QUEBEC, Nov. 29, 2011 /CNW Telbec/ - Victhom Human Bionics Inc.
("Victhom") (TSXV: VHB) today reported its third quarter 2011 f
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
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
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.
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
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.
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.
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.
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