99.1
|
Financial Statements – Q3 ending July 31, 2011
|
99.2
|
MD&A – Q3 ending July 31, 2011
|
99.3
|
CEO Certificate– Q3 ending July 31, 2011
|
99.4
|
CFO Certificate – Q3 ending July 31, 2011
|
99.5
|
News Release – Grant of Options
|
99.6
|
News Release – Grant of Options
|
99.7
|
News Release – Extension of Warrants
|
99.1
|
Financial Statements – Q3 ending July 31, 2011
|
99.2
|
MD&A – Q3 ending July 31, 2011
|
99.3
|
CEO Certificate– Q3 ending July 31, 2011
|
99.4
|
CFO Certificate – Q3 ending July 31, 2011
|
99.5
|
News Release – Grant of Options
|
99.6
|
News Release – Grant of Options
|
99.7
|
News Release – Extension of Warrants
|
TABLE OF CONTENTS
|
|
Page
|
|
Consolidated Balance Sheets
|
1
|
Consolidated Statements of Operations
|
|
and Comprehensive Loss
|
2
|
Consolidated Statements of Shareholders’ Equity
|
3
|
Consolidated Statements of Cash Flows
|
4
|
Notes to Consolidated Financial Statements
|
5 - 18
|
July 31,
|
October 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
CURRENT
|
||||||||
Cash
|
$ | 1,641,590 | $ | 209,736 | ||||
Short-term investment
|
60,000 | 60,000 | ||||||
Other receivables
|
5,983 | 10,088 | ||||||
Prepaid expenses and deposits
|
25,122 | 37,727 | ||||||
1,732,695 | 317,551 | |||||||
Deposit
|
23,709 | 24,074 | ||||||
Property and equipment
|
301,506 | 425,468 | ||||||
Technology rights (Note 3)
|
368,150 | 398,000 | ||||||
|
$ | 2,426,060 | $ | 1,165,093 | ||||
LIABILITIES
|
||||||||
CURRENT
|
||||||||
Accounts payable and accrued liabilities (Note 6)
|
$ | 72,761 | $ | 187,971 | ||||
Loans and advances
|
--- | 2,111 | ||||||
72,761 | 190,082 | |||||||
Deferred lease inducements
|
59,339 | 76,574 | ||||||
Convertible debentures (Note 4)
|
287,997 | 283,509 | ||||||
420,097 | 550,165 | |||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Share capital (Note 5)
|
18,379,991 | 15,845,770 | ||||||
Warrants (Note 5)
|
2,193,432 | 1,901,217 | ||||||
Contributed surplus (Note 5)
|
3,232,067 | 2,899,907 | ||||||
Convertible debenture equity (Note 4)
|
11,564 | 11,564 | ||||||
Deficit accumulated in development stage
|
(16,888,418 | ) | (16,888,418 | ) | ||||
Deficit
|
(4,922,673 | ) | (3,155,112 | ) | ||||
2,005,963 | 614,928 | |||||||
$ | 2,426,060 | $ | 1,165,093 | |||||
Nature of Operations and Going Concern (Note 1)
|
||||||||
Commitments (Note 7)
|
||||||||
Subsequent Events (Note 10)
|
Signed “John Coulter”
|
Signed ”James Leman”
|
|||
John Coulter
|
James Leman
|
Three months ended
July 31,
|
Nine months ended
July 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
EXPENSES:
|
||||||||||||||||
Research and development (Note 8)
|
154,424 | 185,834 | 440,933 | 576,785 | ||||||||||||
General and administrative ( Note )
|
129,367 | 425,130 | 1,127,323 | 1,196,855 | ||||||||||||
Amortization
|
45,426 | 38,404 | 136,277 | 115,702 | ||||||||||||
Bank charges and interest
|
21,899 | 751 | 30,864 | 4,406 | ||||||||||||
Loss (Gain) on foreign exchange
|
12,221 | 78,125 | 32,164 | 70,969 | ||||||||||||
Net loss and comprehensive loss
|
363,337 | 728,244 | 1,767,561 | 1,964,717 | ||||||||||||
LOSS PER SHARE – Basic (Note 14)
|
$ | (0.003 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | ( 0.03 | ) | ||||
WEIGHTED AVERAGE NUMBER
OF SHARES USED TO
CALCULATE LOSS PER SHARE
|
104,041,191 | 61,505,174 | 95,682,051 | 59,391,985 |
Share
Capital
|
Warrants
|
Contributed
Surplus
|
Convertible
Debentures -
Equity
|
Deficit
|
Total
|
|||||||||||||||||||
October 31, 2008
|
11,707,655 | 1,016,303 | 1,279,169 | (13,163,541 | ) | 839,586 | ||||||||||||||||||
Net loss
|
(3,528,749 | ) | (3,528,749 | ) | ||||||||||||||||||||
Expired/forfeited warrants
|
(239,077 | ) | 239,077 | --- | ||||||||||||||||||||
Stock options exercised
|
169,120 | (49,820 | ) | 119,300 | ||||||||||||||||||||
Private placements
|
1,644,179 | 338,649 | 1,982,828 | |||||||||||||||||||||
Shares issued for service
|
71,000 | 71,000 | ||||||||||||||||||||||
Stock compensation expense
|
807,931 | 807,931 | ||||||||||||||||||||||
October 31, 2009
|
13,591,954 | 1,115,875 | 2,276,357 | (16,692,290 | ) | 291,896 | ||||||||||||||||||
Net loss
|
(2,977,117 | ) | (2,977,117 | ) | ||||||||||||||||||||
Private placement
|
2,266,364 | 626,049 | 2,892,413 | |||||||||||||||||||||
Returned to treasury
|
(12,548 | ) | (3,524 | ) | (9,306 | ) | (25,378 | ) | ||||||||||||||||
Warrants extension
|
162,817 | (162,817 | ) | --- | ||||||||||||||||||||
Stock compensation expense
|
623,550 | 623,550 | ||||||||||||||||||||||
Convertible debentures
|
11,564 | 11,564 | ||||||||||||||||||||||
Technology rights
payment in excess of carrying value
|
(202,000 | ) | (202,000 | ) | ||||||||||||||||||||
October 31, 2010
|
$ | 15,845,770 | $ | 1,901,217 | $ | 2,899,907 | $ | 11,564 | $ | (20,043,530 | ) | $ | 614,928 | |||||||||||
Net loss
|
(1,767,561 | ) | (1,767,561 | ) | ||||||||||||||||||||
Private placement
|
2,534,221 | 292,215 | 2,826,436 | |||||||||||||||||||||
Stock compensation expense
|
332,160 | 332,160 | ||||||||||||||||||||||
July 31, 2011
|
$ | 18,379,991 | $ | 2,193,432 | $ | 3,232,067 | $ | 11,564 | $ | (21,811,091 | ) | $ | 2,005,963 | |||||||||||
|
||||||||||||||||
Three months ended July 31, | Nine months ended July 31, | |||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
OPERATING
|
||||||||||||||||
Net loss for the period
|
$ | (363,337 | ) | $ | (733,244 | ) | $ | ( 1,767,561 | ) | $ | (1,953,392 | ) | ||||
Adjustments for non-cash items
|
||||||||||||||||
Amortization of property and equipment
|
51,171 | 44,149 | 153,512 | 132,937 | ||||||||||||
Amortization of deferred lease inducements
|
(5,745 | ) | (5,745 | ) | (17,235 | ) | (17,235 | ), | ||||||||
Stock compensation expense
|
(38,260 | ) | 140,956 | 332,160 | 265,006 |
Accretion Interest
|
1,501 | 4,488 | ||||||||||||||
Research and developmenmt
|
||||||||||||||||
Unrealized foreign exchange
|
(567 | ) | (6,977 | ) | ||||||||||||
Net Changes in non-working capital balances:
|
||||||||||||||||
Prepaid expenses and deposits
|
(272 | ) | (855 | ) | 12,970 | 13,251 | ||||||||||
Other receivables
|
16,807 | (6,378 | ) | 4,105 | 6,575 | |||||||||||
Accounts payable and accrued liabilities
|
(9,772 | ) | 109,118 | (114,361 | ) | 104,298 | ||||||||||
(348,474 | ) | (451,999 | ) | (1,398,899 | ) | (1,448,560 | ) |
INVESTING
|
||||||||||||||||
Due from related parties
|
--- | --- | --- | --- | ||||||||||||
Loan receivable
|
--- | --- | --- | --- | ||||||||||||
Purchase (Sale) of property and
equipment
|
--- | --- | 300 | --- | ||||||||||||
Purchase of technology rights
|
--- | --- | --- | --- | ||||||||||||
Proceeds from deferred lease inducements
|
--- | --- | --- | --- | ||||||||||||
Restricted cash
|
--- | --- | --- | 2,520 | ||||||||||||
Short-term investment
|
--- | --- | --- | -- | ||||||||||||
-- | 852 | 300 | 2,520 | |||||||||||||
FINANCING
|
||||||||||||||||
Issue of share capital, net of issue costs
|
1,899,517 | 892,183 | 2,826,436 | 892,183 | ||||||||||||
Redemption of common shares
|
--- | --- | --- | --- | ||||||||||||
Loans and advances
|
--- | (530,136 | ) | (2,111 | ) | 386,884 | ||||||||||
1,899,517 | 362,047 | 2,824,325 | 1,279,067 | |||||||||||||
EFFECT OF EXCHANGE RATE CHANGES
|
822 | 6,128 | --- | |||||||||||||
INCREASE (DECREASE) IN CASH
|
1,551,865 | (89,952 | ) | 1,431,854 | (166,973 | ) | ||||||||||
CASH, BEGINNING OF PERIOD
|
89,725 | 6,141 | 209,736 | 83,162 | ||||||||||||
CASH, END OF PERIOD
|
$ | 1,641,590 | $ | (83,811 | ) | $ | 1,641,590 | $ | (83,811 | ) | ||||||
CASH USED IN OPERATING ACTIVITIES INCLUDES:
|
||||||||||||||||
Bank charges and interest
|
$ | 6,584 | $ | 751 | $ | 12,309 | $ | 4,406 | ||||||||
Income taxes paid
|
$ | --- | $ | --- | $ | --- | $ | --- | ||||||||
Supplementary information:
Shares issued for services
|
$ | --- | $ | --- | $ | --- | $ | --- |
1.
|
NATURE OF OPERATIONS AND GOING CONCERN
|
2.
|
SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
|
2.
|
SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
|
|
a)
|
Business Combinations, Consolidated Financial Statements and Non-Controlling Interests
|
2011
|
2010
|
|||||||
Purchase of technology rights
|
$ | 600,000 | $ | 600,000 | ||||
Allocation of excess of exchange amount from carrying value acquired from related party to deficit
|
(202,000 | ) | (202,000 | ) | ||||
$ | 398,000 | $ | 398,000 | |||||
Amortization
|
(29,850 | ) | --- | |||||
$ | 368,150 | $ | 398,000 |
2011
|
2010
|
|||
Face value of convertible debentures
|
$ 294,000
|
$ 294,000
|
||
Portion of convertible debentures allocated to equity
|
(11,564)
|
(11,564)
|
||
282,436
|
282,436
|
|||
Interest expense
|
4,488
|
1,073
|
||
$ 287,997
|
$283,509
|
The assumptions used to fair value the equity component of the convertible debentures are as follows:
|
|||||
Expected dividend rate
|
0 | % | |||
Expected volatility
|
95.78 | % | |||
Risk-free interest rate
|
1.26 | ||||
Expected life of the debenture term
|
2 years
|
||||
5. SHARE CAPITAL (continued)
|
Common Shares |
Warrants
|
|||||||||||||||
Shares
|
Amount
|
Warrants
|
Amount
|
|||||||||||||
Balance, October 31, 2001
|
9,812,966 | $ | 3,715,938 | 680,000 | $ | --- | ||||||||||
Issued for cash
|
--- | --- | --- | --- | ||||||||||||
Balance, October 31, 2002
|
9,812,966 | 3,715,938 | 680,000 | --- | ||||||||||||
Warrants expired
|
--- | --- | (680,000 | ) | --- | |||||||||||
Balance, October 31, 2003
|
9,812,966 | 3,715,938 | --- | --- | ||||||||||||
Private placements
|
3,211,999 | 242,456 | 3,211,999 | 116,544 | ||||||||||||
Share issuance costs
|
--- | (9,800 | ) | --- | --- | |||||||||||
Balance, October 31, 2004
|
13,024,965 | 3,948,594 | 3,211,999 | 116,544 | ||||||||||||
Private placements
|
5,455,110 | 878,014 | 4,655,014 | 154,561 | ||||||||||||
Warrants exercised
|
430,000 | 72,240 | (430,000 | ) | (20,640 | ) | ||||||||||
Shares issued for debt
|
3,736,324 | 472,309 | --- | --- | ||||||||||||
Shares issuance costs
|
--- | (77,652 | ) | --- | --- | |||||||||||
Warrants expired and forfeited
|
--- | --- | (859,999 | ) | (21,440 | ) | ||||||||||
Balance, October 31, 2005
|
22,646,399 | 5,293,505 | 6,577,014 | 229,025 | ||||||||||||
Private placements
|
6,012,765 | 1,157,590 | 3,006,388 | 345,776 | ||||||||||||
Warrants exercised
|
2,155,333 | 363,920 | (2,155,333 | ) | (85,947 | ) | ||||||||||
Warrants issued in software transfer
|
--- | --- | (2,000,000 | ) | --- | |||||||||||
Warrants expired and forfeited
|
--- | --- | (983,500 | ) | (58,274 | ) | ||||||||||
Share issuance costs
|
--- | (97,337 | ) | --- | (21,070 | ) | ||||||||||
Balance, October 31, 2006
|
30,814,497 | $ | 6,717,678 | 8,444,569 | $ | 409,510 | ||||||||||
Private placement
|
3,311,299 | 957,552 | 1,655,632 | 201,413 | ||||||||||||
Warrants exercised
|
3,010,403 | 884,171 | (3,010,403 | ) | (86,150 | ) | ||||||||||
Stock options exercised
|
377,500 | 78,904 | --- | --- | ||||||||||||
Warrants expired and forfeited
|
--- | --- | (581,667 | ) | (11,633 | ) | ||||||||||
Shares issued for service
|
300,000 | 249,000 | --- | --- | ||||||||||||
Share issuance costs
|
--- | (92,260 | ) | --- | (17,364 | ) | ||||||||||
Balance, October 31, 2007
|
37,813,699 | 8,795,045 | 6,508,131 | 495,776 | ||||||||||||
Private placement
|
9,571,234 | 2,243,139 | 6,035,617 | 841,855 | ||||||||||||
Warrants exercised
|
1,494,412 | 733,783 | (1,494,412 | ) | (129,017 | ) | ||||||||||
Stock options exercised
|
335,000 | 47,905 | --- | --- | ||||||||||||
Warrants expired and forfeited
|
--- | --- | (1,358,087 | ) | (200,550 | ) | ||||||||||
Warrants modified
|
--- | (37,664 | ) | --- | 37,664 | |||||||||||
Share issuance costs
|
--- | (74,553 | ) | --- | (29,425 | ) | ||||||||||
Balance, October 31, 2008
|
49,214,345 | 11,707,655 | 9,691,249 | 1,016,303 | ||||||||||||
Private placement
|
7,743,533 | 1,693,027 | 3,871,767 | 352,233 | ||||||||||||
Stock options exercised
|
1,160,000 | 169,120 | --- | --- | ||||||||||||
Warrants expired and forfeited
|
--- | --- | (1,655,632 | ) | (239,077 | ) | ||||||||||
Share issuance costs
Shares issued for services
|
--- 200,000 | (48,848 | ) 71,000 | --- --- | (13,584 | ) --- |
5. SHARE CAPITAL (continued)
|
||||||||||||||||
Common Shares
|
Warrants
|
|||||||||||||||
Shares
|
Amount
|
Warrants
|
Amount
|
|||||||||||||
Balance, October 31, 2009
|
58,317,878 | 13,591,954 | 11,907,384 | 1,115,875 | ||||||||||||
Private placement
|
24,785,750 | 2,296,821 | 24,785,750 | 632,878 | ||||||||||||
Warrants extended
|
--- | --- | 162,817 | |||||||||||||
Warrants expired and forfeited
|
--- | --- | (2,000,000 | ) | --- | |||||||||||
Share issuance costs
|
--- | (30,457 | ) | --- | (6,829 | ) | ||||||||||
Return to treasury
|
(84,600 | ) | (12,548 | ) | (42,300 | ) | (3,524 | ) | ||||||||
Balance, October 31, 2010
|
83,019,028 | $ | 15,845,770 | 34,650,834 | $ | 1,901,217 | ||||||||||
Private placement
|
29,705,250 | 2,661,756 | 24,594,625 | 308,779 | ||||||||||||
Warrants expired and forfeited
|
--- | --- | (3,569,584 | ) | --- | |||||||||||
Share issuance costs
|
--- | (127,524 | ) | (16,565 | ) | |||||||||||
Balance July 31, 2011
|
112,724,278 | $ | 18,379,991 | 55,675,875 | $ | 2,193,432 |
5. SHARE CAPITAL (continued)
|
Date
|
# Stock Options
|
Exercise Price
|
Expiry Date
|
November 3, 2010,
|
1,930,000
|
$0.11
|
November 3, 2015
|
November 16, 2009
|
300,000
|
$0.13
|
November 16, 2015
|
November 24, 2010
|
3,770,000
|
$0.14
|
November 24, 2015
|
December 3, 2010
|
500,000
|
$0.13
|
December 3, 2015
|
December 22, 2010
|
200,000
|
$0.13
|
December 22, 2015
|
March 15, 2011
|
2,000,000
|
$0.10
|
March 15, 2016
|
March 31, 2011
|
50,000
|
$0.10
|
March 31, 2016
|
June 1, 2011
|
1,150,000
|
$0.10
|
June 1, 2016
|
Total
|
9,900,000
|
$0.12
|
Year
|
2011
|
2010
|
||
Number of
Options
|
Weighted-
Average
Exercise Price
|
Number of
Options
|
Weighted-
Average
Exercise Price
|
|
Outstanding at beginning of year
|
11,390,000
|
$ 0.32
|
9,130,593
|
$ 0.33
|
Granted
Exercised
Forfeited
Expired/cancelled
|
9,900,000
---
(1,138,331)
(4,071,669)
|
$ 0.12
$ 0.20
$ 0.34
|
4,130,000
---
(1,870,593)
|
$ 0.19
$ 0.27
|
Outstanding at end of period
|
16,080,000
|
$ 0.18
|
11,390,000
|
$ 0.29
|
Exercisable at end of period
|
9,670,002
|
$ 0.22
|
8,620,004
|
$ 0.32
|
Exercise Price
|
Number
Outstanding
|
Number
Exercisable
|
Weighted Average
Remaining Contractual
Life (years)
|
0.30
|
1,285,000
|
1,285,000
|
.5
|
0.50
|
50,000
|
50,000
|
1.
|
0.37
|
520,000
|
520,000
|
1.5
|
0.50
|
60,000
|
60,000
|
1.5
|
0.335
|
150,000
|
150,000
|
1.9
|
0.30
|
900,000
|
900,000
|
2.0
|
0.36
|
175,000
|
175,000
|
2.3
|
0.31
|
50,000
|
50,000
|
2.5
|
0.33
|
830,000
|
830,000
|
2.6
|
0.25
|
1,000,000
|
1,000,000
|
3.3
|
0.17
|
1,010,000
|
673,335
|
3.6
|
0.17
|
100,000
|
66,666
|
3.8
|
0.10
|
50,000
|
33,333
|
4.3
|
0.11
|
1,930,000
|
1,286,667
|
4.3
|
0.13
|
300,000
|
200,000
|
4.3
|
0.14
|
3,770,000
|
1,256,667
|
4.3
|
0.13
|
500,000
|
---
|
4.4
|
0.13
|
200,000
|
66,666
|
4.4
|
$0.10
|
2,000,000
|
666,668
|
4.8
|
$0.10
|
50,000
|
16,667
|
4.8
|
$0.10
|
1,150,000
|
383,333
|
4.8
|
16,080,000
|
9,670,002
|
Options
|
Warrants
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Weighted-average grant date fair value per share option or warrant
|
0.12 | 0.19 | 0.03 | 0.03 | ||||||||||||
Expected dividend rate
|
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Expected volatility
|
111 | % | 116 | % | 88 | % | 94 | % | ||||||||
Risk-free interest rate
|
2.43 | % | 2.55 | % | 1.63 | % | 1.42 | % | ||||||||
Expected life of options or warrants in years
|
5 yrs.
|
5 yrs.
|
2 yrs.
|
2 yrs.
|
Exercise Price
|
Number
\Outstanding
|
Expiry Date
|
|
$0.40
$0.40
$0.50
$0.30
$0.30
$0.30
$0.30
$0.33
|
1,017,500
2,500,000
2,778,000
4,511,250
19,824,500
450,000
5,110,625
19,484,000
|
July 29, 2012
August 19, 2012
October 15, 2011
May 27, 2012
October 12,2012
October 20,2012
December 3, 2012
June 10, 2013
|
(*)
(*)
|
55,675,875
|
|
6.
|
RELATED PARTY TRANSACTIONS
|
2011
|
2010
|
2009
|
||||||||||
Management and consulting fees
|
$ | 135,000 | $ | 67,500 | $ | 67,500 | ||||||
Research and development
|
$ | 178,044 | $ | 183,897 | $ | 188,385 |
Year
|
Total
|
|
2011
2012
|
$ 78,768
65,640
|
|
$ 144,408
|
8.
|
ACCRUED LIABILITIES
|
2011
|
2010
|
|
Accrued vacation pay
|
$ ---
|
$12,699
|
Accrued payroll withholdings to government agency
|
---
|
8,606
|
Others
|
35,448
|
57,248
|
$ 35,448
|
$78,553
|
9.
|
RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES
|
|
The Company prepares its consolidated financial statements in accordance with Canadian GAAP. There are no material variations between the financial position of the Company and the results of operations and cash flows under Canadian GAAP and United States generally accepted accounting principles (“US GAAP”), except as follows:
|
9.
|
RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES (continued)
|
|
Stock-based Compensation
|
Consolidated Statements of Operations and Comprehensive Loss
|
Nine months ended
July 31,
|
Years Ended October 31 | |||||||||||
2011
|
2010
|
2009
|
||||||||||
Net loss and comprehensive loss for the year
/period– Canadian GAAP
|
$ | (1,767,561 | ) | $ | (2,977,117 | ) | (3,258,749 | ) | ||||
Stock compensation expense
|
- | - | 19,000 | |||||||||
Accretion interest
|
4,488 | 1,073 | - | |||||||||
Net loss and comprehensive loss for the year
– US GAAP
|
$ | (1,763,073 | ) | $ | (2,976,044 | ) | $ | (3,509,749 | ) | |||
Loss per share – Basic and diluted Canadian
GAAP
|
$ | (0.02 | ) | $ | (0.05 | ) | $ | (0.07 | ||||
Loss per share – Basic and diluted US GAAP
|
$ | (0.02 | ) | $ | (0.05 | ) | $ | (0.07 | ||||
Weighted average number of common shares
outstanding
|
95,682,051 | 61,292,998 | 51,951,767 |
Consolidated Statements of Cash-Flows
|
Six months ended
July 31,
|
Years Ended October 31 | |||||||||||
2011
|
2010
|
2009
|
||||||||||
Net loss for the period – Canadian GAAP
|
$ | (1,767,561 | ) | $ | (2,977,117 | ) | $ | (2,445,485 | ) | |||
Adjustment for accretion interest for convertible debentures
|
4,488 | 1,073 | - | |||||||||
Net loss for the year – US GAAP
|
(1,763,073 | ) | (2,967,044 | ) | (2,445,485 | ) | ||||||
Cash used in operating activities – Canadian & US GAAP
|
(1,398,899 | ) | (2,170,528 | ) | (2,445,485 | ) | ||||||
Cash provided by (used in) investing activities – Canadian & US GAAP
|
300 | (567,480 | ) | 238,984 | ||||||||
Cash provided by financing activities – Canadian & US GAAP
|
2,824,325 | 2,867,051 | 1,994,069 |
Effect of foreign exchange on cash
|
6,128 | (2,469 | ) | (39,360 | ) | |||||||
(Decrease) increase in cash during the year
|
1,431,854 | 126,574 | (251,792 | ) | ||||||||
Cash, beginning of year
|
209,736 | 83,162 | 334,954 | |||||||||
Cash, end of period – US GAAP
|
$ | 1,641,590 | $ | 209,736 | $ | 83,162 |
Consolidated Balance Sheets
|
||||||||
July 31, 2011
|
October 31, 2010
|
|||||||
Total assets – Canadian GAAP
|
$ | 2,426,060 | $ | 1,165,093 | ||||
Technology rights – exchange amount
|
--- | 202,000 | ||||||
Total assets – US GAAP
|
$ | 2,426,060 | $ | 1,367,093 | ||||
Total liabilities – Canadian GAAP
|
$ | 420,096 | $ | 550,165 | ||||
Convertible debentures – accretion interest
|
(4,488 | ) | (1,073 | ) | ||||
Convertible debentures – equity component
|
--- | 11,564 | ||||||
Total liabilities – US GAAP
|
415,608 | 560,656 | ||||||
Share capital – Canadian GAAP
|
18,379,991 | 15,845,770 | ||||||
Warrants
|
2,193,432 | 1,901,217 | ||||||
Contributed surplus – Canadian GAAP
|
3,232,067 | 2,899,907 | ||||||
Convertible debentures – equity component – Canadian GAAP
|
11,564 | 11,564 | ||||||
Convertible debentures – equity component
|
(11,564 | ) | (11,564 | ) | ||||
Convertible debentures equity – US GAAP
|
---- | - | ||||||
Deficit – Canadian GAAP
|
(21,881,091 | ) | (20,043,530 | ) | ||||
Accretion interest
|
4,488 | 1,073 | ||||||
Technology rights
|
--- | 202,000 | ||||||
Deficit – US GAAP
|
(21,806,603 | ) | (19,840,457 | ) | ||||
Total shareholders' equity – Canadian GAAP
|
2,005,963 | 614,928 | ||||||
Total shareholders' equity – US GAAP
|
1,998,887 | 806,437 | ||||||
Total liabilities and shareholders' equity – Canadian GAAP
|
2,426,060 | 1,165,093 | ||||||
Total liabilities and shareholders' equity – US GAAP
|
$ | 2,414,495 | $ | 1,367,093 | ||||
9.
|
RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES (continued)
|
|
Impact of Recently Adopted Accounting Standards
|
10.
|
SUBSEQUENT EVENTS
|
|
1.
|
Trade Recommendation Engine (TRE), also known internally as the blackbox, used to generate trading signals.
|
|
2.
|
TOMS, Titan’s order management software, used to execute and manage trades.
|
|
3.
|
TopView and TopViewClient, used to distribute the real-time and historical trading signals.
|
|
4.
|
Several back end data management tools, with internal names to manage data.
|
|
1.
|
present the trader with high quality technical based trading opportunities;
|
|
2.
|
allow the GreyBox trader to have complete control over which trades are executed;
|
|
3.
|
automate the order entry and exit process; and
|
|
4.
|
manage risk on dozens of open positions with automation.
|
|
1.
|
generate high quality technical based trading opportunities;
|
|
2.
|
automate the order entry and exit process; and
|
|
3.
|
manage risk on dozens of open positions with automation.
|
|
a)
|
December 3, 2010 the Company completed a non-brokered private placement of Units which raised $1,022,125. The private placement consisted of 10,221,250 units at $0.10 for total proceeds of $1,022,125. Each Unit consists of one Common Share and one-half of one Common Share purchase Warrant. Each whole share purchase Warrant is exercisable onto one Common Share at a price of $0.30 per Common Share during the 2 year period following the date of the closing and will expire December 3, 2012. The Company paid a total of $88,250 in finder’s fees to arm’s length parties. The units and the common Shares issuable upon exercise of the warrants are subject to a four month restricted period which expires on April 4, 2011.
|
|
b)
|
June 10, 2011 the Company completed a non‐brokered private placement of units which raised CDN $1,948,400. The private placement consisted of 19,484,000 Units at CDN $0.10 per Unit. Each Unit consists of one common share (“Common Share”) and one full common share purchase warrant (a “Warrant”). Each whole Warrant is exercisable into one Common Share at a price of CDN$0.33 per Common Share during the twenty‐four month period following the date of closing and will expire June 10, 2013. The Company paid a total of CDN $38,640 in finder’s fees to arm’s length parties. The Common Shares and Warrants comprising the Units and the Common Shares issuable upon exercise of the Warrants are subject to a four (4) month restricted period which expires on October 11 2011.
|
For the three month period ended
|
||||||||||||||||
July 31, 2011
|
Apr. 30, 2011
|
Jan. 31, 2011
|
Oct 31, 2010
|
|||||||||||||
Net sales/total revenues
|
$ | --- | $ | --- | $ | --- | --- | |||||||||
Net loss
|
$ | 363,337 | $ | 680,005 | $ | 724,219 | 1,028,725 | |||||||||
Net loss per share (fully diluted)
|
.003 | .007 | .0081 | .01 |
For the three month period ended
|
||||||||||||||||
July 31, 2011
|
April 30, 2010
|
Jan. 31, 2010
|
Oct. 31, 2009
|
|||||||||||||
Net sales/total revenues
|
Nil
|
Nil
|
Nil
|
Nil
|
||||||||||||
Net loss
|
$ | 728,244 | $ | 634,692 | $ | 585,456 | $ | 1,263,409 | ||||||||
Net loss per share
(fully diluted)
|
.01 | .02 | .01 | .03 |
Period ended April 30, 2011
|
2011
|
2010
|
2009
|
|||||||||
Management and consulting fees
|
$ | 135,000 | $ | 67,500 | $ | 67,500 | ||||||
Research and development
|
$ | 178,044 | $ | 183,897 | $ | 188,385 |
Class
|
Par Value
|
Authorized
|
Issued
|
Common Shares
|
Nil
|
Unlimited
|
112,734,278
|
Preferred Shares
|
Nil
|
Unlimited
|
Nil
|
Security Type
|
Number
|
Exercise Price
|
Expiry Date
|
Recorded Value
|
Stock Options
|
1,285,000
|
$0.30
|
Jan. 8, 2012
|
N/A
|
Stock Options
|
50,000
|
$0.50
|
Aug. 15, 2012
|
N/A
|
Stock Options
|
520,000
|
$0.37
|
Jan. 28, 2013
|
N/A
|
Stock Options
|
60,000
|
$0.50
|
Feb. 4, 2013
|
N/A
|
Stock Options
|
150,000
|
$0.335
|
July 8, 2013
|
N/A
|
Stock Options
|
900,000
|
$0.30
|
August 12, 2013
|
N/A
|
Stock Options | 175,000 | $0.36 | November 7, 2013 | N/A |
Security Type
|
Number
|
Exercise Price
|
Expiry Date
|
Recorded Value
|
Stock Options
|
50,000
|
$0.305
|
January 26, 2014
|
N/A
|
Stock Options
|
830,000
|
$0.33
|
March 6, 2014
|
N/A
|
Stock Options
|
1,000,000
|
$0.25
|
November 13, 2014
|
N/A
|
Stock Options
|
1,010,000
|
$0.17
|
March 3, 2015
|
N/A
|
Stock Options
|
100,000
|
$0.17
|
May 28, 2015
|
N/A
|
Stock Options
|
50,000
|
$0.10
|
October 15, 2015
|
N/A
|
Stock Options
|
1,930,000
|
$0.11
|
November 3, 2015
|
N/A
|
Stock Options
|
300,000
|
$0.13
|
November 16, 2015
|
N/A
|
Stock Options
|
3,770,000
|
$0.14
|
November 24, 2015
|
N/A
|
Stock Options
|
500,000
|
$0.13
|
December 3, 2015
|
N/A
|
Stock Options
|
200,000
|
$0.13
|
December 22, 2015
|
N/A
|
Stock Options
|
2,000,000
|
$0.10
|
March 15, 2016
|
N/A
|
Stock Options
|
50,000
|
$0.10
|
March 31, 2016
|
N/A
|
Stock Options
|
1,150,000
|
$0.10
|
June 1, 2016
|
N/A
|
Stock Options
|
140,000
|
$0.15
|
September 20, 2016
|
N/A
|
Purchase Warrants
|
1,017,500
|
$0.40
|
July 29, 2012
|
N/A
|
Purchase Warrants
|
2,500,000
|
$0.40
|
August 19, 2012
|
N/A
|
Purchase Warrants
|
2,778,000
|
$0.50
|
Oct. 15, 2011
|
N/A
|
Purchase Warrants
|
4,511,250
|
$0.30
|
May 27, 2012
|
N/A
|
Purchase Warrants
|
19,824,500
|
$0.30
|
October 12, 2012
|
N/A
|
Purchase Warrants
|
450,000
|
$0.30
|
October 20, 2012
|
N/A
|
Purchase Warrants
|
5,110,625
|
$0.30
|
December 3, 2012
|
N/A
|
Purchase Warrants
|
19,484,000
|
$0.33
|
June 10, 2013
|
N/A
|
a)
|
Business Combinations, Consolidated Financial Statements and Non-Controlling Interests
|
b)
|
International Financial Reporting Standards (“IFRS”)
|
1.
|
Review: I have reviewed the interim financial statements and interim MD&A (together the interim filings) of Titan Trading Analytics Inc. (the issuer) for the interim period ending July 31, 2011.
|
2.
|
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.
|
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
i)
|
controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
ii)
|
a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
|
1.
|
Review: I have reviewed the interim financial statements and interim MD&A (together the interim filings) of Titan Trading Analytics Inc. (the issuer) for the interim period ending July 31, 2011.
|
2.
|
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.
|
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date of and for the periods presented in the interim filings
|
i)
|
controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
ii)
|
a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
|