6-K 1 d54199_6k.txt QUARTERLY REPORT MANAGEMENT DISCUSSION & ANALYSIS This Management Discussion and Analysis may contain certain statements that include words such as "believes", "expects", "anticipates" and words of similar connotation, which would constitute forward-looking statements. These forward-looking statements involve risks and uncertainties that may cause actual performance to be materially different; therefore, these statements should not, in any way, be taken as guarantees of future results. All forward looking statements included in this Management Discussion and Analysis are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements. The following discussion and analysis of operating results and financial position should be read in conjunction with the consolidated financial statements of the Company and notes thereto incorporated by reference in this annual report. The Company Eiger Technology, Inc. is a technology company with four operating subsidiaries; Onlinetel, Corp., K-Tronik International Corp., Eiger Net Inc., and Newlook Industries Corp. Eiger's head office is located in Toronto, Ontario and has six employees. Onlinetel is Canada's leading provider of Voice over Internet Protocol, or VoIP, telephony services. Using its proprietary national VoIP network, Onlinetel can take voice information from any landline or cellular phone, convert that information to digital IP packets and route that information, phone-to-phone, over data networks such as the Internet. Onlinetel currently derives its revenue from flat rate long distance calling plans, 10-10 casual calling long distance services, carrier origination and termination services, and from advertisers on its free calling network. Onlinetel is based in Kitchener, Ontario and has 12 employees. Eiger Net is involved in the R&D, engineering and manufacturing of CDMA and GSM wireless phones, and multimedia and data communication cards such as 56K and DSL modem cards, Home PNA cards, LAN cards, MP3 modules and other Internet access devices for OEM consumer electronics companies worldwide. Eiger Net is located in South Korea and has 30 employees. K-Tronik is a leading North American manufacturer of energy efficient electronic ballasts for fluorescent lighting. K-Tronik supplies ballasts worldwide to OEM light fixture companies, distributors and contractors. K-Tronik is based in New Jersey and has 18 employees. Newlook through its wholly owned subsidiary ADH Custom Metal Fabricators Inc. is a fully integrated custom sheet metal manufacturer that specializes in custom enclosures and cabinets. In addition to its focus on enclosures and cabinetry, ADH contract manufactures for nationwide distribution of data and relay racks, custom control enclosures, fluorescent light fixtures and store display fixtures. ADH is located in Stratford, Ontario and has 15 employees. Results of Operations Revenues for the three months ending December 31 2002 increased 20% to $5.8 million from $4.8 million during the same period last year, due largely to growth at Onlinetel and Eiger Net. In addition, the loss from operations decreased by 14.4% to $1.2 million for the three months ending December 31 2002 compared to $1.5 million during the same period last year. Net loss for the quarter was $1 million or ($0.03) per diluted share, compared to a loss of $0.8 million or ($0.02) per diluted share during the same quarter last year. Onlinetel continues to post impressive growth, with revenues of over $1 million for the quarter compared with $370,000 during the comparable quarter last year and $800,000 for the quarter ending September 30 2002. In addition, due to manufacturing contracts announced on September 18 2002, Eiger Net posted strong revenue growth of 45% to $2.6 million for the quarter ending December 31 2002 compared to $1.8 million during the same quarter last year. Revenue from ongoing operations were as follows: ($'000's) Q1 2003 Q1 2002 Increase (Decrease) Onlinetel 1,001 370 631 Eiger 2,578 1,782 796 K-Tronik 1,902 2,280 (378) ADH 295 366 (71) ----- ----- --- 5,776 4,798 978 ===== ===== === Onlinetel revenue increased dramatically due to the launch and market acceptance of its Voice over IP telephony services, including flat rate long distance subscription plans, 10-10 casual calling long distance services, and carrier termination and origination services. Eiger Net and Eiger Labs revenue increased to manufacturing contracts announced on September 18 2002. K-Tronik sales declined marginally due to economic weakness and changes in the USD/CDN dollar exchange rate. And ADH sales decreased due to the reduction in outsourcing needed by its primary customers in South-western Ontario. Expenses decreased approximately 12% during the quarter ended December 31, 2002 to $2,193,000 from $2,487,000 for the same period last year. Selling, General and Administrative Expenses ("SG&A") decreased by approximately 11% during the quarter ended December 31, 2002 to $1,917,000 from $2,161,000 for the same period last year. SG&A consisted principally of salaries and benefits, and the operating costs associated with sales. Interest on long term debt, other interest and bank charges also decreased during the quarter ended December 31, 2002 to $ 110,000 from $124,000 for the same period last year. Amortization of capital assets, goodwill and other assets also decreased from $202,000 in fiscal Q1 2002 to $166,000 in fiscal Q1 2003. Liquidity and Capital Reserves Cash equivalents and working capital at December 31 2002 were $1,602,000 and $1,847,000 respectively as compared to $3,635,000 and $4,942,000 at September 30 2002 due to both the purchase of $1.7 million in new telephone sub-assembly equipment at Eiger Net which is expected to result in additional manufacturing contracts to those previously announced, and the elimination of $2.5 million of bank debt. The increase in the Company's accounts payable to $8,057,000 at December 31 2002 from $4,395,000 at September 30, 2002 is due an extension of payable terms by suppliers to Eiger Net which is favourable to Eiger Net. Accounts receivable decreased to $4,226,000 at December 31 2002 from $5,004,000 at September 30 2002 and inventories increased to $4,833,000 from $4,493,000 during the comparable period. Financial Risk and Foreign Exchange Earnings and cash flow are subject to volatility stemming mainly from movements in the U.S./Canadian dollar and South Korean won/Canadian dollar exchange rate and interest rates. The Company does not hedge its foreign currency or interest rate exposure. This is a result of an evaluation of the costs of hedging and the labour being a large component of K-Tronik Asia's South Korean Won exposure offset by Korean Won based revenue. EIGER TECHNOLOGY, INC. Unaudited Consolidated Financial Statements for the three months ended December 31, 2002 Monteith, Monteith & Co. Chartered Accountants 208 Ontario Street Stratford, Ontario N5A 3H4 Telephone: (519) 271-6550 Fax: (519) 271-4796 E-mail: administrator@monteith.on.ca February 25, 2003 To: The Audit Committee of Eiger Technology, Inc.. Dear Sirs/Mesdames: In accordance with our engagement letter dated February 17, 2003, we have reviewed the consolidated balance sheets of Eiger Technology, Inc.. as at December 31, 2002 and September 30, 2002, and the consolidated statements of operations and retained earnings, and cash flows for the three month periods ended December 31, 2002 and December 31, 2001. These consolidated financial statements are the responsibility of the Company's management. We performed our review in accordance with Canadian generally accepted standards for a review of interim financial statements by an entity's auditor. Such an interim review consists principally of applying analytical procedures to financial data, and making enquiries of, and having discussions with, persons responsible for financial and accounting matters. An interim review is substantially less in scope than an audit, whose objective is the expression of an opinion regarding the financial statements; accordingly, we do not express such an opinion. An interim review does not provide assurance that we would become aware of any or all significant matters that might be identified in an audit. Based on our review, we are not aware of any material modification that needs to be made for these interim consolidated financial statements to be in accordance with Canadian generally accepted accounting principles. This report is solely for the use of the audit committee of Eiger Technology, Inc. to assist it in discharging its regulatory obligation to review these consolidated financial statements, and should not be used for any other purpose. Any use that a third party makes of this report, or any reliance or decisions made based on it, are the responsibility of such third parties. We accept no responsibility for loss or damages, if any, suffered by any third party as a result of decisions made or actions taken based on this report. Sincerely, Monteith, Monteith & Co. ------------------------ CHARTERED ACCOUNTANTS EIGER TECHNOLOGY, INC. Unaudited Consolidated Balance Sheet
--------------------------------------------------------------------------------- December 31 September 30 2002 2002 --------------------------------------------------------------------------------- $ $ Assets ------ Current Cash and Marketable Securities 1,602,000 3,635,000 Accounts Receivable 4,226,000 5,004,000 Inventories 4,833,000 4,493,000 Prepaid Expenses 888,000 378,000 ----------- ----------- 11,549,000 13,510,000 Capital 6,444,000 4,867,000 Long-term Investments 1,650,000 1,650,000 Goodwill 2,990,000 3,013,000 Other 1,017,000 718,000 ----------- ----------- 23,650,000 23,758,000 =========== =========== Liabilities and Shareholders' Equity ------------------------------------ Current Bank Indebtedness 1,500,000 4,028,000 Accounts Payable and Accrued Liabilities 8,057,000 4,395,000 Current Portion of Long-term Debt 145,000 145,000 ----------- ----------- 9,702,000 8,568,000 ----------- ----------- Long-term Debt 825,000 940,000 ----------- ----------- Non-Controlling Interest (2,000,000) (1,873,000) ----------- ----------- Shareholders' Equity Share Capital 42,257,000 42,235,000 Contributed Surplus 217,000 217,000 Retained Earnings (Deficit) (27,351,000) (26,329,000) ----------- ----------- 15,123,000 16,123,000 ----------- ----------- 23,650,000 23,758,000 =========== ===========
On Behalf of the Board: "Gerry Racicot" Director ------------------------------------------------------- Gerry Racicot "Keith Attoe" Director ------------------------------------------------------- Keith Attoe EIGER TECHNOLOGY, INC. Unaudited Consolidated Statement of Operations and Retained Earnings
------------------------------------------------------------------------------------------------------------------------------------ For the three months ended December 31 2002 2002 2001 2001 ------------------------------------------------------------------------------------------------------------------------------------ (Current Quarter) (Year-to-Date) Current Quarter) (Year-to-Date) $ $ $ $ Sales 5,776,000 5,776,000 4,798,000 4,798,000 Cost of Sales 4,872,000 4,872,000 3,892,000 3,892,000 ----------- ----------- ----------- ----------- Gross Margin 904,000 904,000 906,000 906,000 ----------- ----------- ----------- ----------- Expenses Selling, General and Administrative 1,917,000 1,917,000 2,161,000 2,161,000 Amortization of Capital Assets 129,000 129,000 145,000 145,000 Amortization of Goodwill and Other Assets 37,000 37,000 57,000 57,000 Interest on Long-term Debt 18,000 18,000 11,000 11,000 Other Interest and Bank Charges 92,000 92,000 113,000 113,000 ----------- ----------- ----------- ----------- 2,193,000 2,193,000 2,487,000 2,487,000 ----------- ----------- ----------- ----------- Income (Loss) from Operations (1,289,000) (1,289,000) (1,581,000) (1,581,000) Other Income 2,000 2,000 72,000 72,000 ----------- ----------- ----------- ----------- Income before Taxes (1,287,000) (1,287,000) (1,509,000) (1,509,000) Provision for Income Taxes -- -- -- -- ----------- ----------- ----------- ----------- Income before Non-controlling Interest (1,287,000) (1,287,000) (1,509,000) (1,509,000) Non-controlling Interest (265,000) (265,000) (725,000) (725,000) ----------- ----------- ----------- ----------- Net Income (Loss) for the Period (1,022,000) (1,022,000) (784,000) (784,000) Retained Earnings (Deficit), Beginning of Period (26,329,000) (26,329,000) (21,091,000) (21,091,000) ----------- ----------- ----------- ----------- Retained Earnings (Deficit), End of Period (27,351,000) (27,351,000) (21,875,000) (21,875,000) =========== =========== =========== =========== Earnings Per Share: Basic (0.03) (0.03) (0.02) (0.02) =========== =========== =========== =========== Diluted (0.03) (0.03) (0.02) (0.02) =========== =========== =========== ===========
EIGER TECHNOLOGY, INC. Unaudited Consolidated Statement of Cash Flows
------------------------------------------------------------------------------------------------------------------------------------ For the three months ended December 31 2002 2002 2001 2001 ------------------------------------------------------------------------------------------------------------------------------------ (Current Quarter) (Year-to-Date) Current Quarter) (Year-to-Date) $ $ $ $ Operating Activities Net Income (Loss) for the Period (1,022,000) (1,022,000) (784,000) (784,000) Items not Involving Cash Amortization 166,000 166,000 202,000 202,000 ---------- ---------- --------- --------- (856,000) (856,000) (582,000) (582,000) Changes in Non-cash Operating Accounts Accounts Receivable 778,000 778,000 2,463,000 2,463,000 Inventories (340,000) (340,000) 653,000 653,000 Prepaid Expenses (510,000) (510,000) 63,000 63,000 Accounts Payable 3,662,000 3,662,000 (713,000) (713,000) Non-controlling Interest (265,000) (265,000) (725,000) (725,000) ---------- ---------- --------- --------- 2,469,000 2,469,000 1,159,000 1,159,000 ---------- ---------- --------- --------- Investment Activities Sale (Purchase) of Capital Assets (1,706,000) (1,706,000) (296,000) (296,000) Long-term Investments -- -- (14,000) (14,000) Goodwill and Other Assets (313,000) (313,000) 444,000 444,000 ---------- ---------- --------- --------- (2,019,000) (2,019,000) 134,000 134,000 ---------- ---------- --------- --------- Financing Activities Operating Line of Credit (2,528,000) (2,528,000) 127,000 127,000 Long-term Debt (115,000) (115,000) 54,000 54,000 Non-controlling Interest 138,000 138,000 -- -- Common Shares Issued 22,000 22,000 15,000 15,000 ---------- ---------- --------- --------- (2,483,000) (2,483,000) 196,000 196,000 ---------- ---------- --------- --------- Net Cash Flows for the Period (2,033,000) (2,033,000) 1,489,000 1,489,000 Cash and Cash Equivalents, Beginning of Period 3,635,000 3,635,000 5,993,000 5,993,000 ---------- ---------- --------- --------- Cash and Cash Equivalents, End of Period 1,602,000 1,602,000 7,482,000 7,482,000 ========== ========== ========= ========= Cash and Cash Equivalents Represented By: Cash and Marketable Securities 1,602,000 1,602,000 7,482,000 7,482,000 ========== ========== ========= =========
EIGER TECHNOLOGY, INC. Notes to the Consolidated Financial Statements For the three months ended December 31, 2002 -------------------------------------------------------------------------------- Significant Accounting Policies: -------------------------------------------------------------------------------- Except that the Comapny now measures stock-based compensation using the fair value method, these interim financial statements have been prepared using the same accounting principles and the same methods of application as were used in the preparation of the Company's annual financial statements for the year ended September 30, 2002. These interim financial statements may not contain all of the disclosures necessary to be fully in accordance with Canadian generally accepted accounting principles, and should, therefore, be read in conjunction with the annual financial statements for the year ended September 30, 2002. The effect of the change in accounting policy from the intrinsic value method to the fair value method of measuring stock-based compensation has not been determined. -------------------------------------------------------------------------------- Capital Assets: --------------------------------------------------------------------------------
$ Balance per September 30, 2002 financial statements 4,867,000 Telephone sub-assembly equipment - EigerNet, Inc. plant in South Korea 1,594,000 Other additions and disposals 112,000 Amortization provided for three months (129,000) --------- Balance - December 31, 2002 6,444,000 =========
-------------------------------------------------------------------------------- Reconciliation to U.S. GAAP: -------------------------------------------------------------------------------- Revelant differences between accounting principles generally accepted in Canada ("Cdn. GAAP") compared to those principles generally accepted in the United States of America ("U.S. GAAP") are as follows: U.S. GAAP requires that all organization costs (including those previously deferred) be expensed currently. Also, all product development costs are to be expensed as incurred. Canadian GAAP permits the deferral and amortization of these costs when certain conditions are met. U.S. GAAP requires the measurement and reporting of "comprehensive income". Comprehensive income includes net income and all other changes to shareholders' equity other than amounts received from or paid to shareholders. The only reportable comprehensive income item for the Company relates to foreign currency translation adjustments as described below. U.S. GAAP requires the use of the current rate method of foreign currency translation, with any resulting foreign exchange translation adjustments forming part of comprehensive income for the year and accumulating as a separate component of shareholders' equity. SFAS 123 recommends that the fair value method be used to measure stock-based compensation, although APB Opinion 25 permits the use of the intrinsic method. While the intrinsic method was generally used in Canada, the fair value method is now required. EIGER TECHNOLOGY, INC. Notes to the Consolidated Financial Statements For the three months ended December 31, 2002 -------------------------------------------------------------------------------- Reconciliation to U.S. GAAP - continued: -------------------------------------------------------------------------------- Reconciliations:
December 31 December 31 2002 2001 ----------- ----------- $ $ Net Income - per Cdn. GAAP (1,022,000) (784,000) - expense current product development costs -- -- - add back amortization of deferred costs -- 17,000 - adjustments to non-controlling interest and future taxes -- (6,000) - foreign currency translation adjustment 23,000 100,000 ----------- ----------- - per U.S. GAAP (999,000) (673,000) Comprehensive item - foreign currency translation (23,000) (100,000) ----------- ----------- Comprehensive Income (1,022,000) (773,000) =========== =========== Accumulated Other Comprehensive Items - per Cdn. GAAP -- -- - cumulative foreign currency translation adjustments (690,000) (426,000) ----------- ----------- - per U.S. GAAP (690,000) (426,000) =========== =========== Retained Earnings (Deficit) - End of Period per Cdn. GAAP (27,351,000) (21,875,000) - expense deferred product development costs net of portion relating to non-controlling interest -- (281,000) - foreign currency translation adjustments 690,000 426,000 - future income tax savings related to above -- 94,000 ----------- ----------- - End of Period per U.S. GAAP (26,661,000) (21,636,000) =========== =========== Total Assets - per Cdn. GAAP 23,650,000 28,695,000 expense deferred product development costs -- (281,000) - increase in future income tax assets -- 94,000 ----------- ----------- - per U.S. GAAP 23,650,000 28,508,000 =========== ===========
-------------------------------------------------------------------------------- Segmented Information: -------------------------------------------------------------------------------- Segmented information is presented on the following two pages. The segment previously referred to as "ADH" is now known as "Newlook". EIGER TECHNOLOGY, INC. SEGMENTED INFORMATION December 31, 2002
Newlook K-Tronik Onlinetel ------------------------- --------------------------- -------------------------- Current Year to Current Year to Current Year to Quarter Date Quarter Date Quarter Date ------------------------- --------------------------- -------------------------- $ $ $ $ $ $ Sales: External 295,000 295,000 1,902,000 1,902,000 1,001,000 1,001,000 Intersegment -- -- -- -- -- -- 295,000 295,000 1,902,000 1,902,000 1,001,000 1,001,000 ------------------------- --------------------------- -------------------------- Cost of Sales (209,000) (209,000) (1,442,000 (1,442,000) (800,000) (800,000) Other Expenses (211,000) (211,000) (938,000) (938,000) (368,000) (368,000) ------------------------- --------------------------- -------------------------- (125,000) (125,000) (478,000) (478,000) (167,000) (167,000) Non-controlling Interest 25,000 25,000 142,000 142,000 -- -- ------------------------- --------------------------- -------------------------- Net Income (Loss) (100,000) (100,000) (336,000) (336,000) (167,000) (167,000) ========================= =========================== ========================== Newlook K-Tronik Onlinetel -------------------------- -------------------------- -------------------------- Dec. 31 Sept. 30 Dec. 31 Sept. 30 Dec. 31 Sept. 30 2002 2002 2002 2002 2002 2002 -------------------------- -------------------------- -------------------------- $ $ $ $ $ $ Current Assets: Cash 160,000 232,000 90,000 442,000 13,000 77,000 Accounts Receivable 268,000 305,000 1,628,000 2,200,000 424,000 567,000 Inventory 656,000 704,000 1,921,000 2,526,000 -- -- Prepaid Expenses 8,000 9,000 248,000 238,000 21,000 14,000 -------------------------- -------------------------- -------------------------- 1,092,000 1,250,000 3,887,000 5,406,000 458,000 658,000 Capital Assets 1,603,000 1,650,000 616,000 490,000 1,160,000 1,219,000 Long-term Investments -- -- -- -- -- -- Goodwill and Other 672,000 673,000 1,123,000 1,116,000 1,360,000 1,360,000 -------------------------- -------------------------- -------------------------- Total Assets 3,367,000 3,573,000 5,626,000 7,012,000 2,978,000 3,237,000 ========================== ========================== ========================== All Reconciling Eiger Others Items --------------------------- ------------------------- ------------------------ Current Year to Current Year to Current Year to Quarter Date Quarter Date Quarter Date --------------------------- ------------------------- ------------------------ $ $ $ $ $ $ Sales: External 2,578,000 2,578,000 -- -- -- -- Intersegment -- -- -- -- -- -- --------------------------- ------------------------- ------------------------ 2,578,000 2,578,000 -- -- -- -- Cost of Sales (2,421,000) (2,421,000) -- -- -- -- Other Expenses (394,000) (394,000) (280,000) (280,000) -- -- --------------------------- ------------------------- ------------------------ (237,000) (237,000) (280,000) (280,000) -- -- Non-controlling Interest 98,000 98,000 -- -- -- -- --------------------------- ------------------------- ------------------------ Net Income (Loss) (139,000) (139,000) (280,000) (280,000) -- -- All Reconciling Eiger Others Items --------------------------- -------------------------- ------------------------ Dec. 31 Sept. 30 Dec. 31 Sept. 30 Dec. 31 Sept. 30 2002 2002 2002 2002 2002 2002 --------------------------- -------------------------- ------------------------ $ $ $ $ $ $ Current Assets: Cash 560,000 1,679,000 779,000 1,205,000 -- -- Accounts Receivable 1,742,000 1,791,000 235,000 212,000 (71,000) (71,000) Inventory 2,256,000 1,263,000 -- -- -- -- Prepaid Expenses 603,000 78,000 8,000 39,000 -- -- --------------------------- -------------------------- ------------------------ 5,161,000 4,811,000 1,022,000 1,456,000 -- -- Capital Assets 2,961,000 1,401,000 104,000 107,000 -- -- Long-term Investments 1,527,000 1,527,000 123,000 123,000 -- -- Goodwill and Other 830,000 555,000 22,000 27,000 -- -- --------------------------- ------------------------- ------------------------ Total Assets 10,479,000 8,294,000 1,271,000 1,713,000 -- -- =========================== ========================== ======================== Totals per Financial Statements ---------------------------- Current Year to Quarter Date ---------------------------- $ $ Sales: External 5,776,000 5,776,000 Intersegment -- -- 5,776,000 5,776,000 ---------------------------- Cost of Sales (4,872,000) (4,872,000) Other Expenses (2,191,000) (2,191,000) ---------------------------- (1,287,000) (1,287,000) Non-controlling Interest 265,000 265,000 ---------------------------- Net Income (Loss) (1,022,000) (1,022,000) ============================ Totals per Financial Statements ---------------------------- Dec. 31 Sept. 30 2002 2002 ---------------------------- $ $ Current Assets: Cash 1,602,000 3,635,000 Accounts Receivable 4,226,000 5,004,000 Inventory 4,833,000 4,493,000 Prepaid Expenses 888,000 378,000 ---------------------------- 11,549,000 13,510,000 Capital Assets 6,444,000 4,867,000 Long-term Investments 1,650,000 1,650,000 Goodwill and Other 4,007,000 3,731,000 ---------------------------- Total Assets 23,650,000 23,758,000 ============================
EIGER TECHNOLOGY, INC. SEGMENTED INFORMATION December 31, 2001
Newlook K-Tronik Onlinetel -------------------------- --------------------------- -------------------------- Current Year to Current Year to Current Year to Quarter Date Quarter Date Quarter Date -------------------------- --------------------------- -------------------------- $ $ $ $ $ $ Sales: External 366,000 366,000 2,280,000 2,280,000 370,000 370,000 Intersegment -- -- -- -- -- -- -------------------------- --------------------------- -------------------------- 366,000 366,000 2,280,000 2,280,000 370,000 370,000 Cost of Sales (290,000) (290,000) (1,510,000 (1,510,000) (277,000) (277,000) Other Expenses (113,000) (113,000) (894,000) (894,000) (268,000) (268,000) -------------------------- --------------------------- -------------------------- (37,000) (37,000) (124,000) (124,000) (175,000) (175,000) Non-controlling Interest -- -- 12,000 12,000 -- -- -------------------------- --------------------------- -------------------------- Net Income (Loss) (37,000) (37,000) (112,000) (112,000) (175,000) (175,000) ========================== =========================== ========================== Newlook K-Tronik Onlinetel -------------------------- -------------------------- -------------------------- Dec. 31 Sept. 30 Dec. 31 Sept. 30 Dec. 31 Sept. 30 2001 2001 2001 2001 2001 2001 -------------------------- -------------------------- -------------------------- $ $ $ $ $ $ Current Assets: Cash 180,000 312,000 139,000 147,000 10,000 208,000 Accounts Receivable 374,000 344,000 1,820,000 2,102,000 164,000 173,000 Inventory 837,000 875,000 3,813,000 3,650,000 -- -- Prepaid Expenses 1,000 3,000 209,000 243,000 4,000 4,000 -------------------------- -------------------------- -------------------------- 1,392,000 1,534,000 5,981,000 6,142,000 178,000 385,000 Capital Assets 1,693,000 1,721,000 628,000 660,000 780,000 724,000 Long-term Investments -- -- -- -- 8,000 -- Goodwill and Other 196,000 379,000 1,160,000 1,182,000 1,314,000 1,314,000 -------------------------- -------------------------- -------------------------- Total Assets 3,281,000 3,634,000 7,769,000 7,984,000 2,280,000 2,423,000 ========================== ========================== ========================== All Reconciling Eiger Others Items ------------------------------ ---------------------------- -------------------- Current Year to Current Year to Current Year to Quarter Date Quarter Date Quarter Date ------------------------------ ---------------------------- ------------------- $ $ $ $ $ $ Sales: External 1,782,000 1,782,000 -- -- -- -- Intersegment -- -- -- -- -- -- ------------------------------ ---------------------------- ------------------- 1,782,000 1,782,000 -- -- -- -- Cost of Sales (1,815,000) (1,815,000) -- -- -- -- Other Expenses (841,000) (841,000) (299,000) (299,000) -- -- ------------------------------ ---------------------------- ------------------- (874,000) (874,000) (299,000) (299,000) -- -- Non-controlling Interest 713,000 713,000 -- -- -- -- ------------------------------ ---------------------------- ------------------- Net Income (Loss) (161,000) (161,000) (299,000) (299,000) -- -- ============================== ============================ ==================== All Reconciling Eiger Others Items ------------------------------ ---------------------------- -------------------- Dec. 31 Sept. 30 Dec. 31 Sept. 30 Dec. 31 Sept. 30 2001 2001 2001 2001 2001 2001 ------------------------------ ---------------------------- -------------------- $ $ $ $ $ $ Current Assets: Cash 3,729,000 1,461,000 3,424,000 3,865,000 -- -- Accounts Receivable 3,817,000 6,098,000 121,000 42,000 -- -- Inventory 1,242,000 2,020,000 -- -- -- -- Prepaid Expenses 485,000 442,000 7,000 77,000 -- -- ------------------------------ ---------------------------- -------------------- 9,273,000 10,021,000 3,552,000 3,984,000 -- -- Capital Assets 1,478,000 1,320,000 113,000 116,000 -- -- Long-term Investments 80,000 80,000 330,000 324,000 -- -- Goodwill and Other 498,000 789,000 41,000 46,000 -- -- ------------------------------ ---------------------------- -------------------- Total Assets 11,329,000 12,210,000 4,036,000 4,470,000 -- -- ============================== ============================ ==================== Totals per Financial Statements ---------------------------- Current Year to Quarter Date ---------------------------- $ $ Sales: External 4,798,000 4,798,000 Intersegment -- -- ---------------------------- 4,798,000 4,798,000 Cost of Sales (3,892,000) (3,892,000) Other Expenses (2,415,000) (2,415,000) ---------------------------- (1,509,000) (1,509,000) Non-controlling Interest 725,000 725,000 ---------------------------- Net Income (Loss) (784,000) (784,000) ============================ Totals per Financial Statements ---------------------------- Dec. 31 Sept. 30 2001 2001 ---------------------------- $ $ Current Assets: Cash 7,482,000 5,993,000 Accounts Receivable 6,296,000 8,759,000 Inventory 5,892,000 6,545,000 Prepaid Expenses 706,000 769,000 ---------------------------- 20,376,000 22,066,000 Capital Assets 4,692,000 4,541,000 Long-term Investments 418,000 404,000 Goodwill and Other 3,209,000 3,710,000 ---------------------------- Total Assets 28,695,000 30,721,000 ============================