3551
Allenby Capital Limited (Joint
Broker) Tel: +44 20 3328
Chris Crawford 5656
Whitman Howard Limited (Joint
Broker) Tel: +44 20 7659
Ranald McGregor-Smith 1234
Belvedere Communications (PR)
John West / Kim van Beeck Tel: +44 20 3567
0510
Chairman's Statement
Introduction
This is my last communication to Shareholders in my role as
Chairman. I will be stepping down to be replaced by the vastly
experienced José Barella. My intention is to remain with the
Company for a couple of months to help smooth the transition at a
very important stage in our development. I will then retire, safe
in the knowledge that the Board has gained world class leadership.
Consequently, I will not be offering myself for re-election at the
Annual General Meeting.
I would like to take this opportunity to express my appreciation
to all shareholders who have supported us over the years and extend
a particularly warm welcome and thank you to existing and new
shareholders who participated in the recent Placing.
Our Company is now in a strong position with a firm financial
base; strong operating procedures; growing sales; and the potential
to exploit our technology platform across a number of different
markets in a number of different geographies.
Mission and Strategy
TyraTech's mission remains dedicated to making a lasting,
positive impact on our ecosystem for the health and well-being of
people and animals.
There are more than 10 quintillion insects in the world (that is
10 with 18 zeros) - and growing. And though many of those insects
are beneficial to our ecosystem, others can cause serious diseases
and economic losses. Vector borne diseases like Malaria and the
Zika virus threaten greater health concerns. Losses in the food
supply chain are a big concern for the industry, while a growing
population demands higher output but also more rigorous promises of
safety.
Simultaneously, insects and acrids are developing a resistance
to many traditional synthetic pesticides, increasing the risk of
overuse, high toxicity, and environmental damage.
As a response, there is a growing demand for non-toxic
insecticides and green solutions for humans, animals and
agriculture. Until now, the pesticide market has struggled to bring
innovation capable of delivering equally on the demand for
efficacy, safety and aesthetics.
We have invested more than 10 years in research and development
to address these challenges, which has resulted in 28 granted
patents and 36 pending and today we have the scientific expertise
and patented technology platform to respond to this global
need.
TyraTech delivers a safe , effective and now validated
alternative, with active and inert ingredients chosen from those
recognized as safe by major international regulatory agencies such
as FDA (GRAS), EPA (FIFRA 25(b) exempt and List 4A), and EU biocide
regulations.
Our goal is to bring products from concept to customer, across
the human and animal health market segments. We believe that our
consumer and commercial product offerings represent the future of
effective and environmentally intelligent insect and parasite
control.
Review of 2015
Against this backdrop the Company made great progress during
2015. In November, we announced the successful Placing and
Subscription of New Common Shares to raise $4.8 million (GBP3.2
million) before expenses at an Issue Price of 3 pence per
share.
We were delighted with the support that we received from both
existing and new shareholders and the Company now has a stable
financial platform from which it can support the further
development and commercialisation of its product range - including
the Vamousse range of head lice products.
The opportunity is substantial as can be evidenced by the
significant growth we experienced in product sales when compared
with the previous year. Retail and consumer acceptance has been
strong and the number of individual stores where Vamousse is
available grew from around 5,000 to over 24,000 in the US and over
7,800 in the UK. An impressive achievement.
Following the success of Vamousse, I firmly believe that the
Company's technology platform has been proved and that the Company
you have invested in is much more than simply a one product
company.
Our technology is now demonstrated and has proved capable of
driving the development of insect control products with a combined
level of safety and efficacy well ahead of the standard synthetic
chemical offerings, especially where resistance has developed
against these products. Many of our target markets, such as animal
health for instance, are much bigger than the personal care area,
where the majority of our $7.4 million sales were derived during
2015.
(MORE TO FOLLOW) Dow Jones Newswires
April 12, 2016 02:01 ET (06:01 GMT)
During 2015 we continued to develop several products both for
personal care and animal health markets and in the case of the
latter we announced in early January, just after the period end,
the launch of our PureScience brand, initially targeted at the
poultry production facilities in the US.
To help exploit this market and achieve a fast route to market
we announced a distribution agreement with MWI Animal Health
(NASDAQ: ABC), the leading animal health distribution company in
the United States.
We also made progress with our Guardian range of personal
mosquito and tick repellants, which continues to gain very high
ratings by users on amazon.com, building a core of loyal customers
and generating a small but useful and increasing level of sales.
This has to date been achieved with only a minimum marketing
spend.
Board Changes and People
TyraTech is at a pivotal stage of its development as a growing
company. We are commercialising our technology platform in a number
of markets and have recently broadened our product offering into
the animal health market with the launch of our PureScience product
line in early 2016.
As we prove out that our innovative products can answer real
unmet market needs, satisfy customer demands and generate value for
distribution and commercialisation partners, it is important that
we continue to invest in our senior management infrastructure and
strengthen our operational capability.
Shortly after the reported period end we announced the the
appointment of Erica H. Boisvert as Chief Financial Officer. Erica
has overall responsibility for the company's financial operations
as well as Investor Relations and her appointment significantly
strengthens the executive management team. On behalf of
shareholders I warmly welcome her to the team.
As previously referred to, I am today, announcing my retirement
as Chairman. Aged 67, I feel the time is right for me to step down
and I am extremely pleased that we have been able to attract
somebody of José Barella's experience and market prominence as our
new Chairman. We have worked together in the past and I can safely
say that the Company is in very good hands as it embarks on the
next stage of its development.
As always I must extend a big thank you to all the employees for
their teamwork and commitment to our collective goals and to our
partners and advisers for their continued support.
Outlook and Summary
2015 has been a step change year for the business with a large
increase in year on year revenues and healthy gross margins. This
change has been driven by the continued commercialisation of the
Vamousse head lice treatment and shampoo formulations. This will be
further accelerated in 2016 by broader distribution, geographic
expansion and the launch of the PureScience range in the Animal
Health sector.
Vamousse has received wide spread retail acceptance in the US
and UK as well as strong consumer endorsement of the efficacy of
the product and growing sales. Vamousse is now the fastest growing
national brand head lice product in the US. The Vamousse brand is
also well established and growing market share quickly in the
UK.
The Company now plans to launch into other important European
markets over the next couple of years and today we announced the
first step in that regard with Launch of Vamousse and Guardian into
France.
The opportunity for 2016 is clear. Growth will be driven by
further product launches of Vamousse into existing markets and by
extending the geographies in which we sell these products. We also
plan to support the wider marketing of Guardian and we will see the
first sales benefits of PureScience coming through.
The Directors believe that the Company is genuinely poised for
significant future growth and are optimistic about the prospects
and outlook for 2016.
Alan Reade
Non-Executive Chairman
12 April 2016
Chief Executive Business Review
"A Future of Growth and Opportunity"
Our financial year ending 31 December 2015 was a year
characterized by an acceleration of growth, mainly due to the rapid
extension of our retail distribution network in the US and in the
UK, and the strong performance of our flagship head lice product:
Vamousse.
Product sales grew by 154% compared to the year ending 2014 and
the number of stores where parents (urgently in need of an
immediate head lice solution) could buy Vamousse increased in the
US from around 5,000 to over 24,000 by the beginning of 2016.
During the same period our net loss was reduced from $5.1
million to $2.3 million, driven by increasing sales and tight
control of operating expenses.
Net cash at the year-end was $4 million as a result of reduced
losses and inflows from our successful fundraising. This places us
in a healthy position to implement our business plan going forward
and to execute our growth strategy.
Just as importantly, 2015 was also the year in which TyraTech
built the foundations for future growth:
-- developing new products for the animal health market;
-- driving active business development initiatives towards the
geographical extension of Vamousse;
-- increasing market penetration; and
-- introducing new line extension products under the Vamousse
brand, with the launch of the Vamousse Protective Shampoo and the
Vamousse Lice Elimination Powder.
These foundations are supported by our ability to build customer
loyalty, gain market share and enhance stakeholder value. We are
always looking for ways to create and develop strong brands -
something that is now at the core of our business.
Our Brands
Vamousse
Much of our focus in 2015 has been to build the Vamousse brand
in order to generate a significant level of sales with healthy
margins and to validate the effectiveness of TyraTech's
technology.
As a result, our head lice range of products is now the fastest
growing national head lice brand in the US and is making
significant strides in the UK market.
This product appeals greatly to consumers for the following
reasons:
-- it is pesticide-free and non-toxic;
-- it is up to 100% effective at killing lice and eggs;
-- it works against resistant lice that are now present in the
large majority of states in the US and are a worldwide problem;
-- it is easy to apply; and
-- it is cost effective compared to prescription products.
A key part of the strategy for Vamousse was to increase our
retail distribution network. This is because when a child is
identified with a lice infestation, the parents want to find a
resolution immediately, it is critical to make sure that the
consumer can find our product in whatever store is closest to
home.
In this regards, we have now secured the four biggest pharmacy
retail chains in the US with Walmart, Walgreens, CVS and Rite Aid.
We are also now covering close to 60% of all the stores selling
head lice products in the UK with the likes of Boots, Tesco, and
Sainsbury's stocking our product. Overall, Vamousse can now be
found in over 24,000 individual stores in the US and 7,800 stores
in the UK.
Our second key objective was to increase brand awareness through
our marketing programs. Broad distribution helps us achieve the
best return on investment for our marketing spend.
We are particularly proud that the Vamousse marketing campaign
in the UK won the Independent Community Pharmacy (ICP) magazine
'Pharmacy Product of the Year - Best Advertising Campaign' award in
2015. This prestigious award is voted for by practicing pharmacists
and recognises the strong awareness and engagement generated by the
Vamousse marketing campaign among pharmacists and pharmacy
staff.
In 2016 we will continue to invest in our brand through targeted
marketing campaigns, based on customer engagement, endorsement from
key influencers and point of sales activation.
Our plan is to continue to increase market share of Vamousse in
the US and UK; expand into other geographic locations particularly
within Europe; and also to expand by developing and introducing
innovative new product offerings.
In this regard, we are particularly excited about the Vamousse
Protective Shampoo, which is aimed at protecting the entire family
from the risk of infestation. This opens up the preventative market
which is currently underdeveloped. The product is already available
at Walmart and has been very well received, with positive consumer
and retail feedback.
PureScience
There is an increased demand from livestock producers for
efficacious, safe and more practical solutions to control insects
and parasites. There is also a strong consumer trend towards food
originated from production systems that are environmental-friendly
and, in particular, using less antibiotics and pesticides. The
PureScience range of products answer this market need.
These products differ from traditional synthetic insecticides in
that they utilise plant-derived active ingredients that have
powerful natural insecticidal properties. They will be launched at
a time when existing synthetic-based insecticides are suffering
from increasing levels of resistance and regulatory pressure.
Initially, the new product line is tailored to meet the needs of
poultry production in the US and it is anticipated that over time
the line of products will also be extended to swine, dairy/beef and
cow/calf operations. They are distributed by MWI Animal Health
(NASDAQ:ABC), the leading animal health distribution company in the
United States.
Further opportunities for growth also exist in markets outside
of the US.
Additional Brands
We have developed two brands in the repellent market. Guardian
is a tick and mosquito personal repellent and OutSmart(TM) is an
equine fly repellent product. Both have large potential addressable
markets.
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April 12, 2016 02:01 ET (06:01 GMT)
With Guardian, we have focused on building a strong and loyal,
yet to date, relatively limited customer base by making the product
available on-line through Amazon.com. We were pleased with the
performance of the product, and shortly before the summer it
achieved status as the number 1 non-pesticide insect repellent
selling on Amazon.com. This was despite a very limited marketing
investment.
Over time we believe that this product, backed by very strong
science, clinically demonstrated performance and good customer
appeal, can be further developed and we are working to increase its
distribution.
We have also been working diligently with our commercial partner
SmartPak, the leading on-line distributor of equipment for horses
and horse owners in the US, to improve our initial formulation of
equine fly repellent.
Again, we believe there is a strong demand for a pesticide-free,
safe and effective product to control flies for horses, a very
common nuisance that affects virtually all horses during the warm
months of the year.
R&D and New Products
We have a proven and robust technology platform that has already
generated the range of products referred to above.
These not only meet customer needs for safe and effective
products but they are quickly becoming established benchmarks for
innovation in the sector of green-tech and environmental friendly
products for insect and parasite control.
Traditional pesticides that have been used for decades are
beginning to lose efficacy in many documented instances as insects
develop resistance. As genetic resistance to synthetic chemical
solutions increases, a need arises for products that target insects
in a new way. TyraTech's patented technology answers to this need
through a patented technology platform that synergizes physical
modes of action with chemical modes of action to deliver unique and
highly effective insecticides.
We have now built upon this unique and disruptive technology a
rich pipeline of more than 10 new products at different stages of
development, and we plan that further new products will be
introduced in the market in the coming years not only to support
existing brands but also to penetrate new and larger market
segments, in particular animal health.
Addressable Markets and Growth Drivers
The existing market for head lice products, estimated at $700
million worldwide is currently growing at double digit pace in the
US. However the issue of head lice is not limited solely to the US
or the UK: it is a worldwide phenomenon with issues such as
resistance to commonly used pesticide treatments and the growing
population.
The North-American market represents only 30% of the worldwide
market for head lice and TyraTech intends in pace with our
available resources, to expand our reach into European and
non-European markets over the next few years.
The animal health market is much larger than the market for head
lice and is expected to grow steadily in the next few years by 4 to
5% per annum fuelled by strong socio-economic factors.
The production animal market is driven by an increased demand
for food linked to a growing population and a steady rise in
economic wealth. In order to fulfil the demand for a population
estimated at 9 billion individuals by 2050, the production of
protein by animals will have to increase dramatically.
Unfortunately, the infestation of these animals by insects and
parasites, either directly by nuisance or indirectly by
facilitating the transmission of diseases, reduces
productivity.
The companion animal market is driven by a stronger human-animal
bond, itself the results of several socio-economic factors like the
emergence of a middle class in developing countries, more older
people living alone in developed countries and looking for a
companion, progress in health and care allowing pets to live longer
and in closer proximity to children and families. Here again, the
battle against insects and parasites, mainly fleas and ticks, is
far from being won and still relies most exclusively on chemical
pesticides.
TyraTech intends to capture value from these sizable and growing
markets by developing new products designed to replace potentially
toxic pesticides and by expanding its footprint in various
geographies. This planned expansion will be gradual and
commensurate to the capacity of TyraTech's internal resources.
Outlook
In 2016, our focus will be to implement our strategy of
increasing our market penetration for existing products, launching
new products and expanding into select new geographies.
Since the year end we have already announced a new distribution
agreement for Vamousse with major US retailer Rite Aid Corporation,
a Fortune 500 company and drugstore chain in the United States with
over 4,500 stores nationwide and we expect to expand further our
distribution network in the UK and widen our product offering
within the US. In addition, we added Morrison's retail distribution
in the UK and CVS agreed to add to Vamousse Treatment two other
products, Vamousse Protective Shampoo and a new product, Vamousse
Elimination Powder. This addresses the need for a product that can
be used to eliminate head lice in the house after an
infestation.
We also announced the launch of Vamousse and Guardian in France,
the biggest head lice market in Europe and the first foray into a
broader plan for geographical expansion of our existing products.
We continue to pursue other countries, such as Germany. The speed
of expansion and additional countries where these products will be
launched will depend upon the regulatory process of product
registration and the establishment of suitable distribution
partners.
We have also launched our first product for animal health under
the brand PureScience, targeting the control of mites for poultry
breeder operations and are working diligently to expand our
portfolio of products to be launched initially in the US and then
in Europe and the rest of the world.
Summary
In summary, I would like to thank Alan Reade for his invaluable
contribution as Chairman and his visionary guidance that put
TyraTech on the path to success. I also welcome Jose Barella as our
new Non-Executive Chairman and want to renew my gratitude to the
Board for its support.
Additionally, I would like to highlight our strategic approach
and our single-minded focus on its implementation. We made good
progress in 2015 and the Board of Directors is confident that we
will continue to grow sales of our existing products as well as
deliver innovative new products to the benefit of our customers,
shareholders and partners.
Bruno Jactel
Chief Executive Officer
12 April 2016
Financial Overview
Revenue
Overall, gross revenue for 2015 was $7.4 million versus $4.9
million in 2014. Of this, gross product revenue was $7.1 million
compared to $2.8 million in 2014, an increase of 154 percent. This
increase in gross product revenue is primarily a result of the
expansion of Vamousse treatment into two major pharmacy chains in
the US along with the launch of Vamousse Shampoo into Walmart.
Net revenue (excluding sales discounts, returns and allowances)
grew by $2.0 million, year-over-year to $6.7 million from $4.7
million. The growth in product net revenue was 146 percent ($6.4
million versus $2.6 million). Nearly half of the net revenue in
2014 came from collaborative revenue ($2.0 million), which
benefited from a one-time recognition of the approximate $1.2
million remaining Terminix exclusive product license fee, which was
offset by year-over-year reductions in other collaborative revenue
sources.
Cost of Revenue, Gross Profit, and Gross Margin
Overall, cost of revenue for 2015 was $2.1 million versus $1.2
million in 2014. Product cost of revenue was $2.0 million and $0.9
million for 2015 and 2014, respectively; while collaborative cost
of revenue decreased by $0.1 million ($0.1 million in 2015 versus
$0.2 million in 2014).
Gross profit for 2015 was $4.6 million (gross margin 69 percent)
versus $3.5 million (75 percent) in 2014. Gross profit and gross
margin in 2014 both benefited from the one-time recognition of the
remaining Terminix exclusive product license fee, which had no
associated cost of sale.
As our business model continues to move to a product-based
model, product gross profit and product gross margin will continue
to be primary measures.
In 2015, product gross profit was $4.4 million or 69 percent
versus $1.7 million or 64 percent in 2014.
Operating Performance
Operating costs and expenses for 2015 were $7.1 versus $8.5
million in 2014.
Net of non-cash and other one-time expenses, operating costs and
expenses were approximately $7.0 million and $8.2 million in 2015
and 2014, respectively, a decrease of $1.2 million.
The decrease was driven by around $0.6 million reduction in
personnel costs across all departments, a decrease of approximately
$0.5 million in sales and marketing expenses related to products
launched in the US and initial launch into the UK. The remaining
$0.1 million decrease relates to a reduction in administrative
consulting expenses also related to the geographical expansion into
the UK and product launch in the US.
As we continue to evaluate growth opportunities such as market
penetration, geographic expansion, and new product launch options,
both business development and general and administrative costs and
expenses are expected to increase in absolute terms. However, over
time, we anticipate both these costs items will decrease as a
percentage of total product revenue.
The loss from operations for 2015 was $2.4 million versus $5.0
million in 2014, and the net loss, before and after taxes, for 2015
was $2.3 million versus $5.1 million in 2014. In 2015, the main
driver of the $0.1 million difference between loss from operations
and net loss, before and after taxes, was the income received from
AMVAC for the partial sale of TyraTech's ownership percentage in
Envance.
Balance Sheet
At 31 December 2015 and 2014, cash and cash equivalents were
$4.0 million and $2.2 million, respectively.
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April 12, 2016 02:01 ET (06:01 GMT)
Working capital was $4.8 million at 31 December 2015 versus
working capital of $2.5 million at 31 December 2014. The $2.3
million increase is attributable to increases in cash and cash
equivalents, accounts receivable, and inventory, partially offset
by increases in accounts payable and accrued liabilities.
At 31 December 2015 shareholders' equity was approximately $5.0
million versus $2.6 million at 31 December 2014. The $2.4 million
increase was primarily due to approximately $4.5 million received
in net proceeds from the stock issuance in November 2015 offset by
the current year $2.3 million net loss, before and after taxes.
Cash Flow and Liquidity
Net cash used in operations was $2.8 million in 2015 compared to
$7.2 million for 2014, a decrease of $4.4 million. This decrease
was primarily the result of an increase in product sales and
related cash collections combined with a decrease in operating
expenses.
Net cash provided by investing was approximately $0.0 million,
which represents the $0.1 million received for the partial
ownership sale of Envance to AMVAC along with minimal amounts of
cash received from the sale of laboratory equipment, netted against
the $0.1 million expense for intangible acquisition costs.
Net cash provided by financing activities was approximately $4.5
million received in net proceeds from current year stock
issuances.
As of 31 December 2015, the Company had approximately $4.0
million in cash and cash equivalents. The Company had no
indebtedness as of 31 December 2015 but currently has no committed
external sources of funds.
Based upon the Company's existing cash and cash equivalents, its
current operating plans, anticipated revenues from product sales
and other collaborative arrangements, and the ability to control
operating costs, the Company's forecast indicates it will have
sufficient cash to meet its working capital needs through the next
twelve months.
Currency Effects
In 2015, the Company had no material foreign currency risk.
Going forward, as the Company pursues current and future growth
opportunities in geographic regions outside the US, the foreign
currency risk may become material, at which time the Company may
evaluate the need to use financial derivatives to mitigate the
foreign currency risk.
Erica H. Boisvert
Chief Financial Officer
12 April 2016
Consolidated Statements of Operations
Years ended 31 December 2015 and 2014
in $000's except for share data
2015 2014
------------------------------------------------- -------------------------- ---------------------------
Gross revenue:
Product $7,108 $2,836
Collaborative 335 2,097
------------------------------------------------- -------------------------- ---------------------------
Total gross revenue 7,443 4,933
Less: sales discounts, returns,
and allowances 708 215
------------------------------------------------- -------------------------- ---------------------------
Total net revenue 6,735 4,718
Cost of revenue:
Product 1,959 940
Collaborative 137 242
------------------------------------------------- -------------------------- ---------------------------
Total cost of revenue 2,096 1,182
------------------------------------------------- -------------------------- ---------------------------
Gross profit 4,639 3,536
Costs and expenses:
General and Administrative 3,285 3,558
Business Development 2,726 3,357
Research and Development 1,042 1,603
Total costs and expenses 7,053 8,518
------------------------------------------------- -------------------------- ---------------------------
Loss from operations (2,414) (4,982)
------------------------------------------------- -------------------------- ---------------------------
Other income (expense):
Interest income 1 1
Other income 129 -
Net loss (from unconsolidated subsidiary) - (300)
Change in fair value of warrant
liabilities 23 187
Total other income (expense) 153 (112)
------------------------------------------------- -------------------------- ---------------------------
Loss from operations before income
taxes (2,261) (5,094)
Income tax expense - -
Net loss $ (2,261) $ (5,094)
------------------------------------------------- -------------------------- ---------------------------
Net loss per common share
Basic and diluted $ (0.01) $ (0.02)
------------------------------------------------- -------------------------- ---------------------------
Weighted average number of common
shares (000's)
Basic and diluted 273,946 207,232
------------------------------------------------- -------------------------- ---------------------------
Consolidated Balance Sheets
31 December 2015 and 2014
in $000's, except for share data
2015 2014
--------------------------------------------- -------------------------------- --------------------------------
ASSETS
Current assets
$ $
Cash and cash equivalents 3,955 2,212
Accounts receivable, net 1,117 909
Inventory 829 925
Prepaid expenses 218 191
--------------------------------------------- -------------------------------- --------------------------------
Total current assets 6,119 4,237
Property and equipment, net 32 84
Intangible assets 129 -
Long term deposits 69 69
Total assets 6,349 4,390
--------------------------------------------- -------------------------------- --------------------------------
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current liabilities
Accounts payable 591 971
Accrued liabilities 704 664
Liability for warrants - 23
Deferred revenue 70 72
--------------------------------------------- -------------------------------- --------------------------------
Total current liabilities 1,365 1,730
Deferred revenue and other
long-term liabilities 20 89
Total liabilities 1,385 1,819
--------------------------------------------- -------------------------------- --------------------------------
Shareholders' equity (deficit)
Common stock, at $0.001 par
authorized 480 million
367.7 million shares issued,
366.6 million shares
outstanding (2014: 262.3 million
shares issued, 261.2
million shares outstanding) 367 261
Additional paid in capital 91,896 87,341
Accumulated deficit (87,181) (84,920)
Accumulated other comprehensive
income (5) 2
Treasury stock of 1.1 million (108) (108)
Total shareholders' equity 4,969 2,576
(MORE TO FOLLOW) Dow Jones Newswires
April 12, 2016 02:01 ET (06:01 GMT)
--------------------------------------------- -------------------------------- --------------------------------
Non-controlling interest (5) (5)
Total shareholders' equity 4,964 2,571
Total liabilities & shareholders'
equity $6,349 $4,390
--------------------------------------------- -------------------------------- --------------------------------
Consolidated Statements of Cash
Flows
Years ended 31 December 2015
and 2014
in $000's
2015 2014
------------------------------------------- ----------------------- -----------------------
Cash flows from operating activities:
Net loss $(2,261) $(5,094)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation 42 96
Amortisation of stock awards 132 152
Change in fair value of warrants (23) (187)
Gain on partial sale of unconsolidated (125) -
subsidiary
Net gain from sale of equipment (4)
Net loss from unconsolidated
subsidiary 300
Changes in operating assets
and liabilities:
Accounts receivable (208) (824)
Inventory 96 (862)
Prepaid expenses and long-term
deposits (27) (45)
Accounts payable and accrued
liabilities (340) 973
Deferred revenue and other
long-term liabilities (71) (1,721)
------------------------------------------- ----------------------- -----------------------
Net cash used in operating activities (2,789) (7,212)
------------------------------------------- ----------------------- -----------------------
Cash flows from investing activities:
Intangible asset acquisition (129) -
costs
Purchases of property and equipment (2) (12)
Proceeds from sale of equipment 16 -
Proceeds from partial sale 125 -
of unconsolidated subsidiary
Investment in unconsolidated
subsidiary - (300)
Net cash provided by (used in)
investing activities 10 (312)
------------------------------------------- ----------------------- -----------------------
Cash flows from financing activities:
Net proceeds from sale of common
stock 4,385 8,150
Equity warrants issued 144 210
Exercise of SARS - 1
Exercise of warrants - 500
Net cash provided by financing
activities 4,529 8,861
------------------------------------------- ----------------------- -----------------------
Net increase (decrease) in cash 1,750 1,337
Cash and cash equivalents, beginning
of year 2,212 873
Effect of exchange rate changes
on cash and cash equivalents (7) 2
Cash and cash equivalents, end
of year $ 3,955 $ 2,212
------------------------------------------- ----------------------- -----------------------
Consolidated Statements of Shareholders' Equity (Deficit)
Years ended 31 December 2015 and 2014
in $000's
Common Additional Accumulated Treasury Non-controlling Accumulated Total
Stock Paid-in Deficit Stock Interest Other Comprehensive Equity
Capital Income (Deficit)
Balances as of
December $
31, 2013 $ 168 $ 78,421 $ (79,826) $ (108) $ (5) - $ (1,350)
--------------------- ------------------------------- ------------------------------- ------------------------------- ---------------------- ------------------------------- -------------------------------- -----------
Proceeds from
issuance
of common stock,
net of
expenses and
warrants 87 8,063 - - - - 8,150
Equity warrants
issued 210 210
Exercise of AMVAC
warrants 6 494 500
Exercise of SARS - 1 1
Stock based
compensation
- SARS - 152 - - - - 152
Foreign currency
translation - - - - - 2 2
Consolidated net
loss - - (5,094) - - (5,094)
Balances as of
December
31, 2014 $ 261 $ 87,341 $ (84,920) $ (108) $ (5) $ 2 $ 2,571
--------------------- ------------------------------- ------------------------------- ------------------------------- ---------------------- ------------------------------- -------------------------------- -----------
Proceeds from
issuance
of common stock,
net of
expenses and
warrants 106 4,279 - - - - 4,385
Equity warrants
issued - 144 - - - - 144
Exercise of SARS - - - - - - -
Stock based
compensation
- SARS - 132 - - - - 132
Foreign currency
translation - - - - - (7) (7)
Consolidated
net loss - - (2,261) - - - (2,261)
Balances as of
December
(MORE TO FOLLOW) Dow Jones Newswires
April 12, 2016 02:01 ET (06:01 GMT)
31, 2015 $ 367 $ 91,896 $ (87,181) $ (108) $ (5) $ (5) $ 4,964
--------------------- ------------------------------- ------------------------------- ------------------------------- ---------------------- ------------------------------- -------------------------------- -----------
Notes to Consolidated Financial Statements
(1). Basis of Preparation.
TyraTech, Inc., a Delaware corporation, (the Company) or
(TyraTech) is engaged in the development, manufacture, marketing
and sale of proprietary insect and parasite control products that
are created by enhancing the well-known natural insecticidal
properties of plants to design formulas that are rooted in safety
and efficacy.
The consolidated financial statements of the Company for the
year ended 31 December 2015 and 31 December 2014 comprise the
Company and its subsidiaries.
The information contained in this Announcement has been
extracted from the audited financial statements which have been
prepared in accordance with accounting principles generally
accepted in the United States of America (US GAAP).
(2) Liquidity and Capital Resources
The Company's operations have been funded through a combination
of common stock issuances, product sales, collaborative
arrangements, and proceeds from technology licensing
agreements.
The Company's future capital requirements will depend on many
factors. For example, i) the level of product sales of the
Company's currently marketed products and any additional products
that may be marketed in the future; ii) the scope, progress,
results, and costs of development activities for current product
candidates; iii) the costs of commercialisation activities
including product marketing, sales, and distribution; and iv) the
costs of preparing, filing, and prosecuting patent applications and
maintaining, enforcing, and defending claims to intellectual
property.
As of 31 December 2015, the Company had approximately $4.0
million in cash and cash equivalents. The Company has no
indebtedness as of 31 December 2015.
The Company has produced monthly forecasts to the end of 2017,
which indicate the Company will have sufficient cash to meet its
working capital needs through the next twelve months based upon the
following forecast assumptions: existing cash and cash equivalents,
its current operating plans, anticipated revenues from product
sales and other collaborative arrangements, and the and the ability
to control operating costs.
(3). Distribution of Annual Report and Financial Statements
Following distribution to stockholders of copies of its full
Annual Report and Financial Statements that comply with US GAAP,
copies will be available either from the registered office of the
Company (The Corporation Trust Company, 1209 Orange Street,
Wilmington, Delaware 19801, USA). Or from the Company's website:
www.tyratech.com.
(4). Date of Annual General Meeting
The Annual General Meeting (AGM) of the stockholders of
TyraTech, Inc. will be held at the offices of the Company, 5151
McCrimmon parkway, Suite 275, Morrisville NC, USA 27560, on 8 June
2016 at 10.00 AM EDT.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DMGMDKMDGVZM
(END) Dow Jones Newswires
April 12, 2016 02:01 ET (06:01 GMT)
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