IMI Reports Third Quarter Results.Business Editors TORONTO--(BUSINESS WIRE)--Dec. 15, 2000 IMI IMI International Masonry Institute (Washington, DC) IMI Israel Military Industries IMI Institute of the Motor Industry IMI International Market Insight IMI Imposto Municipal Sobre Imóveis (Portugal) International Medical Innovations Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :IMI.) - Financial results meet management's expectations - Quarter's achievements include acquiring rights to significant new predictive technology for prostate cancer, obtaining TSE listing, establishing European subsidiary in Switzerland - Subsequent events include signing collaborative research agreement with McMaster University and well-received presentation to American Heart Association meeting on skin cholesterol study involving Company's Cholesterol 1,2,3(TM) product IMI International Medical Innovations Inc. (TSE:IMI) today announced its financial results for the third fiscal quarter, ending October October: see month. 31, 2000. "Our financial performance for the quarter was consistent with our expectations. More importantly, at this stage of IMI's growth, we continued to make considerable progress driving towards commercial launch of our first two products," said Dr. Brent Brent, outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment. Norton Nor·ton , Charles Eliot 1827-1908. American educator, writer, and editor who founded the Nation (1865). , President and Chief Executive Officer. "In September September: see month. , we signed an exclusive worldwide license for a patented new technology that detects a prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. marker marker /mark·er/ (mahrk´er) something that identifies or that is used to identify. tumor marker in a urine urine, clear, amber-colored fluid formed by the kidneys that carries metabolic wastes out of the body (see urinary system). As the blood circulates it collects excretory products from the tissues and these substances are separated from the blood by the kidneys and specimen SPECIMEN. A sample; a part of something by which the other may be known. 2. The act of congress of July 4, 1836, section 6, requires the inventor or discoverer of an invention or discovery to accompany his petition and specification for a patent with specimens . Tests for prostate cancer currently on the market rely on blood samples and are therefore invasive invasive /in·va·sive/ (-siv) 1. having the quality of invasiveness. 2. involving puncture of the skin or insertion of an instrument or foreign material into the body; said of diagnostic techniques. . IMI's new technology could become a non-invasive Non-invasive A procedure that does not penetrate the body. Mentioned in: Multiple-Gated Acquisition Scan non-invasive 1. not penetrating the skin, e.g. a non-invasive test. 2. test for one of the most prominent cancers in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ," said Dr. Norton. "A significant step for us was moving from the Canadian Dealing Network Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. to trading on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. in August. Since beginning trading on The TSE we already are seeing increased investor interest, and we believe that it has been well-received by potential partners of IMI who view it as an indication of the maturation maturation /mat·u·ra·tion/ (mach-u-ra´shun) 1. the process of becoming mature. 2. attainment of emotional and intellectual maturity. 3. of our company. "Another important milestone took place on August 28, when we incorporated a subsidiary in Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. that we will use to support our pursuit of market opportunities in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the pursuit of additional
technologies that will be complementary to our corporate strategies and
current portfolio," Dr. Norton said."Our vision is to improve disease detection by finding better predictors and better test methods. We're doing that with our skin cholesterol test Cholesterol Test Definition The cholesterol test is a quantitative analysis of the cholesterol levels in a sample of the patient's blood. Total serum cholesterol (TC) is the measurement routinely taken. called Cholesterol 1,2,3(TM), which we expect to begin commercial marketing of in the first half of 2001, and our test for colorectal cancer colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. , called ColorectAlert(TM). The new prostate prostate /pros·tate/ (pros´tat) a gland surrounding the bladder neck and urethra in the male; it contributes a secretion to the semen.prostat´ic pros·tate n. The prostate gland. adj. detection technology that we acquired will provide us with another market opportunity in an area in need of a better screening test," said Dr. Norton. Other notable third-quarter achievements included IMI adding to its management team by hiring a communications specialist to focus on investor and public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , and, in October, being recognized as one of "Canada's Top 10 Investment and Partnering Prospects" by the Ottawa Life Sciences Council. "Since the end of our third quarter we've reached more important milestones," said Dr. Norton. "First, the presentation of our pivotal skin cholesterol study at the American Heart Association American Heart Association (AHA), n.pr a national voluntary health agency that has the goal of increasing public and medical awareness of cardiovascular diseases and stroke, and thereby reducing the number of associated deaths and disabilities. meeting in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded , and the significant media attention that followed, was a tremendous step to building demand for the product. Consumers and the medical community have responded with excitement, as have potential marketing partners. Second, in November, IMI signed a collaborative research agreement with McMaster University McMaster University, at Hamilton, Ont., Canada; nondenominational; founded 1887. It has faculties of humanities, science, social sciences, business, engineering, and health sciences, as well as a school of graduate studies and a divinity college. in genomics. We are sponsoring a research program aimed at using genomics to detect cancer." Financial Results For the three months ended October 31, 2000, IMI reported a net loss of $543,919 or $0.03 per share, compared with a loss of $307,899 or $0.02 per share for the fiscal 1999 third quarter. For the nine months ended October 31, 2000, the Company reported a net loss of $1,271,540 or $0.07 per share, compared to $888,416 or $0.07 per share for the nine months ended October 31, 1999. As a result of listing on The TSE this year, the Company ceased to be eligible to receive scientific research investment tax credits. As the Company is still in the development stage of its initial products, it did not record any revenues for these periods. Research and development expenditures for the quarter increased to $426,754 compared with $289,716 in 1999. Spending on clinical trials during the quarter amounted to $114,508 compared with $28,240 during the third quarter in 1999. The increase was due primarily to the costs associated with the Cholesterol 1,2,3 trial involving angiography angiography or arteriography X-ray examination of arteries and veins with a contrast medium to differentiate them from surrounding organs. The contrast medium is introduced through a catheter to show the blood vessels and the structures they supply, including testing. For the nine months ended October 31, 2000, clinical trial costs amounted to $203,668, an increase of $80,888 over the prior year period. The addition of research personnel contributed to an increase in salaries of $77,231 during the quarter, compared to the corresponding period in 1999. Most of the other development costs remained at fairly constant levels. Total research and development expenditures for the nine months ended October 31, 2000 and 1999 amounted to $870,509 and $710,826, respectively. General and administration expenses amounted to $263,858 for the three months ended October 31, 2000 compared with $170,290 in the prior-year period. Professional fees, including legal, tax, and accounting expenses increased by approximately $20,518 compared with the third quarter last year. These costs related to the acquisition of the new test for prostate cancer and tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. activities related to the incorporation of the Swiss subsidiary. Investor relations Investor relations The process by which the corporation communicates with its investors. expenditures amounted to $55,009 during the quarter, compared to $8,335 in the prior period. These additional costs were associated with the listing on The TSE. For the nine months ended October 31, the general and administrative expenses amounted to $730,675 compared with $447,529 in 1999. The Company ended the quarter with cash and cash equivalents of $10,623,558. At the Company's current burn rate of less than $2 million a year, IMI has sufficient capital to support the continuing development of its products, clinical trials, regulatory reviews, and market introductions for the next several years. IMI is a world leader in the field of predictive medicine The goal of predictive medicine is to identify biological markers in order to enrole individuals at high risk for developing a disease in special early detection trials. Different approaches exist to develop predictive medicine, such as genomics, proteomics, and cytomics. . IMI is dedicated to developing rapid and non-invasive products for the early detection of life-threatening diseases, particularly cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease and cancer. The Company's head office is located in Toronto, and research facilities are at McMaster University in Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Ontario. Common shares trade on The Toronto Stock Exchange, under the symbol IMI. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect the company's current expectation regarding future events. The forward-looking statements involve risk and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company's quarterly filings.
Quarterly Conference Call:
Friday, December 15, 2000
11:00 a.m. EST
888-666-4830
IMI International Medical Innovations Inc.
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Consolidated Balance Sheets
As at October 31, 2000 and January 31, 2000
October 31 January 31
2000 2000
(Unaudited) (Audited)
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ASSETS
Current
Cash and cash equivalents $10,623,558 $741,767
Prepaid expenses and other
receivables 329,379 68,114
Investment tax credits receivable 53,125 332,000
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Total current assets 11,006,062 1,141,881
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Capital assets, net 94,134 68,906
Acquired technology, net 157,611 185,424
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$11,257,807 $1,396,211
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued
liabilities $147,995 $261,333
Deposits on account 70,588 -
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Total current liabilities 218,583 261,333
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Shareholders' Equity
Capital Stock 16,735,093 5,559,207
Contributed surplus 71,054 71,054
Deficit (5,766,923) (4,495,383)
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Total shareholders' equity 11,039,224 1,134,878
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$11,257,807 $1,396,211
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IMI International Medical Innovations Inc.
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Consolidated Statements of Loss and Deficit
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Three months Nine months
ended October 31 ended October 31
2000 1999 2000 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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EXPENSES
Research and
development $426,754 $289,716 $870,509 $710,826
General and
administration 263,858 170,290 730,675 447,529
Amortization 18,400 16,435 50,054 46,101
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709,012 476,441 1,651,238 1,204,456
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RECOVERIES AND
OTHER INCOME
Investment tax
credits - 152,877 - 287,877
Interest 165,093 15,665 379,698 28,163
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165,093 168,542 379,698 316,040
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Net loss for
the period 543,919 307,899 1,271,540 888,416
Deficit, beginning
of period 5,223,004 3,743,453 4,495,383 3,162,936
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Deficit, end of
period $5,766,923 $4,051,352 $5,766,923 $4,051,352
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Loss per common
share $0.03 $0.02 $0.07 $0.07
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Weighted average
number of common
shares
outstanding 18,496,775 13,289,088 16,963,368 12,792,251
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IMI International Medical Innovations Inc.
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Consolidated Statements of Cash Flows
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Three months Nine months
ended October 31 ended October 31
2000 1999 2000 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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OPERATING ACTIVITIES
Net loss for the
period $(543,919) $(307,899) $(1,271,540) $(888,416)
Add item not
involving cash
Amortization 18,400 16,435 50,054 46,101
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(525,519) (291,464) (1,221,486) (842,315)
Net change in non-cash
working capital
balances related
to operations 78,037 (12,006) (25,140) (98,076)
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Cash used in operating
activities (447,482) (303,470) (1,246,626) (940,391)
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INVESTING ACTIVITIES
Purchase of capital
assets (10,171) (7,170) (47,469) (14,019)
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Cash used in
investing activities (10,171) (7,170) (47,469) (14,019)
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FINANCING ACTIVITIES
Issuance of capital
stock, net 30,886 261,501 11,175,886 1,311,501
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Cash provided by
financing activities 30,886 261,501 11,175,886 1,311,501
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Net increase in cash
during the period (426,767) (49,139) 9,881,791 357,091
Cash and short term
investments
- Beginning of
period 11,050,325 1,172,969 741,767 766,739
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- End of period $10,623,558 $1,123,830 $10,623,558 $1,123,830
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