Victhom discloses third quarter 2011 financial results
27 November 2011 - 4:36PM
PR Newswire (Canada)
QUEBEC, Nov. 29, 2011 /CNW Telbec/ - Victhom Human Bionics Inc.
("Victhom") today reported its third quarter 2011 f inancial
results. Mr. Normand Rivard, President and CEO of Victhom, said:
"We are happy to report that in conjunction with the increase in
revenues coming from royalties on the sales of the Power Knee, our
partner Ossur confirmed that the product full commercial launch
would take place before the end of the year. Ossur also
reported positive results from the Power Knee case studies
performed at Walter Reed Army Medical Center in Washington DC, an
important milestone that helps to prove the benefits of the
product". He added: "Following the sale of our participation in
Neurotream in the second quarter of this year, Victhom is currently
evaluating various business development opportunities to redefine
its future activities and create value for its shareholders beyond
the royalty potential from the leading-edge products developed to
date". 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. Third Quarter
Results For the quarter ended on September 30, 2011, the Company
recorded revenues of $19,673 compared with $10,914 for the same
period in 2010, representing an increase of $8,759 or 80.3%. The
revenues for the nine-month period ended on September 30, 2011 were
generated from royalties on the Power Knee for an amount of $70,853
($38,705 in 2010). There was $2,482 of revenues generated from
other sources in 2010 while there was none for the same period in
2011. At this time, the Company does not expect to engage in
additional and new R&D activities in the near future. For the
quarter ended on September 30, 2011, the Company recorded a
negative adjustment to its tax credits of $139,525 compared with
tax credits earned of $128,771 for the same period in 2010,
representing a decrease in tax credits of $268,296 or 208.4%. The
decrease 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. We also adjusted our 2011
investment tax credits receivable on the same basis. For the
nine-month period ended on September 30, 2011, tax credits amounted
to $60,310 compared with $1,312,141 for the same period in 2010,
representing a decrease of $1,251,831 or 95.4%. The decrease is
mainly explained by amended tax credit claims from previous years
for which the Company received positive confirmation and payment
from tax authorities in May 2010. The Company had not recognized
these investment tax credits in previous quarters since the
government ruling on the nature of the claim was uncertain. G&A
expenses, for the three-month period ended on September 30, 2011,
amounted to $244,808 compared with $188,908 for the same period in
2010, representing an increase of $55,900 or 29.6%. For the
nine-month period ended on September 30, 2011, G&A expenses
amounted to $689,734 compared with $1,031,199 for the same period
in 2010, representing a decrease of $341,465 or 33.1%. The decrease
in G&A expenses is mainly due to non-recurring professional
fees related to amended investment tax credits, received during the
second quarter of 2010. For the three-month period ended on
September 30, 2011, the consolidated net loss amounted to
$1,586,375 compared with a net loss of $1,310,793 for the same
period in 2010, representing an increase in net loss of $275,582 or
21.0%. The consolidated net income amounted to $8,284,495 for the
nine-month period ended on September 30, 2011, compared with a net
loss of $4,458,105 for the same period in 2010, representing an
increase in net income of $12,742,600 or 285.8%. The increase in
net income is mainly explained by the gain on disposal of our
interest in joint venture and lower G&A expenses, which were
partially offset by lower investment tax credits and an exchange
rate loss on preferred shares. Shareholders' equity amounted to
$3,073,664 on September 30, 2011, compared with a
shareholders' deficiency of $4,821,720 on December 31, 2010. Total
assets amounted to $8,567,774 on September 30, 2011, compared
with $7,032,818 on December 31, 2010. Financial Situation As
of September 30, 2011, the Company had $2,523,574 in cash and cash
equivalents. For the nine-month period ended on September 30, 2011,
the net increase in cash was $3,228,274 compared with a net
decrease of $654,475 for the same period in 2010. During the first
nine months of 2011, the cash was mainly provided by the disposal
of our interest in Neurostream joint venture, which was partially
offset by cash used for the redemption of a portion of our
Series A preferred shares. As of November 25, 2011, the
Company had $2,333,860 in cash and cash equivalents. On November
28, 2011, the number of common shares outstanding totaled
19,297,655 while 167,000 options were outstanding under the stock
option plan. The outstanding options are exercisable at a weighted
average exercise price of $5.34 per share. On November 28, 2011,
the number of Series A preferred shares outstanding totaled
12,611,220, for a redemption amount of US$ 8,323,405, 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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