Welcome to TyraTech's 2010 Annual Report. As we
entered 2010, TyraTech faced a difficult business climate.
As I outlined in my Half Year report, we identified three
main priorities for the business:
1. Increase our focus on cost control
2. Support our partnerships, with emphasis on those with Terminix and Kraft
3. Strengthen our balance sheet, particularly the cash position
I am happy to report to you that significant progress was made during 2010 in each of these areas.
First, on the cost front, we reduced our cash operating expenses to US$6.3 million in 2010 from
US$10.4 million in 2009, representing a 39% reduction in cash expenditures. We did this through
a focused effort by all of the employees of TyraTech and I wish to thank them for the sacrifices
that were made during this challenging period.
With regard to our partnerships, significant progress was made in our partnership with Terminix.
As we announced previously, we successfully extended our partnership with Terminix, the largest
professional pest control company in North America, through a new product development and
supply agreement. This extension brought with it a significant upfront payment to TyraTech,
which was received in October 2010. Under this new Agreement, Terminix and TyraTech are now
working together to develop and market new and effective pest control products incorporating
TyraTech's Nature's Technology™. The extended strategic relationship enables a development
plan to identify further co-branded natural products and market channels for commercialisation.
For each of up to six new products developed, TyraTech receives development milestone payments
from Terminix. The successful development of three new products was announced in
February of 2011. The new products, part of a growing pipeline of innovative products, will
expand the existing product lines and enable Terminix to continue marketing and branding the
TyraTech insecticide product lines in the US, Canada and Mexico.
The Kraft project (functional food) has made excellent progress during the year from both a
technical and a market definition standpoint.
During 2010, we successfully raised US$4.8 million in working capital through additional share
issues. This, along with our operating expense reductions, allowed us to finish 2010 with US$3.3
million in cash, a US$2.0 million increase from December 2009. While we are still challenged to
balance growing our business against a limited level of working capital, we are optimistic that
these share issues will provide sufficient capital to the business to fund our working capital needs
into 2012.
Chairman's Statement and Operational Review
Alan Reade, Executive Chairman
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