QUEBEC, May 28 /CNW Telbec/ - Victhom Human Bionics Inc. (("Victhom", or "Company") (TSX-V: VHB)) today reported its first quarter 2010 financial results.
Mr. Normand Rivard, President and CEO of Victhom said: "During the first quarter of 2010, our joint venture Neurostream has continued to make good progress on product development of the Neurostep(R) System commercial version in preparation for the European market launch and the start of the U.S. clinical trial." He added: "Following the completion in 2009 of the second generation of the Power Knee product, we completed the restructuring of our Biotronix division to reduce costs and we finalized the transfer of product support and development activities to Ossur to facilitate the successful commercial launch of the second generation of the Power Knee."
On May 14, 2010 the Board of Directors of Victhom approved certain modifications to the stock option plan of the Company (the "Stock Option Plan") to change the number of common shares of the Company (the "Shares") reserved for issuance under the Stock Option Plan from a "rolling" 10% of the number of issued and outstanding Shares from time to time to a "fixed number", being a maximum of 1,500,000 Shares representing approximately 9.66% of the issued and outstanding Shares as of May 14, 2010, and to proceed with certain other minor modifications to the Stock Option Plan to comply with TSX Venture Exchange policies. The modifications to the Stock Option Plan were conditionally approved by the TSX Venture Exchange on May 14, 2010.
First Quarter Results
For the quarter ended on March 31, 2010, the Company recorded revenues of $2,482 compared with $681,912 in 2009, representing a decrease of $679,430 or 99.6%. The decrease in revenues is attributable to the transfer of all development and support activities to our partner Ossur.
R&D expenses, before tax credits and grants, amounted to $1,288,897 for the three-month period ended on March 31, 2010, compared with $2,862,048 for the same period in 2009, representing a decrease of $1,573,151 or 55.0%. The decrease is mainly due to the reduction of activities in the Biotronix division and to the transfer of our Neurobionix division activities into the Neurostream joint venture, in which the Company has a 44.4% interest.
For the three-month period ended on March 31, 2010, G&A expenses, net of non-cash stock-based compensation charges of $166, amounted to $342,580 compared with $804,863 for the same period in 2009, representing a decrease of $462,283 or 57.4%. The decrease in G&A expenses is mainly due to staff reduction in administrative functions and to shared administrative services provided to Neurostream which are recorded through the Neurostream joint venture at 44.4% that were partially offset by non-recurring professional fees related to the completion of the transactions approved by plan of arrangement in June 2009.
For the three-month period ended on March 31, 2010, financial expenses, net of exchange rate gain on preferred shares of $276,583, amounted to $371,820 compared with financial expenses, net of exchange rate loss on convertible debentures of $717,542, for the same period in 2009, which amounted to $682,025, representing a decrease of $310,205 or 45.5%. The decrease is mainly explained by lower interests on the liability component of the financial instruments due to the conversion of the convertible debentures into preferred shares on June 17, 2009. The decrease is partially offset by lower interest income on cash and cash equivalents and short-term investments.
Shareholders' equity (deficiency) amounted to $(585,918) on March 31, 2010, compared with $1,080,520 on December 31, 2009. Total assets amounted to $8,983,105 on March 31, 2010, compared with $10,859,697 on December 31, 2009.
As of March 31, 2010, the company had cash and cash equivalents of $522,214 including short-term investments. For the three-month period ended on March 31, 2010, the net decrease in cash and cash equivalents was $683,005 compared with a decrease of $859,951 for the same period in 2009. During the first quarter 2010, the cash was provided by capital contribution received from Otto Bock through the Neurostream joint venture, offset by cash used in operating activities. The Company expects to incur additional expenditures to complete the development and marketing of its Neurobionix products. Management believes that, with its current financial resources and with the financial commitment of its joint venture partner, the Company will have sufficient liquidity to support its cash flow requirements for at least the next twelve months.
On May 27, 2010, the number of common shares outstanding totaled 15,529,313 while 564,050 options were granted under the stock option plan. The outstanding options are exercisable at a weighted average exercise price of $3.61 per share. On May 27, 2010, the number of Series A preferred shares outstanding totaled 21,065,361 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.
Victhom discovers, develops and manufactures bionic devices involved in the treatment of a variety of physical and physiological dysfunctions. Victhom Biotronix business developed the Power Knee, the world's first and only motor-powered, artificially intelligent prosthesis for above-knee amputees. The Power Knee is commercialized by Ossur, a global leader in the orthotics and prosthetics ("O&P") market. Victhom also has a 44.4% interest in Neurostream Technologies, General Partnership, a joint venture with Otto Bock HealthCare, whose objective is to bring to market the Neurostep(R) System, and to develop neuromodulation products in other indications such as sleep apnea.
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.
For further information: For further information: Normand Rivard, President & CEO, Victhom Human Bionics Inc., (418) 872-5665, Fax: (418) 864-7034, firstname.lastname@example.org; www.victhom.com; Source: Victhom Human Bionics Inc.