TYRATECH • ANNUAL REPORT 2014 • PAGE 9
may incur further losses and there can be no assurance that the
Company will ever achieve significant revenues or profitability.
Working capital
As of 31 December 2014, the Company had cash and cash
equivalents of $2.2 million. The Directors believe that, based on
current forecasts, the Company will have sufficient cash to fund
its operations for at least 12 months from the date the financial
statements were signed. The achievability of these forecasts is
dependent on a number of key assumptions, in particular, the
market penetration of the Company's personal care products. If
the Company does not perform in line with these key assumptions
underlying the forecasts, the Company's cash resources may be
absorbed earlier than forecasted and additional capital may be
required.
Product portfolio
In the year ending 31 December 2014, the Company actively
marketed a single brand, Vamousse, within the personal care
market. Going forward, the Company plans to expand its
product portfolio within the personal care market, as well
as develop products within the animal health market. The
Company's plan to grow product revenue is based upon its
ability to diversify, invest and manage a portfolio of multiple
products in multiple markets through the entire product cycle
from discovery-to-development-to-commercialisation. This
product expansion process could take a lengthy period of time
and may not generate significant product revenue.
Customer concentration
The Company has expanded its customer base through i)
attracting wholesale and retail customers and ii) expanding
geographically, for its recently developed products in personal
care. Diversification of its customer base will continue and may
take a lengthy period of time. If the Company's products do
not achieve an adequate level of customer acceptance, the
Company may not generate significant product revenue and
may not be able to generate a profit.
Seasonality
The Company's actively marketed single brand, Vamousse, a
lice treatment personal care product, generates the majority of
the Company's product revenue, and the Company believes it
will continue to do so going forward. The consumer demand
for lice treatment products tends to increase with the high head
lice season, which coincides with the traditional back to school
months. As such, the Company's retail and distribution customers
may seek to increase order quantities in advance of the back to
school months, which may i) result in fluctuations in the demand
for the Company's product, ii) lead to significantly higher sales in
the last half of the year and iii) impact results of operations.
The Company faces competition, which may result in others
discovering, developing or commercialising products before
or more successfully than it does
The development and commercialisation of products are highly
competitive. TyraTech faces competition with respect to its
currently marketed products, its current product candidates and
any products that it will seek to develop or commercialise in the
future. Some or all of the Company's candidates, if approved,
will face competition from other branded products used for the
same indications. TyraTech's commercial opportunity could be
reduced or eliminated if competitors develop and commercialise
products that are more effective, safer, are more convenient or
are less expensive than any products the Company may develop.
Finally, many of TyraTech's competitors have significantly greater
financial, technical and human resources than it has and superior
expertise in research and development, manufacturing, testing,
obtaining regulatory approvals and marketing products and
thus may be better equipped than the Company to discover,
develop, manufacture and commercialise products. These
competitors also compete with the Company in recruiting and
retaining qualified scientific and management personnel and
acquiring technologies.
The Company's future operating results will be highly
dependent on how well it manages the expansion of its
operations
The Company may experience periods of rapid growth in the
number of products it supplies. This, in turn, would likely necessitate
an increase in the number of the Company's employees, its
