Hamilton Thorne announces 2009 fourth quarter and year end financial results
TSX VENTURE: HTL
TORONTO, April 23 /CNW/ - Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of advanced laser systems and instruments for the stem cell research and fertility clinic markets, today reported operational and financial results for the fourth quarter and year-ended December 31, 2009.
"We believe the stem cell market is continually evolving as new discoveries and techniques, as well as increased grant funding, provide new therapeutic opportunities. As a leading provider of laser instruments for stem cell research our broad range of products support innovation in this rapidly growing market. To capitalize on this growth we intend to expand our distribution capabilities and launch new products this year that serve the emerging field of induced pluripotent stem cell research," said Meg Spencer, Chief Executive Officer of Hamilton Thorne Ltd. "Our 2009 sales reflect the relatively slower recovery and budget restraint exhibited within both the institutional and commercial research markets following the macro-economic downturn. At this phase of our growth we expect to continue to see fluctuation on a quarterly basis. However, we believe with the addition of a senior executive dedicated to the sales and marketing division, together with the new products, expanded marketing efforts and improvements to our distribution network, we are well positioned to drive organic growth in sales during 2010."
2009 Highlights
- Completed a public listing, via a Qualifying Transaction, and related
financing with Calotto Capital Inc., a capital pool company,
providing Hamilton Thorne with resources to scale up its existing
sales and marketing activities and continue to roll out additional
products that target the fast growing stem cell research market.
- Signed an agreement with ISee3D for exclusive rights to sell their
three-dimensional imaging technology within the stem cell research
and regenerative medical research markets.
- Launched Staccato, an advanced laser system for the automated
processing of stem cell colonies that enhances colony purity and
scale-up.
- Laser systems referenced in seven new peer-reviewed scientific
articles by customers that use Hamilton Thorne instruments as part of
the research methods, including those published in prestigious
journals such as Nature and Cell: Stem Cell.
Highlights subsequent to year-end
- Appointed Michelle Lyles, Ph.D., to the role of Vice President of
Sales with responsibility for managing Hamilton Thorne's worldwide
sales initiatives and overseeing the Company's sales team and
distributor relationships. Dr. Lyles brings more than 15 years of
experience in progressively senior Sales and Marketing roles for life
science research companies.
- Launched the HAWK-i(TM) remote monitoring system with its first major
installation of the system at an Ivy League university.
- Signed a Master Service Agreement with Cambridge Technology
Enterprises (CTE), a global business and technology services company,
to develop customized applications and manage the infrastructure of
the Company's HAWK-i(TM) system for enterprise-wide installations.
Financial Results
All amounts are in US dollars, unless specified otherwise, and results expressed in accordance with Canadian Generally Accepted Accounting Principles (GAAP).
For the three months ended December 31, 2009, the Company recorded sales of $1,197,160, compared to $1,655,813 for the same period last year. For the year ended December 31, 2009, sales were $4,794,693 compared to $5,757,406 for the corresponding period in 2008. The change in sales is primarily due to the general economic conditions and consequent budget freezes and extended purchasing cycles for research products, specifically in the North American and European markets.
Cost of sales for the year ended December 31, 2009 was $1,769,658, compared to $2,037,313 for the same period last year. Gross profit remained relatively stable during 2009 at 63.1 percent, despite the change in sales, compared to a gross margin of 64.6 percent in 2008.
For the three months ended December 31, 2009, total operating expenditures were $1,241,584, compared to $1,077,676 for the same period last year. For the year ended December 31, 2009, total operating expenditures were $4,333,646 compared to $4,467,701 for the corresponding period in 2008.
Operating expenditures consist of research and development (R&D) expenses, sales and marketing expenses and general and administrative expenses. R&D expenses for the year period ended December 31, 2009 were $843,948, compared to $814,097 for the corresponding period in 2008. Sales and marketing expenses for the year ended December 31, 2009 were $1,938,541, compared to $2,267,597 for the corresponding period in 2008. General and administrative expenses for the year ended December 31, 2009 were $1,551,157, compared to $1,386,007 for the corresponding period last year. The change in general and administrative expenses was due primarily to stock-based compensation expense and expenses related to the Qualifying Transaction and public listing.
Net loss for the three-month period ended December 31, 2009, totalled $577,877, compared to $73,324 for the corresponding period in 2008. For the year ended December 31, 2009, net loss was $1,674,935, compared to $1,241,239 for the corresponding period last year.
As at December 31, 2009, the Company's cash and cash equivalents amounted to $1,356,371.
As of March 31, 2010 the Company had 24,415,157 common shares, 5,500,005 warrants, 3,532,756 options, and 440,001 agent compensation options outstanding.
The financial statements are available on www.sedar.com.
About Hamilton Thorne Ltd.
Hamilton Thorne's advanced laser systems and instruments are rapidly emerging as the dominant products to facilitate precise procedures in the stem cell research and fertility clinic markets. Hamilton Thorne's lead products, the ZILOS-tk and XYClone laser systems, attach to standard inverted microscopes and operate as robotic micro-surgeons, significantly reducing time and increasing efficiency in key in-vitro fertilization, stem cell, embryo, reproductive toxicology and living cell procedures.
Hamilton Thorne's growing customer base includes pharmaceutical companies, biotechnology companies, fertility clinics, university research centers and other commercial and academic research establishments worldwide. Current customers include world-leading research labs such as Harvard University, MIT, Yale, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, Oxford University and Cambridge. For more information on Hamilton Thorne, visit www.hamiltonthorne.com.
Neither the exchange nor its regulation services provider (as that term is defined in the policies of the exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which are available at www.sedar.com.
Financials results included below:
Hamilton Thorne Ltd
Consolidated Balance Sheets
As at December 31, 2009 and 2008
(Expressed in U.S. Dollars)
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2009 2008
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Assets
Current
Cash and cash equivalents 1,356,371 5,029
Accounts receivable 499,875 958,239
Inventories 512,300 633,212
Prepaid expenses and other current assets 72,689 45,161
Note receivable, officer 23,813 22,963
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2,465,048 1,664,604
Capital assets 90,481 131,920
Other assets 72,454 116,881
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2,627,983 1,913,405
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Liabilities
Current
Accounts payable and accrued liabilities 1,171,562 1,093,551
Notes payable 83,037 5,051,069
Capital lease obligations, current 5,753 5,888
Deferred revenue 35,881 22,382
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1,296,233 6,172,890
Capital lease obligations, non-current 7,904 14,725
Preferred shares, subject to redemption - 1,389,593
Long-term debt 5,050,000 -
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6,354,137 7,577,208
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Shareholders' Equity (Deficiency)
Common shares 24,341,938 2,000,813
Preferred shares - 19,065,033
Warrants 344,949 456,615
Contributed surplus 199,767 38,956
Accumulated deficit (28,612,808) (27,225,220)
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(3,726,154) (5,663,803)
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2,627,983 1,913,405
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Hamilton Thorne Ltd
Consolidated Statements of Operations and Comprehensive Loss
For the years ended December 31, 2009 and 2008
(Expressed in U.S. Dollars)
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2009 2008
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Sales 4,794,693 5,757,406
Cost of sales 1,769,658 2,037,313
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3,025,035 3,720,093
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Expenses
Research and development 843,948 814,097
Sales and marketing 1,938,541 2,267,597
General and administrative 1,551,157 1,386,007
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4,333,646 4,467,701
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Loss from operations (1,308,611) (747,608)
Other income (expense)
Interest expense including accretion (367,191) (468,607)
Interest income 867 1,253
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Loss from continuing operations (1,674,935) (1,214,962)
Loss from discontinued operations - (26,277)
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Net loss and comprehensive loss for the year (1,674,935) (1,241,239)
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Loss per share
Basic $ (0.10) $ (0.08)
Diluted $ (0.10) $ (0.08)
Weighted average number of common
shares outstanding
Basic 17,504,453 16,035,067
Diluted 17,513,961 16,035,067
Hamilton Thorne Ltd
Consolidated Statements of Cash Flows
For the years ended December 31, 2009 and 2008
(Expressed in U.S. Dollars)
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2009 2008
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Cash flows from operating activities
Net loss for the year (1,674,935) (1,241,239)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 113,136 134,325
Non-cash interest expense/accretion 124,936 175,064
Share-based compensation expense 160,811 38,956
Changes in non-cash operating assets
and liabilities:
Accounts receivable 458,364 (24,883)
Inventories 120,912 75,390
Prepaid expenses and other current assets (28,378) 52,163
Other assets (2,878) 4,710
Accounts payable and accrued liabilities 68,356 (70,342)
Deferred revenue 13,499 7,101
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(646,177) (848,755)
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Cash flows from investing activities
Purchase of capital assets (59,305) (132,383)
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Cash flows from financing activities
Deferred financing costs 34,913 (34,913)
Proceeds from debt 1,167,195 1,058,113
Payments on debt (617,183) (90,031)
Proceeds from exercise of warrants 87 -
Issuance of common share units
- net of expenses 1,174,810 -
Net cash acquired in RTO 794,832 -
Reverse takeover costs incurred (497,830) -
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2,056,824 933,169
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Net Increase (decrease) in cash and
cash equivalents 1,351,342 (47,969)
Cash and cash equivalents, beginning of year 5,029 52,998
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Cash and cash equivalents, end of year 1,356,371 5,029
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For further information: David Wolf, President, Hamilton Thorne Ltd., (978) 299-1715, [email protected]; Ross Marshall, The Equicom Group, (416) 815-0700 x238, [email protected]
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