VISIBLE GENETICS INC.
CONSOLIDATED BALANCE SHEETS
( UNITED STATES DOLLARS)
DECEMBER 31 DECEMBER 31
2001 2000
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 15,502,095 $ 18,476,303
Short-term investments 37,692,756 61,922,687
Trade receivables, net of allowance for doubtful accounts 3,136,754 3,214,934
Other receivables 437,888 884,995
Prepaid and deposits 392,454 452,124
Inventory 2,756,950 2,268,877
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TOTAL CURRENT ASSETS 59,918,897 87,219,920
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FIXED ASSETS 18,656,995 10,292,282
PATENTS AND LICENSES 14,336,439 12,182,112
OTHER LONG TERM ASSETS 456,744 481,383
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$ 93,369,075 $ 110,175,697
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LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 3,851,701 $ 3,847,364
Accrued liabilities 5,081,814 5,265,864
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TOTAL CURRENT LIABILITIES 8,933,515 9,113,228
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MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED SHARES 26,886,004 24,397,398
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SHAREHOLDERS' EQUITY
Share capital 195,408,884 169,717,379
Other equity - -
Cumulative translation adjustment (1,018,839) (1,013,459)
Deficit (136,840,489) (92,038,849)
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57,549,556 76,665,071
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$ 93,369,075 $ 110,175,697
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNITED STATES DOLLARS)
THREE MONTHS ENDED DECEMBER 31 YEARS ENDED DECEMBER 31
2001 2000 2001 2000
---- ---- ---- ----
(UNAUDITED) (UNAUDITED)
SALES
Products $ 3,143,481 $ 2,984,628 $ 13,330,346 $ 12,659,783
Services 47,286 27,926 249,568 412,780
---------------- ---------------- --------------- ---------------
3,190,767 3,012,554 13,579,914 13,072,563
---------------- ---------------- --------------- ---------------
COST OF SALES
Products 2,537,497 2,551,490 9,789,570 9,815,741
Services 36,115 18,042 208,207 317,748
---------------- ---------------- --------------- ---------------
2,573,612 2,569,532 9,997,777 10,133,489
---------------- ---------------- --------------- ---------------
GROSS MARGIN 617,155 443,022 3,582,137 2,939,074
EXPENSES
Sales, general and administrative 8,980,419 8,429,225 33,986,435 28,570,747
Research and development 2,879,634 2,747,080 10,834,731 10,606,516
Exit and termination costs - - 1,920,000 -
---------------- ---------------- --------------- ---------------
11,860,053 11,176,305 46,741,166 39,177,263
---------------- ---------------- --------------- ---------------
LOSS FROM OPERATIONS BEFORE INTEREST (11,242,898) (10,733,283) (43,159,029) (36,238,189)
Interest income 223,656 1,176,319 2,513,697 4,480,589
Interest and financing expense (699) (7,412) (8,402) (16,536)
---------------- ---------------- --------------- ---------------
NET LOSS FOR THE PERIOD (11,019,941) (9,564,376) (40,653,734) (31,774,136)
Cumulative preferred dividends and accretion
of discount attributable to preferred shares (887,905) (850,221) (3,426,827) (3,656,355)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (11,907,846) $ (10,414,597) $ (44,080,561) $ (35,430,491)
---------------- ---------------- --------------- ---------------
Weighted average number of common
shares outstanding 16,775,455 16,229,554 16,481,916 14,612,172
BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.71) $ (0.65) $ (2.67) $ (2.42)
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNITED STATES DOLLARS)
YEARS ENDED DECEMBER 31
2001 2000
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CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net loss for the period $ (40,653,734) $ (31,774,136)
Add: Items not involving cash -
Depreciation 4,651,803 3,078,551
Amortization 3,069,946 2,211,253
Patents and licences written off 65,014 142,165
Foreign exchange 13,903 (163,252)
Increase ( decrease ) from changes in -
Trade receivables 47,568 2,436,001
Other receivables 418,349 (267,177)
Prepaids and deposits 55,530 (19,863)
Inventory (486,797) 219,221
Other long-term assets 24,639 (188,979)
Accounts payable 50,497 789,233
Accured liabilities (77,522) 1,783,467
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(32,820,804) (21,753,516)
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CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
Purchase of fixed assets (13,192,037) (9,269,045)
Licenses and patents acquired (5,289,287) (12,413,163)
Purchase of short-term investments (116,002,357) (356,812,514)
Redemption of short-term investments 140,232,288 334,784,805
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5,748,607 (43,709,917)
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CASH PROVIDED BY FINANCING ACTIVITIES
Common shares issued, net of expenses 24,026,825 80,929,608
--------------- ---------------
24,026,825 80,929,608
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EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH BALANCES 71,164 217,143
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INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS,
DURING THE YEAR (2,974,208) 15,683,318
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 18,476,303 2,792,985
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CASH AND CASH EQUIVALENTS, END OF YEAR $ 15,502,095 $ 18,476,303
=============== ===============
SUPPLEMENTAL INFORMATION
Interest paid $ 8,402 $ 16,536
Income taxes paid $ - $ -
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNITED STATES DOLLARS)
YEARS ENDED DECEMBER 31
2001 2000
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Net loss for the period $ (40,653,734) $ (31,774,136)
Other comprehensive income:
Foreign currency translation adjustments (5,380) (393,548)
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Comprehensive loss for the period $ (40,659,114) $ (32,167,684)
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF DEFICIT
(UNITED STATES DOLLARS)
YEARS ENDED DECEMBER 31
2001 2000
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Deficit, beginning of year $ (92,038,849) $ (59,438,142)
Net loss for the period (40,653,734) (31,774,136)
Cumulative preferred dividends and
accretion of discount attributable to
preferred shares (4,147,906) (826,571)
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Deficit, end of the period $ (136,840,489) $ (92,038,849)
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