expenses relating to founder share grants and options. General and administrative spending also increased to US$9.4 (2007: US$8.1 million) and the cash expenditure excluding non-cash compensation and provision for overdue receivables grew to US$6.2 million (2007: US$6.0 million), reflecting the full year´s costs of being listed on the AIM market of the London Stock Exchange. Business Development expenditure also grew to US$6.4 million (2007: US$6.2 million) and the cash expenditure excluding non-cash compensation grew to US$5.0 million (2007: US$4.9 million).
Subsequent to the year-end the Executive Directors agreed to a reduction in their base salary of 10% for all of 2009.
Other Income and Costs: Finance income decreased to US$0.4 million (2007: US$0.8 million) earned from reduced funds on deposit and declining interest rates in the year which reduced to a weighted average of 3.31% (2007: 4.95%). The interest expense was substantially reduced to US$0.0 million paid on a capitalized equipment lease from an expense of US$1.0 million paid on debt due
to XLTechGroup, Inc. which was repaid in 2007 from the proceeds
of the IPOPO.
Changes in the fair value of warrants amounted to US$(1.0) million (2007: US$(0.0) million) and relates to warrants issued to the underwriters of the IPOPO which were impacted by the significant reduction in the stock price during the year.
In 2007 an arrangement to accelerate payment of the Vanderbilt University licensing agreement resulted in a US$0.5 million loss on extinguishment of the discounted Vanderbilt license liability. Payment of the liability was made through a combination of cash (US$0.5 million) and 65,457 shares of TyraTech, Inc. common stock valued at US$0.7 million.
Results before and after tax for the year were a loss of US$17.4
million compared to a loss before and after tax of US$16.5 million in the previous year.
Balance Sheet: Non-current assets reduced by US$0.1 million. We acquired non-current assets of US$0.4 million (2007: US$0.9 million) made up of US$0.3 million (2007: US$0.7 million) for completion of the fit-out of new offices and laboratories to accommodate the expansion of our staff and US$0.1 million (2007: US$0.2 million) for the upgrade of our information technology infrastructure. This was offset by a depreciation charge of US$0.5 million (2007: US$0.2 million) of depreciation.
Current assets show a significant reduction to US$12.2 million (2007: US$29.1 million). Cash and cash equivalents reduced to US$9.2 million (2007: US$27.5 million) from funding the operating loss for the year and increases in working capital. Trade and other receivables increased to US$0.6 million (2007: US$0.5 million) and inventories grew to US$1.7 million (2007: US$0.8 million) with a build of materials to support the growth in revenues for 2009. Prepayments and short-term deposits grew to US$0.8 million (2007: US$0.3 million) due to production inventory prepayments for Sustainable Solutions and prepaid expenses for collaborative revenue projects.
Total liabilities decreased to US$2.9 million (2006: US$6.5 million). The accounts payable and accrued liabilities have reduced to
TyraTech, Inc. Annual Report 2008
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