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.