IMI announces fiscal 2004 financial results

IMI announces fiscal 2004 financial results 


TORONTO, March 31  /PRNewswire-FirstCall/ -- IMI International Medical
Innovations Inc. (TSX: IMI; Amex: IME), a leading predictive medicine company,
today announced audited financial results for the fiscal year ended December
31, 2004. All amounts are in Canadian dollars.

"Fiscal 2004 was an eventful year, with the completion of a significant
worldwide marketing agreement with McNeil Consumer Healthcare, Canada, for our
cardiovascular products, continuing advances in our clinical program and new
publications and presentations," said Dr. Brent Norton, President and Chief
Executive Officer. "These accomplishments speak strongly to the scientific
credibility and growth opportunities for our products."

Dr. Norton continued, "Looking ahead, fiscal 2005 will be a pivotal year for
IMI. We are poised to generate revenue from PREVU(x) Point of Care Skin Sterol
Test, which is currently being commercialized in Canada, the U.S. and select
markets in Europe, where it is available as a point-of-care test. We are also
aiming to advance two additional formats of our skin sterol technology. Another
key focus will be on accelerating development of our cancer products with new
clinical studies and partnering opportunities.

Additionally, to date this year three papers about our skin sterol technology
have already been accepted for future publication in leading medical journals,
including the American Heart Journal. Similarly, three abstracts have been
accepted for presentation --- one as recently as yesterday --- including the
exciting new data on PREVU(x) presented in early March at the American College
of Cardiology annual conference. These are all important accomplishments that
will add significant value to our business."

Financial Review

Total revenue for the year was $485,000, reflecting sales of PREVU(x) Skin
Sterol Test to IMI's marketing partner, McNeil Consumer Healthcare, as well as
license revenue. The consolidated loss for the year was $5,569,000 ($0.26 per
share) compared with $4,063,000 ($0.19 per share) for the year ended December
31, 2003, an increase of $1,506,000.

Research and development expenditures increased by $694,000 to $2,613,000 from
$1,919,000 in 2003. This variance primarily reflects increased spending on
clinical trials for skin sterol and cancer to $488,000 from $235,000 in 2003,
related to a lung cancer trial (the I-ELCAP study) and the large skin sterol
study being conducted with AtheroGenics, Inc. (the ARISE study) that commenced
in the latter part of 2003. IMI currently has 19 clinical trials ongoing, with
several, including ARISE, designed to establish the relationship between skin
sterol and primary events, such as heart attack. The variance also reflects
increased filing fees on intellectual property, which increased to $196,000
from $92,000 in fiscal 2003, and increases in total compensation and benefits
for research personnel of $221,000.

General and administration expenses amounted to $3,355,000 compared with
$2,362,000 in 2003, an increase of $993,000. This variance primarily reflects a
one-time cost of $478,000 in 2004 related to IMI's unsolicited offer to acquire
the shares of IBEX Technologies Inc. IMI allowed the offer to expire on
December 16, 2004 without taking up any shares of IBEX. It also reflects a
$221,000 increase in stock-based compensation for options for administrative
personnel that resulted in a non-cash expense of $476,000. This increase was
primarily for options granted in 2004 pursuant to a U.S. consulting contract
that vested over nine months and for the cashless exercise of options by an
officer of IMI. Total compensation and benefits for administration personnel
increased $160,000, reflecting annual increases plus accrued incentive
compensation based on performance.

Amortization expenses for equipment and acquired technology amounted to
$224,000 compared to $281,000 in 2003. Recoveries of provincial scientific
investment tax credits (ITCs) amounted to $205,000 compared with $223,000 in
2003. Interest income amounted to $124,000 compared with $258,000 for 2003.

As at December 31, 2004, IMI had cash, cash equivalents and short-term
investments totaling $5,196,000 ($6,697,000 as at December 31, 2003). To date,
IMI has financed its activities through the issuance of shares and the recovery
of provincial ITCs as well as through license fees. Management believes that,
based on historic cash expenditures and the current expectation of further
revenue from product sales and royalties, IMI's existing cash resources
together with the investment tax credits receivable of $389,000 will be
sufficient to meet the company's current operating and capital requirements
through at least 2005.

Financial statements are attached to this press release. IMI's complete fiscal
2004 annual report is available at http://www.sedar.com/.

About IMI

IMI (http://www.imimedical.com/) is a world leader in predictive medicine,
dedicated to developing rapid, non-invasive tests for the early detection of
life-threatening diseases. IMI's cardiovascular products, which are branded as
PREVU(x) Skin Sterol Test, are marketed and distributed worldwide by McNeil
Consumer Healthcare, Canada. The company's cancer tests include
ColorectAlert(TM), LungAlert(TM) and a breast cancer test.

IMI's head office is located in Toronto, and its research and product
development facility is at McMaster University in Hamilton, Ontario. For
information regarding PREVU(x), please go visit http://www.prevu.com/.

This press release contains forward-looking statements. These statements
involve known and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those in the forward-
looking statements. Such risks and uncertainties include, among others, the
lack of operating profit and availability of funds and resources to pursue R&D
projects, the successful and timely completion of clinical studies, the
successful development or marketing of the Company's products, reliance on
third-party manufacturers, the competitiveness of the Company's products if
successfully commercialized, the ability of the Company to take advantage of
business opportunities, uncertainties related to the regulatory process, and
general changes in economic conditions. In addition, while the Company
routinely obtains patents for its products and technology, the protection
offered by the Company's patents and patent applications may be challenged,
invalidated or circumvented by our competitors and there can be no guarantee of
our ability to obtain or maintain patent protection for our products or product
candidates.

Investors should consult the Company's quarterly and annual filings with the
Canadian and U.S. securities commissions for additional information on risks
and uncertainties relating to the forward-looking statements. Investors are
cautioned not to rely on these forward-looking statements. IMI is providing
this information as of the date of this press release and does not undertake
any obligation to update any forward-looking statements contained in this press
release as a result of new information, future events or otherwise.

  IMI International Medical Innovations Inc.
  Incorporated under the laws of Canada

                       CONSOLIDATED BALANCE SHEETS

  As at December 31

                                                     2004          2003
                                                       $             $
  -------------------------------------------------------------------------

  ASSETS
  Current
  Cash and cash equivalents                          239,458        61,625
  Short-term investments                           4,956,945     6,635,135
  Accounts receivable                                222,348        10,700
  Inventory                                          267,500             -
  Prepaid expenses and other receivables             137,015       329,789
  Investment tax credits receivable                  389,000       180,000
  -------------------------------------------------------------------------
  Total current assets                             6,212,266     7,217,249
  -------------------------------------------------------------------------
  Capital assets, net                                420,955       403,205
  Acquired technology, net of accumulated
   amortization of $784,399 (2003 - $693,684)        362,858       453,573
  -------------------------------------------------------------------------
                                                   6,996,079     8,074,027
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current
  Accounts payable                                 1,021,086       139,435
  Accrued liabilities                                566,951       403,213
  Current portion of deferred revenue                306,900         6,900
  -------------------------------------------------------------------------
  Total current liabilities                        1,894,937       549,548
  -------------------------------------------------------------------------
  Deferred revenue                                 2,604,300        86,200
  -------------------------------------------------------------------------
  Total liabilities                                4,499,237       635,748
  -------------------------------------------------------------------------
  Commitments

  Shareholders' equity
  Capital stock                                   24,192,321    24,056,853
  Contributed surplus                              1,328,187       723,993
  Warrants                                           200,000       312,200
  Deficit                                        (23,223,666)  (17,654,767)
  -------------------------------------------------------------------------
  Total shareholders' equity                       2,496,842     7,438,279
  -------------------------------------------------------------------------
                                                   6,996,079     8,074,027
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------



  IMI International Medical Innovations Inc.

               CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT

  Years ended December 31

                                         2004         2003         2002
                                           $            $            $
  -------------------------------------------------------------------------

  REVENUE
  Product sales                          183,258            -            -
  License revenue                        302,080       16,900            -
  -------------------------------------------------------------------------
                                         485,338       16,900            -
  Cost of product sales (including
   amortization of $6,600)               190,214            -            -
  -------------------------------------------------------------------------
  Gross profit                           295,124       16,900            -
  -------------------------------------------------------------------------

  EXPENSES
  Research and development             2,612,770    1,918,800    2,104,904
  General and administration           3,355,451    2,361,602    2,141,207
  Amortization                           224,428      280,777      219,466
  -------------------------------------------------------------------------
                                       6,192,649    4,561,179    4,465,577
  -------------------------------------------------------------------------

  RECOVERIES AND OTHER INCOME
  Investment tax credits                 205,000      223,146      189,908
  Interest                               123,626      258,422      257,407
  -------------------------------------------------------------------------
                                         328,626      481,568      447,315
  -------------------------------------------------------------------------
  Net loss for the year               (5,568,899)  (4,062,711)  (4,018,262)

  Deficit, beginning of year         (17,654,767) (13,592,056)  (9,573,794)
  -------------------------------------------------------------------------
  Deficit, end of year               (23,223,666) (17,654,767) (13,592,056)
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------

  Basic and diluted loss per share        $(0.26)      $(0.19)      $(0.20)
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------

  Weighted average number of common
   shares outstanding                 21,276,497   20,967,677   20,406,733
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------



  IMI International Medical Innovations Inc.

                  CONSOLIDATED STATEMENTS OF CASH FLOWS

  Years ended December 31

                                         2004         2003         2002
                                           $            $            $
  -------------------------------------------------------------------------

  OPERATING ACTIVITIES
  Net loss for the year               (5,568,899)  (4,062,711)  (4,018,262)
  Add items not involving cash
    Amortization                         231,028      280,777      219,466
    Stock compensation costs
     included in:
      Research and development
       expense                           123,925      189,105       81,905
      General and administration
       expense                           476,164      255,112       36,483
    Loss on sale of capital asset          6,098        3,873            -
  Net change in non-cash working
   capital balances related to
   operations                            544,015      (54,970)      30,841
  Increase (decrease) in deferred
   revenue                             2,818,100       (6,900)     100,000
  -------------------------------------------------------------------------
  Cash used in operating activities   (1,369,569)  (3,395,714)  (3,549,567)
  -------------------------------------------------------------------------

  INVESTING ACTIVITIES
  Short-term investments               1,678,190    3,326,608   (2,603,943)
  Purchase of capital assets            (164,789)    (385,605)     (20,804)
  Sale of capital assets                     628        2,775            -
  -------------------------------------------------------------------------
  Cash provided by (used in)
   investing activities                1,514,029    2,943,778   (2,624,747)
  -------------------------------------------------------------------------

  FINANCING ACTIVITIES
  Issuance of capital stock, net
   of issue costs                         33,373      363,110    5,731,386
  -------------------------------------------------------------------------
  Cash provided by financing
   activities                             33,373      363,110    5,731,386
  -------------------------------------------------------------------------

  Net increase (decrease) in cash and
   cash equivalents during the year      177,833      (88,826)    (442,928)
  Cash and cash equivalents, beginning
   of year                                61,625      150,451      593,379
  -------------------------------------------------------------------------
  Cash and cash equivalents, end of
   year                                  239,458       61,625      150,451
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------

  Represented by:
  Cash                                   173,302       61,625      148,270
  Cash equivalents                        66,156            -        2,181
  -------------------------------------------------------------------------
                                         239,458       61,625      150,451
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------


DATASOURCE: IMI International Medical Innovations Inc.



CONTACT: Company Contact: Sarah Borg-Olivier, Director, Communications,

T: [phone], ; U.S. Investor Contact: Andrea

Faville, Edward Abella, The Investor Relations Group, T: [phone],

, 

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