QUEBEC, May 15 /CNW Telbec/ - Victhom Human Bionics Inc. ("Victhom")
(TSX: VHB)) today reported its first quarter 2009 financial results.
Mr. Normand Rivard, Acting President and CFO of Victhom said: "During the
first quarter of 2009, both of our divisions have kept their focus on
completing product development for the Neurostep(R) System and next generation
Power Knee. This hard work has produced tangible results that have paved the
way to the recently announced partnership agreement with Otto Bock HealthCare
for the development and commercialization of the Neurostep(R) System that will
bring $30 million in funding and the announcement of the second generation of
the Power Knee early commercial release at Walter Reed Army Medical Center by
our Biotronix division's partner Ossur".
First Quarter Results
For the quarter ended on March 31, 2009, the Company recorded revenues of
$681,912 compared with $574,244 in 2008, representing an increase of $107,668
or 18.7%. The revenues are generated from non-refundable advance royalties for
an amount of $669,614 ($541,873 in 2008), of support activities for an amount
of $12,298 ($12,664 in 2008), and of other sources for an amount of $0
($19,707 in 2008).
Research and development (R&D) expenses, before tax credits and grants,
amounted to $2,862,048 for the three-month period ended on March 31, 2009,
compared with $2,275,928 for the same period in 2008, representing an increase
of $586,120 or 25.8%. The increase can be explained by higher expenses related
to the ongoing clinical trial and the development of the commercial version of
For the three-month period ended on March 31, 2009, general and
administrative (G&A) expenses, net of non-cash stock-based compensation
charges of $8,061, amounted to $804,863 compared with $866,204 for the same
period in 2008, representing a decrease of $61,341 or 7.1%. The decrease in
G&A expenses is mainly due to staff reduction in administrative functions and
lower non-recurring professional fees that were partially offset by the
increase in amortization of property, plant and equipment.
The net loss, net of non-cash items of $1,715,974, for the three-month
period ended on March 31, 2009, amounted to $3,009,565 compared with a net
loss, net of non-cash items of $1,310,175, for the same period in 2008, which
amounted to $2,487,108, representing an increase of $522,457 or 21.0%. 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 Neurostep(R).
As of March 31, 2009, the Company had cash and cash equivalents of
$2,013,506, including short-term investments. For the three-month period ended
on March 31, 2009, the net decrease in cash and cash equivalents was $859,951
compared with a decrease of $1,981,047 for the same period in 2008. The cash
used in operating activities in 2009 was $1,241,148 driven by the net loss
(after adding back non-cash adjustments) of $2,327,653, partially offset by
changes in working capital items of $1,086,505. The Company expects to incur
additional expenditures to complete the development and marketing of its
products. We will therefore require additional financing in connection with
our business strategies to fund our requirements in working capital.
On April 30, 2009, the Company announced the execution, on April 29,
2009, of a partnership agreement with Otto Bock HealthCare GmbH ("Otto Bock")
to establish a joint venture to develop and commercialize products currently
being developed by Victhom's Neurobionix division (the "Transaction"). Over
the next 2 1/2 years, Otto Bock will invest CAN$ 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 May 13, 2009, the Quebec Superior Court has issued the Interim Order
requiring the holding of separate debenture holder and shareholder meetings on
June 16, 2009, to obtain certain required approvals for the above-mentioned
plan of arrangement as well as the creation of the Joint Venture. Further
details on the Transaction with Otto Bock will be provided in an information
management circular expected to be distributed to its shareholders and
debenture holders in the week of May 18, 2009.
As of May 15, 2009, certain shareholders and debenture holders have
executed support agreements whereby they have agreed to vote a total of 44.15%
of the issued and outstanding common shares and 71.67% of the issued and
outstanding principal amount of the convertibles debentures in favour of and
to support the Transaction.
On March 31, 2009, 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