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.
Financial Situation
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.
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 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.