SYDNEY, AUSTRALIA--(Marketwired - Aug. 28, 2014) - Simavita Limited (ASX:SVA)(TSX VENTURE:SV) ("Simavita" or the "Company") is pleased to release its audited financial results and Management's Discussion and Analysis for the year ended June 30, 2014 available on SEDAR at www.sedar.ca. These year-end financials are the first such document produced by the Company since its re-listing on the TSX-V and its admission to the Official List of the ASX and includes financial information pertaining to its acquisition of Simavita Holdings Limited in December 2013.
- The Company reported a net loss after tax for the year ended June 30, 2014 of AUD$10.5 million representing an increase of AUD$3.1 million, or 42%, over the loss for the previous year. This loss included several significant one-off expenses including a non-cash, share-based payments expense in respect of warrants and options granted as part of the Company's recent listing (AUD$1.3 million), transaction expenses associated with the Company's acquisition of Simavita Holdings and subsequent dual stock exchange listings (AUD$1.2 million) and a non-cash loss on acquisition of AUD$0.8 million.
- After deducting these one-off amounts, the adjusted loss for the 2014 year would have fallen to AUD$7.2 million, or AUD$209,876 (approximately 3%), less than the loss for previous year.
- Revenues generated by the Group from the sale of its SIM™ solution increased by AUD$33,605, or 11%, as compared to the prior year. This rate of sales growth, however, was reduced due to a focus by the Company on the completion of its Generation 4 SIM™ product for launch in the US market rather than securing further sales of earlier Generation 3 products in Australia. In addition, as existing customers transitioned from the earlier Generation 3 product to the more advanced Generation 4 product, the number of incontinence assessments performed fell, resulting in a temporary decline in both sales and revenue.
- With the rollout of the latest Generation 4 product to existing customers now complete and the addition of new customers in both the US and Australian marketplaces, the rate of sales growth has already increased and is anticipated to increase further in the 2015 financial year.
- Importantly, the Company's cost of sales decreased markedly during the 2014 year by AUD$109,483, or 53%, from the previous year. The transition by existing customers to the Company's new Generation 4 product was accompanied by a revenue model more heavily focussed on the sale of consumable products which is less impacted by the sale of the more expensive hardware associated with the now-superseded Generation 3 product. It is envisaged that additional product developments now underway will result in further reductions in costs, delivering benefits for the Company and its customers alike.
- The total cash reserves of the Simavita Group as at July 31, 2014 were approximately AUD$9.2 million.
For further information, please visit our website (www.simavita.com) or contact the persons named below.
Simavita is a medical device company that has developed an innovative, world first solution for the management of urinary incontinence, with a focus on the elderly. The first product is the SIM™ platform technology which is an instrumented incontinence assessment application that provides evidence-based incontinence management care plans to the residential aged care market.
SIM™ is a wireless sensor technology that delivers evidence-based instrument incontinence data on individuals. SIM™ provides user friendly tools and software to assess the incontinence condition and to help plan better outcomes. SIM™ is used to detect, record and report incontinence events during a compulsory or recommended assessment period in residential aged care facilities to develop an evidence-based incontinence care plan.
Conducting assessments is mandatory in many countries and the incontinence assessment creates an influential element of care of each individual. For more information on Simavita or SIM™, please visit www.simavita.com.
The TSX Venture Exchange has in no way passed upon the merits of the transactions set out herein and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange not its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.
This document may contain "forward-looking information" within the meaning of Canadian securities laws ("forward-looking information"). This forward-looking information is given as of the date of this document.
Forward-looking information relates to future events or future performance and reflects Simavita management's expectations or beliefs regarding future events. Assumptions upon which such forward-looking information is based include that Simavita will be able to successfully execute on its business plans. Many of these assumptions are based on factors and events that are not within the control of Simavita and there is no assurance they will prove to be correct.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "potential", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or information that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Simavita to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to actual results of current business activities; changes in business plans and strategy as plans continue to be refined; other risks of the medical devices and technology industry; delays in obtaining governmental approvals or financing or in the completion of development activities; as well as those factors detailed from time to time in Simavita's interim and annual financial statements and management's discussion and analysis of those statements. Although Simavita has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Simavita provides no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.