QUEBEC,
April 18, 2012 /PRNewswire/ - Victhom
Human Bionics Inc. ("Victhom") (TSXV: VHB) today reported its
2011 annual and fourth quarter financial results.
Mr. Normand
Rivard, President and CEO of Victhom, said: "During 2011,
the positive financial results generated from the significant gain
on disposal of our participation in Neurostream represents a clear
confirmation of the value creation achieved by our Neurobionix
business over the last few years. Our significantly strengthened
balance sheet and reduced cost base places us in a strong position
to leverage the royalty potential from the leading-edge products
developed by both of our divisions, the Neurostep® and
the Power Knee. Furthermore, the increase in revenues coming from
royalties on the sales of the Power Knee by our partner Ossur and
the progress made by Neurostream in the development and
registration of the commercial version of the Neurostep®
product give us great confidence in our ability to generate value
for our shareholders".
On June 30, 2011,
the Company sold its 44.4% participation in Neurostream to a
related party to its joint venture partner Otto Bock Healthcare for an aggregate
consideration of $10 million in cash
as well as the payment of royalties on the future net sales of the
Neurostep® System and eventual monetization proceeds of
the sleep apnea and epilepsy technologies of Neurostream.
M. Rivard added: "Following the sale of our
participation in Neurostream, Victhom is currently evaluating
various business development opportunities to redefine its future
activities and open new value creating opportunities beyond the
realisation of the royalty revenue potential from the leading-edge
products developed to date".
2011 Annual and Fourth Quarter
Results
For the year ended on December 31, 2011, the Company recorded revenues
of $83,159 compared with $60,143 for the same period in 2010, representing
an increase of $23,016 or 38.3%. The
increase is attributable to higher revenues from royalties on the
Power Knee.
While there were no R&D expenses for the
year ended on December 31, 2011,
R&D expenses were $49,048 for the
same period in 2010. The decrease is mainly due to the
restructuring of our Biotronix business in 2009. At this time, the
Company does not expect to engage in additional R&D activities
in the near future.
For the year ended on December 31, 2011, tax credits amounted to a
negative adjustment of $56,993
compared with tax credits of $1,703,653 for the same period in 2010,
representing a decrease in tax credits of $1,760,646 or 103.3%. The decrease in tax credits
is due to an adjustment made on our 2010 investment tax credits
receivable to reflect the actual amounts claimed on Neurostream's
R&D activities, and amended tax credit claims from previous
years for which the Company received positive confirmation and
payment from tax authorities in May
2010. The Company had not recognized these investment tax
credits in previous periods since the government ruling on the
nature of the claim was uncertain.
G&A expenses, for the year ended on
December 31, 2011, amounted to
$900,442 compared with $1,234,807 for the same period in 2010,
representing a decrease of $334,365
or 27.1%. The decrease is mainly due to non-recurring professional
fees related to amended investment tax credits, received in
May 2010.
For the year ended on December 31, 2011, financial expenses amounted to
a credit of $14,260 compared with
financial expenses of $37,753 for the
same period in 2010, representing a decrease in financial expenses
of $52,013 or 137.8%. The decrease in
financial expenses is mainly explained by higher interest and
financing fees in 2010 related to demand loan.
For the year ended on December 31, 2011, the consolidated net income
amounted to $9,658,573 compared with
a net loss of $5,675,396 for the same
period in 2010, representing an increase in net income of
$15,333,969 or 270.2%. The increase
in net income is mainly explained by the disposal of our interest
in the joint venture and the gain on reevaluation of assumptions
related to the preferred shares. The increase in net income was
partially offset by lower investment tax credits, a loss on
redemption of preferred shares and an exchange rate loss on
preferred shares.
Shareholders' equity amounted to $4,982,964 on December 31,
2011, compared with a shareholders' deficiency (restated) of
$4,888,728 on December 31, 2010. Total assets amounted to
$8,174,026 on December 31, 2011, compared with total assets
(restated) of $6,074,571 on
December 31, 2010.
Financial Situation
As of December 31,
2011, the Company had $2,292,407 in cash and cash equivalents. For the
year ended on December 31, 2011, the
net increase in cash and cash equivalents was $794,195 compared with an increase of
$388,000 for the same period in 2010.
During 2011, the cash was mainly provided by the disposal of our
interest in Neurostream joint venture, which was partially offset
by cash used for the redemption of a portion of our Series A
preferred shares and cash used in operating activities.
As of April 13,
2012, the Company had $2,948,285 in cash and cash equivalents,
representing an increase in cash of $655,878 since December
31, 2011. The increase in cash was due to the collection on
February 1, 2012, of the final
payment in the amount of CAN$ 5,000,000 for the sale of our
interest in Neurostream joint venture. Consequently, the Company
redeemed, on February 22, 2012,
6,132,089 series A preferred shares for a total redemption amount
of US$ 4,047,178.
On April 13, 2012,
the number of common shares outstanding totaled 19,297,654 while
167,000 options were outstanding under the stock option plan.
The outstanding options are exercisable at a weighted average
exercise price of $5.34 per
share.
On April 13, 2012,
the number of Series A preferred shares outstanding totaled
6,479,131 for a redemption amount of US$ 4,276,226, which can be converted into
common shares, at any time and from time to time, at the holder's
option on a 1-for-1 basis.
About Victhom
Victhom is a company which owns patents in the
field of orthotics and prosthetics ("O&P"), including
intellectual property used in the Power Knee, the world's first and
only motor-powered prosthesis for above-knee amputees, a product
distributed under license agreement by Ossur, a global leader in
the O&P market. The Company also has a royalty agreement
related to the Neurostep® System and neuromodulation
products in other indications (sleep apnea and epilepsy) using the
Neurobionix technology platform currently under development by
Neurostream Technologies, a General Partnership now owned by
Otto Bock, a global leader in the
O&P market.
FORWARD-LOOKING STATEMENTS
Some of the statements made herein may
constitute forward-looking statements. These statements relate to
future events or our future financial performance and involve known
and unknown risks, uncertainties and other factors that may cause
Victhom's actual results, performance or achievements to be
materially different from those expressed or implied by any of
Victhom's statements. Actual events or results may differ
materially. We disclaim any intention, and assume no obligation, to
update these forward-looking statements.
SOURCE VICTHOM HUMAN BIONICS INC.