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					                                  FIRST QUARTER REPORT 2005

(Oslo, 3 May 2005) Nutri Pharma ASA (OSE: NUT) today announced that its loss for the first 3
months of 2005 was NOK -2,6 million compared to a loss of NOK -3,2 million in the first quarter of
2004. Revenues declined from NOK 1.2 million in the first quarter of 2004 to NOK 1.0 million in the
first quarter of 2005. All pre-launch activities related to the launch of Nutri Pro in Russia have been
expensed, with a total of NOK 2,2 million in 2004 and NOK 0,8 million in the first quarter of 2005.

(Amount in NOK 000)                                    Q1 2005               Q1 2004         Fin year 2004
Total revenue                                            1 031                 1 176                 4 634
Total operating expenses                                 3 644                 4 523                16 253
Result of operations                                    -2 613                -3 347               -11 619
Financial income                                            56                   123                   353
Profit/(loss) before taxes                              -2 557                -3 224               -11 266
Tax on ordinary result
Profit/(loss) for the period                             -2 557                 -3 224                -11 266
EPS (NOK)                                                 -0.04                  -0.04                  -0.15

(Amount in NOK 000)                           31 March 2005         31 March 2004              31 Dec 2004
Total non-current assets                              8 016                10 774                    8 378
Total current assets                                 15 576                24 622                   18 758
Total assets                                         23 592                35 396                   27 136
Total equity                                         22 724                32 659                   25 226
Total liabilities                                       868                 2 737                    1 910
Total equity and liabilities                         23 592                35 396                   27 136

Transition to IFRS
Nutri Pharma will be reporting its financial results and financial position in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union from 1 January 2005. As an attachment
to this report, Nutri Pharma presents and explains the transition from Norwegian Generally Accepted
Accounting Practice (N GAAP) to IFRS. Nutri Pharma has prepared an opening balance sheet at the date of the
transition, which is 1 January 2004. The interim reports and the annual accounts for 2005 will be prepared in
accordance with IFRS and include comparative information for 2004.

The financial impact of the transition is limited and the only adjustment with impact on result for financial year
2004 is a de-recognition of an accrual of NOK 0,5 million.


First Quarter 2005 Accounts
Nutri Pharma had royalty revenues of NOK 1.0 million in Q1 2005, down from NOK 1.2 million in Q1 the
previous year.

Operating expenses decreased from NOK 4.5 million to NOK 3,6 million. The Company has from 1
January 2005 reassessed the estimated economic life of the Royalty Right with Collett Pharma and adopted
a depreciation period of 18 years (linear depreciation profile). The operating result improved from a loss of
NOK -3.3 million in Q1 2004 to a loss of NOK -2,6 million in Q1 2005. Interest income declined from
NOK 0.1 million to NOK 0.06 million. The net loss for Q1 2005 was NOK -2,5 million compared to a loss

Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.             Page 1
of NOK -3,2 million in Q1 2004.

Cash and other liquid assets were NOK 13,5 million as of March 31 2005 compared to NOK 17.7 million
as of December 31 2004.


Commercial Update

Nordic - Nutrilett®
Sales of Nutrilett® in the Nordic countries during Q1 2005 amounted to NOK 24.2 million compared to
NOK 24.5 million in Q1 2004, a decrease of 1%. As previously announced, Ferd Private Equity acquired
the consumer health division of Nycomed, Collett Pharma AS, where Nutrilett is one of the core brands, in
December 2003.

Norway – Vita Hjertego
The product is a niche product in the small Norwegian market and has only generated limited royalty
revenue for Nutri Pharma in Q1.

UK – Burgen Cholessterol
As previously announced, the revenue impact for Nutri Pharma is limited.


Outlook
Nutri Pro (Nutrilett in the Nordic countries) was launched in Russia 9 April. Total number of members are
approx. 120.000 (10-15% are active). More than 1000 of these members were present at the launch. All of
these have bought Nutri Pro. Next such event will be 9/10 July in Moscow. We expect > 5.000 people from
Russia and the CIS countries to attend.



Oslo, 3 May 2005
The Board of Directors of Nutri Pharma ASA



FOR FURTHER INFORMATION:
Trond Syvertsen, CEO     +47 23 31 08 80


For information about Nutri Pharma, Nutri Pharma products, Nutri Pharma management and Nutri Pharma
financial performance, please point your web browser to: www.nutripharma.com




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.   Page 2
Nutri Pharma Consolidated
Income statement
(Figures in NOK 000)                          Q1 2005 Q1 2004                 2004        Q1 2004        2004
                                                  IFRS       IFRS            IFRS         NGAAP       NGAAP



Royalty revenue                                  1 031       1 176           4 634           1 176      4 634

Personnel costs                                    592       1 291          5 921            1 291      5 921
Depreciation and amortization                      363         796          3 182              796      3 182
Other operating expenses                         2 689       2 436          7 150            2 473      6 593
Total operating expenses                         3 644       4 523         16 253            4 560     15 696

Result of operations                           (2 613)     (3 347)       (11 619)          (3 384)    (11 062)

Financial income                                     56        123             353             160        335

Profit before tax                              (2 557)     (3 224)       (11 266)          (3 224)    (10 727)

Income tax expense/(income)                            -          -               -               -          -

Profit for the period                          (2 557)     (3 224)       (11 266)          (3 224)    (10 727)




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.              Page 3
Nutri Pharma Consolidated
Balance sheet
(Figures in NOK 000)                        31 March      31 March       31 December         31 March   31 December
                                                2005          2004              2004             2004          2004
                                                IFRS          IFRS               IFRS        NGAAP         NGAAP
ASSETS
Non-current assets
Patent and royalty assets                      8 016        10 765              8 378          10 765        8 378
Shares and other investments                       -             6                  -               6           -
Other non-current receivables                      -             3                  -               3           -
Total Non-current assets                       8 016        10 774              8 378          10 774        8 378

Current assets
Trade receivables                                709           889                645             889          645
Other current receivables                      1 354           691                379             691          379
Short term securities                         12 177        15 519             16 423          15 519       16 423
Cash and cash equivalents                      1 336         7 523              1 311           7 523        1 311
Total current assets                          15 576        24 622             18 758          24 622       18 758

Total assets                                  23 592        35 396             27 136          35 396       27 136

EQUITY
Capital and reserves attributable
to the company’s equity holders
Share capital                                19 668          19 68            19 668          19 668       19 668
Treasury shares                              (1 625)       (1 700)            (1 625)         (1 700)      (1 625)
Retained earnings                              4 253       14 312               6 810         13 822         7 641
Cumulative translation
adjustment                                       428           379                373                        (788)
Total equity                                  22 724        32 659             25 226          31 790       24 896

LIABILITIES
Current liabilities
Trade and other payables                         477           878                 27             878           27
Payroll tax, VAT, social tax etc                  98           311                300             311          300
Provisions and other liabilities                 293         1 548              1 583           2 417        1 913
Total current liabilities                        868         2 737              1 910           3 606        2 240

Total equity and liabilities                  23 592        35 396             27 136          35 396       27 136




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.           Page 4
Nutri Pharma Consolidated
Cash Flow statement
(Figures in NOK 000)                               Q1 2005      Q1 2004                2004       Q1 2004      2004
                                                     IFRS         IFRS                IFRS        NGAAP      NGAAP


Net cash flow from operations                      (4 221)      (1 450)         (7 620)           (1 450)    (7 620)
Net cash flow from investments                       4 246      (1 506)          (2 304)          (1 506)    (2 304)
Net cash flow from financing                           -          (756)               -             (756)         -
Net change in liquid funds                              25      (3 712)          (9 924)          (3 712)    (9 924)
Liquid funds at the beginning of period              1 311       11 235           11 235           11 235     11 235
Liquid funds at the end of period                    1 336        7 523            1 311            7 523      1 311



Nutri Pharma Consolidated
Equity reconciliation

31 March 2004
(Figures in NOK 000)                       Share         Treasury         Retained       Accumulated        Total
                                           capital        shares          Earnings        translation
                                                                                          differences
Equity at 1 January 2004                      19 668         (1 700)         17 536                          35 504
Result for the period                                                       (3 224)                          (3 224)
Foreign currency translation                                                                      379           379
Equity 31 March 2004                          19 668         (1 700)        14 312                379        32 659



31 December 2004
(Figures in NOK 000)                       Share         Treasury         Retained       Accumulated        Total
                                           capital        shares          Earnings        translation
                                                                                          differences
Equity at 1 January 2004                      19 668         (1 700)         17 536                          35 504
Sale of own shares                                               75            540                              615
Result for the period                                                      (11 266)                         (11 266)
Foreign currency translation                                                                      373           373
Equity 31 December 2004                       19 668         (1 625)         6 810                373        25 226



31 March 2005
(Figures in NOK 000)                       Share         Treasury         Retained       Accumulated        Total
                                           capital        shares          Earnings        translation
                                                                                          differences
Equity at 31 December 2004                    19 668         (1 625)         6 810                373        25 226
Result for the period                                                       (2 557)                          (2 557)
Foreign currency translation                                                                       55            55
Equity 31 March 2005                          19 668         (1 625)         4 253                428        22 724




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.            Page 5
                                       TRANSITION TO IFRS

Introduction

All listed companies within the European Union and the European Economic Area have to apply
International Financial Reporting Standards (IFRS) in their consolidated financial statements from 1
January 2005. As a consequence, Nutri Pharma will convert from Norwegian Generally Accepted
Accounting Principles (NGAAP) to IFRS with effect from the first quarter 2005. IFRS require companies
to disclose comparative figures for 2004 including opening balance sheet as of 1 January 2004. These
comparative figures are disclosed in this attachment to the first quarter report.

This document is an attachment to the first quarter report that describe the impact for Nutri Pharma when
moving from NGAAP to IFRS.

Section 1 of the attachment provides a description of IFRS 1, First-time Adoption of International Financial
Reporting Standards. It describes the different options regarding adoption of IFRS, and Nutri Pharmas
application of these options.

Section 2 includes Nutri Pharma’s accounting principals applicable under IFRS.

Section 3 provides the reconciliation tables as required by IFRS 1, including note disclosures describing
each material difference and financial statements in compliance with IFRS for the opening balance at 1
January 2004, ending balance at 31 December 2004 and specified for each quarter in 2004.

This document is based on Nutri Pharmas’s current interpretation of IFRS. The change in accounting
standards will, because of continuous development in interpretation of the standards, be associated with
some uncertainty. Therefore, changes might occur during the course of 2005 before the closing of the 2005
annual accounts. If changes should be necessary after the release of this transition document appropriate
additional information will be released.




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.   Page 6
Section 1

Basis for transition to IFRS (IFRS 1)



Application of IFRS 1
Nutri Pharma’s financial statements for the year ended 31 December 2005 will be the first annual
financial statements that comply with IFRS. The reconciliation of opening balance at 1 January 2004,
financial statement for 2004 and closing balance at 31 December 2004 included in section 3 in this
document have been prepared in accordance with the descriptions in section 1 and 2. The Group has
applied IFRS 1 in preparing these consolidated interim financial statements.


Nutri Pharmas transition date is 1 January 2004. The Group prepared its opening IFRS balance sheet
at that date. The reporting date of these interim consolidated financial statements is 31 March 2005.
The Group’s IFRS adoption date is 1 January 2005.


In preparing these interim consolidated financial statements in accordance with IFRS 1, the Group
has applied certain of the optional exemptions from full retrospective application of IFRS.


Optional exemptions from full retrospective application – elected by Nutri Pharma
The company has elected to apply the following optional exemptions from full retrospective
application.


(a) Business combinations exemption
Nutri Pharma has applied the business combinations exemption in IFRS 1. It has not restated business
combinations that took place prior to the 1 January 2004 transition date.


(b) Fair value as deemed cost exemption
Nutri Pharma has elected to continue with book values, and not use the exemption in IFRS 1 to
revaluate property, plant and equipment.


(c) Cumulative translation differences exemption
Nutri Pharma has elected to set the previously cumulative translation differences to zero at 1 January
2004. This exemption has been applied to all subsidiaries in accordance with IFRS 1. The application
of this exemption is detailed in Note (B) in section 3.


(d) Exemption from restatement of comparatives for IAS 32 and IAS 39.
Nutri Pharma applies this exemption. It applies NGAAP rules to the financial assets for the 2004
comparative information. From 1 January 2005 Nutri Pharma applies IAS 32 and IAS 39.


(e) Share-based payment transaction exemption
Nutri Pharma has at 1 January 2004 3.115.000 options outstanding. These were granted before date of
release of IFRS 2, Share-based Payment, at 7 November 2002 and the Company has chosen to apply the
exemption for retrospective application of IFRS 2.

Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.   Page 7
Basis of presentation
Under IFRS, the financial statements will include the following components:
        Income statement
        Balance sheet
        Statement of change in equity
        Cash flow statement
        Notes to the financial statements, including accounting principles


Unlike NGAAP the reconciliation of changes in equity has to be shown as a separate statement and
not as a note to the financial statement.


Under IFRS, comparative information is required for the preceding period only. During 2005, Nutri
Pharma will only present one year of comparatives.


Expenses can be presented either by the nature of expenses or by their function. The format that will
give the most relevant presentation of the entity’s performance should be chosen. Nutri Pharma has
chosen to present expenses by their nature, which involves limited change from the presentation
under NGAAP.


Basis of segmentation


IAS 14 requires segmental reporting on both a primary and secondary basis. Nutri Pharma has only
one product that is sold in one geographical market. No segmentation information is considered
necessary for the first quarter 2005.




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.   Page 8
Section 2


Summary of significant accounting policies


2.1 Basis of preparation
The interim consolidated financial statements of Nutri Pharma included in this document are for the
three months ended 31 March 2005. They have been prepared in accordance with IAS 34, Interim
Financial Reporting and are covered by IFRS 1, First-time Adoption of IFRS, because they are part of
the period covered by the Group’s first IFRS financial statements for the year ended 31 December
2005. These interim financial statements have been prepared in accordance with those IFRS standards
and IFRIC interpretations issued and effective or issued and early adopted as at the time of preparing
these statements (April/May 2005). The IFRS standards and IFRIC interpretations that will be
applicable at 31 December 2005, including those that will be applicable on an optional basis, are not
known with certainty at the time of preparing these interim financial statements.
The policies set out below have been consistently applied to all the years presented except for those
relating to the classification and measurement of financial instruments. The Group has made use of
the exemption available under IFRS 1 to only apply IAS 32 and IAS 39 from 1 January 2005.
Nutri Pharmas’ consolidated financial statements were prepared in accordance with Norwegian
Generally Accepted Accounting Practise (NGAAP) until 31 December 2004. NGAAP differs in some
areas from IFRS. In preparing Nutri Pharmas’ 2005 consolidated interim financial statements,
management has amended certain accounting, valuation and consolidation methods applied in the
NGAAP financial statements to comply with IFRS. The comparative figures in respect of 2004 were
restated to reflect these adjustments.
Reconciliations and descriptions of the effect of the transition from NGAAP to IFRS are provided in
section 3 in this document.
These consolidated interim financial statements have been prepared under the historical cost
convention, as modified by the revaluation of available-for-sale financial assets, and financial assets
and financial liabilities at fair value through profit or loss.


2.2 Consolidation
(a) Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to
govern the financial and operating policies generally accompanying a shareholding of more than one
half of the voting rights. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They
are de-consolidated from the date on which control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the
Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments
issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to
the acquisition.
Inter-company transactions, balances and unrealised gains on transactions between group companies
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Subsidiaries’ accounting policies have been changed where
necessary to ensure consistency with the policies adopted by the Group.




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.     Page 9
2.3 Segment reporting
A business segment is a group of assets and operations engaged in providing products or services that
are subject to risks and returns that are different from those of other business segments. A
geographical segment is engaged in providing products or services within a particular economic
environment that is subject to risks and returns that are different from those of segments operating in
other economic environments.


2.4 Foreign currency translation
(a) Functional and presentation currency
The consolidated financial statements are presented in NOK, which is the Company’s functional and
presentation currency.


(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at the year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the income statement.


(c) Group companies
The results and financial position of all group entities that have a functional currency different from
the presentation currency are translated into the presentation currency as follows:
(i) assets and liabilities for each balance sheet presented are translated at the closing rate at the date
of that balance sheet;
(ii) income and expenses for each income statement are translated at average exchange rates (unless
this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the
transaction dates, in which case income and expenses are translated at the dates of the transactions);
and
(iii) all resulting exchange differences are recognised as a separate component of equity (cumulative
translation adjustment).



2.5 Property, plant and equipment
All property, plant and equipment (PPE) is shown at cost less subsequent depreciation and
impairment. Cost includes expenditure that is directly attributable to the acquisition of the items.


Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to the income statement during the financial period in which they are incurred.


Depreciation on assets is calculated using the straight-line method to allocate the cost of each asset to
its residual value over its estimated useful life. The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is
written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.


Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.          Page 10
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in the income statement.


2.6 Intangible assets
(a) Patents and royalty rights
Patents and royalty rights are recognised at cost. They have a definite useful life and are carried at
cost less accumulated amortisation. Amortisation is calculated using the straight-line method to
allocate the cost of trademarks and licences over their estimated useful lives (9-20 years).


(b) Research and development
Research expenditure is recognised as an expense as incurred. Costs incurred on development
projects (relating to the design and testing of new or improved products) are recognised as intangible
assets when it is probable that the project will be a success, considering its commercial and
technological feasibility, and costs can be measured reliably. Other development expenditures are
recognised as an expense as incurred. Development costs previously recognised as an expense are not
recognised as an asset in a subsequent period. Development costs that have a finite useful life and that
have been capitalised are amortised from the commencement of the commercial production of the
product on a straight-line basis over the period of its expected benefit, not exceeding five years.


2.7 Investments
From 1 January 2004 to 31 December 2004;
See description of short term investments in the Annual report for 2004.


From 1 January 2005;
Nutri Pharma classifies its investments in the following categories: financial assets at fair value
through profit or loss, loans and receivables, held-to-maturity investments, and available-for-sale
financial assets. The classification depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at initial recognition and re-evaluates
this designation at every reporting date.
Nutri Pharma has a Money Market fund as the Group’s only financial assets; this is classified as a
financial asset at fair value and changes in the fair value is recognized as income or expenses in the
income statement.


2.8 Trade receivables
Trade receivables are recognised initially at fair value, usually nominal value. A provision for
impairment of trade receivables is established when there is objective evidence that the Group will
not be able to collect all amounts due according to the original terms of the receivables. The amount
of the provision is the difference between the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the effective interest rate. The amount of the provision is
recognised in the income statement.


2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less, and bank overdrafts.



Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.      Page 11
2.10 Share capital
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction from the proceeds, net of tax.


Treasury shares, the consideration paid, including any directly attributable incremental, is deducted
from equity attributable to the Company’s equity holders until the shares are cancelled, reissued or
disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of
any directly attributable incremental transaction costs and the related income tax effects, is included
in equity attributable to the Company’s equity holders.


2.11 Deferred income tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial
statements, and the tax loss carry forward. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the balance sheet date and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled.


Deferred income tax assets are recognised to the extent that it is probable that future taxable profit
will be available against which the temporary differences and tax loss carry forward can be utilised.


2.12 Employee benefits


Termination benefits are payable when employment is terminated before the normal retirement date,
or when an employee accepts voluntary redundancy in exchange for these benefits. The Group
recognises termination benefits when it is demonstrably committed to either: terminating the
employment of current employees according to a detailed formal plan without possibility of
withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary
redundancy.


2.13 Share based payments
IFRS 2 require that options rights granted to employees are charged against profit and loss at their fair
value at the allocation date. This is only mandatory for options plans granted after 7 November 2002.
Nutri Pharma has no plans granted after 7 November 2002 and has recognised their plans to the
intrinsic value at the time granted.


2.14 Provisions
Provisions for restructuring costs and legal claims are recognised when: the Group has a present legal
or constructive obligation as a result of past events; it is more likely than not that an outflow of
resources will be required to settle the obligation; and the amount has been reliably estimated.
Restructuring provisions could comprise lease termination penalties and employee termination
payments. Provisions are not recognised for future operating losses.


Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the balance sheet date.



Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.      Page 12
2.15 Revenue recognition
Revenue comprises the fair value of the sale of goods and services, net of value-added tax, rebates
and discounts and after eliminating sales within the Group.
Royalty income is recognised on an accruals basis in accordance with the substance of the relevant
agreements.


2.16 Interim measurement
(a) Current income tax
Current income tax expense is recognised in these interim consolidated financial statements based on
management’s best estimates of the weighted average annual income tax rate expected for the full
financial year.


(b) Costs
Costs that incur unevenly during the financial year are anticipated or deferred in the interim report
only if it would also be appropriate to anticipate or defer such costs at the end of the financial year.


2.17 New accounting standards and IFRIC interpretations
Certain new accounting standards and IFRIC interpretations have been published that are mandatory
for accounting periods beginning on or after 1 January 2006. The Group’s assessment of the impact
of these new standards indicates no changes in the financial statements.




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.        Page 13
Section 3


Reconciliation from NGAAP to IFRS, opening balance 1 January 2004, profit and loss 2004 and
ending balance 31 December 2004.

The following reconciliations provide a quantification of the effect of the transition to IFRS. The following
five reconciliations provide details of the impact of the transition on:
     Opening balance at 1 January 2004
     Income statement for 2004
     Closing balance at 31 December 2004
     Quarterly development for 2004 – IFRS
     Quarterly development for 2004 - NGAAP


All significant changes are explained in the enclosed notes.




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.    Page 14
Nutri Pharma Consolidated
Balance sheet
Balance at 1 January 2004
(Figures in NOK 000)                                  NGAAP           Note         IFRS               IFRS
                                                                                adjustments


ASSETS
Non-current assets
Patent and royalty assets                                  11 560                                      11 560
Shares and other investments                                    6                                           6
Other non-current receivables                                   3                                           3
Total Non-current assets                                   11 569                           -           11 569

Current assets
Trade receivables                                             339                                         339
Other current receivables                                   1 055                                       1 055
Short term securities                                      14 006                                      14 006
Cash and cash equivalents                                  11 235                                      11 235
Total current assets                                       26 635                           -          26 635

Total assets                                               38 204                           -          38 204

EQUITY
Capital and reserves attributable to the
company’s equity holders
Share capital                                              19 668                                      19 668
Treasury shares                                           (1 700)                                      (1 700)
Retained earnings                                          17 828       (D)              (292)         17 536
Cumulative translation adjustment                         (1 161)       (B)              1 161             -
Total equity                                               34 635                          869         35 504

LIABILITIES
Current liabilities
Trade and other payables                                      26                                           26
Payroll tax, VAT, social tax etc                             370                                          370
Provisions and other liabilities                           3 173        (A)              (869)          2 304
Total current liabilities                                  3 569                         (869)          2 700

Total equity and liabilities                               38 204                           -          38 204




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.          Page 15
Nutri Pharma Consolidated
Income statement
2004
(Figures in NOK 000)                                  NGAAP           note          IFRS              IFRS
                                                                                 adjustments


 Royalty revenue                                           4 634                                         4 634

Personnel costs                                            5 921                                         5 921
Depreciation and amortization                              3 182                                         3 182
Other operating expenses                                   6 593       (A)                 557           7 150
Total operating expenses                                  15 696                           557          16 253

Result of operations                                    (11 062)                          (557)       (11 619)

Financial income                                            335        (C)                  18               353

 Profit before tax                                      (10 727)                          (539)       (11 266)

 Income tax expense/(income)                                  -                                               -

 Profit for the period                                  (10 727)                          (539)       (11 266)




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.          Page 16
Nutri Pharma Consolidated
Balance sheet
Balance at 31 December 2004
(Figures in NOK 000)                                  NGAAP           Note          IFRS                   IFRS
                                                                                 adjustments


ASSETS
Non-current assets
Patent and royalty assets                                  8 378                                              8 378
Total Non-current assets                                   8 378                             -                8 378

Current assets
Trade receivables                                            645                                                645
Other current receivables                                    379                                                379
Short term securities                                     16 423                                             16 423
Cash and cash equivalents                                  1 311                                              1 311
Total current assets                                      18 758                             -               18 758

Total assets                                              27 136                             -               27 136

EQUITY
Capital and reserves attributable to the
company’s equity holders
Share capital                                             19 668                                             19 668
Treasury shares                                           (1 625)                                            (1 625)
Retained earnings                                          7 641       (D)                (831)               6 810
Cumulative translation adjustment                           (788)      (B)                1 161                 373
Total equity                                              24 896                           330               25 226

LIABILITIES
Current liabilities
Trade and other payables                                       27
                                                                                                      27
Payroll tax, VAT, social tax etc                             300                                                300
Provisions and other liabilities                           1 913       (A)                (330)               1 583
Total current liabilities                                  2 240                          (330)               1 910

Total equity and liabilities                              27 136                             -               27 136




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.               Page 17
Nutri Pharma Consolidated
Income statement
Quarterly development 2004 IFRS
(Figures in NOK 000)                   note        Q1            Q2            Q3            Q4        TOTAL

 Royalty revenue                                     1 176        1 055         1 235         1 168      4 634

Personnel costs                                     1 291           898         1 888         1 844      5 921
Depreciation and amortization                         796           795           796           795      3 182
Other operating expenses                (A)         2 436         2 721         1 921             72     7 150
Total operating expenses                            4 523        4 414          4 605          2 711    16 253

Result of operations                               (3 347)      (3 359)        (3 370)      (1 543)    (11 619)

Financial income                        (C)           123             88           72            70        353

Profit before tax                                  (3 224)      (3 271)        (3 298)      (1 473)    (11 266)

Income tax expense/(income)                                 -          -            -            -          -

Profit for the period                              (3 224)      (3 271)        (3 298)      (1 473)    (11 266)




Quarterly development 2004 NGAAP
(Figures in NOK 000)                               Q1            Q2            Q3            Q4        TOTAL

 Royalty revenue                                    1 176         1 055         1 235         1 168      4 634

Personnel costs                                    1 291            898         1 888         1 844      5 921
Depreciation and                                     796            795           796           795      3 182
amortization
Other operating expenses                           2 473          2 695         1 890          (465)     6 593
Total operating expenses                           4 560         4 388          4 574         2 174     15 696

Result of operations                             (3 384)        (3 333)        (3 339)      (1 006)    (11 062)

Financial income                                     160              62           41            72        335

Profit before tax                                (3 224)        (3 271)        (3 298)        (934)    (10 727)

Income tax expense/(income)                             -              -            -            -          -

Profit for the period                            (3 224)        (3 271)        (3 298)        (934)    (10 727)


Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.             Page 18
Note A:           IFRS Transition adjustments regarding Provisions


Certain restructuring and other provisions were accepted under NGAAP, but do not satisfy the
definition of a liability under IFRS.

The following adjustments have been made:

Opening balance at 1 January 2004:

Provisions and other liabilities
Provisions under NGAAP not satisfying the definitions under IFRS                            869 TNOK
Total impact - decrease in provisions and other liabilities                                 869 TNOK


Income statement 2004 and quarterly:

For the year 2004
Other operating expenses
Provisions under NGAAP not satisfying the definitions under IFRS                            539 TNOK
Total impact - decrease in other operating expenses                                         539 TNOK

Q4 2004
Other operating expenses
Provisions under NGAAP not satisfying the definitions under IFRS                            539 TNOK
Total impact - decrease in other operating expenses                                         539 TNOK



Closing balance 31 December 2004

Provisions and other liabilities
Provisions under NGAAP not satisfying the definitions under IFRS                            330 TNOK
Total impact - decrease in provisions and other liabilities                                 330 TNOK



Note B:        IFRS Transition adjustments regarding cumulative translation adjustments


Nutri Pharma has elected to apply the optional exemption in IFRS 1 paragraph 21 and 22, and set the
cumulative translation differences to zero at the date of the transition. The following adjustments ve
been made:

Cumulative translation adjustment
Reset of the cumulative currency translation reserve to zero                               1 161 TNOK
Total impact - decrease in cumulative translation adjustment                               1 161 TNOK




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.     Page 19
Note C:        IFRS transition adjustments regarding classification of financial costs and
               income


In appliance with IFRS 1 there has been some reclassification of financial costs and income.
Exchange gains and losses, and interest on accounts payable are reclassified from financial items to
other operating expenses. The following adjustments have been made:
Income statement 2004 and quarterly:

For the year 2004
Financial items
Reclassification of net exchange gains                                                        18 TNOK
Total impact - increase in Financial income                                                   18 TNOK

Other operating expenses
Reclassification of net exchange gains                                                        18 TNOK
Total impact - increase in Other operating expenses                                           18 TNOK

Q4 2004
Financial items
Reclassification of net exchange gains                                                         2 TNOK
Total impact - decrease in Financial income                                                    2 TNOK

Other operating expenses
Reclassification of net exchange gains                                                         2 TNOK
Total impact - decrease in Other operating expenses                                            2 TNOK




Note D         Reconciliation from NGAAP to IFRS for equity and profit for the period


Following are a full reconciliation of equity from NGAAP to IFRS for the opening balance at 1
January 2004, for the balance at 31 March 2004 and for the closing balance in 2004:

1 January 2004
IFRS Opening Balance
(Figures in NOK 000)                         Note       Share        Treasury       Retained      Accumulated    Total
                                                        capital       shares        Earnings       translation
                                                                                                   differences
Equity 1 January 2004 NGAAP                                19 668       (1 700)         17 828         (1 161)    34 635
Change in provisions                          (A)                                          869                       869
Reset of cumulative currency
translation differences                       (B)                                       (1 161)         1 161         -
Equity 1 January 2004 IFRS                                19 668        (1 700)        17 536              -     35 504




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.          Page 20
31 March 2004
(Figures in NOK 000)                         Note       Share        Treasury       Retained      Accumulated        Total
                                                        capital       shares        Earnings       translation
                                                                                                   differences
Equity 31 March 2004 NGAAP                                 19 668       (1 700)         14 604            (782)       31 790
IFRS-effects 1 January 2004                (A), (B)                                       (292)           1 161          869
Equity 31 December 2004 IFRS                              19 668        (1 700)        14 312              379       32 659



31 December 2004
(Figures in NOK 000)                         Note       Share        Treasury       Retained      Accumulated        Total
                                                        capital       shares        Earnings       translation
                                                                                                   differences
Equity 31 December 2004 NGAAP                              19 668       (1 625)          7 641            (788)       24 896
IFRS-effects 1 January 2004   (A), (B)                                                    (292)           1 161          869
Change in provisions            (A)                                                       (539)                        (539)
Equity 31 December 2004 IFRS                              19 668        (1 625)          6 810             373       25 226



Following are a full reconciliation of the result for the first quarter 2004 and the annual result for
2004 from NGAAP to IFRS:


Reconciliation of profit for the period
(Figures in NOK 000)                                                                   note           Q1 2004         2004
Result for the period - NGAAP                                                                            (3 224)    (10 727)
Adjustment in change in provision                                                       (A)                            (539)
Result for the period - IFRS                                                                             (3 224)    (11 266)




Nutri Pharma ASA
Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.              Page 21

				
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