QUEBEC, Nov. 23, 2012 /CNW Telbec/ - Victhom Human Bionics Inc. ("Victhom") (TSXV: VHB) today reported its third quarter 2012 financial results.
Mr. Normand Rivard, President and CEO of Victhom, said: "Following the announcement by our partner Ossur that, effective as of January 2013, a new reimbursement code was obtained from the Centers for Medicare & Medicaid Services ("CMS") for the POWER KNEE, we are now expecting the pricing for the code to be unveiled as part of Medicare 2013 Fee Schedule as early the end of this year". He added: "During the quarter, Otto Bock has announced that research and development activities on the Neurostep® gait disorder product at Neurostream's Quebec site will cease in March 2013 and that an important reduction in staff at the Neurostream site in Minneapolis will also take place. While Victhom short-term prospects remain unchanged as the Neurostep® was not expected to generate any royalty revenue in the near future, the Company, following this announcement, will have to evaluate the remaining potential for an eventual royalty stream from the Neurobionix operating segment". Finally he said: "During the quarter, Victhom has continued evaluating various business development opportunities to redefine its future activities and open new value creation paths for the Company and its shareholders".
Third Quarter Results
For the quarter ended on September 30, 2012, the Company recorded revenues of $19,303 compared with $19,673 for the same period in 2011, representing a decrease of $370 or 0.02%. For the nine-month period ended on September 30, 2012, the Company recorded revenues of $43,956 compared with $70,853 for the same period in 2011, representing a decrease of $26,897 or 37.9%. Those decreases are attributable to lower revenues from royalties on the POWER KNEE.
G&A expenses, for the three-month period ended on September 30, 2012, amounted to $166,605 compared with $244,808 for the same period in 2011, representing a decrease of $78,203 or 31.9%. For the nine-month period ended September 30, 2012, G&A expenses amounted to $620,315 compared with $689,734 for the same period in 2011, representing a decrease of $69,419 or 10.1%. Those decreases are mainly due to lower professional fees related to the settlement of a contingency in 2011.
For the three-month period ended on September 30, 2012, the consolidated net loss amounted to $180,318 compared with a net loss of $2,650,089 in 2011, representing a decrease in net loss of $2,469,771 or 93.2%. The decrease in net loss is mainly explained by a non-cash loss on redemption of preferred shares and a tax credit adjustment related to Neurostream's operations, both registered in 2011 and by a lower non-cash interest on preferred shares and an exchange gain on the liability component of preferred shares, both registered in 2012.
For the nine-month period ended September 30, 2012, the consolidated net loss amounted to $3,347,383 compared with a net income of $9,954,369 for the same period in 2011, representing an increase in net loss of $13,301,752 or 133.6%. The increase in net loss is mainly explained by a non-cash loss on redemption of preferred shares in 2012 compared with the exceptional gain on disposal of our interest in the joint venture and a gain on reevaluation of assumptions related to the preferred shares in 2011. The increase in net loss was partially offset by a lower non-cash interest on preferred shares and a lower exchange loss on the liability component of the preferred shares in 2012 and 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 $1,635,581 on September 30, 2012, compared with a shareholders' equity of $4,982,964 on December 31, 2011. Total assets amounted to $3,473,346 on September 30, 2012, compared with total assets of $8,174,026 on December 31, 2011.
As of November 23, 2012, the Company has $2,770,731 in cash and cash equivalents.
As of November 22, 2012, the number of common shares outstanding totaled 19,297,654 while 117,000 options were outstanding under the stock option plan. The outstanding options are exercisable at a weighted average exercise price of $3.61 per share. As of September 30, 2012, there were no outstanding warrants. On November 22, 2012, the number of Series A preferred shares outstanding totaled 6,449,570 for a redemption amount of US$ 4,256,716, 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 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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