CAMPBELLVILLE, ON, Aug. 29 /CNW/ -- TSX Venture: NID
CAMPBELLVILLE, ON, Aug. 29 /CNW/ - NIR Diagnostics Inc. (TSX Venture: NID), an innovator in the development of handheld medical diagnostic devices today announced its operational and financial results for the six-month period ended on June 30, 2008.
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Highlights:
- Completed internal testing of OmegaNIR(TM), an in-vivo (non-invasive)
light-based platform capable of monitoring omega-6 and omega-3 fatty
acid levels non-invasively.
- Launched HemoNIR(TM), a portable reagentless CO-oximeter device that
monitors Met-hemoglobin, Carboxy-hemoglobin and Total Hemoglobin, in
Europe and generated initial revenue from its distribution partner's
activities.
- Reached consensus with Lifescan regarding terms of a development
agreement for an in-vitro glucose prototype and, subject to due
diligence, NIR Diagnostics is awaiting a formal agreement from
Lifescan.
- NIR Diagnostics entered into a settlement agreement to dismiss its
remaining claims in the patent infringement action against Masimo
Corporation, subsequent to the end of the quarter.
- Completed a $550,000 private placement convertible redeemable
debenture financing with a private company, Ventabren Holdings
Limited. Announced a US$250,000 loan financing from NIR Diagnostics'
development partner, Clear Light Ventures, Inc., subsequent to the end
of the quarter.
- Announced changes to the Company's Board of Directors - John Anderson
and Clifford Evans have been appointed to the Board, and Theo
Warkentin will not be joining the Board due to other existing
commitments.
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Financial Results
For the three-month period ended June 30, 2008 the Company incurred a net loss from operations of $899,000 or, $0.03 per share, compared with a net loss of $783,000 or, $0.02 per share, for the three-month period ended June 30, 2007. For the six-month period ended June 30, 2008 the Company incurred a net loss of $1,667,000 or $0.05 per share, compared with a net loss of $1,724,000 or, $0.05 per share, for the corresponding period last year.
Revenue for the three-month and six-month periods ended June 30, 2008 was $49,000 and $73,000 respectively, compared with $31,000 and $105,000 for the corresponding periods in 2007. During the second quarter, NIR Diagnostics generated 30,000 in revenue from initial product sales of HemoNIR(TM) in Europe by its distribution partner.
Research and development expenses for the three-month and six month periods ended June 30, 2008 were $91,000 and $192,000 respectively, compared with $281,000 and $584,000 for the corresponding periods in 2007. During both the three-month and six-month periods in 2008, most all design and regulatory costs incurred by the Company relate to the Clear Light project and such costs have been recovered from Clear Light. During the comparable periods in 2007, costs related to the food supplement prototype device and were absorbed by the Company.
General and administrative expenses for the three-month and six-month periods ended June 30, 2008 were $394,000 and $728,000 respectively, compared with $475,000 and $1,131,000 for the corresponding periods last year. The difference is primarily due to a decrease in staffing costs as a result of $nil incentive compensation payments for the six-month period ended June 30, 2008 compared with $201,000 in incentive compensation payments for the corresponding period last year.
As of June 30, 2008 the Company had cash and cash equivalents totaling $294,000 to fund ongoing cash requirements of the business. Subsequent to the end of the quarter the Company completed a loan financing which provided new capital of $256,000. The Company will require additional funds during the third quarter 2008 to continue operations.
About NIR Diagnostics
NIR Diagnostics is an innovator in the development of near-infrared, spectroscopic medical diagnostics. The Company has an extensive portfolio of optical, electronic and algorithm related patents in the field of in-vitro and in-vivo blood analysis.
Forward-looking Statements
This press release contains information that is forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts. Particularly, statements about the planned development of diagnostic devices, the potential efficacy of such devices, the expected timing of product sales and the sufficiency of funds available to finance ongoing operations are forward-looking information.
Forward-looking information, by its nature necessarily involves risks and uncertainties including, without limitation, the difficulty of predicting regulatory approvals, market acceptance and demand for new products, the protection of intellectual property connected with devices, the impact of competitive products, and other similar or related risks and uncertainties. Additional risks and uncertainties affecting the Company are discussed in the Risks and Uncertainties section of the MD&A for the year ended December 31, 2007 available on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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NIR Diagnostics Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands except for shares, warrants and units)
Unaudited
June 30 December 31
2008 2007
$ $
----------------------
ASSETS
Current
Cash and cash equivalents 24 22
Short-term investments 270 915
Accounts receivable 40 19
Inventory 93 106
Investment tax credits recoverable 104 86
Prepaid expenses 9 68
----------------------
Total current assets 540 1,216
Capital assets, net 48 57
----------------------
Total assets 588 1,273
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----------------------
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current
Accounts payable and accrued liabilities 572 447
Current portion of deferred revenue 52 52
----------------------
Total current liabilities 624 499
Convertible debenture 1,611 1,046
Deferred revenue 697 723
----------------------
Total liabilities 2,932 2,268
----------------------
Shareholders' deficiency
Share capital 24,612 24,709
Contributed surplus 1,624 1,331
Conversion option of convertible debenture 747 603
Compensation warrants - 22
Deficit (29,327) (27,660)
----------------------
Total shareholders' deficiency (2,344) (995)
----------------------
Total liabilities and shareholders' deficiency 588 1,273
----------------------
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NIR Diagnostics Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
(in thousands except for shares, warrants and units)
Unaudited
Three Months Ended Six Months Ended
June 30 June 30
2008 2007 2008 2007
$ $ $ $
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Revenue 49 31 73 105
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Expenses
Cost of product sales 19 - 19 -
Research
and development 91 281 192 584
General
and administration 394 475 728 1,131
Reimbursable costs
related to patent
prosecution 69 - 114 -
Reimbursable costs
related to patent
defense 105 - 196 -
Amortization 6 7 12 14
Interest 80 36 146 72
Accretion in carrying
value of convertible
debentures 184 4 333 7
Amortization of
deferred debenture
issuance costs - 11 - 21
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948 814 1,740 1,829
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Net loss (899) (783) (1,667) (1,724)
Comprehensive loss - - - -
---------------------------------------------------
Total comprehensive
loss (899) (783) (1,667) (1,724)
Deficit, beginning
of period (28,428) (26,489) (27,660) (25,548)
---------------------------------------------------
Deficit,
end of period (29,327) (27,272) (29,327) (27,272)
---------------------------------------------------
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Basic and diluted
loss per share (0.03) (0.02) (0.05) (0.05)
---------------------------------------------------
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Weighted average
number of common
shares outstanding 34,708,560 33,057,736 34,708,560 31,388,670
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NIR Diagnostics Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands except for shares, warrants and units)
Unaudited
Three Months Ended Six Months Ended
June 30 June 30
2008 2007 2008 2007
$ $ $ $
---------------------------------------------------
OPERATING ACTIVITIES
Net loss (899) (783) (1,667) (1,724)
Add (deduct) non-cash
items
Stock-based
compensation expense 13 36 25 88
Amortization of
capital assets 6 7 12 14
Accretion in carrying
value of convertible
debentures 184 4 333 7
Amortization of
deferred debenture
issuance costs - 11 - 21
Net change in
non-cash working
capital 180 150 158 19
Net change in
deferred revenue (13) (13) (26) 619
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Cash (applied to)
operating activities (529) (588) (1,165) (956)
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INVESTING ACTIVITIES
Decrease in short-term
investments (10) (298) 645 130
Purchase of capital
assets (3) - (3) (1)
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Cash (applied to)
provided by investing
activities (13) (298) 642 129
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FINANCING ACTIVITIES
Issuance of
convertible debenture 550 - 550 -
Debenture issuance
costs (25) - (25) -
Issuance of common
shares - 1,002 - 1,002
Share issuance costs - (115) - (115)
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Cash provided by
financing activities 525 887 525 887
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Net (decrease)
increase in cash
during the period (17) 1 2 60
Cash and cash
equivalents,
beginning of period 41 100 22 41
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Cash and cash
equivalents, end of
period 24 101 24 101
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