Director's Report
TYRATECH, INC. • ANNUAL REPORT 2011 • PAGE 14
The Directors present their report and the audited financial statements
of TyraTech Inc. for the year ended December 31, 2011.
RESULTS AND DIVIDENDS
The net loss for the year, after taxation, amounted to US$2.7
million against a net loss of US$6.1 million in 2010. 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 Executive Chairman's
Review on pages 8 and 10.
Where the Directors' report (including the Executive Chairman's
Statement and Financial Review) contains forwardlooking
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$2.8 million (2010 - US$3.1 million).
INTELLECTUAL PROPERTY
The Group owns intellectual property and has taken steps
to protect this through patent applications, where, as of the
date of this report, 11 patents were issued (2010 - 11) and 79
patents are pending (2010 - 61). 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.
SUPPLIER 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 32 days (2010 - 51 days) for the Group.
EQUAL 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. At 31
December 2011 the Group had 23 employees (2010: 16 employees).
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.
SAFETY, HEALTH AND ENVIRONMENT
The Group is committed to maintaining high standards of
safety, health and environmental protection by conducting
itself in a responsible manner to protect people and the environment.
PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the nature of the
Group's strategy are subject to a number of risks and uncertainties.
The Directors have set out below principal risks facing
the business:
