QUEBEC, Aug. 29, 2012 /CNW Telbec/ - Victhom Human Bionics Inc. ("Victhom") (TSXV: VHB) today reported its second quarter 2012 financial results.
Mr. Normand Rivard, President and CEO of Victhom, said: "The fact that our partner Ossur obtained during the quarter the reimbursement code for the POWER KNEE by the Centers for Medicare & Medicaid Services ("CMS") is a very important milestone as it represents a critical step toward broader adoption of this leading-edge product. It confirms the benefits and acceptance of bionic products as the next generation of prosthetics and gives us confidence in the royalty revenue potential to be generated from the sales of the POWER KNEE. 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".
Second Quarter Results
For the quarter ended on June 30, 2012, the Company recorded revenues of $16,125 compared with $36,252 for the same period in 2011, representing a decrease of $20,127 or 55.5%. For the six-month period ended on June 30, 2012, the Company recorded revenues of $24,653 compared with $51,180 for the same period in 2011, representing a decrease of $26,527 or 51.8%. Those decreases are attributable to lower revenues from royalties on the POWER KNEE.
While there were no R&D activities and no tax credit claimed for the six-month period ended June 30, 2012, an amount of $199,835 of tax credits related to the R&D expenses incurred by Neurostream was registered for the six-month period ended June 30, 2011. At this time, the Company does not expect to engage in additional and new R&D activities in the near future.
G&A expenses, for the three-month period ended on June 30, 2012, amounted to $245,892 compared with $221,964 for the same period in 2011, representing an increase of $23,928 or 10.8%. For the six-month period ended June 30, 2012, G&A expenses amounted to $453,710 compared with $444,925 for the same period in 2011, representing an increase of $8,785 or 1.9%. Those increases are mainly due to higher audit fees related to the first time adoption of the IFRS.
For the three-month period ended on June 30, 2012, the consolidated net loss amounted to $326,482 compared with a net income of $13,811,133 in 2011, representing an increase in net loss of $14,137,615 or 102.4%. The increase in net loss is mainly explained by the exceptional gain on disposal of our interest in the joint venture and a gain on reevaluation of assumptions related to the preferred shares, both registered in 2011. The increase in net loss was partially offset by a lower non-cash interest and lower exchange loss on the liability component of the preferred shares in 2012.
For the six-month period ended June 30, 2012, the consolidated net loss amounted to $3,167,065 compared with a net income of $12,604,458 for the same period in 2011, representing an increase in net loss of $15,771,523 or 125.1%. 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 and 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 $1,815,899 on June 30, 2012, compared with a shareholders' equity of $4,982,964 on December 31, 2011. Total assets amounted to $3,642,241 on June 30, 2012, compared with total assets of $8,174,026 on December 31, 2011.
Financial Situation
As of August 29, 2012, the Company has $2,953,904 in cash and cash equivalents.
As of August 28, 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 $3.61 per share. As of June 30, 2012, there were no outstanding warrants. On August 28, 2012, the number of Series A preferred shares outstanding totaled 6,468,769 for a redemption amount of US$ 4,269,388, 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.
About Victhom
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.
FORWARD-LOOKING STATEMENTS
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.