Plant commissioning and start-up (income) expenses were ($390,397) in Q2 2013, versus $1,884,268 in Q2 2012, with the lower amount resulting various factors. As a result of the previously noted reduction in crushing operations, and the fact that the Company did not generate significant oil and meal revenue during the second quarter, the Company presented a portion of fixed and variable crushing operational costs as a component of plant commissioning and start-up expenses. On May 24, 2013, the Company ceased production at the plant. The Company also accrued a SR&ED credit receivable in the amount of $772,091 which has been presented as a reduction of plant commissioning and start-up (income) expenses for the three months ended June 30, 2013.
Net Finance Costs in Q2 2013 were $1,923,291 versus $232,878 in Q2 2012. The higher amount versus the comparable prior periods is due primarily to the Company's adoption of the liquidation basis of accounting which requires that the Company present the loans and borrowings at fair market value. As a result, the Company recorded the full balance of the accretion relating to the outstanding debts to present them at their fair market value, as disclosed in Note 9 to the Unaudited Condensed Interim Consolidated Financial Statements for the three and six months ended June 30, 2013.
The Net Loss for the quarter was $8,479,078, versus $3,856,763 in Q2 2012. The significant variance in losses compared to Q2 2012 reflects primarily the impairment provisions taken during the quarter, as well as the cumulative impact of the Company's ongoing cost reduction efforts and reduced scale of interim operations. Adjusting for the Impairment and other (income) expenses and the net financing costs, the respective net losses are $759,219 versus $3,688,373 in Q2 2012.
Working Capital and Liquidity
As at June 30, 2013, current assets were $12,519,472, including cash and cash equivalents of $515,644. Against current liabilities of $15,408,219, this results in negative net working capital of ($2,888,747), primarily due to the inclusion of the assets held for sale and the fair value of loans and borrowings as current assets and liabilities, respectively. This compares to current assets of $3,321,747 and negative net working capital of ($4,801,379) as at December 31, 2012.
Changes to Board of Directors
William Ollerhead has resigned as Chairman and a Director of the Company. John MacDonald, a Board member since 2008, has been appointed Chairman of the Board of Directors.
About BioExx Specialty Proteins Ltd.
Headquartered in Toronto, Canada, BioExx is focused on the separation of oil and high-value proteins from oilseeds for global food, beverage, nutrition, and other markets. BioExx employs trade secret, patented and patent-pending technologies to enable the improved separation of proteins from oilseeds. BioExx believes that these processes cumulatively have the potential to make a valuable contribution to global food and protein supply while maintaining an environmentally sustainable footprint.
To find out more about BioExx Specialty Proteins Ltd. (TSX: BXI), please visit www.bioexx.com.
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for BioExx's products, the availability of funding, the efficacy of its technology, and the anticipated costs of BioExx's plant construction and operation. Furthermore, there can be no guarantees that any agreement will be signed with a strategic partner. These forward-looking statements are made as of the date hereof and BioExx does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from BioExx's expectations and projections.
BioExx Specialty Proteins Ltd.
Chief Executive Officer
(416) 588-4442 x111
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