Simavita Limited

Simavita Limited

February 27, 2015 12:18 ET

Simavita Limited: Release of Interim Financial Results


- Net comprehensive loss after tax for the half-year ended 31 December 2014 was $4.07 million, which is a 23% improvement on the result for the previous corresponding period

- Revenues for the half-year increased by $306,799, a 203% improvement on the previous corresponding period

- Cash balance recorded at the end of the period was $4.93 million, however a payment under the R&D Tax Incentive Scheme of $1.37 million has subsequently been received

- Distribution of SIM™ in the US, additional customer sites in Australia and early sales in Europe position Simavita well for continued momentum in the second half of the 2015 financial year

SYDNEY, AUSTRALIA--(Marketwired - Feb. 27, 2015) - Simavita Limited (ASX:SVA)(TSX VENTURE:SV) ("Simavita" or the "Company") is pleased to release its financial statements and Management Discussion and Analysis for the interim period ended December 31, 2014.

Key points from the interim financial statements include:

  • A net comprehensive loss after tax for the half-year ended December 31, 2014 of $4.07 million, representing a decrease of $1.24 million, or 23%, over the loss for the previous half-year. This loss included an income tax benefit arising from the Australian Government's R&D Tax Incentive Scheme ($841,000) and a non-cash, share-based payments expense in respect of options granted by the Company ($424,000).

  • Revenues generated by the Company from the sale of its Smart Incontinence Management (SIM™) solution increased by $306,799, or 203%, as compared to the previous half-year. This increase includes the Company's first sales of SIM™ in the US market through its local distributor, Medline Industries Inc.

  • The total cash reserves of the Simavita Group as at December 31, 2014 were approximately $4.93 million. However, as reported, the Company subsequently received an amount of $1.37 million under the Australian Government's R&D Tax Incentive Scheme.

  • As announced recently, the Company has also now commenced sales of its SIM™ solution in Europe and, together with the anticipated addition of new customers in both the US and Australian marketplaces, sales revenue is anticipated to grow for the 2015 financial year.

"The first half of the 2015 financial year has been important for Simavita in many ways. We have been bedding down our agreement with US distributor, Medline, and with the commencement of their US sales campaigns we are starting to see results from that relationship. We have also been selling direct into the Australian market and during the half year we increased the number of Australian customer sites by more than 30%.

"In addition to those important markets, the Company has successfully operated a showcase site in Denmark, which led to the execution of a Danish distribution agreement with Abena A/S that is now generating early stage revenues in that country, such that we are now generating revenue on three continents. We have also completed the ground work to establish a showcase site in Sweden in conjunction with Sanicare Sweden, and prepared SIM™ for sale in the Canadian market.

"We've hit a number of important milestones during the first half of the year which have contributed to our growing revenues, and are working hard both directly, and through our distributors, to drive additional customer conversions for SIM™ in the second half of the financial year" said CEO, Philippa Lewis.

About Simavita

Simavita is a medical device company operating in the digital healthcare sector 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.

About SIM

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

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.

Except for historical information, this announcement may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, the anticipated date of on the ASX, changing market conditions, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

Forward-Looking Information

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.

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