QUEBEC, March 28 /CNW Telbec/ - Victhom Human Bionics Inc. (Victhom,
TSX: VHB), today reported its 2007 fourth quarter and annual financial
The Company is proud of the progress accomplished in 2007 in both its
business units. For the Neurobionix business unit, the start of the
multicenter clinical trial and first patient implantation of the
Neurostep(TM), a fully implantable neuromodulation device, represented a key
milestone in our strategy to commercialize this important product for foot
drop patients. The Biotronix business unit continued exploiting the great
potential of the Power Knee technological platform to develop more innovative
products for the orthotics and prosthetics market in collaboration with our
partner Ossur. This may lead to the introduction of a new exciting product
before the end of 2008.
2007 Annual and Fourth Quarter Results
For the year ended on December 31, 2007, the Company recorded revenues of
$2,271,600 compared with $3,199,545 in 2006, representing a decrease of
$927,946 or 29.0%. For the fourth quarter 2007, the Company recorded revenues
of $580,908 compared with $1,153,681 in 2006, a decrease of $572,773 or 50%.
The revenue decrease compared to last year is attributable to the reduction in
non-refundable advance royalty payments from Ossur, our partner in the
orthotics and prosthetics market, related to the lower activity level in the
Biotronix business unit. The foreign exchange fluctuations compared to last
year had a negative impact on revenues. Finally, the 2006 revenues included
non-recurring revenues related to the transfer of manufacturing of the Power
Knee product to our partner Ossur.
Cost of revenues amounted to $443,606 for the year and three-month period
ended on December 31, 2006 compared to none for the same periods in 2007. The
cost of revenues in 2006 was related to the transfer of manufacturing of the
Power Knee product to our partner Ossur.
Research and development (R&D) expenses, before tax credits and grants,
amounted to $8,513,547 in 2007 compared with $8,414,372 in 2006, representing
an increase of $99,175 or 1.12%. For the fourth quarter 2007, the R&D
expenses, before tax credits and grants, amounted to $2,270,000 compared with
$2,206,389 in 2006, an increase of $63,611 or 2.88%. The increase in expenses
related to the clinical trial of the Neurostep(TM) was partially offset by the
decrease in R&D expenses associated with the refocusing of the Neurobionix
division R&D activities announced in January 2007, which resulted in a
reduction in the number of employees.
General and administrative (G&A) expenses, net of non-cash stock-based
compensation charges of $185,285, for the year ended on December 31, 2007,
amounted to $2,367,492 compared with $3,080,162 for the same period in 2006, a
decrease of $712,670 or 23.14%. For the fourth quarter 2007, the G&A expenses,
net of non-cash stock based compensation charges of $51,766 amounted to
$606,954 compared with $724,674 for the same period in 2006, a decrease of
$117,720 or 16.2%. The decrease is mainly due to staff reduction in
administrative functions and lower administrative expenses.
Consolidated net loss for the year ended on December 31, 2007, amounted
to $9,761,679 compared with $10,146,166 for the same period in 2006, a
decrease of $384,487 or 3.79%. Consolidated net loss for the fourth quarter
2007 amounted to $2,571,255 compared with $2,557,328 for the same period in
2006, a decrease of $13,927 or 0.5%. The net loss, net of non-cash charges of
$3,575,077 for the year ended December 31, 2007, amounted to $6,186,602
compared to a net loss, net of non-cash charges of $3,370,687, for the same
period in 2006, which amounted to $6,775,479, a decrease of $588,877 or 8.7%.
The net loss, net of non-cash charges of $951,235, for the fourth quarter
ended on December 31, 2007, amounted to $1,620,020 compared to a net loss, net
of non-cash charges of $896,990, for the same period in 2006 which amounted to
$1,660,338, a decrease of $40,318 or 0.24%. The decrease in net loss is mainly
the result of lower G&A costs compared to last year and higher non-cash
charges. This was partially offset by lower net revenues in 2007.
At December 31, 2007, the Company had cash and cash equivalents of
$12.4 million compared with $6.5 million as at December 31, 2006. The increase
was mainly due to the issuance of shares in the financing completed in March
for gross proceeds of $12.4 million. The Company believes that with its
current financial resources it will have sufficient liquidity to support its
cash flow requirements for at least the next 12 months.
On December 31, 2007, the number of common shares outstanding totaled
95,892,481 while 6,308,000 options were granted under the stock option plan
and 25,964,942 share purchase warrants are in circulation pursuant to past
unit offerings. The outstanding options and share purchase warrants are
exercisable respectively at a weighted average exercise price of $0.51 and
$0.76 per share.
Victhom discovers, develops and manufactures bionic devices involved in
the treatment of a variety of physical and physiological dysfunctions.
Victhom's Neurobionix business unit focuses on the development and
commercialization of technologies and products involving implantable devices
that feature neurosensing and neurostimulation components, integrated with
artificial intelligence. Victhom's Biotronix business unit develops
biomechatronic products to support or replace peripheral limbs in what is
known as the orthotics and prosthetics market.
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
For further information:
For further information: Normand Rivard, Vice President & CFO, Victhom
Human Bionics Inc., (418) 872-5665, Fax: (418) 872-6926,
firstname.lastname@example.org, www.victhom.com; Source: Victhom Human Bionics