6-K 1 form6kfinancials.txt FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the period ended February 28, 2002 RTICA Corporation -------------------------------------------------------------------------------- (Translation of registrant's name into English) 999 Barton Street, Stoney Creek, Ontario L8E 5H4 Canada -------------------------------------------------------------------------------- (Address of principal executive offices) [Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F ----- ----- [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X ----- ----- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ------------------------ RTICA CORPORATION (A DEVELOPMENT STAGE COMPANY) Interim Financial statements (Expressed in Canadian dollars) Period ended February 28, 2002 UNAUDITED RTICA CORPORATION (A DEVELOPMENT STAGE COMPANY) Interim Consolidated Balance Sheets (Expressed in Canadian dollars) February 28, 2002 and May 31, 2001 (Unaudited) ================================================================================ February 28 May 31 -------------------------------------------------------------------------------- Assets Current assets: Cash and short-term investments $ 82,059 $ 1,394,051 GST and other receivables 67,334 74,301 Prepaid expenses 10,877 8,442 ----------------------------------------------------------------------------- 160,270 1,476,794 Fixed assets (note 2) 350,927 435,236 Deferred development costs 1 1 Goodwill, net of accumulated amortization of $102,347 (May 31 - $82,574) 6,591 26,364 -------------------------------------------------------------------------------- $ 517,789 $ 1,938,395 ================================================================================ Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 772,361 $ 299,369 Due to government (note 4) 445,000 200,694 Shareholders' equity: Share capital (note 3) 8,907,618 8,743,768 Deficit (9,607,190) (7,305,436) ----------------------------------------------------------------------------- (699,572) 1,438,332 -------------------------------------------------------------------------------- $ 517,789 $ 1,938,395 ================================================================================ See accompanying notes to interim financial statements. RTICA CORPORATION (A DEVELOPMENT STAGE COMPANY) Interim Consolidated Statements of Operations and Deficit Three month periods ended February 28, 2002 and 2001 (Unaudited) ================================================================================ 2002 2001 -------------------------------------------------------------------------------- Income: Interest and other $ 838 $ 19,363 Operating expenses: Development 486,191 388,313 Sales and marketing 96,219 84,140 Rent and property taxes 44,346 43,874 Consulting 44,272 54,213 Management fees 40,500 37,250 General and administrative 36,593 43,420 Professional fees 33,660 40,779 Amortization of fixed assets 32,788 50,207 Patents 25,859 - Factory overhead 17,607 22,007 Travel 16,081 21,748 Amortization 6,591 6,591 Interest and bank charges 280 212 Interest on convertible debenture - 10,031 R&D Contributions and capitalized expenditures - (703,290) ----------------------------------------------------------------------------- 880,987 99,495 -------------------------------------------------------------------------------- Loss for the period (880,149) (80,132) Deficit accumulated during development stage, beginning of period (8,727,041) (5,449,135) -------------------------------------------------------------------------------- Deficit accumulated during development stage, end of period $(9,607,190) $(5,529,267) ================================================================================ Loss per share $ (0.035) $ (0.004) ================================================================================ Weighted average number of common shares outstanding, excluding shares held in escrow (note 3) 24,940,864 22,572,947 ================================================================================ See accompanying notes to interim financial statements. RTICA CORPORATION (A DEVELOPMENT STAGE COMPANY) Interim Consolidated Statements of Cash Flows Three month periods ended February 28, 2002 and 2001 (Unaudited) ================================================================================ 2002 2001 -------------------------------------------------------------------------------- Cash provided by (used in): Operating activities: Loss for the period $ (880,149) $ (80,132) Items not involving cash: Interest on convertible debenture - 10,031 Amortization of fixed assets 32,788 50,207 Amortization of goodwill 6,591 6,591 Change in non-cash operating working capital: GST and other receivables (17,335) (161,404) Prepaid expenses (2,435) - Accounts payable and accrued liabilities 311,701 (4,496) ----------------------------------------------------------------------------- (548,839) (179,203) Financing activities: Issuance of share capital 163,850 - Due to government 203,251 - Issuance of convertible debentures - - ----------------------------------------------------------------------------- 367,101 - Investing activities: Purchase of fixed assets (8,667) (231,430) Development expenditures - (464,582) ----------------------------------------------------------------------------- (8,667) (696,012) Change in cash and cash equivalents (190,405) (875,215) Cash and cash equivalents, start of period 272,464 2,867,635 -------------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 82,059 $ 1,992,420 ================================================================================ See accompanying notes to interim financial statements. RTICA CORPORATION (A DEVELOPMENT STAGE COMPANY) Interim Consolidated Statements of Operations and Deficit Nine month periods ended February 28, 2002 and 2001, and cumulative from inception (Unaudited)
=================================================================================================================== Cumulative Period from June 13, 1991 (inception) to February 28, 2002 2001 2002 ------------------------------------------------------------------------------------------------------------------- Income: Interest $ 38,107 $ 83,189 $ 205,631 Fees and licenses - - 622,482 ---------------------------------------------------------------------------------------------------------------- 38,107 83,189 828,113 Operating expenses: Development 1,161,091 662,271 3,818,391 Sales and marketing 226,057 177,245 609,612 Consulting 212,409 264,624 1,639,597 Professional fees 157,574 220,051 1,066,945 Rent and property taxes 120,856 112,767 344,398 Management fees 113,000 112,250 986,386 General and administrative 111,812 170,301 746,728 Amortization of fixed assets 98,364 118,740 271,617 Factory overhead 52,821 34,262 105,887 Travel 36,763 44,147 393,088 Patents 26,797 - 71,083 Amortization 19,773 19,773 102,347 Interest and bank charges 1,294 711 137,390 Foreign exchange 1,250 - - Interest on convertible debenture - 37,881 141,834 R&D Contributions and capitalized expenditures - (703,290) - ---------------------------------------------------------------------------------------------------------------- 2,339,861 1,271,733 10,435,303 ------------------------------------------------------------------------------------------------------------------- Loss for the period (2,301,754) (1,188,544) (9,607,190) Deficit accumulated during development stage, beginning of period (7,305,436) (4,340,723) - ------------------------------------------------------------------------------------------------------------------- Deficit accumulated during development stage, end of period $ (9,607,190) $ (5,529,267) $ (9,607,190) =================================================================================================================== Loss per share $ (0.09) $ (0.06) =================================================================================================================== Weighted average number of common shares outstanding, excluding shares held In escrow shares (note 3) 24,816,086 21,123,571 ===================================================================================================================
See accompanying notes to interim financial statements. RTICA CORPORATION (A DEVELOPMENT STAGE COMPANY) Interim Consolidated Statements of Cash Flows Nine month periods ended February 28, 2002 and 2001, and cumulative from inception (Unaudited)
=================================================================================================================== Cumulative Period from June 13, 1991 (inception) to February 28, 2002 2001 2002 ------------------------------------------------------------------------------------------------------------------- Cash provided by (used in): Operating activities: Loss for the period $ (2,301,754) $ (1,188,544) $ (9,607,190) Items not involving cash: Interest on convertible debenture - 37,881 115,970 Amortization of fixed assets 98,364 118,740 271,617 Amortization of goodwill 19,773 19,773 102,347 Interest expense on converted loan - - 96,000 Expenses settled by issuance of common shares - - 431,388 Foreign exchange 1,250 - (25,621) Change in non-cash operating working capital: GST and other receivables 6,967 (88,577) (67,334) Prepaid expenses (2,435) - (10,877) Accounts payable and accrued liabilities 472,992 (672,607) 691,015 ---------------------------------------------------------------------------------------------------------------- (1,704,843) (1,773,334) (8,002,685) Financing activities: Due to government 244,306 - 445,000 Issuance of convertible debentures - - 1,860,000 Issuance of common shares 163,850 - 2,436,617 Issuance of special warrants - 2,759,241 2,870,659 Exercise of share purchase warrants - - 553,541 Proceeds from loan payable - - 254,000 ---------------------------------------------------------------------------------------------------------------- 408,156 2,759,241 8,419,817 Investing activities: Purchase of fixed assets (14,055) (241,630) (622,543) Deferred development costs - (464,582) (1) Cash acquired on reverse takeover - - 261,850 ---------------------------------------------------------------------------------------------------------------- (14,055) (706,212) (360,694) Foreign exchange gains held on foreign currency (1,250) - 25,621 ------------------------------------------------------------------------------------------------------------------- Change in cash and cash equivalents (1,311,992) 279,695 82,059 Cash and cash equivalents, start of period 1,394,051 1,712,725 - ------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 82,059 $ 1,992,420 $ 82,059 ===================================================================================================================
See accompanying notes to interim financial statements. RTICA CORPORATION (FORMERLY INZECO HOLDINGS INC.) (A DEVELOPMENT STAGE COMPANY) Notes to Interim Consolidated Financial Statements Nine month periods ended February 28, 2002 (Unaudited) ================================================================================ 1. Significant accounting policies: These interim financial statements have been prepared in accordance with accounting principles generally accepted in Canada ("Canadian GAAP"), and include estimates and adjustments which in the opinion of management are necessary in order to make the financial statements not misleading. Canadian GAAP differs in certain respects with those principles and practices that the Company would have followed had its financial statements been prepared in accordance with accounting principles and practices generally accepted in the United States. For a full description of accounting polices which have been applied on a consistent basis in these interim financial statements, refer to the Company's annual financial statements. 2. Fixed Assets: =========================================================================== Accumulated Net Book Net Book Cost Amortization Value Value February 28 May 31 --------------------------------------------------------------------------- Machinery and equipment $ 530,518 $ 225,190 $ 305,328 $ 388,029 Furniture 11,451 4,799 6,652 7,384 Vehicles 15,848 7,477 8,371 10,306 Computer hardware 63,867 33,291 30,576 29,517 --------------------------------------------------------------------------- $ 621,684 $ 270,757 $ 350,927 $ 435,236 =========================================================================== 3. Share capital: As of February 28, 2002, the Company had 34,835,636 common shares and 3,255,750 Company stock options outstanding. In addition, there are 201,667 broker compensation options outstanding exercisable at $0.60 per share and expiring on June 14, 2002, issued in connection with a private placement in June 2000. During the quarter ended February 28, 2002, the company granted 225,000 options, exercisable at $0.48 expiring on January 17, 2005. There where no stock options expiring during the period. Using the treasury stock method, the weighted average number of common shares outstanding used in determining basic earnings per share excludes 9,298,939 of escrowed shares. RTICA CORPORATION (FORMERLY INZECO HOLDINGS INC.) (A DEVELOPMENT STAGE COMPANY) Notes to Interim Consolidated Financial Statements (Cont'd) Nine month periods ended February 28, 2002 (Unaudited) ================================================================================ 4. Due to government: The company has signed a contract with the National Research Council of Canada, whereby the Company is eligible to receive up to $445,000 as a repayable contribution for various projects carried out by the Company. Repayment of these contributions begins on January 1, 2004 based on 1% of the Company's gross revenue up to a maximum of $667,500. 5. Related party transactions: Amounts expended during the nine month period ended February 28, 2002 were as follows: =========================================================================== Type of service Nature of relationship February 28, 2002 --------------------------------------------------------------------------- Sales and marketing Shareholder and officer $ 138,328 Management fees Shareholder, director and officer 118,500 Development charges Shareholders and director 172,887 Consulting Shareholder and director 4,950 Professional fees Shareholder, director and officer 31,391 =========================================================================== 6. Subsequent Events On April 18, 2002 the Company secured $340,00 in bridge financing for general working capital purposes in tranches of $150,000 and $190,000 respectively, both amounts to bear interest at the rate of 15%. The latter advance is secured by a General Security Agreement over the Company's assets. A total of 80,000 common shares of the Company were allocated to the lenders as an inducement to advance the funds. The loans are repayable in 6 months, or earlier in the event that the Company raises at least $700,000 in additional equity. The common shares allocated have a hold period expiring on August 16, 2002. 7. Comparative figures: Certain comparative figures have been reclassified to conform to presentation adopted in the current year. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. RTICA Corporation ------------------------------------- (Registrant) Date May 16, 2002 By: /s/ Warren Arseneau ------------------ ------------------------------------- *Warren Arseneau, President * Print the name and title of the signing officer under his signature.