TIDMTYR TIDMTYRU

RNS Number : 0219A

TyraTech, Inc.

24 September 2015

TyraTech, Inc.

("TyraTech" or the "Company")

Interim Results for the six months ended 30 June 2015

TyraTech Inc. (AIM: TYR, and TYRU), a life sciences company focused on nature-derived insect and parasite control products, today announces its interim results for the six month period ended 30 June 2015.

TyraTech is now at an inflexion point in its development. Following the successful launch of Vamousse(R) Lice Treatment & Protective Shampoo in the US and in the UK, the Directors believe that Tyratech is now extremely well positioned to unlock the true value potential of its technology platform. Through the commercialisation of Vamousse, as well as with the launch of Guardian personal repellent and OutSmart equine fly spray, TyraTech has proven that its innovative products can answer real unmet market needs, satisfy customer demands and generate value for distribution and commercialisation partners. The result is that Vamousse is now the fastest growing branded head lice product in the US, reaching the number 3 position in less than 18 months, with a distribution network that has quadrupled its number of sales outlets in the same short period of time.

In addition to achieving sales growth of 267% in the first half of the year (with $3.3 million of product sales), TyraTech has also built strong brands, secured relationships with major retailers and strengthened its pipeline, all elements that will generate future value. Nevertheless, the head lice market represents a relatively small part of the addressable market for our technology. Having validated the commercial potential of its technology platform, and having proven its capability to implement a scalable business model with high margins, TyraTech is poised to develop and launch true alternatives to pesticides in a number of other target markets.

Operational Highlights:

-- Continued progress of Vamousse Lice Treatment with strong sales growth at Walmart;

-- Launch of Vamousse Lice Protection Shampoo in over 3,600 Walmart stores and Walmart.com in the US;

-- Expansion of Vamousse Lice Treatment into CVS/pharmacy and Walgreens, the two largest pharmacy chains in the US;

-- Gained additional distribution of Vamousse Treatment and Protective Shampoo in the UK with Lloyds, Rowlands, and Day Lewis and smaller independent pharmacies;

   --   Number 3 OTC head lice brand by dollar sales in the US; 
   --   Launched equine spray for control of flies, mosquitos, and ticks. 

Financial Highlights:

-- Total revenue from operations in the six months nearly tripled to $3.5 million (2014: $1.3 million) as the result of expansion of the Vamousse product lines into major drug store chains in both the US and the UK as compared to only three months of commercialisation of Vamousse Lice Treatment at Walmart in the US during the same six month period in 2014;

-- Product sales increased by 267% to $3.3 million (2014: $0.9 million) primarily from sales of the Vamousse Lice Treatment and Shampoo;

-- Collaborative revenue decreased by 50% to $0.2 million for the first half of 2015 (2014: $0.4 million) as the demand for shared services from Envance decreased;

-- Gross profit increased by approximately 150% to $2.0 million (2014: $0.8 million) from the effect of new product commercialisation;

-- Overall operating expenses increased 6% to $3.7 million (2014: $3.5 million) primarily from increased sales and marketing expenses related to the commercialisation of Vamousse Lice Treatment and Shampoo;

-- Loss from operations reduced to $1.7 million for the first half of 2015 (2014: $2.6 million) resulting primarily from increased product sales;

   --   Net loss before and after taxes decreased to $1.5 million (2014: $3.1 million); 

-- Cash and cash equivalents were $1.3 million at 30 June 2015 ($0.6 million at 30 June 2014 and $2.2 million at 31 December 2014).

Post period end:

   --    Successful launch of Vamousse Treatment and Shampoo in Ireland; 

-- Launch of Vamousse Shampoo in Boots and significant increase in number of Boots stores stocking Vamousse Treatment;

   --     Distribution in Well pharmacy chain (previously Co-op). 

Outlook and current trading

Notwithstanding the positive developments and enhanced distribution arrangements, the Company continues to be in uncharted territory from a forecasting perspective, not having experienced, as yet, a full year with current distribution arrangements in place.

Sales have continued to grow in absolute terms during the period since 30 June. However, they have been behind our forecast expectations and if this trend continues for the remainder of the year, our second half results, whilst still expected to be materially better than the first half, will not be as strong as previously thought.

There is good evidence that the market for head lice products is growing year-on-year and we believe that we are well positioned with our product range and the quality of our customer base to benefit from this growth. In addition, we believe there will be additional contributions next year from the animal health and equine products. We are therefore pleased with the progress that TyraTech is making towards the goal of self-sufficiency in cash terms.

For further information:

TyraTech Inc.

Bruno Jactel, Chief Executive Officer

Tel:   +1 919 415 4340 

Barry Riley, Acting Chief Financial Officer Tel:

+1 919 415 4300

www.tyratech.com

 
SPARK Advisory Partners Limited, Nominated Adviser 
 Matt Davis / Mark Brady                              Tel: +44 20 3368 3552 
                                                      Tel: +44 20 3368 3551 
 

Whitman Howard Limited, Joint Broker

Ranald Mc-Gregor Smith / Niall Devins Tel: +44 20 7087 4555

Allenby Capital Limited, Joint Broker

Chris Crawford

Tel: +44 20 3002 2070

 
Walbrook, Financial PR and IR 
 Paul Cornelius/ Guy McDougall                            Tel: +44 20 7933 8792 
 

Chairman's Statement

TyraTech has achieved remarkable progress in the current financial year, with net product sales in the six month period more than three times higher than the corresponding period last year and already comfortably ahead of the previous full year. Our Vamousse Treatment now has a wide distribution in both the US and UK and is already the number three head lice OTC brand by dollar sales in the US. The Shampoo is also progressing well and should become more widely distributed next year.

In 2014 the team managed to gain space on the shelves of many of the biggest retailers in two very competitive markets - the US and the UK. Whilst that was a tremendous result the real inflexion point is happening right now in that the products are now important products in the stores' personal care ranges - in fact the number of outlets has more than quadrupled since this time last year. This is a result of demonstrating to the retail trade that the Vamousse range of products are highly appreciated by the user and are an efficient and profitable use of shelf space. The Board feels confident that the Vamousse brand will continue to gain significant market share and will expand both geographically and by product line extension.

However, TyraTech is much more than a head lice company. Our technology is now demonstrated and has proved capable of driving the development of insect control products with a combined level of safety and efficacy well ahead of the standard synthetic chemical offerings, especially where resistance has developed against these products. Many of the target markets are much bigger than the personal care area.

Animal health markets, for example, encompass industrial scale production facilities, small farms, and companion animals with needs for internal and external parasiticides. TyraTech has already developed products for many of these markets and we are actively working on others. We hope to see the products previously licensed to Novartis generating sales in animal production facilities from next year.

I believe that we have demonstrated our ability - unusual in a small company - to develop a brand in a short time frame with limited resources. The Vamousse brand alone already has significant value and will be further developed both geographically and in product line extension - but we plan to enter other larger markets in the short to medium term. Each of these is a high margin opportunity and can generate real value either with TyraTech or in the hands of a major player. It is only when the possibilities that flow from the TyraTech pipeline are looked at by segment that the true value of the sum of the parts becomes apparent. We realize that we still have much work to do, but everyone at TyraTech is genuinely excited about the future of our Company.

Alan Reade

Non-executive Chairman

24 September 2015

Chief Executive Officer's Statement

In the half year to 30 June 2015, sales of our Vamousse Treatment product continued to grow, in particular at Walmart. We also achieved our aim of placing Vamousse Lice Treatment with Walgreens and CVS, the two largest pharmaceutical chains in the US, together with further expansion in the UK with Lloyds, Rowlands, Day Lewis and smaller independent pharmacies. Despite the two major US pharmacy chains having placed product in stores later than expected, product sales, nevertheless, increased by a factor of more than three times compared to the corresponding period in the prior year. It is also worth noting that 2015 H1 sales were ahead of the full year to 31 December 2014. An excellent measure of our progress is that in the 12 weeks to 14 June 2015, Vamousse was the number three head lice brand by dollar retail sales in the US, excluding private labels. The Vamousse Protection Shampoo has also made a good start in Walmart stores and we are pleased with the level of sales so far.

(MORE TO FOLLOW) Dow Jones Newswires

September 24, 2015 02:00 ET (06:00 GMT)

Our Guardian range of personal mosquito and tick repellants continues to gain very high rating by users on amazon.com, building a core of loyal customers and generating a small but useful and increasing level of sales. With increasing brand awareness, word-of-mouth and a strong market need for a serious alternative to pesticides, we are exploring various possibilities for widening distribution of these products.

Earlier this year, we launched our insect repellant product for use on horses. Although widely praised by end users, we decided to develop an improved product with better aesthetics and enhanced stability, which will be re-launched next year. This is an attractive and potentially high margin niche market with estimated retail sales in excess of $20 million in the US and EU.

Post period end and outlook

Since the half year-end, Boots has taken the Vamousse Protective Shampoo into a portion of their stores and expanded the outlets taking the Vamousse Treatment product. We have recently gained distribution in over 400 Well pharmacy chain stores (ex Co-op). The product has also been successfully launched in Ireland and we continue to plan for further geographical expansion in Europe and Australasia. With the recent publicity emphasising the emergence of head lice resistant to the leading OTC brands in the US, we have re-focused our marketing efforts to emphasise the effectiveness of Vamousse against lice resistant to synthetic pesticides.

With the acquisition of Novartis Animal Health by Eli Lilly, we decided to withdraw Novartis' rights to our animal health products, which are intended for insect control in animal production facilities where there are major problems with resistance to existing synthetic products. We have used the time to further develop what were already attractive products and are in discussions with several potential partners, expecting to launch the enhanced products next year.

Notwithstanding the positive developments and enhanced distribution arrangements, the Company continues to be in uncharted territory from a forecasting perspective, not having experienced, as yet, a full year with current distribution arrangements in place. Sales have continued to grow in absolute terms during the 'back to school' period in August and September to date, however they have been behind our forecast expectations and if this trend continues for the remainder of the year, our second half results, whilst still expected to be materially better than the first half, will not be as strong as previously thought.

There is good evidence that the market for head lice products is growing year-on-year and we believe we are well positioned with our product range and the quality of our customer base to benefit from this growth. In addition, we believe that there will be additional contributions next year from the animal health and equine products. We are therefore pleased with the progress that TyraTech is making towards the goal of self-sufficiency in cash terms.

Bruno Jactel

Chief Executive Officer

24 September 2015

Financial Review

Revenue

Total revenue for the six month period to 30 June 2015 was $3.5 million (2014: $1.3 million). Gross product sales were $3.3 million of which $2.6 million were sales in the US and $0.7 million in the UK. (2014: $0.9 million all in the US), with net product sales of $2.9 million (2014: $0.9) Collaborative revenue decreased to $0.2 million (2014: $0.4 million). Collaborative revenue includes upfront license fee amortisation and cost reimbursement from our Envance Technologies and Mondelez Global (Kraft) agreements.

Cost of sales and gross profit

Material and manufacturing costs for product sales were $0.9 million (2014: $0.3 million) and costs related to collaborative revenue remained steady at $0.1 million (2014: $0.1 million). Gross profit increased to $2.0 million, with a margin on net revenue of 66% (2014: $0.8 million and 65%) primarily as a result of increased product revenue generated from the addition of new customers in 2015. Margin on net product sales was 68% (2014: 66%).

Operating expenses

Overall operating expenses from continuing operations increased slightly by 6% for the six month period to $3.7 million (2014: $3.5 million). This increase in operating expenses was primarily driven by additional marketing costs related to the Vamousse head lice treatment and shampoo sales offset by reductions to research and development expenses. Operating expenses for the six months included non-cash equity compensation of $0.1 million (2014: $0.1 million) and depreciation of $0.1 million (2014: $0.1 million).

Liquidity and cash flow

Cash used in operations for the period was $0.9 million compared to $3.2 million in the first half of 2014, a $2.3 million decrease from the first half of 2014. This decrease in cash used in operations is primarily due to an increase in product revenue sales in the first half of 2015, coupled with more efficient management of working capital. There is also a seasonal component to the Company's product sales which can impact liquidity. There was no sale of common stock in the period (2014: $2.9 million) and the Company currently has no committed external source of funds.

Based on the Company's existing cash, its current operating plans, anticipated revenues from product sales and collaborative arrangements, and the ability to control costs, the Company's revised forecasts indicate that it will have sufficient cash resources for at least the next twelve months. However, with new products and distribution channels, there is always uncertainty as to the speed and level of market penetration and if these forecasts prove inaccurate the Company may need to initiate actions to raise additional finance.

The Company invests its cash resources in deposits with banks with the highest credit ratings, putting security before absolute levels of return.

Barry M. Riley

Acting Chief Financial Officer

24 September 2015

 
 TYRATECH, INC. 
 Consolidated Statements of Operations 
  in $000's 
 
                                                   (Unaudited)             (Unaudited) 
                                                    six months              six months 
                                                         ended                   ended                      year ended 
                                                       30 June                 30 June                     31 December 
                                                          2015                    2014                            2014 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
 Gross revenue: 
       Product                                         $ 3,283                   $ 887                         $ 2,836 
       Collaborative                                       167                     393                           2,097 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
           Total gross revenue                           3,450                   1,280                           4,933 
           Less: sales, discounts, 
            returns, 
            and allowances                                 394                       -                             215 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
           Total net revenue                             3,056                   1,280                           4,718 
 Cost of revenue: 
       Product                                             912                     301                             940 
       Collaborative                                       115                     142                             242 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
           Total cost of revenue                         1,027                     443                           1,182 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
 Gross profit                                            2,029                     837                           3,536 
 Costs and expenses: 
       General and administrative                        1,823                   1,591                           3,558 
       Business development                              1,367                   1,073                           3,357 
       Research and development                            534                     804                           1,603 
           Total costs and expenses                      3,724                   3,468                           8,518 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
           Loss from operations                        (1,695)                 (2,631)                         (4,982) 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
 Other income (expense): 
       Other income (expense)                                9                    (25)                               1 
       Gain on partial sale of 
        Envance 
        ownership                                          125 
       Net loss (from unconsolidated 
        subsidiary)                                          -                       -                           (300) 
       Change in fair value of 
        warrant 
        liabilities                                         23                   (450)                             187 
                                                                ---------------------- 
           Total other income 
            (expense)                                      157                   (475)                           (112) 

(MORE TO FOLLOW) Dow Jones Newswires

September 24, 2015 02:00 ET (06:00 GMT)

-------------------------------------  -----------------------  ----------------------  ------------------------------ 
           Loss before income taxes                    (1,538)                 (3,106)                         (5,094) 
           Income tax expense                                -                       -                               - 
           Net loss                                  $ (1,538)               $ (3,106)                       $ (5,094) 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
 Net loss per common share 
       Basic and diluted                              $ (0.01)                $ (0.02)                        $ (0.03) 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
 Weighted average number of 
  common shares (000's) 
       Basic and diluted                               261,239                 194,341                         207,232 
-------------------------------------  -----------------------  ----------------------  ------------------------------ 
 
 The accompanying notes are an integral part 
  of these consolidated financial statements. 
 
 
 TYRATECH, INC. 
 Consolidated Balance Sheets 
 in $000's 
                                                       (Unaudited)               (Unaudited) 
                                                        six months                six months                      year 
                                                             ended                     ended                     ended 
                                                           30 June                   30 June               31 December 
                                                              2015                      2014                      2014 
----------------------------------------  ------------------------  ------------------------  ------------------------ 
 ASSETS 
 Current assets 
       Cash and cash equivalents                           $ 1,331                     $ 576                   $ 2,212 
       Accounts receivable                                     781                       621                       909 
       Inventory                                               810                       267                       925 
       Prepaid expenses                                        211                       123                       191 
----------------------------------------  ------------------------  ------------------------  ------------------------ 
           Total current assets                              3,133                     1,587                     4,237 
 
 Property and equipment, 
  net of accumulated depreciation                               23                       126                        84 
 Long term deposits                                             69                        66                        69 
           Total assets                                      3,225                     1,779                     4,390 
----------------------------------------  ------------------------  ------------------------  ------------------------ 
 
                                     LIABILITIES AND SHAREHOLDERS' 
                                                  EQUITY (DEFICIT) 
 Current liabilities 
       Accounts payable                                      1,106                       436                       971 
       Accrued liabilities                                     889                       563                       664 
       Liability for warrants                                    -                       660                        23 
       Deferred revenue                                         70                       501                        72 
----------------------------------------  ------------------------  ------------------------  ------------------------ 
           Total current liabilities                         2,065                     2,160                     1,730 
 
 Deferred revenue and other 
  long-term liabilities                                         55                     1,130                        89 
           Total liabilities                                 2,120                     3,290                     1,819 
----------------------------------------  ------------------------  ------------------------  ------------------------ 
 
 
 Shareholders' equity (deficit) 
       Common stock, at $0.001 
        par authorized 380 million; 
        262.3 million shares issued, 
        261.2 million shares outstanding 
        (30 June 2014: 195.4 million 
        shares issued, 194.3 million 
        shares outstanding)                                    261                       205                       261 
       Additional paid in capital                           87,413                    81,329                    87,341 
       Accumulated deficit                                (86,458)                  (82,932)                  (84,920) 
       Accumulated other comprehensive 
        income                                                   2                         -                         2 
       Treasury stock of 1.1 
        million shares (2014: 
        1.1 million shares)                                  (108)                     (108)                     (108) 
           Total shareholders' equity 
            (deficit)                                        1,110                   (1,506)                     2,576 
----------------------------------------  ------------------------  ------------------------  ------------------------ 
           Non-controlling interest                            (5)                       (5)                       (5) 
           Total shareholders' equity 
            (deficit)                                        1,105                   (1,511)                     2,571 
           Total liabilities & 
            shareholders' 
            equity                                         $ 3,225                   $ 1,779                   $ 4,390 
----------------------------------------  ------------------------  ------------------------  ------------------------ 
 
 The accompanying notes are an integral 
  part of these consolidated financial 
  statements. 
 
 
 TYRATECH, INC. 
 Consolidated Statements of Cash Flows 
 Six months ended 30 June 2015 and 2014 
 in $000's 
 
                                                     (Unaudited)                (Unaudited) 
                                                      six months                 six months                      year 
                                                           ended                      ended                     ended 
                                                         30 June                    30 June               31 December 
                                                            2015                       2014                      2014 
--------------------------------------  ------------------------  -------------------------  ------------------------ 
 Cash flows from operating 
  activities: 
 Net loss                                              $ (1,538)                  $ (3,106)                 $ (5,094) 
 Adjustments to reconcile 
  net loss to net cash used 
  in operating activities: 
       Depreciation                                           47                         49                        96 
       Amortisation of stock awards                           72                         71                       152 
       Change in fair value of 
        warrant liability                                   (23)                        450                     (187) 
       Loss on sale of fixed assets                           16                          -                         - 
       Net loss from unconsolidated 
        subsidiary                                             -                          -                       300 
 Changes in operating assets 
  and liabilities: 
       Accounts receivable                                   128                      (536)                     (824) 
       Inventory                                             115                      (204)                     (862) 
       Prepaid expenses and long-term 
        deposits                                            (20)                         27                      (45) 
       Accounts payable and accrued 
        liabilities                                          360                        337                       973 
       Deferred revenue and other 
        long-term liabilities                               (36)                      (251)                   (1,721) 
--------------------------------------  ------------------------  -------------------------  ------------------------ 
 Net cash used in operating 
  activities                                               (879)                    (3,163)                   (7,212) 
--------------------------------------  ------------------------  -------------------------  ------------------------ 
 Cash flows from investing 
  activities: 
       Purchase of property and 
        equipment                                            (2)                        (8)                      (12) 
       Investment in unconsolidated 
        subsidiary                                             -                          -                     (300) 
 Net cash used in investing 
  activities                                                 (2)                        (8)                     (312) 
--------------------------------------  ------------------------  -------------------------  ------------------------ 
 Cash flows from financing 
  activities: 
       Net proceeds from sale 
        of common stock                                        -                      2,874                     8,150 

(MORE TO FOLLOW) Dow Jones Newswires

September 24, 2015 02:00 ET (06:00 GMT)

       Equity warrants issued                                  -                          -                       210 
       Exercise of SARS                                        -                          -                         1 
       Exercise of warrants                                    -                          -                       500 
 Net cash provided by financing 
  activities                                                   -                      2,874                     8,861 
--------------------------------------  ------------------------  -------------------------  ------------------------ 
 Net increase (decrease) 
  in cash                                                  (881)                      (297)                     1,337 
 Cash and cash equivalents, 
  beginning of the period                                  2,212                        873                       873 
 Accumulated other comprehensive 
  income                                                       -                          -                         2 
 Cash and cash equivalents, 
  end of the period                                      $ 1,331                      $ 576                   $ 2,212 
--------------------------------------  ------------------------  -------------------------  ------------------------ 
 
 The accompanying notes are an integral 
  part of these consolidated financial 
  statements. 
 

Notes to the Interim Consolidated Financial Statements

   1.    Basis of Preparation 

The financial statements of TyraTech, Inc. (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and the attached financial statements have been prepared on a consolidated basis.

The Company holds a 13.33% share of an unconsolidated jointly owned enterprise (Envance Technologies, LLC.) with AMVAC Chemical Corporation, a wholly owned subsidiary of American Vanguard Corporation. This unconsolidated entity is accounted for under the equity method of accounting. In 2013, the Company's investment in Envance was reduced to zero and the equity method was suspended.

The results for the year ended 31 December 2014 have been extracted from the consolidated financial statements of TyraTech, Inc. for the year ended 31 December 2014 which were prepared in accordance with US GAAP.

The unaudited interim consolidated financial statements for the six months ended 30 June 2015 and 2014 were prepared on the basis of the accounting policies set out in the most recently published consolidated financial statements of the Company for the year ended 31 December 2014. As permitted, this interim report has been prepared in accordance with AIM rules. Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been omitted pursuant to the AIM's rules and regulations for interim reporting. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended 31 December 2014.

   2.    Liquidity and Capital Resources 

At 30 June 2015 the Company had $1.3 million (30 June 2014: $0.6 million, 31 December 2014: $2.2 million) in cash and cash equivalents and no indebtedness.

The Company has had significant negative cash flows from operating activities since inception. The Company is continuing to manage these negative operating cash flows through product sales expansion. The Company believes that with the existing cash on hand, cash expected from product sales and collaborative arrangements, and a continued focus on cost control the Company will have sufficient cash to meet its working capital needs for the remainder of 2015 and at least twelve months from the date of the approval of these Financial Statements. For this reason, the Directors consider it appropriate to continue to prepare the Statements on the going concern basis. However, there can be no assurance that the anticipated revenues or cost control initiatives will materialize, in which case the Company would need to finance its cash requirements through additional equity offerings, debt financing, further collaborations or licensing transactions. Currently, the Company has no committed external source of funds, and any additional financing may not be available on acceptable terms, if at all.

   3.    Loss per Common Stock 

The calculation of the basic and diluted earnings per ordinary share outstanding is based on the Company's loss, excluding the effect of losses attributable to non-controlling interests, of $1.5 million for the six months ended 30 June 2015 (six months ended 30 June 2014: loss of $3.1 million; year ended 31 December 2014: loss of $5.1 million), on 261,238,655 (30 June 2014: 194,341,270; 31 December 2014: 207,231,819) common shares, the weighted average number in issue and ranking for dividend during the period. There is no impact considered on the conversion of stock options or warrants as the effect would be anti-dilutive.

   4.    Movement in Shareholders' Equity during the six months ended 30 June 2015 
 
 TYRATECH, INC. 
 Consolidated Statements of Shareholders' Equity (Deficit) 
 Six months ended 30 June 2015 and 2014 
 in $000's 
 
                               Common      Additional       Accumulated      Treasury   Non-controlling            Accumulated             Total 
                                Stock         Paid-in           deficit         Stock          Interest    Other Comprehensive            Equity 
                                              Capital                                                                   Income         (Deficit) 
 Balances as of 30 
  June 
  2014                          $ 205        $ 81,329        $ (82,932)       $ (108)             $ (5)                    $ -         $ (1,511) 
---------------------  --------------  --------------  ----------------  ------------  ----------------  ---------------------  ---------------- 
       Proceeds from 
        issuance 
        of common 
        stock, net of 
        expenses                   50           5,226                 -             -                 -                      -             5,276 
       Equity 
        warrants 
        issued 
        (also reduces 
        proceeds 
        above)                                    210                                                                                        210 
     Exercise of 
      AMVAC warrants                6             494                                                                                        500 
     Exercise of SARS                               1                                                                                          1 
       Stock based 
        compensation 
        - SARS                                     81                                                                                         81 
       Foreign 
        currency 
        translation                 -               -                 -             -                 -                      2                 2 
       Consolidated 
        net loss                    -               -           (1,988)             -                 -                                  (1,988) 
 Balances as of 31 
  December 
  2014                          $ 261        $ 87,341        $ (84,920)       $ (108)             $ (5)                    $ 2           $ 2,571 
---------------------  --------------  --------------  ----------------  ------------  ----------------  ---------------------  ---------------- 
       Stock based 
        compensation 
        - SARS                      -              72                 -             -                 -                      -                72 
       Consolidated 
        net loss                    -               -           (1,538)             -                 -                      -           (1,538) 
 Balances as of 30 
  June 
  2015                          $ 261        $ 87,413        $ (86,458)       $ (108)             $ (5)                    $ 2           $ 1,105 
---------------------  --------------  --------------  ----------------  ------------  ----------------  ---------------------  ---------------- 
 
 The accompanying notes are an integral part of these 
  consolidated financial statements. 
 
   5.    Envance Technologies, LLC 

The Company accounts for its investment in Envance using the equity method of accounting. In 2013, the Company's investment in Envance was reduced from $0.4 million to zero and the equity method was suspended. No additional losses will be recorded until either the Company contributes additional capital or Envance records net income equal to the share of net losses not recognized during the period in which the equity method was suspended. As of 30 June 2015, the Company's inception to date investment loss in Envance is $1.4 million, $0.7 million of which is reflected in the Company's 2013 and 2014 Consolidated Statements of Operations. If Envance subsequently reports net income, the Company will resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended. For the period ended June 30, 2015, the Company's share of Envance net losses not recognized was $0.1 million.

In April 2015, the Company and AMVAC announced that they had updated their commercial relationship and amended the Limited Liability Company Agreement (the "Amendment") relating to Envance. As a result, TyraTech received approximately $500,000 in cash in repayment of loans and consideration.

(MORE TO FOLLOW) Dow Jones Newswires

September 24, 2015 02:00 ET (06:00 GMT)

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