IMI reports fiscal 2001 fourth quarter and year-end results

Trading Symbol: IMI on The Toronto Stock Exchange



- Results and spending in line with expectations

- Strong balance sheet; able to complete development of current

technologies

- Revenues expected to begin this year following first regulatory

approvals

- Canadian approval received to market Cholesterol 1,2,3(TM); filing in

the U.S. this spring and hopeful for approval by early fall



Apr 03, 2001, 01:00 ET from IMI International Medical Innovations Inc.

    TORONTO, April 3 /PRNewswire/ - IMI International Medical Innovations
 Inc. (IMI) today announced unaudited fourth-quarter and year-end financial
 results for the fiscal year 2001, ending January 31, 2001.
     "During the final quarter of the fiscal year we took major strides
 towards bringing our first product to the market, and we did it within our
 usual tight spending patterns," said Dr. Brent Norton, President and Chief
 Executive Officer of IMI.
     "The most significant event came just days before the end of the quarter,
 when we received clearance by Health Canada to market Cholesterol 1,2,3 in
 Canada. The clearance came earlier than expected, and gives us even more
 confidence as we go forward with regulators in the U.S. and elsewhere. We
 expect to file with the U.S. Food and Drug Administration this spring and hope
 for marketing approval by early fall," Dr. Norton said.
     Cholesterol 1,2,3 is IMI's lead product, a three-minute, non-invasive
 test that measures cholesterol in the skin, on the palm of the hand. It is the
 first and only non-invasive cholesterol test in the world. "We are currently
 in discussions with potential partners to market Cholesterol 1,2,3 in Canada
 and elsewhere and hope to conclude agreements in the next few months," Dr.
 Norton reported.
     "Even prior to receiving Canadian clearance, Cholesterol 1,2,3 and IMI
 gained significant attention around the world when the newest research on skin
 cholesterol was presented at the American Heart Association meeting in
 November. The research was international front-page news because it represents
 something new in cardiovascular health - a new and better way to predict who
 is at risk of heart disease," said Dr. Norton.
     "While we continue to move closer to the commercial launch of our lead
 products, we also took steps to enhance our technology pipeline. In early
 November, we signed a collaborative research agreement with McMaster
 University through which IMI will sponsor a program in cancer genomics. IMI
 receives a first right of refusal on new technologies that emerge from that
 program, as well as a laboratory facility at the University Medical Centre,"
 Dr. Norton added.
     Subsequent to the end of the quarter, the company announced several other
 significant developments involving its other technology platform, mucus-based
 cancer detection. IMI's test for lung cancer, LungAlert(TM), showed impressive
 results in a pilot clinical trial that has been accepted for oral presentation
 at the upcoming American Thoracic Society meeting. The company is undertaking
 a larger clinical trial with LungAlert, beginning this spring.
     "We also took a significant step towards commercializing our colorectal
 cancer test, ColorectAlert(TM), by licensing a complementary technology from
 Procyon BioPharma Inc., and thereby brought all the relevant patents under one
 roof," said Dr. Norton.
 
     Financial results
     For the three months ended January 31, 2001, IMI reports a net loss of
 $561,665 or $0.03 per share compared with a net loss of $444,031 or $0.03 per
 share for the quarter ended January 31, 2000. For the year ended January 31,
 2001, the company reports a net loss of $1,833,205 or $0.11 per share,
 compared with a net loss of $1,332,447 or $0.10 per share for fiscal 2000.
     The Company ended the quarter with cash and cash equivalents and short-
 term investments of $10,566,170, compared with $741,767 at January 31, 2000.
     Research and development expenditures for the quarter increased to
 $429,772 compared with $316,780 for the fourth quarter in fiscal 2000.
 Spending on clinical trials during the quarter amounted to $187,542 compared
 with $54,885 during the fourth quarter in fiscal 2000. The increase was due
 primarily to the costs associated with the ColorectAlert trials, and
 Cholesterol 1,2,3 multi-site trials required for FDA submission. For the year
 ended January 31, 2001, clinical trial costs amounted to $391,210, an increase
 of $213,545 from the prior year period.
     The recruitment of additional research personnel contributed to an
 increase in salaries of $155,076 for the year, which was partially offset by a
 reduction of subcontract research by $70,714. Most of the other development
 costs remained at fairly constant levels. Total research and development
 expenditures for the year ended January 31, 2001 and 2000 amounted to
 $1,300,281 and $1,027,606, respectively.
     As a result of the company's listing on The Toronto Stock Exchange in
 August 2000, IMI ceased to be eligible to receive cash refunds for federal
 scientific research investment tax credits. Only the provincial tax credit of
 $80,000 has been accrued for fiscal 2001, compared to the total Investment Tax
 Credit of $332,000 for fiscal 2000.
     The federal tax credit will be carried forward and applied against future
 years' income. Interest income of $143,143 was earned for the three months
 ended January 31, 2001 compared with $10,743 for the same quarter in fiscal
 2000. Interest earned for the year was $522,832 compared with $38,906 for the
 year ended January 31, 2000. The interest resulted from the investment of cash
 received from the equity issued under Special Warrants during the year.
     IMI is a world leader in predictive medicine. IMI is dedicated to
 developing rapid, non-invasive tests for the early detection of life-
 threatening diseases, particularly cardiovascular disease and cancer. The
 company's head office is located in Toronto, and its research and product
 development facility is at McMaster University in Hamilton, Ontario. Common
 shares trade on The Toronto Stock Exchange under the symbol IMI.
 
     This release contains forward-looking statements 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.
 
 
     Quarter- and Year-end conference call:
     Tuesday, April 3, 2001
     10:30 a.m. ET
     Toronto (416) 695-6575
     Montreal (514) 861-6575
     North America (800) 273-9672
 
     Replay available until April 10 at (416) 695-5800 or (800) 408-3053,
     access code 720081.
 
 
 
     -------------------------------------------------------------------------
 
     IMI International Medical Innovations Inc.
 
     -------------------------------------------------------------------------
 
     CONSOLIDATED BALANCE SHEETS
     As at January 31
 
                                                  2001                 2000
                                               (Unaudited)           (Audited)
     -------------------------------------------------------------------------
     ASSETS
     Current
     Cash and cash equivalents              $  2,565,534         $    741,767
     Short-term investments                 $  8,000,636               -
     Prepaid expenses and other
      receivables                                152,584               68,114
     Investment tax credits receivable            80,000              332,000
     -------------------------------------------------------------------------
 
     Total current assets                     10,798,754            1,141,881
     -------------------------------------------------------------------------
     Capital assets,                             150,455               68,906
     Acquired technology, net of
      amortization of $312,411
      (2000-$275,326)                            148,339              185,424
     -------------------------------------------------------------------------
 
                                            $ 11,097,548         $  1,396,211
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current
     Accounts payable and accrued
      liabilities                                436,386              261,333
     Advance collaboration funding          $     55,588         $          -
     -------------------------------------------------------------------------
 
     Total current liabilities              $    491,974         $    261,333
     -------------------------------------------------------------------------
 
     Shareholders' Equity
     Capital Stock                            16,934,162            5,630,261
     Deficit                                  (6,328,588)          (4,495,383)
     -------------------------------------------------------------------------
 
     Total shareholders' equity               10,605,574            1,134,878
     -------------------------------------------------------------------------
 
                                            $ 11,097,548         $  1,396,211
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     IMI International Medical Innovations Inc.
     -------------------------------------------------------------------------
     Consolidated Statements of Cash Flows
 
     -------------------------------------------------------------------------
                        Three months ended January 31   Years ended January 31
                               2001         2000         2001         2000
                            (Unaudited)  (Unaudited)   (Unaudited)   (Audited)
     -------------------------------------------------------------------------
 
     OPERATING ACTIVITIES
     Net loss for the
      period               $  (561,665) $  (444,031) $(1,833,205) $(1,332,447)
     Add item not
      involving cash
       Amortization             43,913       25,618       93,967       71,719
     -------------------------------------------------------------------------
                              (517,752)    (418,413)  (1,739,238)  (1,260,728)
     Net change in non-
      cash working capital
      balances related to
      operations               338,529       (4,152)     313,389     (102,228)
     -------------------------------------------------------------------------
     Cash used in operating
      activities              (179,223)    (422,565)  (1,425,849)  (1,362,956)
     -------------------------------------------------------------------------
 
     INVESTING ACTIVITIES
     Short-term investments (8,000,636)           -   (8,000,636)           -
     Purchase of capital
      assets                    (6,180)     (34,281)     (53,649)     (48,300)
     -------------------------------------------------------------------------
     Cash used in investing
      activities            (8,006,816)     (34,281)  (8,054,285)     (48,300)
     -------------------------------------------------------------------------
 
     FINANCING ACTIVITIES
 
     Issuance of capital
      stock, net               128,015       74,783   11,303,901    1,386,284
     -------------------------------------------------------------------------
     Cash provided by
      financing activities     128,015       74,783   11,303,901    1,386,284
     -------------------------------------------------------------------------
 
     Net increase (decrease)
      in cash and cash
      equivalents during the
      period                (8,058,024)     382,063    1,823,767      (24,972)
     Cash and cash
      equivalents
      - Beginning of
         period             10,623,558    1,123,830      741,767      766,739
     -------------------------------------------------------------------------
 
      - End of period      $ 2,565,534  $   741,767  $ 2,565,534  $   741,767
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Cash and cash
      equivalents consist
      of:
     Cash                  $    99,187  $   194,060  $    99,187  $   194,060
     Cash equivalents      $ 2,466,347  $   547,707  $ 2,466,347  $   547,707
     -------------------------------------------------------------------------
 
                           $ 2,565,534  $   741,767  $ 2,565,534  $   741,767
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     IMI International Medical Innovations Inc.
     -------------------------------------------------------------------------
 
     Consolidated Statements of Loss and Deficit
 
     -------------------------------------------------------------------------
                        Three months ended January 31   Years ended January 31
                               2001         2000         2001         2000
                            (Unaudited)  (Unaudited)  (Unaudited)   (Audited)
     -------------------------------------------------------------------------
 
     EXPENSES
     Research and
      development          $   429,772  $   316,780  $ 1,300,281  $ 1,027,606
     General and
      administration           346,353      205,593    1,077,028      653,122
     Amortization               43,913       25,618       93,967       71,719
     -------------------------------------------------------------------------
 
                               820,038      547,991    2,471,276    1,752,447
     -------------------------------------------------------------------------
 
     RECOVERIES AND
      OTHER INCOME
     Investment tax
      credits                  115,239       93,217      115,239      381,094
     Interest                  143,134       10,743      522,832       38,906
     -------------------------------------------------------------------------
 
                               258,373      103,960      638,071      420,000
     -------------------------------------------------------------------------
     Net loss for
      the period              (561,665)    (444,031)  (1,833,205)  (1,332,447)
 
     Deficit, beginning
      of period              5,766,923    4,051,352    4,495,383    3,162,936
     -------------------------------------------------------------------------
     Deficit, end of
      period               $ 6,328,588  $ 4,495,383  $ 6,328,588  $ 4,495,383
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Basic and fully
      diluted loss per
      common share         $     (0.03) $     (0.03) $     (0.11) $     (0.10)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Weighted average
      number of common
      shares outstanding    18,606,286   14,517,849   17,376,342   13,204,758
     -------------------------------------------------------------------------
 
     -------------------------------------------------------------------------
 
 
 
 

SOURCE IMI International Medical Innovations Inc.
    TORONTO, April 3 /PRNewswire/ - IMI International Medical Innovations
 Inc. (IMI) today announced unaudited fourth-quarter and year-end financial
 results for the fiscal year 2001, ending January 31, 2001.
     "During the final quarter of the fiscal year we took major strides
 towards bringing our first product to the market, and we did it within our
 usual tight spending patterns," said Dr. Brent Norton, President and Chief
 Executive Officer of IMI.
     "The most significant event came just days before the end of the quarter,
 when we received clearance by Health Canada to market Cholesterol 1,2,3 in
 Canada. The clearance came earlier than expected, and gives us even more
 confidence as we go forward with regulators in the U.S. and elsewhere. We
 expect to file with the U.S. Food and Drug Administration this spring and hope
 for marketing approval by early fall," Dr. Norton said.
     Cholesterol 1,2,3 is IMI's lead product, a three-minute, non-invasive
 test that measures cholesterol in the skin, on the palm of the hand. It is the
 first and only non-invasive cholesterol test in the world. "We are currently
 in discussions with potential partners to market Cholesterol 1,2,3 in Canada
 and elsewhere and hope to conclude agreements in the next few months," Dr.
 Norton reported.
     "Even prior to receiving Canadian clearance, Cholesterol 1,2,3 and IMI
 gained significant attention around the world when the newest research on skin
 cholesterol was presented at the American Heart Association meeting in
 November. The research was international front-page news because it represents
 something new in cardiovascular health - a new and better way to predict who
 is at risk of heart disease," said Dr. Norton.
     "While we continue to move closer to the commercial launch of our lead
 products, we also took steps to enhance our technology pipeline. In early
 November, we signed a collaborative research agreement with McMaster
 University through which IMI will sponsor a program in cancer genomics. IMI
 receives a first right of refusal on new technologies that emerge from that
 program, as well as a laboratory facility at the University Medical Centre,"
 Dr. Norton added.
     Subsequent to the end of the quarter, the company announced several other
 significant developments involving its other technology platform, mucus-based
 cancer detection. IMI's test for lung cancer, LungAlert(TM), showed impressive
 results in a pilot clinical trial that has been accepted for oral presentation
 at the upcoming American Thoracic Society meeting. The company is undertaking
 a larger clinical trial with LungAlert, beginning this spring.
     "We also took a significant step towards commercializing our colorectal
 cancer test, ColorectAlert(TM), by licensing a complementary technology from
 Procyon BioPharma Inc., and thereby brought all the relevant patents under one
 roof," said Dr. Norton.
 
     Financial results
     For the three months ended January 31, 2001, IMI reports a net loss of
 $561,665 or $0.03 per share compared with a net loss of $444,031 or $0.03 per
 share for the quarter ended January 31, 2000. For the year ended January 31,
 2001, the company reports a net loss of $1,833,205 or $0.11 per share,
 compared with a net loss of $1,332,447 or $0.10 per share for fiscal 2000.
     The Company ended the quarter with cash and cash equivalents and short-
 term investments of $10,566,170, compared with $741,767 at January 31, 2000.
     Research and development expenditures for the quarter increased to
 $429,772 compared with $316,780 for the fourth quarter in fiscal 2000.
 Spending on clinical trials during the quarter amounted to $187,542 compared
 with $54,885 during the fourth quarter in fiscal 2000. The increase was due
 primarily to the costs associated with the ColorectAlert trials, and
 Cholesterol 1,2,3 multi-site trials required for FDA submission. For the year
 ended January 31, 2001, clinical trial costs amounted to $391,210, an increase
 of $213,545 from the prior year period.
     The recruitment of additional research personnel contributed to an
 increase in salaries of $155,076 for the year, which was partially offset by a
 reduction of subcontract research by $70,714. Most of the other development
 costs remained at fairly constant levels. Total research and development
 expenditures for the year ended January 31, 2001 and 2000 amounted to
 $1,300,281 and $1,027,606, respectively.
     As a result of the company's listing on The Toronto Stock Exchange in
 August 2000, IMI ceased to be eligible to receive cash refunds for federal
 scientific research investment tax credits. Only the provincial tax credit of
 $80,000 has been accrued for fiscal 2001, compared to the total Investment Tax
 Credit of $332,000 for fiscal 2000.
     The federal tax credit will be carried forward and applied against future
 years' income. Interest income of $143,143 was earned for the three months
 ended January 31, 2001 compared with $10,743 for the same quarter in fiscal
 2000. Interest earned for the year was $522,832 compared with $38,906 for the
 year ended January 31, 2000. The interest resulted from the investment of cash
 received from the equity issued under Special Warrants during the year.
     IMI is a world leader in predictive medicine. IMI is dedicated to
 developing rapid, non-invasive tests for the early detection of life-
 threatening diseases, particularly cardiovascular disease and cancer. The
 company's head office is located in Toronto, and its research and product
 development facility is at McMaster University in Hamilton, Ontario. Common
 shares trade on The Toronto Stock Exchange under the symbol IMI.
 
     This release contains forward-looking statements 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.
 
 
     Quarter- and Year-end conference call:
     Tuesday, April 3, 2001
     10:30 a.m. ET
     Toronto (416) 695-6575
     Montreal (514) 861-6575
     North America (800) 273-9672
 
     Replay available until April 10 at (416) 695-5800 or (800) 408-3053,
     access code 720081.
 
 
 
     -------------------------------------------------------------------------
 
     IMI International Medical Innovations Inc.
 
     -------------------------------------------------------------------------
 
     CONSOLIDATED BALANCE SHEETS
     As at January 31
 
                                                  2001                 2000
                                               (Unaudited)           (Audited)
     -------------------------------------------------------------------------
     ASSETS
     Current
     Cash and cash equivalents              $  2,565,534         $    741,767
     Short-term investments                 $  8,000,636               -
     Prepaid expenses and other
      receivables                                152,584               68,114
     Investment tax credits receivable            80,000              332,000
     -------------------------------------------------------------------------
 
     Total current assets                     10,798,754            1,141,881
     -------------------------------------------------------------------------
     Capital assets,                             150,455               68,906
     Acquired technology, net of
      amortization of $312,411
      (2000-$275,326)                            148,339              185,424
     -------------------------------------------------------------------------
 
                                            $ 11,097,548         $  1,396,211
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current
     Accounts payable and accrued
      liabilities                                436,386              261,333
     Advance collaboration funding          $     55,588         $          -
     -------------------------------------------------------------------------
 
     Total current liabilities              $    491,974         $    261,333
     -------------------------------------------------------------------------
 
     Shareholders' Equity
     Capital Stock                            16,934,162            5,630,261
     Deficit                                  (6,328,588)          (4,495,383)
     -------------------------------------------------------------------------
 
     Total shareholders' equity               10,605,574            1,134,878
     -------------------------------------------------------------------------
 
                                            $ 11,097,548         $  1,396,211
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     IMI International Medical Innovations Inc.
     -------------------------------------------------------------------------
     Consolidated Statements of Cash Flows
 
     -------------------------------------------------------------------------
                        Three months ended January 31   Years ended January 31
                               2001         2000         2001         2000
                            (Unaudited)  (Unaudited)   (Unaudited)   (Audited)
     -------------------------------------------------------------------------
 
     OPERATING ACTIVITIES
     Net loss for the
      period               $  (561,665) $  (444,031) $(1,833,205) $(1,332,447)
     Add item not
      involving cash
       Amortization             43,913       25,618       93,967       71,719
     -------------------------------------------------------------------------
                              (517,752)    (418,413)  (1,739,238)  (1,260,728)
     Net change in non-
      cash working capital
      balances related to
      operations               338,529       (4,152)     313,389     (102,228)
     -------------------------------------------------------------------------
     Cash used in operating
      activities              (179,223)    (422,565)  (1,425,849)  (1,362,956)
     -------------------------------------------------------------------------
 
     INVESTING ACTIVITIES
     Short-term investments (8,000,636)           -   (8,000,636)           -
     Purchase of capital
      assets                    (6,180)     (34,281)     (53,649)     (48,300)
     -------------------------------------------------------------------------
     Cash used in investing
      activities            (8,006,816)     (34,281)  (8,054,285)     (48,300)
     -------------------------------------------------------------------------
 
     FINANCING ACTIVITIES
 
     Issuance of capital
      stock, net               128,015       74,783   11,303,901    1,386,284
     -------------------------------------------------------------------------
     Cash provided by
      financing activities     128,015       74,783   11,303,901    1,386,284
     -------------------------------------------------------------------------
 
     Net increase (decrease)
      in cash and cash
      equivalents during the
      period                (8,058,024)     382,063    1,823,767      (24,972)
     Cash and cash
      equivalents
      - Beginning of
         period             10,623,558    1,123,830      741,767      766,739
     -------------------------------------------------------------------------
 
      - End of period      $ 2,565,534  $   741,767  $ 2,565,534  $   741,767
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Cash and cash
      equivalents consist
      of:
     Cash                  $    99,187  $   194,060  $    99,187  $   194,060
     Cash equivalents      $ 2,466,347  $   547,707  $ 2,466,347  $   547,707
     -------------------------------------------------------------------------
 
                           $ 2,565,534  $   741,767  $ 2,565,534  $   741,767
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     IMI International Medical Innovations Inc.
     -------------------------------------------------------------------------
 
     Consolidated Statements of Loss and Deficit
 
     -------------------------------------------------------------------------
                        Three months ended January 31   Years ended January 31
                               2001         2000         2001         2000
                            (Unaudited)  (Unaudited)  (Unaudited)   (Audited)
     -------------------------------------------------------------------------
 
     EXPENSES
     Research and
      development          $   429,772  $   316,780  $ 1,300,281  $ 1,027,606
     General and
      administration           346,353      205,593    1,077,028      653,122
     Amortization               43,913       25,618       93,967       71,719
     -------------------------------------------------------------------------
 
                               820,038      547,991    2,471,276    1,752,447
     -------------------------------------------------------------------------
 
     RECOVERIES AND
      OTHER INCOME
     Investment tax
      credits                  115,239       93,217      115,239      381,094
     Interest                  143,134       10,743      522,832       38,906
     -------------------------------------------------------------------------
 
                               258,373      103,960      638,071      420,000
     -------------------------------------------------------------------------
     Net loss for
      the period              (561,665)    (444,031)  (1,833,205)  (1,332,447)
 
     Deficit, beginning
      of period              5,766,923    4,051,352    4,495,383    3,162,936
     -------------------------------------------------------------------------
     Deficit, end of
      period               $ 6,328,588  $ 4,495,383  $ 6,328,588  $ 4,495,383
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Basic and fully
      diluted loss per
      common share         $     (0.03) $     (0.03) $     (0.11) $     (0.10)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Weighted average
      number of common
      shares outstanding    18,606,286   14,517,849   17,376,342   13,204,758
     -------------------------------------------------------------------------
 
     -------------------------------------------------------------------------
 
 
 
 SOURCE IMI International Medical Innovations Inc.