TyraTech : Final Results

TyraTech, Inc. (AIM: TYR and TYRU), a life sciences company focusing on nature-derived insect and parasite control products, today announced its final results for the year ended 31 December 2014.

Operational Highlights

• Achieved nationwide distribution of Vamousse Lice Treatment with Walmart in the USA, as well as with Amazon.com, Walmart.com and Drugstore.com
• Expanded distribution of Vamousse Lice Treatment in the USA with McKesson, and independent pharmacy retailers, including Rochester Drug, Lewis Drug and Bartell Drug
• Guardian personal mosquito and tick repellent available online with Amazon.com in the USA
• Established a UK branch and engaged specialist healthcare marketing firm to handle all marketing, commercialisation and logistics in the UK
• Launched Vamousse Lice Treatment in Boots and Tesco stores and in Superdrug, Rowlands and Sainsbury's stores where we also launched Vamousse Lice Protection Shampoo in the UK
• Received nine new patents from the United States and international patent offices for the Company's novel pest control compositions

Financial Highlights

• Overall gross revenue for 2014 was $4.9 million, a 250 percent year-over-year increase
• Total gross product revenue in initial product launch year was $2.8 million
• Overall gross margin was 74.9 percent
• Product gross margin was 64.1 percent
• Operating expenses of $8.5 million reflect product launch activities in both the USA and UK
• Net loss, before and after taxes, was $5.1 million
• Cash and cash equivalents at 31 December 2014 were $2.2 million
• Received $8.9 million in net proceeds from stock issuances

Post Period Highlights

• Vamousse Lice Protection Shampoo available at Walmart stores nationwide in the USA
• Vamousse Lice Treatment listed with Walgreens and CVS Pharmacy Group in the USA
• Vamousse products available with the three biggest distributors of pharmaceutical products in the USA: McKesson, AmerisourceBergen and Cardinal Health
• Listing of Vamousse Lice Treatment and Vamousse Lice Protection Shampoo products with Lloyds Pharmacy and Day Lewis Pharmacy in the UK
• Distribution agreement with SmartPak Equine to launch OutSmart Fly Spray, the first TyraTech product to be used on animals

Current Trading, Outlook and Cash

The combination of the launch of Vamousse Protection Shampoo in Walmart and a number of new distribution arrangements in both the US, including CVS and Walgreens and the UK has contributed to a positive start to 2015, with year-to-date revenue being in line with management's expectations.

It is worth noting, however, that the sale of head-lice products, which account for a significant proportion of the Company's current turnover levels, is a seasonal business and, as a result, the Company's full year outcome will be heavily weighted to the level of Vamousse sales achieved in the second half of the year, which includes the traditional back to school period. That aside, and notwithstanding the lack of prior year sales data to assist with budgeting, management is confident that the commercial achievements of the first half of the year puts TyraTech in a strong position to address the market demand in the high head lice season which occurs in the second half of the year.

Whilst we continue to incur costs for the onboarding and integration associated with establishing and maintaining major retail customer relationships, the Company is extremely focused on cash preservation and optimisation. Subsequent to year end, the Company received approximately $0.5 million in repayment of loans and consideration relating to the renegotiation of the shareholding structure of Envance, the Company's joint venture with AMVAC. Based upon the Company's existing cash and cash equivalents, its current operating plans and anticipated revenues from product sales and other collaborative arrangements, and the ability to control costs as a result of the Company's cost minimisation program, the Company believes it will have sufficient cash to meet its working capital needs for the foreseeable future.

Bruno Jactel, CEO of TyraTech, commented: "During the course of the last eighteen months, we are very pleased to have significantly expanded distribution for Vamousse Treatment in both the USA and the UK. In addition, we have successfully launched Vamousse Protection Shampoo with a number of major mass retail and pharmacy groups in both territories.

Furthermore, Guardian personal mosquito and tick repellent is available online and is building a strong core of loyal and enthusiastic customers. We have also launched OutSmart, an equine fly repellent product, with our partner SmartPak.

Through all of these successes, we have demonstrated the strength of our technology in different market segments, the breadth of our product portfolio, and the agility of our business model. We believe that the medium term outlook for the Company is strong as our technology continues to be commercialised into new products and geographies."

Extracts of the audited final results appear below and the Company's Annual Report and Notice of AGM will be posted to shareholders on 29 June 2015 and made available on the Company's website, www.tyratech.com, shortly.

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