TIDMRXB
RNS Number : 2831I
Rex Bionics PLC
08 December 2015
Rex Bionics Plc
("Rex Bionics" or the "Company")
Interim Results for the six months ending 30 September 2015
Rex Bionics, (AIM: RXB) the pioneer of the REX Robot technology
that enhances the mobility of wheelchair users, today announces its
unaudited interim results for the six month period ending 30
September 2015.
Highlights within the six month period:
Operational:
-- Sales of three REX units (US: two, Hong Kong: 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 the REX Robot;
-- Patient recruitment well underway in the Company's 100
patient international, multi-centre RAPPER II clinical trial,
designed to evaluate the safety and feasibility of a set of
customised exercises performed in a REX;
-- Successful demonstration of the direction of REX by mind
control technology at the 2015 Meeting of Robotics: Science and
Systems in Rome.
Financial (unaudited):
-- Maiden product revenues for the period of GBP0.18 million (6
months to 30 September 2014: GBPNil);
-- Loss for the period of GBP2.18 million (6 months to 30
September 2014: GBP2.29 million);
-- Net cash at 30 September 2015 GBP3.70 million (31 March 2015:
GBP4.37 million, 30 September 2014: GBP6.56 million);
-- Follow-on offering June 2015 raising GBP1.9 million after
expenses.
Post Period Highlights:
-- Positive interim data on the first 20 patients in the RAPPER
II clinical trial presented at international neuro-rehabilitation
conferences in Vienna, Austria and Perth, Australia. Additional
RAPPER II clinical trial sites opening in the UK, Australia and New
Zealand;
-- Start of US commercialisation activities in partnership with
Ri LLC ("Enable Me") from October 2015. Strong US clinic demand for
REX evaluations - a critical phase of the sales process;
-- New Auckland manufacturing facility certified to ISO
13485:2003 and ISO 9001:2008, confirming compliance of Rex quality
management systems with international regulatory requirements for
medical devices;
-- Award of up to NZD100,000 (GBP45,000) funding from New
Zealand Trade and Enterprise to support US business
development;
-- First sale of REX P, for personal use, expected before end of
2015.
Commenting on the interim results, Crispin Simon, Chief
Executive Officer of Rex Bionics, said:
"We are pleased to record our first sales of REX since the
Company's IPO; and are making good progress with our five
commercial priorities: clinical data, distributor recruitment,
reference centres, US development and new medical applications.
We expect sales in the second half of the year to be higher than
in the first half.
"The appointment of Ri LLC as our US distribution partner,
opening up the substantial and technology-friendly US market, and
the positive interim data from the RAPPER II trial, were crucial
milestones.
"With more of the basics now in place, we are ready to focus
again on our mission to commercialise an all-day use REX P for a
target market segment of wheelchair users with a spinal cord
injury, who number around 500,000 people in the US and EU
alone."
For more 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)
Jonathan Senior/Stewart Wallace/Ben Maddison
+44 (0) 20 7710 7600
Consilium Strategic Communications
Mary-Jane Elliott / Jessica Hodgson / Chris Welsh / Lindsey
Neville
+44 (0) 20 3709 5708
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.
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 programme of "RAPPER" clinical trials is now under way to
evaluate these potential benefits and a positive interim analysis
of the RAPPER II data was presented on 27(th) November 2015.
Recruitment for RAPPER II remains open and clinics and individuals
can send enquiries to rex@physiofunction.co.uk.
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@ri-llc.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
(debra.leeves@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.
Chief Executive's Review
Overview
During the period ending 30 September 2015 Rex Bionics has
continued to make significant progress on the five
commercialisation priorities outlined in late 2014, and 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. The recently published analysis of interim data from
the RAPPER II clinical trial provides clear evidence that the
concept of Robot-Assisted Physiotherapy is both viable for patients
and effective for clinicians in a rehabilitative session; and that
patients with more severe spinal cord injuries can be safely and
effectively treated.
The two awards made by the UK courts during the period in
respect of personal injury claims, one of which included funding
for the claimant to purchase a REX, and the other an interim award
to fund the costs of intensive weekly therapy using a REX pending
final settlement of the claim, provide further validation for the
perceived clinical and psychological benefits of using a REX.
These developments are helping us to accelerate our
commercialisation strategy, and we have signed a number of key
strategic partnerships during the period which will provide the
platform for the Company to expand its commercial reach into the
key US, Chinese and European markets. We are delighted to report
maiden sales of three REX units during the period. With further
orders already in-house for shipment during the second half, we are
confident that sales momentum is beginning to build.
Sales and Marketing Activities
Product sales
The sales of three REX units that we are reporting for the
period, two in the US and one in Hong Kong, demonstrate that the
Company's sales and marketing activities are now beginning to bear
fruit. These represent the first product revenues since the
Company's IPO and are important milestones for the Company. With
further customer orders already in-hand, we expect that second-half
sales will be higher than sales in the first half, and revenues are
now on an upward trend.
Distributor appointments
A key objective of the last six months has been to put in place
the foundations for a comprehensive network of specialised
distributors and commercial partners to support the international
commercialisation of REX. During the period the Company has
appointed distributors and strategic partners in the US, China,
Hong Kong, Scandinavia, the Benelux countries and Russia.
Discussions continue with potential distributors in a number of
other countries, and we expect further appointments to be made in
the second half of this financial year.
We were particularly pleased with the early appointment of
experienced partners in the US and China, given the commercial
importance of those two markets. Ri, LLC, our new distributor in
the US, is a specialist supplier of movement therapy equipment to
neuro-rehabilitation clinics throughout the US. Headquartered in St
Petersburg, Florida, Ri is privately owned and was established in
2003 by Mike Laky, a seasoned rehabilitation industry specialist.
Through its existing product range it already has long-term
contracts in place with the leading US hospital chains including
the Veterans Administration, HealthSouth and Select Healthcare. Ri
has 30 sales representatives in the field and offers broad
geographic coverage for Rex products across the US, as well as
providing the required FDA-compliant regulatory systems.
(MORE TO FOLLOW) Dow Jones Newswires
December 08, 2015 02:00 ET (07:00 GMT)
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)
regulatory approval for REX, as well as the sales, marketing and
distribution of the product once it is approved. MAAB has already
commenced limited pre-marketing of REX in the Chinese market
(within the restrictions set by CFDA) and we are hopeful that a
full product launch could take place as early as the second half of
fiscal 2016/17, subject to formal CFDA marketing approval.
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.
Marketing activities
The Company continues to pursue a focused but highly active
marketing and PR campaign to create greater awareness of REX in
global markets. During the period we have exhibited at a number of
major international neuro-rehabilitation conferences 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 featured on local and national television channels in a number
of countries, including an appearance on the Canadian version of
Dragon's Den, in which a REX user successfully persuaded the
Dragons to provide financial backing for him to open a private
rehabilitation clinic. More recently a number of local television
news channels in the Detroit area covered a demonstration of REX at
the Detroit Medical Centre Rehabilitation Institute of Michigan. We
believe this to be the first time REX has appeared on US
television.
Personal injury claims
Another area of increasing focus is the potential for funding
for a REX to be included in awards under personal injury claims.
Evidence for the significant opportunity that this represents was
provided by the announcement in September 2015 that Ben Barnes, who
had 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 recent case in the UK, a man who sustained spinal
cord damage as a result of alleged clinical negligence has been
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
In the last few days the Company has received 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. The Company already receives
significant New Zealand government grant funding for its
Auckland-based research & development activities, and we are
very grateful to the New Zealand government for this additional
support.
Clinical Data
On 1 June 2015 the Company announced the enrolment of the first
recruit in its RAPPER II (Robot-Assisted PhysiotheraPy Exercises
with REX) clinical trial. This 100-patient study seeks 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, have been rapid, and recruitment is expected to
accelerate over the coming months with the addition of five 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.
Positive results from an interim analysis of data from the first
20 patients to be recruited into the trial have recently been
presented at international neuro-rehabilitation conferences in
Perth, Australia and Vienna and were announced by the Company on 27
November. The key findings from this first interim analysis were as
follows:
-- 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 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 this 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. Our intention is to prepare a second interim
analysis based on data from the next cohort of 20 patients,
including new, more detailed questionnaires and an extended,
seven-day follow-up. We expect these results to be presented around
the middle of 2016.
Technology Update
Research and development efforts during the period 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 is also working with the Centre for Neuroprosthetics at
the EPFL in Lausanne, Switzerland on a separate, well-advanced
research programme that also explores the use of mind control of
robots.
In conjunction with its collaborations in mind control
technology the Company has during the period developed and released
an upgraded version of its RexLink software, that allows
researchers and therapists to record all of the movements of a REX
precisely and automatically in real time. The Company believes that
this will be a valuable tool in the study of the biomechanics of
the core REX system and in new applications in our R&D
pipeline. Development of the basic science is an important part of
the Rex Bionics' innovation process and we intend to make this
technology available to departments of robotics at universities
around the world.
Manufacturing Update
The move to new manufacturing facilities 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. Where
appropriate, the company has also introduced 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 manufacturing team in New Zealand in
achieving this objective has been recognised by the recent
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.
Management Change
(MORE TO FOLLOW) Dow Jones Newswires
December 08, 2015 02:00 ET (07:00 GMT)
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
earlier in 2015.
On behalf of Rex Bionics, I would like to take this opportunity
to thank Richard for his pivotal role as co-inventor of the REX
technology and for his drive and determination over many years in
bringing it from vision to reality. I am delighted that Rex will
still be able to call on his services, and we wish him well in his
new venture.
Financial Update
The results reported in the accompanying financial statements
for the six months to 30 September 2015 and for the six months to
30 September 2014 are unaudited. The figures shown for the 16-month
period to 31 March 2015 are extracted from the audited financial
statements for that period.
Condensed consolidated statement of comprehensive income
(unaudited)
Product revenues of GBP0.18 million for the period under review
(six months to 30 September 2014: GBPNil) represent sales of the
first three REX units since the Company's IPO in May 2014. The
negative gross profit for the period of GBP0.08 million (six months
to 30 September 2014: GBPNil) is due primarily to the high indirect
manufacturing costs in relation to sales volumes in this early
commercialisation phase. Indirect manufacturing costs are expected
to remain relatively fixed over the next twelve months.
Total administrative expenses were GBP2.45 million (six months
to 30 September 2014: GBP2.37 million). Administrative expenses
include amortisation of GBP0.38 million (six months to 30 September
2014: GBP0.32 million) on acquired intellectual property assets
arising from the acquisition of the Company's New Zealand
subsidiary Rex Bionics Ltd in May 2014. The Company expects
operating expenses to remain relatively fixed in the near term.
The net loss for the six months to 30 September 2015 amounted to
GBP2.18 million (six months to 30 September 2014: GBP2.29 million),
a slight decrease over the corresponding prior year period. The
2014 figure only included the results of Rex Bionics Ltd for the 5-
month period from May to September 2014.
Condensed consolidated statement of financial position
(unaudited)
The Group's cash reserves at 30 September 2015 amounted to
GBP3.70 million (31 March 2015: GBP4.37 million, 30 September 2014:
GBP6.56 million). Net cash outflows from operating activities for
the six months to 30 September 2015 of GBP1.90 million (six months
to 30 September 2014: GBP2.52 million) were exactly offset by net
proceeds of GBP1.90 million from an equity fundraising in June
2015. The net reduction in cash reserves during the period of
GBP0.67 million reflected outflows from investing activities of
GBP0.12 million, and an adverse foreign exchange effect of GBP0.55
million arising on the translation of New Zealand Dollar (NZD)
denominated net assets in the books of Rex Bionics Ltd into Pounds
Sterling (GBP). This was caused by a depreciation of approximately
20% by the NZD relative to GBP during the period.
Although it has produced a negative effect in the current period
in GBP financial reporting terms, a depreciation of this magnitude
in NZD vs. GBP, if maintained, will be highly beneficial from an
operational perspective, as a high proportion of Group expenditure,
in particular research & development and manufacturing costs,
is incurred in NZD.
EIS Relief
The June 2015 fundraising is expected to qualify for EIS relief,
although formal confirmation has still to be obtained from
HMRC.
Key Objectives for 2015 / 16
The table below summarises progress during the period towards
the Company's key commercial priorities for fiscal 2015 /16, first
described in the Company's trading update of 18 December 2014,
which it is targeting for completion by March 2016 to coincide with
the financial year end:
1. Initiation of clinical trials designed to persuade the
rehabilitation community of the clinical benefit and
value-for-money of REX
Comment: RAPPER II trial recruitment commenced in June 2015 and
positive interim data have already been presented - see Clinical
Data section above.
2. Implementation of a US Clinical Trial to secure FDA 510(k)
clearance of REX for At-Home use in the USA
Comment: The next step is interaction with FDA. A favourable
review could lead to clearance for At-Home use in late 2016.
3. Evidence of progress with other projects that demonstrate the value of REX in accelerating the rehabilitation of patients who have experienced traumatic or degenerative neurological injury other than spinal cord injury
Comment: Productive discussions continue with relevant
hospitals. REX is already beginning to be used for rehabilitation
therapy in indications other than SCI.
4. The recruitment of further Reference Centres in order to
achieve our target of ten Reference Centres by the end of 2015
Comment: We expect to have eight Reference Centres on line by
the end of 2015 and two more by the end of Q1 2016. See Clinical
Data section above
5. The recruitment of distribution partners and other commercialisation initiatives
Comment: Good progress - See Distributor appointments section
above.
Summary and Outlook
We are pleased with the progress the Company has made during the
period under review. A number of key milestones have been achieved,
including the first product sales since our IPO; the appointment of
strong distribution partners in major international market; and the
announcement of promising data from clinical trials. We remain on
track to deliver on the commercialisation priorities that we set
ourselves at the end of last year, and we have achieved this while
maintaining strong control over the Company's finances. Sales in
the second half of the year are expected to be higher than in the
first half. In the next 12 months the Company also plans to raise
further funding.
International awareness of the product is growing, as a result
of the efforts of our new distributors as well as our own sales
& marketing team. The feedback we receive, both from users and
medical professionals, remains overwhelmingly positive, and has
provided important insights into potential new applications for
REX.
The life transforming potential of the REX technology, together
with the commercial platform we are now putting in place and the
skills and dedication of the Rex Bionics management and staff,
continues to give us confidence in our ability to achieve
commercial success for the Company and to deliver shareholder
value.
Crispin Simon
Chief Executive Officer
8 December 2015
Rex Bionics Plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2015
6 months 6 months 16 months
ended ended 30 ended 31
30 September March 2015
September 2014
2015
Note (Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Revenue 184 - 176
Cost of sales (262) (5) -
Gross (loss) / profit (78) (5) 176
Other income 85 - 63
Administrative expenses (2,446) (2,365) (5,649)
Loss from operations 3 (2,439) (2,370) (5,410)
Finance income 41 - 50
Finance costs 113 - (113)
Loss on ordinary activities
before tax (2,285) (2,370) (5,473)
Tax income (expense) 101 84 172
Loss for the period (2,184) (2,286) (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 (565) (99) 46
Other comprehensive income/(expenses) (565) (99) 46
Total comprehensive loss
for the period, net of tax (2,749) (2,385) (5,255)
Basic and diluted loss per
share - from continuing
activities (pence) 5 (13.6) (38.2) (53.4)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(MORE TO FOLLOW) Dow Jones Newswires
December 08, 2015 02:00 ET (07:00 GMT)
As at 30 September 2015
30 September 30 September 31 March
2015 2014 2015
Note (Unaudited) (Unaudited) (Audited)
Assets GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 3,258 3,258 3,258
Other intangible assets 10,152 10,785 10,513
Property, plant and
equipment 280 231 251
13,690 14,274 14,022
------------ ------------ ---------
Current assets
Inventories 387 454 494
Trade and other receivables 386 194 220
Cash and cash equivalents 3,696 6,557 4,368
Total assets 18,159 21,479 19,104
------------ ------------ ---------
Equity and liabilities
Equity attributable
to owners of the parent
Share capital 4 14,643 14,289 14,289
Share premium 4 9,630 8,087 8,087
Share option reserve 293 277 277
Foreign currency translation
reserve (519) (98) 46
Other reserve - - 113
Retained losses (9,348) (4,495) (7,164)
------------ ------------ ---------
14,699 18,060 15,648
------------ ------------ ---------
Liabilities
Non-current liabilities
Deferred tax liability 2,760 2,948 2,861
------------ ------------ ---------
2,760 2,948 2,861
------------ ------------ ---------
Current liabilities
Trade and other payables 700 471 595
------------ ------------ ---------
700 471 595
------------ ------------ ---------
Total equity and liabilities 18,159 21,479 19,104
------------ ------------ ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2015
Foreign
Share currency
Share Share option translation Other Retained
capital premium reserve reserve reserve losses Total
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 - - - - - (300) (300)
Other comprehensive
income - - - - - - -
-------- -------- -------- ------------ --------- -------- -------
Total comprehensive
loss - - - - - (300) (300)
-------- -------- -------- ------------ --------- -------- -------
Balance at 31
March 2014 340 1,247 92 - - (2,209) (530)
Comprehensive
income
Loss for the
period - - - - - (2,286) (2,286)
Share based
payments - - 185 - - - 185
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - (98) - - (98)
-------- -------- -------- ------------ --------- -------- -------
Total comprehensive
loss - - 185 (98) - (2,286) (2,199)
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)
----------------------- -------- -------- -------- ------------ --------- -------- -------
13,949 6,840 - - - - 20,789
----------------------- -------- -------- -------- ------------ --------- -------- -------
Balance at 30
September 2014 14,289 8,087 277 (98) - (4,495) 18,060
Comprehensive
income
Loss for the
period - - - - - (2,669) (2,669)
Finance charge - - - - 113 - 113
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - 144 - - 144
-------- -------- -------- ------------ --------- -------- -------
Total comprehensive
loss - - - 46 113 (2,669) (2,412)
-------- -------- -------- ------------ --------- -------- -------
Balance at 31
March 2015 14,289 8,087 277 46 113 (7,164) 15,648
Comprehensive
income
Loss for the
period - - - - - (2,184) (2184)
Share based
payment - - 16 - - - 16
Finance charge - - - - (113) - (113)
Other comprehensive
income
Exchange differences
on translation
of foreign operations - - - (565) - - (565)
-------- -------- -------- ------------ --------- -------- -------
Total comprehensive
loss - - 16 (565) (113) (2,184) (2,846)
Transactions
with owners
Issue of share
capital:
To subscribers
in 30 June 2015
Placing 354 1,771 - - - - 2,125
Share issuance
costs - (228) - - - - (228)
-------- -------- -------- ------------ --------- -------- -------
354 1,543 - - - - 1,897
-------- -------- -------- ------------ --------- -------- -------
Balance at 30
September 2015 14,643 9,630 293 (519) - (9,348) 14,699
-------- -------- -------- ------------ --------- -------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2015
6 months 6 months 16 months
ended ended ended
30 30 31
September September March
2015 2014 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Loss before taxation (2,285) (2,370) (5,473)
Adjustments for:
Depreciation 60 36 87
Amortisation of intangible
assets 378 315 664
Share based payments 16 185 185
Finance charge (113) - 113
Foreign exchange adjustments
arising from operations - - (2)
----------- ----------- ---------
Cash flows from operations
before changes in working
capital (1,944) (1,834) (4,426)
Decrease (increase) in inventories 107 (361) (383)
(Increase) decrease in receivables (166) 54 (210)
Increase (decrease) in payables 105 (377) 205
----------- ----------- ---------
(1,898) (2,518) (4,814)
----------- ----------- ---------
Cash flows from investing
activities
Finance income 41 - 50
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Purchases of property, plant
and equipment (148) (193) (295)
Purchases of intangible
assets (16) (78) (96)
Subscription for convertible
loan notes - - (980)
----------- ----------- ---------
Net cash outflows from investing
activities (123) (271) (1,321)
----------- ----------- ---------
Cash flows from financing
activities
Proceeds of share issues 2,125 10,000 10,000
Share issuance costs (228) (664) (664)
Proceeds of convertible
loan note issues - - 980
----------- ----------- ---------
Net cash inflows from financing
activities 1,897 9,336 10,316
----------- ----------- ---------
Net increase / (decrease)
in cash and cash equivalents (124) 6,547 4,181
----------- ----------- ---------
Cash and cash equivalents
at the beginning of the
period 4,368 154 174
Effect of foreign exchange
rate change (548) (144) 13
----------- ----------- ---------
Cash and cash equivalents
at the end of the period 3,696 6,557 4,368
----------- ----------- ---------
NOTES TO THE INTERIM RESULTS ANNOUNCEMENT
For the six months ended 30 September 2015
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 5(th) Floor, 7 Swallow Place, London W1B 2AG. The
Company's Ordinary Shares are traded on the AIM market of the
London Stock Exchange Plc under the ticker "RXB".
The Company joined AIM via an IPO on 8 May 2014. On the same day
it acquired the entire issued share capital of Rex Bionics Limited,
a New Zealand registered company, and changed its own name from
Union MedTech Plc to Rex Bionics Plc. The Rex Bionics Group (the
"Group") comprises Rex Bionics Plc and its subsidiary
companies.
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 Interim Financial Statements cover the
six-month period from 1 April 2015 to 30 September 2015 and are
unaudited. During the previous reporting period the Company changed
its accounting reference date from 30 November 2014 to 31 March
2015. The comparative prior year figures are the unaudited results
for the 6-month period to 30 September 2014.
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 7 December
2015.
The financial statements are presented in Thousand Pounds
Sterling (GBP'000). All amounts are rounded to the nearest thousand
Pounds unless otherwise indicated.
Going Concern
The interim financial statements have been prepared on a going
concern basis, notwithstanding the trading losses being carried
forward and the expectation that the Company will continue to make
trading losses for some time to come.
The Group is currently consuming cash resources, and will
continue to do so until sales revenues are sufficiently high to
generate net cash inflows. Until the Group begins to generate
positive net cash flows, it remains dependent upon securing
additional funding, primarily through the injection of capital from
share issues. During the current period the Company raised
additional funds of GBP2.1 million before expenses through a
placing of ordinary shares to new and existing investors.
At 30 September 2015 the Company had net cash reserves of
GBP3.70 million. It is the Directors' intention to raise further
funds over the course of the next twelve months via the issue of
further equity share capital, and the Directors have a reasonable
expectation that this can be achieved, although there can be no
certainty that additional funds can be raised on suitable terms or
at all. If further funds cannot be raised within the period the
Directors believe, after taking into account current cash
resources, their financial forecasts for the Company and after
making due and careful enquiries and considering all uncertainties,
that measures can be taken to reduce expenditure so as to ensure
that the Company and Group will have adequate resources to continue
in operational existence for at least twelve months from the date
of this report. For this reason the Directors continue to adopt the
going concern basis in preparing these interim financial
statements. The financial statements do not include any adjustments
that would result from the basis of preparation being
inappropriate.
3 Loss from operations
16 months
6 months 6 months ended
ended 30 ended 30 31
September September March
2015 2014 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
The loss from operations
is arrived at after charging
(crediting):
Non-recurring transaction
costs - 636 636
Depreciation of property,
plant and equipment 60 36 87
Amortisation of intangible
assets 378 315 664
Operating lease rentals:
land and buildings 62 62 124
Research and development
costs 273 272 511
Share based compensation 16 185 185
Finance charge (113) - 113
Foreign exchange - - (22)
Non-recurring transaction costs represent legal and other
advisory costs in connection with the acquisition of Rex Bionics
Ltd in conjunction with the Company's IPO on AIM in May 2014.
4 Share capital and share premium
At 30 September 2015 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 30 September
2014 and 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 - - - - (227,828)
--------------- ------------ --------------- ---------- ----------
At 30 September
2015 17,830,526 1,783,053 14,289,360 12,860,424 9,630,453
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