TruSpine Technolgs. - Half-year Report
RNS Number : 4090L
TruSpine Technologies PLC
03 January 2023
 

 

TRUSPINE TECHNOLOGIES PLC

("TruSpine", the "Company" or "Group")

 

Interim Results - for the six months ended 30 September 2022

 

CHIEF EXECUTIVE'S REPORT

Despite the challenges presented by Covid-19 globally, TruSpine has managed to overcome many of the obstacles presented, and we believe the Company will be in a position in 2023 to submit the FDA 510k application for the Cervi-LOK.

Post period end, the Company has secured a £200,000 bridge debt facility ("Bridge Loan") and a Letter of Intent ("LOI") for a £2.4m staged equity funding over three tranches ("Investment Agreement"), a separate announcement will be made in due course setting out further details. The Investment Agreement is subject to various closing conditions and milestones. The directors believe that the Bridge Loan and Investment Agreement will provide the required funding to advance the Cervi-LOK through FDA clearance and onto commercialisation.

As announced 31 October 2022, the Company's annual general meeting was adjourned until further notice. Following completion of the Investment Agreement, the Company will seek to hold its annual general meeting. The Company continues to carefully manage its working capital position.

The delays in finalisation of the FDA 510k submission have centred around compression testing, a main test required by the FDA, however it was eventually determined that the issue was with the testing block rather than the Cervi-LOK product itself.   Following adjustments to the testing block all tests were successfully completed and are ready for submission to the FDA by the independent testing facility.

Additionally, the Company had to overcome supply chain issues, including difficulties in sourcing medical grade stainless steel for instruments, as announced 1 August 2022.  We have now completed this process, and the instrument set has commenced final sterilisation testing with Puracon GmbH in Germany.

On 31 May 2022 the Company raised £700,000 through the issue of 14,000,000 new ordinary shares at a price of 5p per share comprising a placing and a subscription. In addition, 1,550,000 shares were issued at a price of 5p per share to third party creditors of £77,500 in lieu of services rendered and accrued directors fees of £97,200 were settled through the issue of 648,000 shares at a price of 15p per share.

 

The Company continues to be in a pre-revenue development phase and remains loss-making.  The loss before taxation for the six months to 30 September 2022 was £545k (2021: £483k) after administrative expenses of £543k (2021: £481k). Development spend for the six months to 30 September 2022 was £216k (2021: £463k). Consolidated net assets as at 30 September 2022 amounted to £2.93 million (2021: £3.00 million) including cash and cash equivalents of £42,000 (2021: £324,000).

 

Whilst we are disappointed by the delays and challenges encountered, the Board would like to thank shareholders for their support, and TruSpine's staff and commercial partners for their hard work during the year.

 

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 

Enquiries:

 

TruSpine Technologies Plc

Tel: +44 (0)20 3638 5025

Ian Roberts, CEO

 

 

 

Cairn Financial Advisers LLP (AQSE Corporate Adviser)

Tel: +44 (0)20 7213 0880

Liam Murray / Ludovico Lazzaretti

 

 

 

Oberon Capital (Joint Broker)

Tel: +44 (0)20 3179 5300

 Mike Seabrook / Chris Crawford

 

 

Peterhouse Capital Limited (Joint Broker & Financial Adviser)

Lucy Williams / Duncan Vasey

 

Tel: +44 (0)20 7469 0930

Walbrook PR (Financial PR & IR)

Tel: +44 (0) 20 7933 7870 or +44 (0) 7876 741 001

Anna Dunphy

truspine@walbrookpr.com

 

 

Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identiÞed by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reßect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

 

GROUP UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

GROUP STATEMENT OF COMPREHENSIVE INCOME

 



6 month

period ended

30 September 2022

(Unaudited)

6 month

period ended

30 September 2021

(Unaudited)

Year

ended

29 March 2022

(Audited)







Note






£

£

£






Administrative expenses


(543,369)

(480,834)

(937,641)






Operating loss


(543,369)

(480,834)

(937,641)

Finance expense


   (2,030)

   (1,771)

   (3,165)






Loss before tax


(545,399)

(482,605)

(940,806)











Tax credit

3

           -

           -

87,613






(Loss)/Profit


(545,399)

(482,605)

(853,193)






Loss attributable to:










Owners of the parent


(545,399)

(482,605)

   (853,193)

 

 





Other comprehensive income:





Items that will or may be reclassified to profit or loss:





Exchange translation differences on foreign operations


   14,253

   462

1,456

Total comprehensive loss


(531,146)

(482,143)

   (851,737)











Total comprehensive loss attributable to equity shareholders


(531,146)

(482,143)

   (851,737)











Earnings per share basic and diluted (pence)

4

(0.48)p

(0.51)p

(0.87)p

 

 

All results in the current and preceding financial period derive from continuing operations.

 

 

GROUP STATEMENT OF FINANCIAL POSITION

 



30 September 2022

(Unaudited)

30 September 2021

(Unaudited)

29 March 2022

(Audited)


Note

£

£

£






Non-current assets





Tangible fixed assets


3,444

3,683

4,183

Intangible assets


3,376,331

2,534,010

3,098,155

Right of use assets


112,181

-

120,538



3,491,956

2,537,693

3,222,876        






Current assets





Trade and other receivables


167,217

356,189

73,523

Digital assets


-

225,229

82,474

Cash and cash equivalents


41,821

324,044

3,471



209,038

905,462

159,468






Total assets


3,700,994

3,443,155

3,382,344











Current liabilities





Trade and other payables


613,929

386,184

574,579

Borrowings


42,891

47,500

42,500

Lease liabilities


14,261

-

14,261



671,081

433,684

631,340

Non-current liabilities





Lease liabilities


101,600


108,730



101,600

 

108,730






Total liabilities


772,681

433,684

740,070






Net Assets


2,928,313

3,009,471

2,642,274






Equity attributable to owners of the parent





Share capital

5

11,795

10,139

10,175

Share premium


4,584,176

3,779,855

3,782,215

Share based payment reserve


57,823

44,218

44,219

Other reserves

5

(205,000)

(205,000)

(205,000)

Translation reserve


(9,770)

(25,017)

(24,023)

Retained earnings


(1,510,711)

(594,724)

(965,312)






Total equity attributable to owners of the parent


2,928,313

3,009,471

2,642,274






Total Equity


2,928,313

3,009,471

2,642,274

 

 

 

 

 

 

GROUP STATEMENT OF CHANGES IN EQUITY

 

 


Share capital

Share premium

Share based payment reserve

Other reserves

Translation reserve

Retained earnings

Total


£

£

£

£

£

£

£









Balance as at 29 March 2021

9,398

3,062,103

17,007

(205,000)

(25,479)

(112,119)

2.745,910

Profit for the six months

-

-

-

-

-

(482,605)

(482,605)

Other comprehensive loss

-

-

-

-

462

-

462

Total comprehensive loss for the period

-

-

-

-

462

(482,605)

(482,143)

Issue of shares, net of issue costs

741

744,963

-

-

-

-

745,704

Reduction in share capital

-

(27,211)

27,211

-

-

-

-

Transactions with owners, recognised directly in equity

741

717,752

27,211

-

-

-

745,704

Balance as at 30 September 2021

10,139

3,779,855

44,218

(205,000)

(25,017)

(594,724)

3,009,471

 


 

 

 

 

 

 

 


 

 

 

 

 

 

Balance as at 29 March 2022

10,175

3,782,215

44,219

(205,000)

(24,023)

(965,312)

2,642,274

Loss for the six months

-

-

-

-

-

(545,399)

(545,399)

Other comprehensive gain

-

-

 

-

14,253

-

14,253

Total comprehensive loss for the period

-

-

-

-

14,253-

(545,399)

(531,146)

Issue of shares, net of issue costs

1,620

815,565

-

-

-

-

817,185

Share based payment charge

-

(13,604)

13,604

-

-

-

-

Transactions with owners, recognised directly in equity

1,620

801,961

13,604

-

-

-

817,185

Balance as at 30 September 2022

11,795

4,584,176

57,823

(205,000)

(9,770)

(1,510,711)

2,928,313









 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 



6 month

period ended

30 September 2022

(Unaudited)

6 month

period ended

30 September 2021

(Unaudited)

Year

ended

29 March 2022

(Audited)








£

£

£






Cash flow from operating activities










Loss before tax


(545,399)

(482,605)

(940,806)

Depreciation and amortisation


9,095

615

21,146

Increase in Fair Value of digital asset


82,474

(4,627)

(7,872)

(Increase) in other receivables


(93,694)

(169,499)

113,167

Increase in other payables


39,351

156,207

337,102

Cash used in operations


(508,173)

(499,909)

(477,263)

Income tax credit


-

-

87,613

Net cash flows from operating activities


(508,173)

(499,909)

(389,650)











Investing activities










Purchase of tangible assets


-

-

(1,239)

Purchase of intangible assets


(278,176)

(463,233)

(1,027,378)

Net cash used in investing activities


(278,176)

(463,233)

(1,028,378)











Financing activities





Proceeds from Issue of shares, net of issue costs


817,185

745,704

894,101

Lease payments


(7,130)

-

(17,339)

Increase/(Decrease) in borrowings


391

(2,500)

-

Net cash flow from financing


810,446

743,204

876,762






(Decrease)/Increase in cash and cash equivalents in the period


 24,097

 (219,938)

(541,505)






Cash and cash equivalents at the beginning of the year


3,471

543,520

543,520

Exchange rate differences on cash and cash equivalents


14,253

462

1,456






Cash and cash equivalents at the end of the period


41,821

324,044

3,471

 

NOTES TO THE FINANCIAL INFORMATION

 

1.               GENERAL INFORMATION

 

This financial information is for TruSpine Technologies Plc (the "Company") and its subsidiary undertakings. The principal activity of TruSpine Technologies Plc and its subsidiaries (together the "Group") is the development of products for the spinal fusion market. The Company is a public limited company and was listed on the Aquis Stock Exchange on 20 August 2020. The Company is incorporated and domiciled in England and the address of its registered office is located at Spectrum House AF33, Beehive Ring Road, Gatwick Airport, Gatwick, RH6 0LG, United Kingdom.

 

2.               BASIS OF PREPARATION

 

The interim consolidated financial information has been prepared with regard to International Financial Reporting Standards (IFRS) and interpretations adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The interim financial information incorporates the results for the group for the six month period from 30 March 2022 to 30 September 2022. The results for the year ended 29 March 2022 have been extracted from the statutory financial statements for the Company for the year ended 29 March 2022. The financial information set out in these interim consolidated financial information does not constitute statutory accounts as defined in S434 of the Companies Act 2006. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 29 March 2022, which contained an unqualified audit report and have been filed with the Registrar of Companies. They did not contain statements under S498 of the Companies Act 2006.

 

The same accounting policies, presentation and methods of computation have been followed in these unaudited interim financial statements as those which were applied in the preparation of the Groups annual financial statements for the year ended 29 March 2022.

 

The interim consolidated financial information incorporates the financial statements of TruSpine Technologies Plc and its subsidiaries.

 

The interim financial information for the six months ended 30 September 2022 was approved by the directors on 2 January 2023.

 

 

3.               TAXATION

 

                   Tax recognised in profit or loss



6 month

period ended

30 September 2022

(Unaudited)

6 month

period ended

30 September 2021

(Unaudited)

Year

ended

29 March 2022

(Audited)








£

£

£






Current tax credit


-

-

87,613

Deferred tax


-

-

-

Net tax credit


-

-

87,613






Loss before tax


(545,399)

(482,605)

(940,806)






Standard rate of UK corporation tax


19%

19%

19%

Loss on ordinary activities before tax multiplied by standard rate UK corporation tax


(103,626)

(91,695)

(178,753)

Tax adjustment


-

(117)

-

Unrelieved tax losses carried forward


103,626

91,812

178,753

UK research and development tax credit


-

-

107,178

Tax credit


-

-

107,178

 

At 30 September 2022, the Group are carrying forward estimated tax losses of £1.8m in respect of various activities over the years. The Company did not recognise a deferred income tax credit due to uncertainty concerning the timescale of its recoverability.

 

 

4.               LOSS PER ORDINARY SHARE

 

Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares.



6 month

period ended

30 September 2022

(Unaudited)

6 month

period ended

30 September 2021

(Unaudited)

Year

Ended

29 March 2022

(Audited)








£

£

£






(Loss) attributable to equity holders of the Company


(545,399)     

(482,605)         

(853,193)

Weighted average number of ordinary shares in issue


112,795,793

94,546,805

98,491,414

Loss per share basic and diluted (pence)


(0.48)p

(0.51)p

(0.87)

 

 

5.            SHARE CAPITAL

 

                  

 

 

 

Group and Company

 

Group

Number of shares

Share

capital

Share premium

Share based payment reserve

Other reserve

Total

 

 

£

£

£

£

£

Issued and fully paid

 

 

 

 

 

 

As at 29 March 2021

93,983,967

9,398

3,062,103

17,007

(205,000)

2,883,508

Movement during the period

7,405,000

741

717,752

27,211

-

745,704

As at 30 September 2021

101,388,967

10,139

3,779,855

44,218

(205,000)

3,629,212

Movement during the period

724,902

36

2,360

1

-

2,397

As at 29 March 2022

102,113,869

10,175

3,782,215

44,219

(205,000)

3,631,609

Movement during the period

16,198,000

1,620

801,961

13,604

-

817,185

As at 30 September 2022

118,311,869

11,795

4,584,176

57,823

(205,000)

4,448,794

 

 

Share Capital - Amount subscribed for share capital at nominal value.

 

Share Premium - Amount subscribed for share capital in excess of nominal value.

 

 

6.            EVENTS AFTER THE REPORTING DATE

 

Post period end, the Company secured a £200,000 bridge debt facility and a letter of intent for a £2.4m staged equity funding over three tranches.

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