-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DXv1FNI3clfkH3USu6CCMiRD/lutoi0bvMTf44asK0CRYjLIhT3VY1FbaSQez0f9 jAV7SrGfils9bHpDavEULg== /in/edgar/work/20000825/0000950130-00-004681/0000950130-00-004681.txt : 20000922 0000950130-00-004681.hdr.sgml : 20000922 ACCESSION NUMBER: 0000950130-00-004681 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000825 FILED AS OF DATE: 20000825 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BID COM INTERNATIONAL INC CENTRAL INDEX KEY: 0001079171 STANDARD INDUSTRIAL CLASSIFICATION: [7389 ] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 001-14835 FILM NUMBER: 709630 BUSINESS ADDRESS: STREET 1: 6725 AIRPORT RD STE 201 STREET 2: MISSISSAUGA ONTARIO CITY: CANADA L4V 1V2 BUSINESS PHONE: 9056727469 MAIL ADDRESS: STREET 1: 6725 AIRPORT RD STE 201 STREET 2: MISSISSAUGA ONTARIO CITY: CANADA L4V 1V2 6-K 1 0001.txt FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer PURSUANT to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 Filing No. 1 for the Month of August, 2000 Bid.Com International Inc. - -------------------------------------------------------------------------------- (Exact name of Registrant) 6725 Airport Road, Suite 201, Mississauga ON, Canada L4V 1V2 - -------------------------------------------------------------------------------- (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 --- --- BID.COM INTERNATIONAL INC. On August 25, 2000, Bid.Com International Inc. ("Bid.Com") mailed to all registered shareholders its Second Quarter 2000 Report. This Form 6-K 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 Bid.Com's results to differ materially from expectations. These risks include Bid.Com's ability to further develop its business-to-business and licensing businesses, Bid.Com's ability to develop appropriate strategic alliances and successful development and implementation of technology, acceptance of Bid.Com's products and services, competitive factors, new products and technological changes, and other such risks as Bid.Com may identify and discuss from time to time, including those risks disclosed in Bid.Com's most recent Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that Bid.Com's plan will be achieved. Exhibit 1. Second Quarter 2000 Report. 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. BID.COM INTERNATIONAL INC. Date: August 25, 2000 By: /s/ John Mackie -------------------------- Name: John Mackie Title: General Counsel Dear Shareholder, During the quarter we continued to invest in our business to business ("B2B") infrastructure and add new customers while curtailing our business to consumer ("B2C") activities. We believe that our POWERED BY BID.COM(TM) e-commerce solutions, including recently announced additions to our suite of offerings, provide a solid foundation from which to grow our B2B activities. Financial Highlights* - --------------------- The second quarter results reflect the consolidated results of Bid.Com International Inc. and all subsidiaries for the 3 months ending June 30, 2000. Gross revenue in the second quarter 2000 totaled $3.0 million compared to $6.6 million in the first quarter of 2000, a decline of 54.5%. The reduction in revenues is a direct result of the implementation of Bid.Com's previously announced plan to exit the business-to-consumer arena. As presented at the company's annual general meeting, Bid.Com's revenues from its business-to- consumer model are based on the value of goods sold through its website, www.bid.com. These revenues are off-set by the costs of goods sold and advertising costs incurred in enticing customers to the website. In its business-to-business model, Bid.Com typically recognizes revenues through implementation fees, monthly hosting fees, and a percentage of transactions, without direct expenses seen in the consumer segment such as the cost of goods sold. As a result of ramping up our B2B activities, our financial statement presentation now includes non-cash customer acquisition costs as a reduction of gross revenues. These costs were $157,000 for the second quarter and reflect non-cash expenses incurred by Bid.Com in association with the attainment of certain B2B contracts. Advertising and promotion expenses in the quarter fell 54.8% to $1.4 million from $3.1 million in the first quarter. As a percentage of revenues, advertising and promotion expenses declined slightly to 47.2% in the second quarter versus 47.6% in the first quarter of 2000. The decline in advertising and promotion expenses reflects the curtailment in B2C activities, including the expiry of the AOL agreement in March 2000. General and administrative expenses were $5.2 million in the second quarter compared to $3.8 million in the first quarter of 2000. The increase in general and administrative expenses over first quarter reflected costs for our annual meeting and regulatory filings, higher B2B business development expenses, and increased salaries expense due to hiring of B2B staff. Software development costs of $286,000 associated with the development of the latest auction platform technology were capitalized in the quarter. Capitalization of software development costs is consistent with the B2B business model and reflects new technologies developed for resale in various forms. The net loss for the second quarter of 2000 was $7.1 million, or $0.13 per basic share, compared to a net loss of $7.8 million, or $0.15 per basic share, for the first quarter of 2000. During the quarter we raised an additional $3.1 million in financing through the issuance of common shares and share purchase warrants to Acqua Wellington Value Fund. This share issuance represents our first US based private placement. Net proceeds from the issue will be used to fund growth in the B2B sector and general working capital. Our working capital position at June 30 was $9.8 million with $9.1 million in cash and marketable securities. A significant portion of our other non-current assets of $10.8 million includes strategic investments recorded at cost. (* All figures are in Canadian dollars. As of June 30, 2000 the exchange rate was Cdn$1.4798 to US$1.0000) Notable Activities - ------------------ Our ramp up of B2B activities continued throughout the quarter. Notable activities included the following: . After announcing our strategic marketing alliance with General Electric Capital Corporation, we began to capitalize on this relationship by signing a two-year agreement with GE Capital Auto Financial Services to enable the on-line auction of off-lease automobiles to dealers across North America. . We formed a strategic alliance with PricewaterhouseCoopers whereby we will jointly introduce our dynamic pricing technology to North American clients and PricewaterhouseCoopers will become the preferred North American systems integrator for Bid.Com. . We launched our latest solution suite to help clients accelerate the creation of vertical marketplaces and extend the reach of dynamic pricing to mobile users through wireless and voice recognition applications. Bid.Com's solution suite is made of three modules: BID.COM(TM) Commerce Engine, BID.COM(TM) Content Engine, and BID.COM(TM) Community Engine. This suite allows our customers to accelerate creation of online vertical marketplaces by bringing together robust transaction methods with content gathering and community building capabilities. . We commissioned our first international Application Service Provider platform ("ASP") located in Dublin, Ireland at MCI WorldCom's Dublin-based Operations Centre. This site positions us to support clients and partners throughout Europe. . We opened a sales and marketing office in Sacramento, California to support a client base throughout the western region of the United States. Management Changes - ------------------ . On June 14, 2000 Pat Bourke was named to Bid.Com's Board of Directors and appointed Chairman. Mr. Bourke, a management and technology services professional with more than 20 years of industry experience, has held a number of senior management positions over the years working for organizations such as EDS, Perot Systems, and Merant Inc. We welcome Mr. Bourke to our team. We believe the innovations and relationships announced in the quarter provide a solid foundation for future B2B development. Yours truly, Jeff Lymburner, President and CEO August 25, 2000 Full copies of Bid.Com's Press Releases are available on the Investor Information Section of its website www.bid.com. ----------- This quarterly report 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 the Company's results to differ materially from expectations. These risks include the Company's ability to further develop its business-to-business and licensing businesses, the Company's ability to 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. (Financial Tables follow) BID.COM International Inc. Consolidated Statement of Operations (expressed in thousands of Canadian dollars, except per share amounts) (Canadian GAAP, Unaudited)
=================================================================================================================================== Three Months Ended Six Months Ended June 30 June 30 ------------------------------------------------------------------------------------------------------- 2000 2000 1999 2000 2000 1999 ------------------------------------------------------------------------------------------------------- translated translated into US$ at into US$ at US$ = US$ = Cdn$ 1.4798 Cdn$ 1.4798 for for convenience convenience Gross revenue $ 3,002 $ 2,029 $ 6,250 $ 9,606 $ 6,491 $11,265 Customer acquisition (157) (106) - (157) (106) - costs (A) ------------------------------------------------------------------------------------------------------- Net revenue 2,845 1,923 6,250 9,449 6,385 11,265 ------------------------------------------------------------------------------------------------------- Direct expenses $ 2,829 $ 1,912 $ 4,983 $ 9,772 $ 6,604 $ 9,509 Advertising and 1,416 957 1,860 4,569 3,088 3,273 promotion (B) General and 5,226 3,532 2,935 9,061 6,123 5,351 administrative (B) Software development and 297 201 216 725 490 402 technology expense (B) Depreciation and 234 158 95 490 331 180 amortization Interest income (57) (39) (262) (305) (206) (363) ------------------------------------------------------------------------------------------------------- 9,945 6,721 9,827 24,312 16,430 18,352 ------------------------------------------------------------------------------------------------------- Net Loss $(7,100) $(4,798) $(3,577) $(14,863) $(10,045) $(7,087) ======================================================================================================= Loss per basic share $(0.13) $(0.09) $(0.07) $(0.28) $(0.19) $(0.15) ======================================================================================================= Weighted average common shares 53,061 53,061 49,351 52,934 52,934 48,066 =======================================================================================================
June 30 June 30 December 31 -------------------------------------------------------------------------- Balance Sheet Data 2000 2000 1999 -------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (in US$) Cash $ 8,893 $ 6,010 $ 5,019 Marketable securities 189 128 16,478 Other current assets 4,430 2,994 6,495 Other assets 10,781 7,285 8,751 -------------------------------------------------------------------------- Total assets $24,293 $16,417 $36,743 ========================================================================== Total current liabilities $ 2,182 $ 1,475 $ 5,504 Total short term and long term deferred revenue 3,493 2,361 2,254 Total shareholders' equity 18,618 12,581 28,985 -------------------------------------------------------------------------- Total liabilities and shareholders' equity $24,293 $16,417 $36,743 ==========================================================================
BID.COM International Inc. Consolidated Statement of Cash Flows (expressed in thousands of Canadian dollars) (Canadian GAAP, Unaudited)
Three Months Ended Six Months Ended June 30 June 30 --------------------------------------------------------------------------- 2000 2000 1999 2000 2000 1999 --------------------------------------------------------------------------- NET INFLOW (OUTFLOW) translated translated OF CASH RELATED into US$ at = into US$ at= TO THE FOLLOWING Cdn$ 1.4798 Cdn$ 1.4798 ACTIVITIES for for convenience convenience OPERATING Net loss for the period (7,100) (4,798) (3,577) (14,863) (10,045) (7,087) Item not affecting cash: Non-cash customer 157 106 - 157 106 - acquisition costs (A) Depreciation and 234 158 95 490 331 180 amortization Other non-cash 430 291 - 603 408 - --------------------------------------------------------------------------- (6,279) (4,243) (3,482) (13,613) (9,200) (6,907) Change in long term (67) (45) - 664 449 - deferred revenue Change in non-cash operating 1,594 1,077 (944) (682) (461) (3,998) working capital items (B) --------------------------------------------------------------------------- (4,752) (3,211) (4,426) (13,631) (9,212) (10,905) --------------------------------------------------------------------------- INVESTING Purchase of capital assets (154) (104) (312) (314) (212) (354) Purchase of strategic (2,060) (1,392) - (2,328) (1,573) - investments Acquisition of intangible assets (307) (207) - (307) (207) (46) Marketable securities (B) 2 1 (403) 16,289 11,007 (8,138) --------------------------------------------------------------------------- (2,519) (1,702) (715) 13,340 9,015 (8,538) --------------------------------------------------------------------------- FINANCING Issuance of common shares 3,486 2,356 1,258 4,165 2,815 11,128 (net of expenses) (B) Special warrants receivable - - - - - 2,311 --------------------------------------------------------------------------- 3,486 2,356 1,258 4,165 2,815 13,439 --------------------------------------------------------------------------- Net cash inflow (outflow) during the period (3,785) (2,557) (3,883) 3,874 2,618 (6,004) CASH, BEGINNING OF PERIOD 12,678 8,567 7,671 5,019 3,392 9,792 --------------------------------------------------------------------------- CASH, END OF PERIOD 8,893 6,010 3,788 8,893 6,010 3,788 ===========================================================================
(A) These costs reflect non-cash expenses incurred by Bid.Com in association with the attainment of certain B2B contracts. (B) Certain prior period amounts have been reclassified to conform to the current period presentation. (C) As of June 30, 2000 stockholders equity included (i) 54,152,244 common shares (ii) 3,631,950 options to Directors, Officers, and Employees convertible into 3,631,950 common shares, (iii) 3,425,462 share purchase warrants exercisable into 3,425,462 common shares.
CORPORATE DIRECTORY Directors Officers Registrar & Transfer Agent CIBC Mellon Trust Company Pat Bourke Jeffrey Lymburner PO Box 70390 Chairman CEO and President Toronto Station A Toronto, Ontario, Jeffrey Lymburner Mark Wallace Canada M5W 2X5 Director, CEO and President Chief Operating Officer Auditors T. Christopher Bulger/(1)/ /(2)/ Jim Moskos Deloitte & Touche LLP Director President, Chartered Accountants CEO and President eLab Technology Bid.Com Technologies Toronto, Ontario, Canada Ventures Paul Hart Lawyers Duncan Copeland/(1)/ /(2)/ /(3)/ Chief Financial Officer Gowlings Director Toronto, Ontario, Canada President, Copeland and Company Peter Sprukulis Senior Vice President, Sales, Baer Marks & Upham LLP Paul Godin Marketing and Business Development New York, New York USA Director Chairman, The Art Vault Rob Joynt Stock Exchange Listings Vice President, Consumer Sales and Toronto Stock Exchange Jim Moskos Marketing Symbol BII Director President, Bid.Com Technologies John Mackie Nasdaq Vice President, General Counsel and Symbol BIDS David Pamenter /(3)/ Corporate Secretary Director Web Sites Partner, Gowlings David Kirkconnell www.bid.com Vice-President, Human Resources ------------ Charles Walker /(1)/ /(2)/ www.internetliquidators.com David Pamenter ---------------------------- Director Assistant Secretary www.dutchauction.com CEO and President, -------------------- Walker Group Inc. Aidan Rowsome, Managing Director, Europe Shares Outstanding (1) Member of Audit Committee (June 30, 2000) (2) Member of the Management Resources Hamish Sutherland Issued 54,152,244 and Compensation Committee Managing Director, Australia and Asia Fully Diluted 61,209,656 (3) Member of the Corporate Governance Pacific Committee Offices of Bid.Com 980 Ninth Street, 16th Floor 6725 Airport Road, Suite 201 Sacramento, California 95814 Mississauga, Ontario USA 916-449-9531 Canada L4V 1V2 905-672-7467 125 Lower Baggot Street Dublin 2, Ireland 2701 North Rocky Point Drive 353-1-639-1135 Suite 930 Tampa, Florida 33607 Level 50, 101 Collins Street USA 813-636-8205 Melbourne, Australia 3000 61 (03) 9653-9181
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