QUEBEC, May 1 /CNW Telbec/ - Victhom Human Bionics Inc. (Victhom, TSX:
VHB) today reported its 2008 fourth quarter and annual financial results.
"We feel that in 2008 we created the foundation needed to allow us to
bring products from both of our divisions to the market and create a
significant and profitable business", said Mr. Normand Rivard, Acting
President and CFO of Victhom. "The recently announced partnership agreement
with Otto Bock will not only secure funding for the Neurobionix activities but
also bring unique expertise and a worldwide distribution network to make the
launch of our first neuromodulation product, the Neurostep(R), a success.
Finally, the second generation of the POWER KNEE early commercial release at
Walter Reed Army Medical Center by our Biotronix division's partner Ossur has
set the stage for a full commercial release expected by 2010".
2008 Annual and Fourth Quarter Results
For the year ended on December 31, 2008, the Company recorded revenues of
$2,286,468 compared with $2,271,600 in 2007, representing an increase of
$14,868 or 0.7%. For the fourth quarter of 2008, the Company recorded revenues
of $597,700 compared with $580,908 in 2007, an increase of $16,792 or 2.9%.
The revenues are generated from non-refundable advance royalties for an amount
of $2,185,618 ($2,215,134 in 2007), of support activities for an amount of
$51,302 ($33,774 in 2007), and of other sources for an amount of $49,548
($22,691 in 2007).
Research and development (R&D) expenses, before tax credits and grants,
amounted to $10,100,239 for the year ended on December 31, 2008, compared with
$8,513,547 for the same period in 2007, representing an increase of $1,586,692
or 18.6%. For the fourth quarter of 2008, the R&D expenses, before tax credits
and grants, amounted to $2,736,976 compared with $2,270,000 in 2007, an
increase of $466,976 or 20.6%. The increase can be explained by higher
expenses related to the ongoing clinical trial and the development of the
commercial version of the Neurostep(R).
For the year ended on December 31, 2008, general and administrative (G&A)
expenses, net of non-cash stock-based compensation charges of $67,727,
amounted to $2,361,344 compared with $2,367,492 for the same period in 2007,
representing a decrease of $6,148 or 0.3%. For the fourth quarter 2008, the
G&A expenses, net of non-cash stock-based compensation charges of $8,394
amounted to $626,595 compared with $606,954 for the same period in 2007, an
increase of $19,641 or 3.2%. The decrease in annual G&A expenses is mainly due
to staff reduction in administrative functions and lower administrative
expenses that were partially offset by non-recurring professional fees related
to investor relation activities.
The net loss, net of non-cash items of $8,309,945, for the year ended on
December 31, 2008, amounted to $7,970,444 compared with a net loss, net of
non-cash items of $991,316, for the same period in 2007, which amounted to
$6,186,602, representing an increase of $1,783,842 or 28.8%. The net loss, net
of non-cash charges of $3,583,515, for the fourth quarter ended on December
31, 2008, amounted to $2,122,437 compared with a net loss, net of non-cash
charges of $817,616, for the same period in 2007, which amounted to
$1,620,020, an increase of $502,417 or 31.0%. The increase in net loss, net of
non-cash items, is mainly the result of higher R&D expenses related to the
ongoing clinical trial and the development of the commercial version of the
For the year ended on December 31, 2008, the net decrease in cash and
cash equivalents was $11,324,198 compared with an increase of $5,943,523 for
the same period in 2007. The cash used in operating activities in 2008 was
$8,653,726 driven by the net loss (after adding back non-cash adjustments) of
$7,970,444, and by changes in working capital items of $683,282. The Company
expects to incur additional expenditures to complete the development and
marketing of its products. We will therefore require additional financing in
connection with our business strategies to fund our requirements in working
On April 30, 2009, the Company announced the execution of a partnership
agreement to establish a joint venture with Otto Bock HealthCare GmbH ("Otto
Bock") to develop and commercialize products currently being developed by
Victhom's Neurobionix division. Over the next 2 1/2 years, Otto Bock will
invest CAN$ 30 million to fund the development of the Neurostep(R) System and
products in other indications. The Company believes that with this
transaction, which is subject to Company's debenture holders and shareholders
approval, it will have sufficient liquidity to fund its continuing operations.
On December 31, 2008, the number of common shares outstanding totaled
123,088,923 while 6,873,000 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 $0.40 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, Acting President & CFO, Victhom
Human Bionics Inc., (418) 872-5665, Fax: (418) 872-6926,
email@example.com; www.victhom.com; Source: Victhom Human Bionics