Health & Fitness
Wed, April 6, 2011Tue, April 5, 2011Mon, April 4, 2011Sun, April 3, 2011Sat, April 2, 2011Fri, April 1, 2011Thu, March 31, 2011Wed, March 30, 2011Tue, March 29, 2011Mon, March 28, 2011Sun, March 27, 2011Fri, March 25, 2011Thu, March 24, 2011Wed, March 23, 2011Tue, March 22, 2011Mon, March 21, 2011Sun, March 20, 2011Fri, March 18, 2011Thu, March 17, 2011Wed, March 16, 2011Tue, March 15, 2011Biotonix Announces Results for the 2010 Fourth Quarter and Fiscal Year
Published in Health and Fitness on Friday, March 25th 2011 at 6:40 GMT by Market Wire
BROSSARD, QUEBEC--(Marketwire - March 25, 2011) - Biotonix (TSX VENTURE:BTX) ("Biotonix), a leader in [ postural health ], today announced the financial results for the fourth quarter and fiscal year ended December 31, 2010. "Biotonix has just completed its first fiscal year as a public company. Recent financings helped boost the visibility of the Company's products worldwide, including Europe. Now that new R&D targets have been prioritized, the Company can focus its sales initiatives on two high-potential markets: fitness and corporate health. According to recent findings published by the Wellness Council of America, companies save $3 in health costs for every $1 invested in wellness programs. The sales cycles for both markets is estimated at 9 to 12 months. The outlook for 2011 suggests increased adoption of our applications and a marked drop in operating expenses", declared Louise St-Onge, CEO.
2010 HIGHLIGHTS
The Company kicked off a pilot project with U.S. luxury fitness and health chain Equinox which operates over 50 centers across the U.S. Biotonix also taped into the European market by signing a first agreement with the Club Med Gym fitness network. The implementation across the 22 clubs unfolded during the last two quarters of 2010.
On November 2, 2010, the Company closed two private placements, one brokered and one non-brokered, for gross proceeds of $947,200. In addition, on March 18, 2010, Capital Valmoris Inc. (a start-up capital company), now Biotonix (2010) Inc., announced the closing of an eligible transaction with 3252736 Canada Inc., and Sylvain Guimond, and a public financing of $2,500,000. Within the framework of the conclusion of the eligible transaction with 3252736 Canada Inc. and Sylvain Guimond, Capital Valmoris issued 6,250,000 units at a price of $0.40 per unit for gross proceeds of $2,500,000 according to the terms of its final prospectus of February 16, 2010.
During the fourth quarter, Biotonix posted a 6% increase in sales compared to the same period in 2009. Gross profit demonstrated steady growth throughout the year reaching 49% during the fourth quarter, a 15% increase compared to the same period in 2009.
Further to a review of R&D priorities and management's estimation of future demand for certain products, the Company shifted R&D focus to projects meeting new criteria and with a shorter time-to-market, thereby delaying development of proprietary orthetics.
OVERVIEW OF FINANCIAL INFORMATION
| Quarters ended December 31st | Quarters ended December 31st | |||||||
| Unaudited | Audited | |||||||
| 2010 | 2009 | 2010 | 2009 | |||||
| $ | $ | $ | $ | |||||
| Statement of Operations | ||||||||
| Sales | 169,274 | 159,350 | 574,042 | 682,394 | ||||
| Gross profit | 82,989 | 53,854 | 251,281 | 259,618 | ||||
| Net loss | (458,321 | ) | (137,497 | ) | (2,514,154 | ) | (345,722 | ) |
| Net loss per share, basic and diluted | (0.02 | ) | (0.11 | ) | ||||
| Weighted average number of shares | 22,738,667 | 22,697,417 | ||||||
| Balance sheet | ||||||||
| Cash flow and deposits | 1,328,122 | 19,727 | 1,328,122 | 19,727 | ||||
| Total assets | 1,654,790 | 140,896 | 1,654,790 | 140,896 | ||||
| Long-term debt including short-term portion | 29,167 | 94,883 | 29,167 | 94,883 | ||||
| Total liabillities | 443,493 | 1,309,985 | 443,493 | 1,309,985 | ||||
| Shareholder's equity | 1,211,297 | (1,169,089 | ) | 1,211,297 | (1,169,089 | ) | ||
During the fourth quarter, Biotonix posted a 6% increase in sales compared to the same period in 2009. Revenues for the year reached $574,042 compared to $682,394 last year, a 16% decrease. This drop is partly due to the fact that 86% of Company sales are realized in U.S. dollars, a currency which has sustained an average decrease of 9% during the year. Gross profit demonstrated steady growth throughout the year reaching 49% during the fourth quarter, a 15% increase compared to the same period in 2009. Implementation of the new corporate structure, new hires, stepped up business development activities and the Company's IPO are factors that increased the net loss in 2010.
CASH POSITION
On the basis of current projections and the recent private financing completed, management believes the Company will have sufficient funds available to support its activities for the next 12 months.
WEB-BASED SOLUTIONS FOR POSTURE CORRECTION AND FITNESS
Biotonix has developed a unique [ biomechanical evaluation system ] and method which is at the core of all its applications. The system helps health and fitness professionals to assess, improve and monitor posture and overall fitness. The Biotonix web-based imaging software system is easy to use, non-invasive and provides a complete individualized assessment of musculoskeletal form and function, postural deviation detection, and corresponding corrective exercises. To date, the Company has generated over 375,000 postural and fitness assessments, including over 1,000 world-class athletes.
FitPrint™
Designed to meet the specific needs of the fitness market, [ FitPrint™ ] has the capability to assess posture as well as establish physiological age in order to improve muscular balance, performance and overall fitness, and rejuvenate the body.
Biotonix recently concluded an agreement for the implementation of a custom Fitprint™ solution with upscale fitness and health chain [ Equinox ] at their Columbus Circle club in Manhattan which could lead to greater scale implementation in 2011 across their 50 clubs in the U.S.
The Company is currently in discussions with other fitness organizations.
MORE INFORMATION ON BIOTONIX
More information is available on Biotonix's website at [ www.biotonix.com ] as well as on the SEDAR website at [ www.sedar.com ].
BIOTONIX PROFILE
Biotonix (TSX VENTURE:BTX) offers innovative health solutions for posture correction and fitness using a web-based imaging software technology. For more information please visit [ www.biotonix.com ]
BIOTONIX'S FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, no history of profitability, future financing, intellectual property and patents, key personnel, competitive marketplace, technology obsolescence, share price volatility and other risks detailed in the Company's 2010 Management Discussion & Analysis. While Biotonix anticipates that subsequent events and developments may cause its views to change, Biotonix specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
