D i r e c t o r 's Rep o r t
TYRATECH • ANNUAL REPORT 2014 • PAGE 8
The Directors present their report and the audited financial
statements of TyraTech, Inc. for the year ended 31 December
2014.
RESULTS AND DIVIDENDS
The net loss for the year, after taxation, was $5.1 million versus a
net loss of $4.9 million in 2013. No dividends have been declared
or paid.
PRINCIPAL ACTIVITIES
The principal activity of the Company is the development and
commercialisation of proprietary insecticide and parasiticide
products which incorporate unique blends of nature-derived
active ingredients.
BUSINESS REVIEW
A review of the Company's operations during the year, and
the outlook for the future are given in the Chairman's Letter to
Shareholders and the CEO's Letter to Shareholders.
Where the Directors' report (including the Chairman's Letter to
Shareholders, the CEO's Letter to Shareholders and Financial
Highlights) 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 Company's long-term success. Research
and development expenditure is expensed when incurred and
for 2014 was $1.6 million (2013: $1.8 million).
INTELLECTUAL PROPERTY
The Company owns intellectual property and has taken steps to
protect this through patent applications, where, as of the date of
this report, 27 patents have been issued (2013: 20 patents) and
35 patents are pending (2013: 51 patents). The Company'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 Company'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 abide by these
terms whenever possible. The creditor days at the year end were
62 days (2013: 44 days) for the Company.
EQUAL OPPORTUNITY EMPLOYER
The Company 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. As of
31 December 2014 the Company had 23 employees (2013: 18
employees).
POLICY ON EMPLOYEE INVOLVEMENT
Briefing and consultative procedures exist throughout the
Company to keep employees informed of general business
issues and other matters of concern.
SAFETY, HEALTH AND ENVIRONMENT
The Company 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
Company's strategy are subject to a number of risks and
uncertainties. The Directors have set out below principal risks
facing the business:
History of losses
The Company has experienced operating losses in each
year since its inception and, as at 31 December 2014, had
accumulated losses of approximately $84.9 million. The Company
