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:
(416) 222-3449, ; U.S. Investor Contact: Andrea Faville, Edward
Abella, The Investor Relations Group, T: (212) 825-3210, ,
Copyright