Message #88 From:
NewsBot Date: January 9, 2007 03:00:00 PM
BTN News Biophan Announces Consolidation of MYOTECH Financials in Compliance with FASB FIN 46(R)
ROCHESTER, N.Y.--(BUSINESS WIRE)--Biophan Technologies, Inc. (OTCBB: BIPH;
FWB: BTN), a developer of next-generation biomedical technology,
announced today that it will be consolidating MYOTECH, LLC, the company
developing the MYO-VAD Cardiac Support System, on its books in order to
comply with FASB FIN 46(R). Biophan currently holds a 41% interest in
the venture, with contractual rights to acquire a majority interest.
Biophan acquired a 35% interest in MYOTECH in November 2005 in exchange
for Biophan stock, and has acquired the additional interest since that
time based on ongoing cash investments.
Biophan will restate its financial statements for the quarter ended
November 30, 2005, the time of the MYOTECH acquisition, and for all
subsequent periods to reflect an asset-based purchase, based on the
value of MYOTECH’s assets (primarily
intellectual property in the form of patents and know-how). For purposes
of the consolidation, Biophan will value the assets of MYOTECH at $29
million as of November 30, 2005. Biophan’s
balance sheet will reflect its interest in MYOTECH as an asset, with a
value equal to Biophan’s percentage interest
in the MYOTECH assets.
Biophan’s income statements (as restated for
prior periods and on a going forward basis) will also consolidate Biophan’s
percentage interest in each item of MYOTECH’s
expense and income.
Biophan has filed an extension for its 10-Q for its third quarter ended
November 30, 2006 in order to allow for the preparation of financial
statements to reflect this accounting treatment. Simultaneously with the
filing of its Form 10-Q for the period ended November 30, 2006, Biophan
intends to file an amendment to its Annual Report on Form 10-K for the
fiscal year ended February 28, 2006 and its Quarterly Reports on Form
10-Q for the fiscal quarters ended November 30, 2005, May 31, 2006 and
August 31, 2006 reflecting a restatement of its financial statements and
other financial information in conformity with FIN 46(R).
About MYOTECH, LLC
MYOTECH, LLC, is a privately-held medical technology development
company, formed in 2003 to commercialize a family of medical products
based upon Direct Mechanical Ventricular Actuation (“DMVA”)
cardiac support technology. This technology has permitted the
development of minimally invasive heart support devices that promise to
provide safer, more effective, and less expensive treatment for patients
with many types of heart failure. MYOTECH has relationships with leading
physicians and medical institutions who are assisting MYOTECH in the
commercialization of its technology. MYOTECH has several pending patents
pertaining to the DMVA technology.
About Biophan
Biophan is dedicated to providing technologies that offer innovative and
competitive advantages to the medical device industry. The Company’s
technologies, which improve the MRI safety and image compatibility of
medical devices, are licensed to leading device manufacturers. In
addition, the Company is commercializing the MYOTECH MYO-VAD™,
a new, cardiac support system which has significant potential to improve
the treatment of many forms of heart disease. Biophan is traded on the
OTC market under the symbol BIPH, and is also listed on the Frankfurt
Stock Exchange under the symbol BTN. For more information on Biophan,
please visit our website at www.biophan.com.
Certain statements included in this press release may constitute
forward-looking statements within the meaning of applicable securities
laws. These statements reflect what Biophan anticipates, expects, or
believes may happen in the future. Biophan's actual results could differ
materially from the outcome or circumstance expressed or implied by such
forward-looking statements as a result of a variety of factors
including, but not limited to: Biophan's ability to develop its
technologies; the approval of Biophan's patent applications; the
successful implementation of Biophan's research and development
programs; the ability of Biophan to demonstrate the effectiveness of its
technology; the acceptance by the market of Biophan's technology and
products incorporating such technology; the ability of Biophan to
effectively negotiate and enter into contracts with medical device
manufacturers for the licensing of Biophan's technology; competition;
the ability of Biophan to raise capital to fund its operating and
research and development activities until it generates revenues
sufficient to do so; and the timing of projects and trends in future
operating performance, as well as other factors expressed from time to
time in Biophan's periodic filings with the Securities and Exchange
Commission (the "SEC"). As a result, this press release should be read
in conjunction with Biophan's periodic filings with the SEC, which are
incorporated herein by reference. The forward-looking statements
contained herein are made only as of the date of this press release, and
Biophan undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
