Victhom Human Bionics Inc. (TSXV:VHB)
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QUEBEC, Aug. 26, 2011 /CNW/ --
QUEBEC, Aug. 26, 2011 /CNW Telbec/ - Victhom Human Bionics Inc.
(("Victhom") (TSXV: VHB)) today reported its second quarter 2011
financial results.
Mr. Normand Rivard, President and CEO of Victhom, said: "The positive
second quarter 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. The fact that two global market leaders in the
prosthetic and orthotic field, Otto Bock for the Neurostep(®) and Ossur for the Power Knee, are fully committed to commercialize
these products gives us great confidence in our ability to generate
value for our shareholders".
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.
Second Quarter Results
For the quarter ended on June 30, 2011, the Company recorded revenues of
$36,252 compared with $27,791 for the same period in 2010, representing
an increase of $8,461 or 30.4%. The revenues for the six-month period
ended on June 30, 2011 were generated from royalties on the Power Knee
for an amount of $51,180 ($27,791 in 2010). There was $2,482 of
revenues generated from other sources in 2010 while there was none for
the same period in 2011.
At this time, the Company does not expect to engage in additional and
new R&D activities in the near future.
For the quarter ended on June 30, 2011, tax credits amounted to $102,404
compared with $1,126,214 for the same period in 2010, representing a
decrease of $1,023,810 or 90.9%. Tax credits amounted to $199,835 for
the six-month period ended on June 30, 2011, compared with $1,183,370
for the same period in 2010, representing a decrease of $983,535 or
83.1%. The decrease is mainly explained by 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 quarters
since the government ruling on the nature of the claim was uncertain.
G&A expenses, for the three-month period ended on June 30, 2011,
amounted to $221,945 compared with $611,415 for the same period in
2010, representing a decrease of $389,470 or 63.7%. For the six-month
period ended on June 30, 2011, G&A expenses amounted to $444,925
compared with $842,291 for the same period in 2010, representing a
decrease of $397,366 or 47.2%. The decrease in G&A expenses is mainly
due to non-recurring professional fees related to amended investment
tax credits, received during the second quarter of 2010.
For the three-month period ended on June 30, 2011, the consolidated net
income amounted to $9,890,006 compared with a net loss of $1,473,970
for the same period in 2010, representing an increase in net income of
$11,363,976 or 771.0%. The consolidated net income amounted to
$8,769,414 for the six-month period ended on June 30, 2011, compared
with a net loss of $3,147,312 for the same period in 2010, representing
an increase in net income of $11,916,726 or 378.6%. The increase in net
income is mainly explained by the gain on disposal of our interest in
joint venture, lower G&A expenses and a favorable exchange rate
variation on preferred shares, which was partially offset by lower
investment tax credits.
Shareholders' equity amounted to $5,051,776 on June 30, 2011, compared
with a shareholders' deficiency of $3,720,264 on December 31, 2010.
Total assets amounted to $11,893,193 on June 30, 2011, compared with
$8,130,753 on December 31, 2010.
Financial Situation
As of June 30, 2011, the Company had $5,692,122 in cash and short-term
investments. For the six-month period ended on June 30, 2011, the net
increase in cash was $4,146,411 compared with a net decrease of
$938,027 for the same period in 2010. During the first six months of
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 repayment of the demand loan.
As of August 22, 2011, the Company had $2,583,427 in cash and short-term
investments, representing a decrease in cash of $3,108,695 since June
30, 2011. The decrease is mainly due to the redemption, on July 19,
2011, of 4,685,798 Series A preferred shares for a total redemption
payment of US$ 3,092,626.
On August 22, 2011, the number of common shares outstanding totaled
18,649,613 while 226,696 options were outstanding under the stock
option plan. The outstanding options are exercisable at a weighted
average exercise price of $5.83 per share. On August 22, 2011, the
number of preferred shares outstanding totaled 13,259,263 for a
redemption amount of US$ 8,751,114, 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.
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table border="0" valign="top" tr td align="left" valign="top" bSource:/b /td td /td td Victhom Human Bionics Inc. /td /tr tr td align="left" colspan="3" valign="top" /td /tr tr td align="left" valign="top" bFor more information:/b br/ /td td /td td Normand Rivardbr/ President & CEObr/ Victhom Human Bionics Inc.br/ Tel.: 418-872-5665 ext 107br/ Fax: 418-864-7031br/ a href="mailto:normand.rivard@victhom.com"inormand.rivard@victhom.com/i/abr/ a href="http://www.victhom.com/"iwww.victhom.com/i/a /td /tr /table p /p