Victhom discloses 2011 annual and fourth quarter financial results
QUEBEC, April 18, 2012 /PRNewswire/ – Victhom Human Bionics Inc.
(“Victhom”) (TSXV: VHB) today reported its 2011 annual and fourth
quarter financial results.
Mr. Normand Rivard, President and CEO of Victhom, said: “During 2011,
the positive financial results generated from the significant gain on
disposal of our participation in Neurostream represents a clear
confirmation of the value creation achieved by our Neurobionix business
over the last few years. Our significantly strengthened balance sheet
and reduced cost base places us in a strong position to leverage the
royalty potential from the leading-edge products developed by both of
our divisions, the Neurostep(®) and the Power Knee. Furthermore, the increase in revenues coming from
royalties on the sales of the Power Knee by our partner Ossur and the
progress made by Neurostream in the development and registration of the
commercial version of the Neurostep(®) product give us great confidence in our ability to generate value for
On June 30, 2011, the Company sold its 44.4% participation in
Neurostream to a related party to its joint venture partner Otto Bock
Healthcare for an aggregate consideration of $10 million in cash as
well as the payment of royalties on the future net sales of the
Neurostep(®) System and eventual monetization proceeds of the sleep apnea and
epilepsy technologies of Neurostream.
M. Rivard added: “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”.
2011 Annual and Fourth Quarter Results
For the year ended on December 31, 2011, the Company recorded revenues
of $83,159 compared with $60,143 for the same period in 2010,
representing an increase of $23,016 or 38.3%. The increase is
attributable to higher revenues from royalties on the Power Knee.
While there were no R&D expenses for the year ended on December 31,
2011, R&D expenses were $49,048 for the same period in 2010. The
decrease is mainly due to the restructuring of our Biotronix business
in 2009. At this time, the Company does not expect to engage in
additional R&D activities in the near future.
For the year ended on December 31, 2011, tax credits amounted to a
negative adjustment of $56,993 compared with tax credits of $1,703,653
for the same period in 2010, representing a decrease in tax credits of
$1,760,646 or 103.3%. The decrease in tax credits is due to an
adjustment made on our 2010 investment tax credits receivable to
reflect the actual amounts claimed on Neurostream’s R&D activities, and
amended tax credit claims from previous years for which the Company
received positive confirmation and payment from tax authorities in May
2010. The Company had not recognized these investment tax credits in
previous periods since the government ruling on the nature of the claim
G&A expenses, for the year ended on December 31, 2011, amounted to
$900,442 compared with $1,234,807 for the same period in 2010,
representing a decrease of $334,365 or 27.1%. The decrease is mainly
due to non-recurring professional fees related to amended investment
tax credits, received in May 2010.
For the year ended on December 31, 2011, financial expenses amounted to
a credit of $14,260 compared with financial expenses of $37,753 for the
same period in 2010, representing a decrease in financial expenses of
$52,013 or 137.8%. The decrease in financial expenses is mainly
explained by higher interest and financing fees in 2010 related to
For the year ended on December 31, 2011, the consolidated net income
amounted to $9,658,573 compared with a net loss of $5,675,396 for the
same period in 2010, representing an increase in net income of
$15,333,969 or 270.2%. The increase in net income is mainly explained
by the disposal of our interest in the joint venture and the gain on
reevaluation of assumptions related to the preferred shares. The
increase in net income was partially offset by lower investment tax
credits, a loss on redemption of preferred shares and an exchange rate
loss on preferred shares.
Shareholders’ equity amounted to $4,982,964 on December 31, 2011,
compared with a shareholders’ deficiency (restated) of $4,888,728 on
December 31, 2010. Total assets amounted to $8,174,026 on December 31,
2011, compared with total assets (restated) of $6,074,571 on
December 31, 2010.
As of December 31, 2011, the Company had $2,292,407 in cash and cash
equivalents. For the year ended on December 31, 2011, the net increase
in cash and cash equivalents was $794,195 compared with an increase of
$388,000 for the same period in 2010. During 2011, the cash was mainly
provided by the disposal of our interest in Neurostream joint venture,
which was partially offset by cash used for the redemption of a portion
of our Series A preferred shares and cash used in operating activities.
As of April 13, 2012, the Company had $2,948,285 in cash and cash
equivalents, representing an increase in cash of $655,878 since
December 31, 2011. The increase in cash was due to the collection on
February 1, 2012, of the final payment in the amount of CAN$ 5,000,000
for the sale of our interest in Neurostream joint venture.
Consequently, the Company redeemed, on February 22, 2012, 6,132,089
series A preferred shares for a total redemption amount of
On April 13, 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 $5.34 per share.
On April 13, 2012, the number of Series A preferred shares outstanding
totaled 6,479,131 for a redemption amount of US$ 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.
SOURCE VICTHOM HUMAN BIONICS INC.