Directors´ Report
12
The Directors present their report and the audited financial statements of TyraTech, Inc. for the year ended December 31, 2008.
Results and Dividends
The net loss for the year, after taxation, amounted to US$17.4 million against a net loss of US$16.5 million in 2007. No dividends have been declared or paid.
Principal Activities
The principal activity of the Group is the developing and commercializing of proprietary insecticide and parasiticide products which incorporate unique blends of natural, plant oil derived active ingredients.
Business Review
A
review of the Group´s operations during the year, and the outlook for the future are given in the Chief Executive Officer´s Review on pages 4 to 7.
Where the Directors´ report (including the Chairman´s Statement, Chief Executive Officer´s Review and Financial Review) contains forward-looking statements, these are made by the Directors in good faith based on the information available to them at the time of the approval of this report. Consequently, such statements should be treated with caution due to their inherent uncertainties, including both economic and business risk factors, underlying such forward-looking statements or information.
Research and Development
The Directors believe that research and product development play a vital role in the Group´s long-term success. Research and development expenditure is expensed when incurred and for the year was US$7.3 million (2007: US$5.9 million) and net US$4.6 million (2007: US$4.5 million) after transferring US$2.7 million (2007: US$1.4 million) for collaborative revenue projects to cost of sales.
I
ntellectual Property
The Group owns intellectual property and has taken steps to protect this through patent applications, where, as of the date of this report, one patent was issued (2007: nil) and 22 patents are pending (2007: 21). The Group´s key intellectual property is built around the screening methods for identifying active ingredients for synergistic receptor activation and the active ingredient combinations. The Directors believe that the intellectual property is of significant value to the business.
S
upppplier Payment Policy
The Group´s policy is to settle the terms of payment with suppliers when agreeing the terms of each transaction, or the terms of a continuing trading relationship, ensuring that suppliers are made aware of the terms of payment, and to abide by these terms whenever possible. The creditor days at the year-end were 37 days (2007: 37 days) for the Group.
E
qual Opp Opportunity Employer
The Group is committed to a policy that provides all employees and potential employees with equality of opportunity for selection and development regardless of age, gender, nationality, race, creed, disability or sexual orientation.
Policy on Employee Involvement
Briefing and consultative procedures exist throughout the Group to keep employees informed of general business issues and other matters of concern.
C
haritable Donations
The Group has made charitable donations to local charities during the year of US$0.2 million (2007: US$0.2 million) to educational institutions involved in the development of our technology.
D
irectors
The directors who served during the year were as follows:
G.N. Vernon
R
.D. Armstrong
R
.K. Brenner (resigned April 4, 2008)
K.E. Bigsby
A
.J. Reade
B.M. Riley
K.D. Noonan
D.P. Szostak (appointed April 4, 2008)
Biographies of the Directors Follow:
• Geoffrey Vernon (Non-executive Chairman) was appointed on May 25, 2007. He is Chairman of XLTech Group, Inc. and is a former executive director of Rothschild Asset Management Ltd., partner of the venture capital group Advent Limited, and has over 20 years´ experience in healthcare and life sciences. Dr. Vernon is chairman and/or non-executive director of a number of quoted
