Northcore Reports Third Quarter 2009 Financial Results
(TSX: NTI; OTCBB: NTLNF)
In the third quarter of 2009, Northcore reported consolidated revenues of
Northcore derives its revenues from application hosting activities provided to customers, royalty fees from its business partners, the sale of software licenses, and the delivery of technology services, such as application development and software customization.
Northcore reported a loss for the third quarter of
As at
Operating Highlights
Northcore completed the following customer and operating activities in the period:
- Implemented a new media marketing platform supporting high value
assets for a major strategic partner that enables high resolution
close-up viewing of asset detail. This brings a new level of image
quality to the industry, heretofore only provided by world leading
art galleries and museums;
- Worked with a key strategic partner to ensure the GE Asset Manager
suite of products meet compliance and regulatory requirements through
their certification process;
- Began a "Liberate Your Working Capital" sales campaign in the U.S.
and Canada;
- Introduced the Working Capital Engine(TM) product and services
offering by Southcore Technologies Ltd. through participation in the
government sponsored eTeck ICT Symposium in Trinidad;
- Closed an equity private placement, securing net proceeds of $495,000
through the issuance of common shares; and
- Completed a series of debt to equity conversions by investors
totaling $596,000.
Highlights subsequent to the quarter ended September 30, 2009:
- A Memorandum of Understanding with Home Hardware Stores Limited to
provide an intranet for Home Hardware Dealers across Canada to more
efficiently source assets for their business needs; and
- An additional $477,000 in debt to equity conversions by investors,
resulting in the equity conversion of all remaining Series K
Debentures and improving the reduction in the Company's total
liabilities to 57 percent since the start of 2009.
Outlook
"We have customers that can evidence clear savings from their investment in Northcore's Working Capital Engine(TM). A substantial return on investment is a cornerstone of our value proposition to prospective customers and we are encouraged by their receptivity. While current economic conditions continue to challenge many, at Northcore we see opportunity. We now look forward to producing tangible financial results for our shareholders through expanded deployment of our cost saving technology solutions," said
Northcore will hold a conference call at
About Northcore Technologies Inc.
---------------------------------
Northcore Technologies provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government.
Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets.
Northcore also owns a 40 percent interest in Southcore Technologies Ltd., a strategic partnership with the Pan Pacific Group International Ltd. ("Pan Pacific"). Through this collaboration, Pan Pacific markets Northcore's proven suite of online products to its broad international business network and connects certain assets of Pan Pacific, on an exclusive basis, with enabling technologies from Northcore.
Additional information about Northcore can be obtained at www.northcore.com.
This news release may include comments that do not refer strictly to historical results or actions and may be deemed to be forward-looking within the meaning of the Safe Harbor provisions of the U.S. federal securities laws. These include, among others, statements about expectations of future revenues, cash flows, and cash requirements. Forward-looking statements are subject to risks and uncertainties that may cause Northcore's ("the Company") results to differ materially from expectations. These risks include the Company's ability to raise additional funding, develop its business-to-business sales and operations, develop appropriate strategic alliances and successful development and implementation of technology, acceptance of the Company's products and services, competitive factors, new products and technological changes, and other such risks as the Company may identify and discuss from time to time, including those risks disclosed in the Company's Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that the Company's plans will be achieved.
Northcore Technologies Inc.
Consolidated Balance Sheets
(expressed in thousands of Canadian dollars)
(Canadian GAAP, Unaudited)
-------------------------------------------------------------------------
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September 30 Septmber 30 December 31
2009 2009 2008
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(Unaudited) (Unaudited) (Audited)
(in US$)
translated
into US$ at
Cdn$ 1.0719
for
convenience
Cash $ 661 $ 617 $ 460
Other current assets 293 273 333
Other assets 565 527 19
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Total assets $ 1,519 $ 1,417 $ 812
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Accounts payable and accrued
liabilities $ 543 $ 507 $ 948
Deferred revenue 100 93 30
Current portion of long term debts 661 617 1,507
Non-current portion of long
term debts 443 413 730
Total shareholders' deficiency (228) (213) (2,403)
----------------------------------------
Total liabilities and
shareholders' deficiency $ 1,519 $ 1,417 $ 812
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Northcore Technologies Inc.
Consolidated Statements of Operations and Comprehensive Income
(expressed in thousands of dollars, except per share amounts)
(Canadian GAAP, Unaudited)
----------------------------- -----------------------------
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
September 30 September 30
----------------------------- -----------------------------
2009 2009 2008 2009 2009 2008
($C) ($US) ($C) ($C) ($US) ($C)
----------------------------- -----------------------------
translated translated
into US$ at into US$ at
Cdn$ 1.0719 Cdn$ 1.0719
for for
convenience convenience
Revenues $ 213 $ 199 $ 200 $ 580 $ 541 $ 564
----------------------------- -----------------------------
Operating
expenses:
General and
admini-
strative 328 306 339 927 865 1,180
Customer
service and
technology 191 178 165 545 508 518
Sales and
marketing 55 51 18 125 117 101
Employee
stock
options 5 5 9 92 86 28
Depreciation 7 7 8 23 21 26
----------------------------- -----------------------------
Total
operating
expenses 586 547 539 1,712 1,567 1,853
----------------------------- -----------------------------
Loss from
operations (373) (348) (339) (1,132) (1,056) (1,289)
----------------------------- -----------------------------
Interest
expense:
Cash
interest
expense 64 60 93 222 207 241
Accretion
of secured
subordi-
nated notes 173 161 104 448 418 273
----------------------------- -----------------------------
Total interest
expense 237 221 197 670 625 514
----------------------------- -----------------------------
----------------------------- -----------------------------
Loss and
comprehensive
loss for the
period $ (610) $ (569) $ (536) $(1,802) $(1,681) $(1,803)
----------------------------- -----------------------------
----------------------------- -----------------------------
Loss per
share, basic
and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.01) $ (0.01) $ (0.02)
----------------------------- -----------------------------
----------------------------- -----------------------------
Weighted
average
number of
shares
outstanding,
basic and
diluted
(000's) 145,883 145,883 108,881 135,106 135,106 108,678
----------------------------- -----------------------------
----------------------------- -----------------------------
%SEDAR: 00019461E %CIK: 0001079171
For further information: Northcore Technologies Inc., Investor Relations, Tel: (416) 640-0400 ext. 273, Fax: (416) 640-0412, E-mail: [email protected]
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