QUEBEC, May 23, 2012 /CNW Telbec/ - Victhom Human Bionics Inc. ("Victhom") (TSXV: VHB) today reported its first quarter 2012 financial results.
Mr. Normand Rivard, President and CEO of Victhom, said: "Following the sale of our participation in Neurostream, Victhom is currently evaluating various business development opportunities to redefine its future activities and open new value-creating opportunities beyond the realisation of the royalty revenue potential from the leading-edge products developed to date. During the first quarter of 2012, the collection of the final payment of $5,000,000 from the disposal of our participation in Neurostream further strengthened our balance sheet, which, combined with our reduced cost base, places us in a good position to develop new business opportunities".
First Quarter 2012 Results
For the three-month period ended on March 31, 2012, the Company recorded revenues of $8,528 compared with $14,928 for the same period in 2011, representing a decrease of $6,400 or 42.9%. The decrease is attributable to lower revenues from royalties on the Power Knee.
While there were no R&D activities and no tax credit claimed for the three-month period ended March 31, 2012, an amount of $97,431 of tax credits related to the R&D expenses incurred by Neurostream was registered for the three-month period ended March 31, 2011.
G&A expenses, for the three-month period ended on March 31, 2012, amounted to $207,818 compared with $222,961 for the same period in 2011, representing a decrease of $15,143 or 6.8%. The decrease is mainly due to lower professional fees.
For the three-month period ended on March 31, 2012, financial expenses amounted to a credit of $6,435 compared with financial expenses of $1,181 for the same period in 2011, representing a decrease in financial expenses of $7,616 or 644.9%. The decrease in financial expenses is mainly explained by higher interest revenues on short-term investments in 2012.
For the three-month period ended on March 31, 2012, the consolidated net loss amounted to $2,840,584 compared with a net loss of $1,206,675 for the same period in 2011, representing an increase in net loss of $1,633,909 or 135.4%. The increase in net loss is mainly explained by a non-cash loss on redemption of preferred shares and a foreign exchange loss on the liability component of preferred shares in 2012 compared with higher tax credits and a favorable exchange rate variation on preferred shares in 2011. The increase in net loss was partially offset by a loss from discontinued operations related to the decision of the Company to cease the proportional consolidation of its interest in Neurostream in 2011.
Shareholders' equity amounted to $2,142,380 on March 31, 2012, compared with a shareholders' equity of $4,982,964 on December 31, 2011. Total assets amounted to $3,884,686 on March 31, 2012, compared with total assets of $8,174,026 on December 31, 2011.
As of March 31, 2012, the Company had $3,036,443 in cash and cash equivalents. For the three-month period ended on March 31, 2012, the net increase in cash and cash equivalents was $744,036 compared with a decrease of $666,897 for the same period in 2011. During 2012, the cash was mainly provided by the changes in non-cash operating working capital items of $4,945,285 partially offset by the net loss (after adding back non-cash adjustments) of $192,856.
Cash used in financing activities for the three-month period ended on March 31, 2012 of $4,008,396 was mainly due to the redemption of 6,132,089 Series A preferred shares representing a redemption amount of US$ 4,047,178. It compares to cash used in financing activities of $473,048 for the same period in 2011 mainly due to the repayment of a demand loan in the amount of $472,000.
On May 22, 2012, the number of common shares outstanding totaled 19,297,654 while 167,000 options were outstanding under the stock option plan. The outstanding options are exercisable at a weighted average exercise price of $5.34 per share.
On May 22, 2012, the number of Series A preferred shares outstanding totaled 6,479,131 for a redemption amount of US$ 4,276,226, 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.
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Source: Victhom Human Bionics Inc.