QUEBEC, Nov. 12 /CNW Telbec/ - Victhom Human Bionics Inc., (Victhom,
TSX: VHB), today reported its 2007 third quarter financial results.
Mr. Benoit Huet, President and CEO, said: "We continued to make good
progress in product development in both business units and the Company is now
ready to launch its multicenter clinical trial for its Neurostep(TM) product.
This clinical trial represents a major milestone for the Company as its
results should provide to Victhom a solid proof of concept on the Closed-Loop
System and the Neurocuff(TM), which could lead to the development of new
Third Quarter Results
For the three-month period ended September 30, 2007, the Company recorded
revenues of $582,602 compared with $756,452 for the same period in 2006,
representing a decrease of $173,850 or 22.9%. Revenue for the nine-month
period ended September 30, 2007, was $1,690,692 compared with $2,045,864 for
the same period in 2006, representing a decrease of $355,172 or 17.4%. The
revenue decrease compared to last year is attributable to the reduction in
non-refundable advance royalty payments from Ossur, the Company's partner in
the orthotics and prosthetics market, related to the lower activity level in
the Biotronix business unit.
R&D expenses, before tax credits and grants, amounted to $2,141,327 for
the three-month period ended on September 30, 2007, compared with $2,072,265
for the same period in 2006, representing an increase of $69,062 or 3.3%. For
the nine-month period ended September 30, 2007, R&D expenses, before tax
credits and grants, amounted to $6,243,547 compared with $6,207,983 for the
same period in 2006, representing an increase of $35,564 or 0.6%. The increase
in expenses related to the clinical trial of the Neurostep(TM) was partially
offset by the decrease in R&D expenses resulting from the refocusing of the
Neurobionix division R&D activities announced in January 2007, which resulted
in a reduction in the number of employees.
G&A expenses, net of non-cash stock-based compensation charges of
$15,790, for the three-month period ended September 30, 2007, amounted to
$468,896 compared with $725,722 for the same period in 2006, a decrease of
$256,826 or 35%. For the nine-month period ended September 30, 2007, G&A
expenses, net of non-cash stock-based compensation charges of $133,519,
amounted to $1,760,538 compared with $2,356,679 for the same period in 2006, a
decrease of $596,141 or 25%. The decrease is mainly due to staff reduction in
administrative functions and lower professional fees.
Consolidated net loss for the quarter ended September 30, 2007, amounted
to $2,289,079 compared with $2,321,434 for the same period in 2006, a decrease
of $32,355 or 0.14%. The net loss, net of non-cash charges of $850,704, for
the three-month period ended September 30, 2007, amounted to $1,438,375
compared to a net loss, net of non-cash charges of $874,300, for the same
period in 2006, which amounted to $1,447,135.
Consolidated net loss for the nine-month period ended September 30, 2007,
amounted to $7,190,424 compared with $7,588,838 for the same period in 2006, a
decrease of $398,414 or 5.3%. The net loss, net of non-cash charges of
$2,623,842, for the nine-month period ended September 30, 2007, amounted to
$4,566,582 compared to a net loss, net of non-cash charges of $2,796,458, for
the same period in 2006, which amounted to $4,792,380, a decrease of $225,797
or 4.7%. The decrease in net loss, net of non-cash charges, is mainly the
result of lower G&A costs compared to last year.
At September 30, 2007, the Company had a cash and cash equivalents
position of $13.4 million compared with $6.5 million as at December 31, 2006.
The increase was mainly due to the issuance of shares in the financing
completed in March for gross proceeds of $12.4 million. The Company believes
that with its current financial resources it will have sufficient liquidity to
support its cash flow requirements for at least the next 12 months.
On September 30, 2007, the number of common shares outstanding totaled
90,566,728 while 3,666,472 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 $0.77 and
$0.76 per share.
Board of Directors
The Company also announced that Mr. Hans Mdder has joined its Board of
Directors. "Mr. Mdder brings with him a long and productive experience as a
top executive in the field of life sciences, in Europe and North America,
notably with Novartis and Ambrilia Biopharma", said Mr. Daniel Johnson,
Chairman of Victhom, adding that "his knowledge of operational, R&D and
financing activities of public and private companies, large and small, are a
welcome addition to our Board". On behalf of the Board and the Company,
Mr. Johnson also thanked Mr. Dennis Wood as he leaves the Board after nearly
three years of service as a Director: "Mr. Wood is an active and successful
entrepreneur and company director and investor, who has generously shared his
practical experience with his fellow Board members, for which we are very
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: Benoit Huet, President & CEO, Victhom Human
Bionics Inc., (418) 872-5665, Fax: (418) 872-6926, firstname.lastname@example.org,
www.victhom.com; Source: Victhom Human Bionics Inc.