TIDMRXB
RNS Number : 1951I
Rex Bionics PLC
26 August 2016
Rex Bionics Plc
("Rex Bionics" or the "Company")
Audited results for the year ended 31 March 2016
26 August 2016: Rex Bionics plc (AIM: RXB), the pioneer of the
REX Robot technology that enhances the mobility of wheelchair
users, today announces its audited results for the year ended 31
March 2016.
Post-period operational highlights:
-- Strategic re-positioning, emphasising the unique benefits of
REX for patients with the most severe spinal cord injury and
rehabilitation-resistant stroke;
-- Equity fundraising completed 10 August 2016 raising GBP2.3
million before expenses, to be used to maintain commercial momentum
during strategic re-positioning and review of further fundraising
opportunities;
-- Fundraising included GBP1m investment by Maxhealth Medicine
Group Co., Ltd, a large regional medical equipment distributor in
China associated with the Company's exclusive distributor MAAB
International;
-- Data from 2nd interim analysis of results from RAPPER II
clinical trial presented 17 August 2016: now includes 53
participants, with positive results maintained;
-- Agreement signed with Avicenna Partners, based in Dubai, to
provide Robot Assisted Physiotherapy with REX in the United Arab
Emirates
Previously announced operational highlights:
-- Sales of seven REX units in the year (US: two, Asia: three,
UK: one, Australia: one), representing maiden sales of the product
since the Company's IPO;
-- Key partnership and distribution agreements signed in the US,
China, Hong Kong and Europe, opening up access to some of the
world's largest markets;
-- First ever successful personal injury claims awarding
insurance funding for wheelchair users to access REX;
-- Highly positive results from an interim analysis of data from
the RAPPER II clinical trial announced in late 2015;
-- Successful demonstration of the direction of REX by mind
control technology at the 2015 Meeting of Robotics: Science and
Systems in Rome;
-- Announcement of collaboration with US Army to evaluate use of
REX for the early rehabilitation of amputees in an acute care
setting;
-- Appointment of Joseph Cucolo, ex-President Americas for
Zimmer Corporation, as the Company's first US-based Non-Executive
Director
Results for the period:
-- Net loss GBP4.87 million (16 months to 31 March 2015 - net loss GBP5.30 million);
-- Period-end available cash reserves GBP1.86 million (31 March 2015: GBP4.37 million)
For further information please contact:
Rex Bionics Plc
Crispin Simon, Chief Executive Officer
+44 (0) 781 086 6386
Peter Worrall, Chief Financial Officer
+44 (0)1428 645416
Stifel Nicolaus Europe Limited (NOMAD and Broker)
Jonathan Senior/ Stewart Wallace / Ben Maddison
+44 (0) 20 7710 7600
Consilium Strategic Communications
Mary-Jane Elliott / Chris Welsh
rexbionics@consilium-comms.com
+44 (0) 203 709 5700
About Rex Bionics Plc
Rex Bionics (AIM: RXB) is the pioneer of the REX Robot that
enhances the mobility of wheelchair users and was founded in
Auckland, New Zealand by two robotics engineers with first-hand
experience of wheelchair users and their needs.
Rex Bionics is working with physiotherapists to develop the
concept and practice of Robot-Assisted Physiotherapy (RAP). In a
session of RAP, REX lifts patients from a sitting position into a
robot-supported standing position, allowing them to take part in a
set of supported walking and stretching exercises, designed by
specialist physiotherapists.
In addition, REX P, for use in the home, enables users to walk
and stand with their hands free - providing more work and
recreation options. Our vision is to commercialise an all-day use
REX P for a target market segment of wheel chair users with a
spinal cord injury, who number around 500,000 people in the US and
EU alone. The market potential for this new category of robotic
mobility aid was recently estimated to be $2.1 billion in 2021, by
Wintergreen Research Inc.
Wheelchair users are at risk of developing numerous medical
complications from extended periods of sitting. By enabling them to
spend more time standing, walking and exercising, REX may offer
significant health benefits, including improved sleep and
maintenance of joint range, and a reduction in spasm, pain, common
abdominal problems and prescription drug use.
A program of "RAPPER" clinical trials is now under way to
evaluate these potential benefits and the first and second interim
analysis of the RAPPER II data were presented on 27(th) November
2015 and 17(th) August 2016 respectively.
Until now, REX has most commonly been used by wheelchair users
with a spinal cord injury, but has also been used by people who
have suffered a stroke or other traumatic brain injury; and
wheelchair users with multiple sclerosis, muscular dystrophy and
cerebral palsy.
Rex Bionics has three Strategic Objectives - to establish
Robot-Assisted Physiotherapy as a Gold Standard of Care for Spinal
Cord Injury, Stroke and other neurological conditions; to establish
REX as the market-leading robotic mobility aid; and by effective
execution of our plans, to deliver significant value growth to
shareholders.
Rex Bionics works with distribution partners in the US
(customerservice@enableme.com), China (MAAB,
alex.lou@maab-group.com), Hong Kong and Taiwan (Deltason,
tommychan@deltason.com), Denmark and Belgium; and in other
countries we support customers directly (info@rexbionics.com).
Rex Bionics was admitted to trading on the London Stock
Exchange's AIM in 2014. REX is not registered for At-Home use in
the United States of America.
Chairman and Chief Executive's Joint Statement
Operationally, the year ended 31 March 2016 has been a period of
broad progress across all areas, and we are pleased to be able to
report to shareholders on the achievement of a number of important
milestones during the period, including the first sales of REX
since the Company's IPO, the first successful award under a
personal injury claim to include a REX, the appointment of
exclusive distributors in the Company's two most important markets,
the US and China, and highly positive results from an interim
analysis of the RAPPER II clinical trial looking at the feasibility
and safety of the use of REX by people with spinal cord injury. As
described in our Interim Results announcement in December 2015, we
believe that the Company is now demonstrating how REX fits into a
new paradigm for the use of robot technology in the rehabilitation
of people with mobility impairment.
Sales and Marketing Activities
Product sales
We reported sales of REX of seven units in the year, the first
sales of REX since the Company's IPO, with a broad geographic
spread across the US, Asia-Pacific and Europe and higher sales in
the second half year than the first half. With hindsight the sales
cycle for REX has been longer than we initially expected,
reflecting both the pressure on healthcare budgets around the world
and also the fact that REX together with other exoskeleton products
is creating a completely new market segment, which always takes
time to develop. With sales and marketing activities now beginning
to bear fruit, however, we expect revenues to continue to grow.
Distributor appointments
A critical objective of the Company's sales and marketing
strategy has been the establishment of a network of specialised
distributors and commercial partners in our key target markets
around the world to support the international commercialisation of
REX. We have made good progress over the year, with appointments in
the US, China, Hong Kong, Scandinavia, the Benelux countries and
Russia. More recently, in May 2016, we announced the appointment of
a new agency agreement with Avicenna Partners in the United Arab
Emirates, our first commercial partner in the Middle East, and we
intend to make further appointments during the forthcoming
year.
The early appointment of experienced partners in the US and
China was particularly important, given the size and commercial
significance of those markets. Our distributor in the US, appointed
in September 2015, is EnableMe (formerly Ri LLC), a specialist
supplier of movement therapy equipment to neuro-rehabilitation
clinics throughout the US. Headquartered in St Petersburg, Florida,
EnableMe was established in 2003 by Mike Laky, a seasoned
rehabilitation industry specialist, and already has long-term
contracts in place with the leading US hospital chains including
the Veterans Administration, HealthSouth and Select Healthcare.
With a network of sales representatives in the field, it offers
broad geographic coverage for Rex products across the US, as well
as providing the required FDA-compliant regulatory systems.
Our commercial partner in China, appointed in July 2015, is MAAB
Group, an investment and trading company that specialises in
sourcing and bringing innovative medical technologies into China.
MAAB is headquartered in Hong Kong and was founded by industry
veterans with a mix of expertise ranging from market access to
sales and marketing. It is currently the appointed China partner
and distributor for a number of cutting edge medical devices and
diagnostic products from the UK, New Zealand and Denmark.
Under the terms of the collaboration, MAAB will manage the
application process for China Food and Drug Administration (CFDA)
for any regulatory approvals required for REX in the Chinese
market, as well as the sales, marketing and distribution of the
product. An initial product launch was held in early 2016 and
limited pre-marketing of REX in the Chinese market is now underway
(within the restrictions set by CFDA).
The rapid growth of China's emerging middle class, coupled with
the Chinese government's increasing commitment to improving
healthcare access, has led to a sharp increase in the demand for
care in China, which we believe represents a clear opportunity for
REX. The strategic investment of GBP1m by MAAB's associate
Maxhealth Medicine Group Co., Ltd, a publicly quoted regional
distributor of healthcare products in Eastern China, as part of the
fundraising completed by the Company on 10 August 2016 provides
evidence of MAAB and Maxhealth's confidence in the potential for
REX in the Chinese market.
Most recently we announced a new agreement with Avicenna
Partners in Dubai to provide Robot Assisted Physiotherapy with REX
throughout the United Arab Emirates. Avicenna owns and operates the
Amana Healthcare Rehabilitation Hospital, an Abu Dhabi-based
neuro-rehabilitation clinic, and has plans to open further
rehabilitation hospitals in the UAE. This is the Company's first
formal collaboration in the Middle East and represents an ideal
base from which to develop our business in that region.
Collaboration with the US Army
In another potentially significant development, we were pleased
to announce in January 2016 a Collaborative Research and
Development Agreement (CRADA) with the US Army Medical Research and
Materiel Command to modify the REX technology to enable an
evaluation of its use in the early ambulation of patients with
lower limb loss.
After limb trauma and limb amputation, ambulation is limited in
the early months due to the length of time post-injury, as much as
three months, that is required to allow for residual limb tissue
recovery before the socket and prosthetic fitting process can
begin. The US Army has been investigating ways in which soldiers
with limb loss could benefit from being upright while awaiting
prosthetic fitting and from improved access to early and intensive
standing rehabilitation, which it believes offers the prospect of
shorter rehabilitation times and decreased complications of
prolonged immobility. It concluded, however, that there are
currently no devices to accommodate early standing for patients
with limb loss.
This new agreement therefore sets the stage for follow-on
research at the Walter Reed National Military Medical Center
(WRNMMC), Bethesda, MD, which will consist of a program of design
modifications to REX, specifically to its harness system, to enable
its use by individuals who have suffered lower limb loss. If
successful, it would represent the first use of REX in an acute
care setting, which could open up a substantial new market
opportunity for the product.
Marketing activities
During the year, the Company has continued to pursue a focused
but highly active marketing and PR campaign to create greater
international awareness of REX. We have exhibited at a number of
major international neuro-rehabilitation conferences, including in
Boston, Dallas, Dubai, Rome, and Shanghai, where we were honoured
to receive a visit to our stand by His Royal Highness Prince
William. REX has also made regular appearances on local and
national television programs in a number of countries during the
year, including an appearance on the Canadian version of Dragon's
Den, in which a REX user standing in his REX made a successful
pitch to the Canadian Dragons to provide financial backing for him
to open a private rehabilitation clinic. More recently in the US,
demonstrations of REX in Michigan and Florida were covered by local
television news channels in those states. A recent story about a UK
man who used a REX to walk his daughter down the aisle at her
wedding received international coverage.
Personal injury claims
An area of increasing commercial focus for the Company is the
potential for funding for one or more REXs to be included as part
of the settlement under a personal injury insurance claim. Evidence
for the significant opportunity that this represents was provided
by the announcement in September 2015 that Ben Barnes, who
sustained a spinal cord injury in a road traffic accident, had
become the first recipient of a British High Court damages
settlement enabling him to purchase his own REX for use at home. As
part of his overall settlement, Mr Barnes was awarded a total of
GBP550,000 for orthotics, which included the cost of a REX for home
rehabilitation, its replacements and associated costs.
In another UK case during the year, a man who had sustained
spinal cord damage as a result of alleged clinical negligence was
awarded interim funding for an intensive course of robot-assisted
physiotherapy with REX, pending a final settlement of his insurance
claim.
The Company views these awards as an endorsement from the courts
and the insurance industry of the principle that the REX robot
technology can help people with spinal cord injuries to remain
healthy and enable them to resume activities they may have thought
were no longer within their capabilities.
NZ Government funding to support US commercial development
We are grateful to the Callaghan Institute, an arm of the New
Zealand Government, for its continued support throughout the year
to the Company's Auckland-based subsidiary Rex Bionics Ltd, in the
form of R&D grant funding for the next generation REX program.
During the period we were also delighted to receive formal
notification from New Zealand Trade and Enterprise, the New Zealand
government's international business development agency, that it
will provide up to NZD100,000 in funding to support the development
of the Rex business in the US market.
Clinical Data
Another strategic imperative during the year has been the
commencement of a series of post-marketing trials designed to
generate clinical data to support the use of REX and its
commercialisation in a range of clinical indications.
In June 2015 the Company announced the enrolment of the first
recruit in our RAPPER II (Robot-Assisted PhysiotheraPy Exercises
with REX) clinical trial, the first substantive, controlled study
in this program. The objective of the RAPPER II study is to
evaluate the safety and feasibility of a set of customised
exercises performed in a REX.
Recruitment rates at the first trial centre, PhysioFunction in
Northampton, UK, were rapid, and recruitment has accelerated in
recent months with the addition of new trial centres at major
neuro-rehabilitation units in the UK, Australia and New Zealand,
establishing RAPPER II as a genuinely international clinical trial.
We expect all of these sites, and others, to continue to act as
Reference Centres for REX.
Highly positive results from an interim analysis of data from
the first 20 volunteers to be recruited into the trial were
presented at international neuro-rehabilitation conferences in
Perth, Australia and Vienna in late 2015. Key findings from this
first interim analysis included the following:
-- 19 out of 20 volunteers (95%) were able to complete the
walk/exercise protocol ("Treatment Success"), which was the primary
end-point of the trial;
-- The mean time from transfer to mobilisation was seven minutes
and in less than ten minutes all the users were able to use the
joystick to control the REX;
-- There were no Serious Adverse Events and no treatment-related Adverse Events.
We are very encouraged by the outcome, which we believe provides
compelling evidence that the REX can be used safely by most people
with a spinal cord injury, and requires only brief and simple
training to be used successfully.
In addition to the formal study end-points, all the volunteers
who completed the treatment were asked to respond to a 16 item
questionnaire covering aspects of their experience of using the
REX. Overall, 84% of all the volunteers' answers to all of the
questions were positive. In answers to specific questions, 100% of
volunteers could "see the benefits of using REX regularly", 95%
"would like to use REX on a weekly basis", and 79% of volunteers
"felt a sense of wellness after using REX". Responses to questions
relating to Confidence, Safety, Stability, Comfort and Ease of
Control of REX were in the 84-95% positive range.
The pattern of responses suggests that the REX will be able to
deliver the proven benefits to wheelchair users of standing and
walking, and they will provide important support to take to
reimbursement agencies.
The results from the interim analysis of the RAPPER II trial
data represent a first step in generating the clinical data that
the Company believes will form an essential part of the commercial
strategy for REX. In the subsequent cohort of recruits we have
expanded the study protocol to include new, more detailed
questionnaires and an extended, two-day and seven-day
follow-up.
Enrolment in the RAPPER II study now exceeds 50, and a second
interim analysis of the results was presented on 17 August 2016 at
the 2016 meeting of the Military Health System Research Symposium
in Orlando, Florida, US, which confirmed that the positive results
seen with the first 20-volunteer cohort have been maintained, with
a 96% Treatment Success and no Serious Adverse Events. Of
particular note was that out of a total of 53 participants, 15 were
quadriplegic, with 38 paraplegic, and the results were essentially
the same. This confirms that the benefits of the REX technology are
available to people with more severe injuries, in the Cervical 4-7
range in the spinal column, as well as in other cases of severe
neurological impairment.
The investigators have now agreed that, in view of the strength
and clarity of the data, the trial should be closed. The final
steps for RAPPER II are the presentation of the Quality of Life
data at the American College of Rehabilitation Medicine's 93rd
Annual Conference (30 October - 4 November 2016) in Chicago,
Illinois, US; and the publication of the trial results in a
peer-reviewed journal, expected in 2017.
Technology Update
Research and development efforts over the year have focused on
design improvements to the current product line in parallel with
continued work on the mechanical and operating system platform for
the next generation of REX robots.
A highlight was the successful demonstration of the direction of
REX by "Mind Control" technology at the 2015 Meeting of Robotics:
Science and Systems in Rome, in which Robert Camm, a 21 year-old
quadriplegic man from Gloucestershire, UK, with a C3 level complete
spinal injury, walked in the REX while in complete and sole control
of the device. The Mind Control technology used at this conference
was developed by the Company's collaborators at the Laboratory for
Non-invasive Brain-Machine Interface Systems, Department of
Electrical and Computer Engineering at the University of Houston in
Texas.
Independent of its collaboration with the University of Houston,
the Company has ongoing collaborations with other leading edge
research institutes in the field, including a separate,
well-advanced research program with the Centre for Neuroprosthetics
at the EPFL in Lausanne, Switzerland that also explores the use of
mind control of robots.
The Auckland development team has also delivered two important
product enhancements during the period. The first is a software
upgrade that provides physiotherapists with a set of repeatable
exercises that they can offer to their patients by putting the REX
into "RAPPER" mode. This upgrade is in a phased global roll-out and
the early customer feedback indicates that it will materially
assist sales efforts. The second product enhancement is a reporting
package that allows physiotherapists and patients to monitor their
REX exercise performance in each session and over time.
Manufacturing Update
The move to new manufacturing facilities in Albany, just outside
Auckland, in the second half of 2014 presented an opportunity for
the Company not only to expand its manufacturing capacity but also
to revalidate its production and quality management systems and,
where appropriate, to introduce new, more rigorous procedures and
controls to meet the challenges of manufacturing a highly complex
medical device to the demanding standards required by national
regulatory authorities around the world.
The success of the New Zealand manufacturing team in achieving
this objective was recognised in October 2015 by the formal
certification of the new facility to ISO 13485:2003 and ISO
9001:2008, confirming the compliance of Rex Bionics' quality
management systems with the international regulatory requirements
for medical devices. It gives us confidence that our manufacturing
operations are well placed to meet the anticipated growth in
product demand.
New Board Appointment
On 11 January 2016 we announced the appointment of Joseph A.
Cucolo as a Non-Executive Director of the Company. Joe, who lives
in upstate New York becomes the Company's first US-based Director,
and his appointment provides further evidence of our intention to
increase our commercial focus on the US market. He has had a long
and successful career with Zimmer Holdings Inc., one of the largest
medical device companies in the world, most recently as President
of Americas with responsibility for a $2.5 billion business
covering the United States, Canada and Latin America.
We would like to take this opportunity to welcome Joe to the
Board. We look forward to working with him and to benefitting from
his exceptional sales & marketing experience and extensive
contact network within the US clinical community.
As announced in our Company update in September 2015, Richard
Little, the co-founder of Rex Bionics and its Chief Technology
Officer, has indicated his intention to resign from his position in
order to develop a new business in a non-competitive field. Richard
will continue to work with Rex Bionics on a consultancy basis, in
order that his knowledge and experience remains available to the
Company. Duncan Clement, Rex Bionics' Director of Engineering, who
first worked with Rex in 2008, will continue to lead the Company's
R&D group, as he has done since his appointment to the role
2015. At the date of this report, Richard remains with the Company
on a full-time basis.
Financial update
Consolidated Financial Statements
The Consolidated Financial Statements comprise the results of
Rex Bionics Plc for the year ended 31 March 2016, together with
those of its operating subsidiaries Rex Bionics Ltd (New Zealand),
Rex Bionics Inc. (USA) and Rex Bionics Pty Ltd (Australia) all of
which are wholly-owned. As a result of the change in the Company's
accounting reference date in the previous financial period, prior
period comparatives where shown are for the sixteen-month period
ended 31 March 2015. The prior period figures include the results
of the New Zealand, the US and Australia from the later of the date
of the Company's IPO, May 2014, and the date on which the
subsidiary commenced operations.
Consolidated Statement of Comprehensive Income
The net loss for the year ended 31 March 2016 amounted to
GBP4.87 million (net loss, sixteen months ended 31 March 2015:
GBP5.30 million). The prior period figure included non-recurring
transaction costs of GBP0.64 million relating to the acquisition
costs of Rex Bionics Ltd and the Company's IPO on AIM.
Current year revenues were GBP0.45 million, representing the
first product sales since the Company's IPO in May 2014. The prior
period comparative figure of GBP0.18 million related to sales &
marketing and other support services provided by the Company to Rex
Bionics Ltd prior to its acquisition.
The gross margin of GBP0.08 million, 17% of sales revenues,
reflects a combination of low average selling prices due in
particular to promotional pricing for demonstration devices
supplied to new distributors, and to high unit costs in the
start-up phase of commercial production.
Other income of GBP0.17 million (sixteen months ended 31 March
2015: GBP0.06 million) relates entirely to receipts under a New
Zealand Government research & development grant awarded to Rex
Bionics Ltd in July 2014.
Administrative expenses for the period of GBP5.62 million
(sixteen months ended 31 March 2015: GBP5.65m) included research
& development expenditure of GBP0.65 million (sixteen months
ended 31 March 2015: GBP0.51 million), relating primarily to design
improvements and additional features on the existing products,
including the development of Rex-Link software to enable the
operation of REX by thought control or remote control, in addition
to improved diagnostics capabilities.
Also included in administrative expenses was amortisation of
GBP1.12 million (sixteen months ended 31 March 2015: GBP0.64
million) on the fair value of intellectual property intangible
assets acquired as part of the acquisition of Rex Bionics Ltd. The
current period increase reflects a change in accounting estimate to
reduce the period over which these assets are amortised from
fifteen years to ten years
The taxation credit of GBP0.32 million (sixteen months ended 31
March 2015: 0.17 million) relates to a reduction in the deferred
tax liability on intellectual property assets of Rex Bionics Ltd
capitalised following its acquisition by the Company as a result of
a fall in the net book value of those assets since the acquisition
date due to amortisation.
Consolidated Statement of Financial Position and Cash Flows
The net assets of the Group at 31 March 2016 were GBP12.32
million (31 March 2015: GBP15.65 million). The major elements of
the decrease in net assets during the year were:
-- Net proceeds of shares issues GBP1.90 million;
-- Net loss GBP(4.87) million;
-- Effect of foreign exchange rate changes GBP(0.25) million
Net funds
Available cash reserves at 31 March 2016 of GBP1.86 million (31
March 2015: GBP4.37 million) comprised cash and short term deposits
with maturities of less than three months, primarily denominated in
Pounds Sterling and New Zealand Dollars. The Group had no bank
borrowings at 31 March 2016 (31 March 2015: GBPnil).
The major elements of the decrease of GBP2.51 million in net
funds during the period were the net operating outflows before
changes in working capital of GBP3.88 million and capital
expenditure of GBP0.50 million, offset by net proceeds of financing
activities of GBP1.9 million, a decrease in working capital of
GBP0.34 million, and an increase in restricted cash of GBP0.17
million.
Strategic update and outlook
The Board has recently completed a thorough strategic review on
commercialisation progress and capital availability and concluded
that, while it has taken longer than expected to achieve first
commercial revenues, the market opportunity remains significant;
the RAPPER II data shows that the REX product is safe and effective
and there are many wheelchair users for whom REX is the only viable
option for the achievement of an improvement in health and fitness
for work and for recreation. The Board has therefore concluded that
the Company should adopt a strategic positioning that more
explicitly promotes REX's unique potential for patients with the
most severe neurological injuries (typically people with
quadriplegia and people who have experienced a stroke that has
proved resistant to rehabilitation).
The Board further concluded that, notwithstanding the equity
fundraising that was successfully concluded on 10 August 2016, the
capital required by the Company appears unlikely to be readily
available from new public market portfolio investors at this time
and therefore it is appropriate to evaluate alternative
opportunities with a view to maximising value for the shareholders
and to build on the successes to date. Accordingly, the Company has
begun to evaluate potential future strategic options, including
seeking alternative sources of funding, strategic partnerships or
other transactions. The participation by Maxhealth, an associate of
our Chinese distributor, in the August 2016 fundraising is a good
example of this new approach.
At the current burn rate the net proceeds of the fundraising
will extend the Company's cash runway into the second quarter of
2017. The new funds will be used to maintain commercial momentum
during the strategic re-positioning and review of further funding
opportunities. Additional funding will continue to be required, but
the Board remains confident that this will be forthcoming if the
progress achieved over the last period in the development of the
business can be maintained.
David Macfarlane Crispin Simon
Non-Executive Chairman Chief Executive
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2016
Year 16 months
ended Ended
31 March 31 March
2016 2015
GBP'000 GBP'000
Revenue 451 176
Cost of sales (373) -
Gross profit 78 176
Other income 174 63
Administrative expenses (5,619) (5,649)
-------------------------------------- ---------- ---------
Loss from operations (5,367) (5,410)
Finance income 174 50
Finance costs - (113)
Loss on ordinary activities before
tax (5,193) (5,473)
Tax credit 318 172
-------------------------------------- ---------- ---------
Loss for the period (4,875) (5,301)
-------------------------------------- ---------- ---------
Other comprehensive income, net
of tax
Items that will be reclassified
subsequently to profit or loss
Exchange differences on translation
of foreign operations (285) 46
-------------------------------------- ---------- ---------
Other comprehensive (expenses)
/ income (285) 46
-------------------------------------- ---------- ---------
Total comprehensive loss for
the period, net of tax (5,160) (5,255)
-------------------------------------- ---------- ---------
Basic and diluted loss per share
- from continuing activities
(pence) (28.8) (53.4)
-------------------------------------- ---------- ---------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2016
Group Company Group Company
31 March 31 March 31 March 31 March
2016 2016 2015 2015
Assets GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 3,258 - 3,258 -
Other intangible assets 9,351 - 10,513 -
Property, plant and
equipment 444 218 251 130
Investments - 12,700 - 15,600
------------------------------- -------- -------- -------- --------
13,053 12,918 14,022 15,730
------------------------------ -------- -------- -------- --------
Current assets
Inventories 416 37 494 27
Trade and other receivables 284 616 220 122
Restricted cash 168 - - -
Cash and cash equivalents 1,862 1,215 4,368 1,431
------------------------------- -------- -------- -------- --------
2,730 1,868 5,082 1,580
------------------------------ -------- -------- -------- --------
Total assets 15,783 14,786 19,104 17,310
------------------------------- -------- -------- -------- --------
Equity and liabilities
Equity attributable
to owners of the parent
Share capital 14,643 14,643 14,289 14,289
Share premium 9,630 9,630 8,087 8,087
Share option reserve 327 327 277 277
Foreign currency translation
reserve (239) - 46 -
Other reserve - - 113 41
Retained losses (12,039) (11,341) (7,164) (5,871)
12,322 13,259 15,648 16,823
------------------------------ -------- -------- -------- --------
Liabilities
Non-current liabilities
Deferred tax liability 2,543 - 2,861 -
------------------------------- -------- -------- -------- --------
2,543 - 2,861 -
------------------------------ -------- -------- -------- --------
Current liabilities
Trade and other payables 918 1,527 595 487
------------------------------- -------- -------- -------- --------
918 1,527 595 487
------------------------------ -------- -------- -------- --------
Total equity and liabilities 15,783 14,786 19,104 17,310
------------------------------- -------- -------- -------- --------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2016
Foreign
Ordinary Deferred Share currency
Share Share Share Option translation Other Retained
capital capital premium reserve reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30
November 2013 340 - 1,247 92 - - (1,885) (206)
Prior year adjustment (24) (24)
Comprehensive
income
Loss for the
period - - - 185 - 113 (5,255) (4,957)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - - 46 - - 46
Total comprehensive
loss - - - 185 46 113 (5,255) (4,911)
------------------------------ -------- ---------- -------- -------- ------------ --------- -------- -------
Transactions
with owners
Issue of share
capital:
As consideration
for acquisitions 7,668 - 2,805 - - - - 10,473
To subscribers
in IPO 5,555 - 4,445 - - - - 10,000
On conversion
of loan notes
at IPO 726 - 254 - - - - 980
Share issuance
costs - - (664) - - - - (664)
------------------------------ -------- ---------- -------- -------- ------------ --------- -------- -------
Total transactions
with owners 13,949 - 6,840 - - - - 20,789
------------------------------ -------- ---------- -------- -------- ------------ --------- -------- -------
Balance at 31
March 2015 14,289 - 8,087 277 46 113 (7,164) 15,648
Comprehensive
income
Loss for the
period - - - 50 - (113) (4,875) (4,938)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - - (285) - - (285)
------------------------------ -------- ---------- -------- -------- ------------ --------- -------- -------
Total comprehensive
loss - - - 50 (285) (113) (4,875) (5,223)
------------------------------ -------- ---------- -------- -------- ------------ --------- -------- -------
Transactions
with owners
Restructuring
of share capital (12,860) 12,860 - - - - - -
Issue of share
capital:
To subscribers
in June 2015
placing 354 - 1,771 - - - - 2,125
Share issuance
costs - - (228) - - - - (228)
Total transactions
with owners (12,506) 12,860 1,543 - - - - 1,897
------------------------------ -------- ---------- -------- -------- ------------ --------- -------- -------
Balance at 31
March 2016 1,783 12,860 9,630 327 (239) - (12,039) 12,322
------------------------------ -------- ---------- -------- -------- ------------ --------- -------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2016
Year 16 months
ended ended
31 March 31 March
2016 2015
GBP'000 GBP'000
Cash flows from operating activities
Loss from operations (5,367) (5,475)
Adjustments for:
Depreciation 254 87
Amortisation of intangible assets 1,187 644
Share based payments 50 185
Finance charge - 113
---------------------------------------- ---------- -----------
Cash flows from operations before
changes in working capital (3,876) (4,446)
Decrease / (increase) in inventories 78 (383)
Increase in receivables (64) (210)
Increase in restricted cash (168) -
Increase in payables 322 205
---------------------------------------- ---------- -----------
Net cash outflows from operating
activities (3,708) (4,834)
---------------------------------------- ---------- -----------
Cash flows from investing activities
Finance income 61 50
Purchase of property, plant and
equipment (464) (379)
Purchase of intangible assets (44) -
Subscription for convertible loan
notes - (980)
---------------------------------------- ---------- -----------
Net cash outflows from investing
activities (447) (1,309)
---------------------------------------- ---------- -----------
Cash flows from financing activities
Proceeds of share issues 2,125 10,000
Share issuance costs (228) (664)
Proceeds of convertible loan note
issues - 980
---------------------------------------- ---------- -----------
Net cash inflows from financing
activities 1,897 10,316
---------------------------------------- ---------- -----------
Net (decrease) / increase in cash
and cash equivalents (2,258) 4,173
---------------------------------------- ---------- -----------
Cash and cash equivalents at the
beginning of the period 4,368 174
---------------------------------------- ---------- -----------
Effect of foreign exchange rate
change (248) 21
---------------------------------------- ---------- -----------
Cash and cash equivalents at end
of period 1,862 4,368
---------------------------------------- ---------- -----------
1 General information
Rex Bionics Plc (the "Company") is a public limited company
incorporated and domiciled in England and Wales (registration
number 06425793). Its registered office address and principal place
of business is 4(th) Floor, 1-3 Pemberton Row, London EC4A 3BG. The
Company's Ordinary Shares are traded on the Alternative Investment
Market of the London Stock Exchange Plc ("AIM") under the ticker
"RXB".
The principal activities of the Group are the research &
development, manufacture and commercialisation of advanced robotic
devices designed to provide physiotherapy to and improve the
physical and psychological well-being of people with major mobility
impairment as a result of spinal cord injury or other neurological
damage.
2 Basis of preparation and statement of compliance with IFRSs
The Consolidated Financial Statements of the Group cover the
year ended 31 March 2016. During the previous reporting period the
Company changed its accounting reference date from 30 November 2014
to 31 March 2015. Prior year comparatives, where shown, cover the
sixteen-month period ended 31 March 2015.
The Consolidated Financial Statements have been prepared and
approved by the Directors in accordance with International
Financial Reporting Standards ('IFRS') as adopted by the European
Union ('EU'), IFRIC Interpretations and the Companies Act 2006
applicable to companies reporting under IFRS. They were approved
and authorised for issue by the Board of Directors on 25 August
2016.
The Consolidated Financial Statements are presented in Thousand
Pound Sterling (GBP'000). All amounts are rounded to the nearest
thousand Pounds unless otherwise indicated.
The financial information in this results announcement does not
constitute the Company's statutory accounts for the year ended 31
March 2016 or the Company's statutory accounts for the sixteen
months ended 31 March 2015 as defined in section 434 of the
Companies Act 2006, but is derived from those accounts.
The Annual Report and Accounts for the year to 31 March 2016
will be posted to shareholders on 1 September 2016 with notice of
Annual General Meeting. The auditor has confirmed that it contains
an unmodified opinion together with an emphasis of matter paragraph
on going concern relating to the Company's requirement to raise
further funds to continue to trade, and does not contain any
statement under section 498 of the Companies Act 2006.
The Company's Annual Report and Accounts for the sixteen months
ended 31 March 2015 was approved by the Board of Directors on 29
May 2015 and has been filed with the Registrar of Companies. The
report of the auditor on the 2015 Annual Report and Accounts
contained an unmodified opinion.
The Consolidated Financial Statements have been prepared on a
going concern basis, notwithstanding the trading losses being
carried forward and the expectation that the Group and Company will
continue to make trading losses for some time to come.
The Group and Company are currently consuming cash resources,
and will continue to do so until sales revenues are sufficiently
high to generate net cash inflows. Until the Group and Company
begin to generate positive net cash flows, they remain dependent
upon securing additional funding, primarily through the injection
of capital from share issues. During the current year the Group and
Company have met their day to day financing requirements through
the cash reserves brought forward from the previous period and the
proceeds of an issue of equity share capital by the Company in June
2015 that raised GBP2.12 million before expenses.
At 31 March 2016 the Group had available cash reserves of
GBP1.86 million. On 10 August 2016 the Company completed an equity
fundraising raising GBP2.3 million before expenses via a
subscription by certain new and existing shareholders, with the
potential to raise up to a further GBP2.3 million before expenses
on or before 30 June 2017 to the extent that warrants attaching to
the shares issued in the subscription are exercised. The Directors
anticipate obtaining further funding from existing shareholders in
the current financial year, including from the exercise of the
warrants, and will also seek funding from new investors. They have
a reasonable expectation that additional funding can be raised,
although there can be no certainty that additional funds can be
raised on acceptable terms or at all. This represents the existence
of a material uncertainty which may cast significant doubt about
the Group and Company's ability to continue as a going concern and,
therefore, that the Group and Company may be unable to realise
their assets and discharge their liabilities in the normal course
of business.
After taking into account current cash resources, their
expectation of being able to raise further funding during the year
to 31 March 2017, their financial forecasts for the Group and
Company and measures that can be taken to reduce expenditure in the
absence of additional funding so as to ensure that the Group and
Company will have adequate resources to continue in operational
existence for the foreseeable future (being a period of at least
twelve months from the date of this report), and after making due
and careful enquiries and considering all uncertainties, the
Directors believe that it is reasonable to continue to adopt the
going concern basis in preparing the annual report and financial
statements. The financial statements do not include any adjustments
that would result from the basis of preparation being
inappropriate.
3 Loss from operations
Year
ended 16 months
31 ended
March 31 March
2016 2015
GBP'000 GBP'000
The loss from operations is arrived
at after charging (crediting):
Non-recurring transaction costs - 636
Depreciation of property, plant
and equipment 254 87
Amortisation of:
intangible assets 1,187 644
Operating lease rentals:
land and buildings 143 124
Commercial vehicles 10 -
Research and development costs 647 511
Share based compensation 50 185
Finance (credit) charge (113) 113
Foreign exchange 19 (22)
4 Share capital and share premium
At 31 March 2016 the share capital of Rex Bionics Plc consisted
of fully paid Ordinary Shares with a nominal (par) value of
GBP0.10p per share and Deferred Shares with a nominal value of
GBP0.90p per share. The Deferred Shares were created on 30 June
2015 as a result of a share restructuring in which each GBP1
Ordinary Share in issue at that date was sub-divided and
re-denominated into one GBP0.10p Ordinary Share and one GBP0.90p
Deferred Share. All Ordinary Shares rank pari passu in respect of
the receipt of dividends, the repayment of capital and voting
rights at Shareholders' meetings. The Deferred Shares have no
dividend or voting rights and rank behind the Ordinary Shares in
any repayment of capital.
Ordinary Shares Deferred Shares
Number of Nominal Number of Nominal Share
shares value shares value premium
GBP GBP GBP
Issued and fully
paid at 1 December
2013
Ordinary Shares
of GBP0.01p each 33,954,938 339,550 - - 1,246,711
Consolidation of
1 GBP1 share for
100 GBP0.01p shares
29 April 2014 339,550 339,550 - - 1,246,711
Issue of share capital:
As consideration
for acquisition
of Rex Bionics Ltd 7,668,330 7,668,330 - - 2,805,641
For cash to subscribers
in IPO 5,555,556 5,555,556 - - 4,444,444
On conversion of
UMT Loan Notes at
IPO 725,924 725,924 - - 254,076
Share issuance costs - - - - (663,174)
-------------------- ------------ -------------------- ---------- ----------
At 31 March 2015 14,289,360 14,289,360 - - 8,087,698
Share Restructuring
30 June 2015 to
replace each GBP1
Ordinary share by
1 GBP0.10p Ordinary
Share and 1 GBP0.90p
Deferred Share - (12,860,424) 14,289,360 12,860,424 -
Issue of share capital:
To subscribers in
Placing 30 June
2015 3,541,166 354,117 - - 1,770,583
Share issuance costs - - - - (227,882)
-------------------- ------------ -------------------- ---------- ----------
At 31 March 2016 17,830,526 1,783,053 14,289,360 12,860,424 9,630,399
-------------------- ------------ -------------------- ---------- ----------
5 Loss per share
Both the basic and diluted earnings per share have been
calculated using the loss attributable to shareholders of the
Parent Company as the numerator, ie no adjustments to loss were
necessary in 2015 or 2016. At 31 March 2016, there were 1,340,599
options and 142,014 warrants outstanding (31 March 2015: 1,024,029
options and 142,014 warrants outstanding).
Year 16 months
ended ended
31 March 31 March
2016 2015
GBP'000 GBP'000
Loss attributable to equity holders
in the parent:
Loss for the period (4,875) (5,303)
------------------------------------- ---------- ---------
Number of ordinary shares:
Weighted average number of shares
in issue during the period 16,945,235 9,939,029
------------------------------------- ---------- ---------
Basic and diluted earnings per share
(pence)
Basic and fully diluted loss per
share (28.8) (53.4)
------------------------------------- ---------- ---------
6 Events after the reporting period
On 10 August 2016 the Company completed a fundraising of GBP2.3
million before expenses (GBP2.1 million after expenses) from a
subscription by new and existing shareholders for ordinary shares.
Subscribers in the fundraising also received warrants to subscribe
for ordinary shares on the basis of one warrant for each share
subscribed. The warrants are exercisable on or before 30 June
2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEEEFIFMSEFA
(END) Dow Jones Newswires
August 26, 2016 02:00 ET (06:00 GMT)
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