NORTHCORE TECHNOLOGIES INC.
(Exact name of Registrant)
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302 The East Mall, Suite 300, Toronto, Ontario Canada M9B 6C7
(Address of principal executive offices)
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Form 20-F
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x
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Form 40-F
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o
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Yes
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o
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No
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x
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Exhibit
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Description
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99.1 | News Release dated November 14, 2013 | |
Financial Statements
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Management's Discussion and Analysis
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CEO Certificate
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CFO Certificate
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NORTHCORE TECHNOLOGIES INC. | |
Date: November 14, 2013 | By: /s/ Chris Bulger |
Name: Chris Bulger | |
Title: Interim CEO, CFO | |
![]() |
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, ON M9B 6C7
www.northcore.com
(NEX: NTI.H; OTCBB: NTLNF)
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Condensed Interim Consolidated Statements of Financial Position
As at September 30, 2013 and December 31, 2012
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(Expressed in thousands of Canadian dollars)
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||||||||
(IFRS, Unaudited)
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June 30,
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December 31,
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|||||||
2013
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2012
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|||||||
ASSETS
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||||||||
CURRENT
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||||||||
Cash
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$ | 31 | $ | 21 | ||||
Short-term investments
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41 | 41 | ||||||
Accounts receivable
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113 | 171 | ||||||
Deposits and prepaid expenses
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47 | 51 | ||||||
232 | 284 | |||||||
INVESTMENT IN JOINT VENTURES
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151 | 196 | ||||||
CAPITAL ASSETS
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10 | 86 | ||||||
INTANGIBLE ASSETS
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904 | 1,058 | ||||||
GOODWILL
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1,091 | 1,091 | ||||||
TOTAL ASSETS
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$ | 2,388 | $ | 2,715 | ||||
LIABILITIES
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||||||||
CURRENT
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||||||||
Operating line of credit
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$ | 73 | $ | 33 | ||||
Accounts payable
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580 | 448 | ||||||
Accrued liabilities
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446 | 197 | ||||||
Deferred revenue
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12 | 56 | ||||||
Current portion of contingent consideration
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76 | 71 | ||||||
Promissory note
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306 | |||||||
1,493 | 805 | |||||||
CONTINGENT CONSIDERATION
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- | 63 | ||||||
TOTAL LIABILITIES
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1,493 | 868 | ||||||
TOTAL SHAREHOLDERS’ EQUITY
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895 | 1,847 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$ | 2,388 | $ | 2,715 | ||||
Northcore Technologies Inc.
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Condensed Interim Consolidated Statements of Operations and Comprehensive Loss
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||||||||||||||||
(Expressed in thousands of Canadian dollars, except per share amounts)
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(IFRS, Unaudited)
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Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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|||||||||||||
Revenues
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$ | 193 | $ | 387 | $ | 773 | $ | 1,032 | ||||||||
Income from GE Asset Manager, LLC
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(58 | ) | 18 | (3 | ) | 55 | ||||||||||
Operating expenses:
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||||||||||||||||
General and administrative
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115 | 429 | 710 | 1293 | ||||||||||||
Customer service and technology
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149 | 321 | 653 | 818 | ||||||||||||
Sales and marketing
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34 | 71 | 134 | 175 | ||||||||||||
Stock-based compensation
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- | 107 | 117 | 590 | ||||||||||||
Depreciation
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55 | 12 | 177 | 37 | ||||||||||||
Total operating expenses
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353 | 940 | 1,791 | 2,913 | ||||||||||||
Extra Ordinary Items
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49 | 49 | ||||||||||||||
Loss and comprehensive loss for the period
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$ | (267 | ) | $ | (535 | ) | $ | (1,070 | ) | $ | (1,826 | ) | ||||
Loss per share, basic and diluted
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$ | (0.001 | ) | $ | (0.002 | ) | $ | (0.005 | ) | $ | (0.008 | ) | ||||
Weighted average number of shares outstanding, basic and diluted (000's)
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234,625 | 234,625 | 234,625 | 232,073 | ||||||||||||
Northcore Technologies Inc.
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Reconciliation of Loss to Operational EBITDA
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(Expressed in thousands of Canadian dollars)
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(IFRS, Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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Loss for the period, as per above
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$ | (267 | ) | $ | (535 | ) | $ | (1,070 | ) | $ | (1826 | ) | ||||
Reconciling items:
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||||||||||||||||
Stock-based compensation
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- | 107 | 117 | 590 | ||||||||||||
Depreciation
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55 | 12 | 177 | 37 | ||||||||||||
Extra Ordinary items
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49 | 49 | ||||||||||||||
Non-recurring professional fees ***
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- | - | - | 52 | ||||||||||||
Operational EBITDA
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$ | (163 | ) | $ | (416 | ) | $ | (727 | ) | $ | (1,147 | ) |
NORTHCORE TECHNOLOGIES INC.
Condensed Interim Consolidated Statements of Financial Position
As at September 30, 2013 and December 31, 2012
(Expressed in thousands of Canadian dollars) (Unaudited)
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||||||||
Sept. 30,
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December 31,
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|||||||
2013
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2012
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|||||||
ASSETS
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|||||||
CURRENT
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||||||||
Cash
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$ | 31 | $ | 21 | ||||
Short-term investments (Note 4)
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41 | 41 | ||||||
Accounts receivable
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113 | 171 | ||||||
Deposits and prepaid expenses
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47 | 51 | ||||||
232 | 284 | |||||||
INVESTMENT IN JOINT VENTURES (Note 5)
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151 | 196 | ||||||
CAPITAL ASSETS
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10 | 86 | ||||||
INTANGIBLE ASSETS (Note 6)
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904 | 1,058 | ||||||
GOODWILL (Note 7)
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1,091 | 1,091 | ||||||
TOTAL ASSETS
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$ | 2,388 | $ | 2,715 | ||||
LIABILITIES
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||||||||
CURRENT
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||||||||
Operating line of credit (Note 4)
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$ | 73 | $ | 33 | ||||
Accounts payable
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580 | 448 | ||||||
Accrued liabilities
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446 | 197 | ||||||
Deferred revenue
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12 | 56 | ||||||
Current portion of contingent consideration (Note 7)
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76 | 71 | ||||||
Promissory note/Debentures (Note 8)
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306 | |||||||
1,493 | 805 | |||||||
CONTINGENT CONSIDERATION (Note 7)
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63 | |||||||
TOTAL LIABILITIES
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1,493 | 868 | ||||||
SHAREHOLDERS’ EQUITY
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||||||||
Share capital
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118,332 | 118,332 | ||||||
Contributed surplus
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4,423 | 4,149 | ||||||
Warrants (Note 9)
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- | 273 | ||||||
Stock options (Note 10)
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4,216 | 4,099 | ||||||
Deficit
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(126,076 | ) | (125,006 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY
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895 | 1,847 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$ | 2,388 | $ | 2,715 |
NORTHCORE TECHNOLOGIES INC.
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss
For the Three and Nine Month Periods Ended September 30, 2013 and 2012
(Expressed in thousands of Canadian dollars, except per share amounts) (Unaudited)
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Three Months Ended
Sept 30,
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Nine Months Ended
Sept. 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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Revenues (Note 11)
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$ | 193 | $ | 387 | $ | 773 | $ | 1,032 | ||||||||
Income from GE Asset Manager, LLC (Note 5(a)) | (58 | ) | 18 | (3 | ) | 55 | ||||||||||
Operating expenses:
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||||||||||||||||
General and administrative
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115 | 429 | 710 | 1,293 | ||||||||||||
Customer service and technology
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149 | 321 | 653 | 818 | ||||||||||||
Sales and marketing
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34 | 71 | 134 | 175 | ||||||||||||
Stock-based compensation (Note 10)
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- | 107 | 117 | 590 | ||||||||||||
Depreciation
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55 | 12 | 177 | 37 | ||||||||||||
Total operating expenses
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353 | 940 | 1,791 | 2,913 | ||||||||||||
Extra Ordinary items (Note 15 )
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49 | 49 | ||||||||||||||
LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD
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$ | (267 | ) | $ | (535 | ) | $ | (1,070 | ) | $ | (1,826 | ) | ||||
LOSS PER SHARE, BASIC AND DILUTED
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$ | (0.001 | ) | $ | (0.002 | ) | $ | (0.005 | ) | $ | (0.008 | ) | ||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED (000’s)
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234,625 | 234,625 | 234,625 | 232,073 |
NORTHCORE TECHNOLOGIES INC.
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
For the Nine Month Periods Ended September. 30, 2013 and 2012
(Expressed in thousands of Canadian dollars) (Unaudited)
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Share Capital
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Contributed
Surplus
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Warrants
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Stock
Options
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Deficit
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Total
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|||||||||||||||||||
Opening balance - January 1, 2013
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$ | 118,332 | $ | 4,149 | $ | 273 | $ | 4,099 | $ | (125,006 | ) | $ | 1,847 | |||||||||||
Changes:
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Expiry of warrants | - | 273 | (273 | ) | - | - | - | |||||||||||||||||
Stock-based compensation | - | - | - | 117 | - | 117 | ||||||||||||||||||
Loss for the period
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- | - | - | - | (1,070 | ) | (1,070 | ) | ||||||||||||||||
Closing balance –
Sept. 30, 2013
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$ | 118,332 | $ | 4,422 | $ | - | $ | 4,216 | $ | (126,076 | ) | $ | 895 |
Share Capital |
Contributed
Surplus
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Warrants
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Stock
Options
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Deficit
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Tota1
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|||||||||||||||||||
Opening balance - January 1, 2012
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$ | 117,359 | $ | 3,586 | $ | 836 | $ | 3,690 | $ | (122,977 | ) | $ | 2,494 | |||||||||||
Changes:
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Shares issued for acquisition of businesses | 933 | - | - | - | - | 933 | ||||||||||||||||||
Expiry of warrants | 563 | (563 | ) | - | ||||||||||||||||||||
Exercise of stock options | 40 | - | - | (16 | ) | - | 24 | |||||||||||||||||
Stock-based compensation | - | - | - | 590 | - | 590 | ||||||||||||||||||
Loss for the period
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- | - | - | - | (1,826 | ) | (1,826 | ) | ||||||||||||||||
Closing balance –
Sep 30, 2012
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$ | 118,332 | $ | 4,149 | $ | 273 | $ | 4,264 | $ | (124,803 | ) | $ | 2,215 |
NORTHCORE TECHNOLOGIES INC.
Condensed Interim Consolidated Statements of Cash Flows
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||||||||
For the Nine Months Ended September. 30, 2013 and 2012
(Expressed in thousands of Canadian dollars) (Unaudited)
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2013
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2012
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NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES
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OPERATING
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Loss for the period
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$ | (1,070 | ) | $ | (1,826 | ) | ||
Adjustments for:
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||||||||
Income from GE Asset Manager, LLC (Note 5(a))
|
(3 | ) | (55 | ) | ||||
Stock-based compensation (Note 10)
|
117 | 590 | ||||||
Depreciation
|
177 | 37 | ||||||
Cash interest expense
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- | - | ||||||
Accretion of secured subordinated notes
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- | - | ||||||
(779 | ) | (1254 | ) | |||||
Changes in non-cash operating working capital (Note 12)
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394 | 91 | ||||||
(385 | ) | (1163 | ) | |||||
INVESTING
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||||||||
Investments Dealco | (168 | ) | ||||||
Cash distribution from investment in GE Asset Manager, LLC (Note 5) | 109 | 47 | ||||||
Purchase of capital assets | - | (31 | ) | |||||
Acquisition of intangible assets
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- | (105 | ) | |||||
Acquisition of businesses, net of cash acquired
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- | (97 | ) | |||||
109 | (354 | ) | ||||||
FINANCING
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||||||||
Proceeds from operating line of credit (Note 4)
|
41 | - | ||||||
Proceeds from promissory note (Note 8)
|
245 | |||||||
Stock options exercised (Note 10 (c))
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- | 24 | ||||||
286 | 24 | |||||||
NET CASH INFLOW (OUTFLOW) DURING THE PERIOD
|
10 | (1,493 | ) | |||||
CASH, BEGINNING OF PERIOD
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21 | 1,760 | ||||||
CASH, END OF PERIOD
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$ | 31 | $ | 267 |
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
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1.
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DESCRIPTION OF BUSINESS
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2.
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GOING CONCERN
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3.
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SIGNIFICANT ACCOUNTING POLICIES
|
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
|
·
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IFRS 9, Financial Instruments was issued by the IASB in October 2010 and will replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2015.
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4.
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SHORT-TERM INVESTMENTS AND OPERATING LINE OF CREDIT
|
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
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5.
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INVESTMENT IN JOINT VENTURES
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a)
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Investment in GE Asset Manager, LLC
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b)
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Investment in Dealco Inc.
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6.
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INTANGIBLE ASSETS
|
a)
|
Intangible assets are comprised of the following:
|
December 31,
2012
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Amortization
|
Sept. 30,
2013
|
||||||||||
(in thousands) |
|
|||||||||||
Discount This Group Purchase Platform (Note 6(b))
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$ | 936 | $ | (140 | ) | $ | 796 | |||||
Envision Customer List (Note 6 (c)))
|
26 | (3 | ) | 23 | ||||||||
Envision Trade Name (Note 6 (d))
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55 | (4 | ) | 51 | ||||||||
Kuklamoo Technology (Note 6 (e))
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41 | (7 | ) | 34 | ||||||||
$ | 1,058 | $ | (153 | ) | $ | 904 |
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
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b)
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On December 28, 2011, the Company acquired all the intellectual property of Discount This Holdings Limited (“Discount This”), commonly known as the “Group Purchase Platform”. In consideration of this asset acquisition, the purchase price of $630,000 was satisfied by the issuance of 4,500,000 common shares of Northcore at $0.14 per share. In addition, direct acquisition costs in the amount of $177,000, comprised of consulting, legal and filing fees, were capitalized upon this close of the transaction. During the year ended December 31, 2012, the Company incurred direct costs in the amount of $129,000 in connection with the development and enhancement of the Group Purchase Platform. In accordance with IAS 38, Intangible Assets, the direct costs were capitalized. The balance of the Discount This Group Platform as at December 31, 2012 was $936,000.
|
c)
|
Envision Customer List
|
d)
|
Envision Trade Name
|
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
|
e)
|
Kuklamoo Technology
|
7.
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ACQUISITION OF BUSINESSES
|
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
|
Total Purchase Price: | ||||
Amount
|
||||
(in thousands)
|
||||
Cash
|
$ | 100 | ||
Common shares (7,778,000 at $0.12 per share)
|
933 | |||
Net present value of estimated future payments
|
134 | |||
Total Purchase Price
|
$ | 1,167 |
Acquisition Date Fair Values: | ||||
Amount
|
||||
(in thousands)
|
||||
Cash
|
$ | 3 | ||
Short-term investments
|
40 | |||
Accounts receivable
|
79 | |||
Deposits and prepaid expenses
|
15 | |||
Capital assets
|
8 | |||
Accounts payable
|
(101 | ) | ||
Accrued liabilities
|
(33 | ) | ||
Deferred revenue
|
(35 | ) | ||
Deferred tax liability
|
(36 | ) | ||
Total net assets
|
(60 | ) | ||
Envision customer list (Note 6 (c))
|
28 | |||
Envision trade name (Note 6 (d))
|
60 | |||
Kuklamoo technology (Note 6 (e))
|
48 | |||
Goodwill
|
1,091 | |||
Total Purchase Price
|
$ | 1,167 |
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
|
8.
|
PROMISSORY NOTE
|
9.
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WARRANTS
|
a)
|
The following table summarizes the transactions within warrants.
|
|
Number |
Amount
|
||||||
(in thousands of warrants and dollars)
|
||||||||
Opening balance – January 1, 2013
|
5,665 | $ | 273 | |||||
Warrants expired (Note 9 (b))
|
(5,665 | ) | (273 | ) | ||||
Closing balance – September 30, 2013
|
- | $ | - |
b)
|
During the quarter ended March 31, 2013, 2,765,000 warrants (book value of $73,000) in connection with the Series L Notes expired unexercised and were accordingly cancelled.
|
10.
|
STOCK OPTIONS
|
a)
|
The following table summarizes the transactions within stock options.
|
Number
|
Amount
|
|||||||
(in thousands of options and dollars)
|
||||||||
Opening balance, January 1, 2013
|
19,499 | $ | 4,099 | |||||
Granted (Note 10 (b))
|
18,000 | - | ||||||
Cancelled
|
(5,342 | ) | - | |||||
Stock-based compensation expense
|
- | 116 | ||||||
Closing balance – September 30, 2013
|
32,157 | $ | 4,215 | |||||
Exercisable
|
25,046 |
b)
|
During the nine months ended September 30, 2013, the Company granted 18,000,000 stock options to employees, officers and directors of the Company. The weighted average grant date fair value of $0.01 per option was valued using the Cox-Rubinstein binomial valuation model with the following assumptions: volatility of 109 percent based on a historical trend of five years, a risk free interest rate of 1.21 percent, a maturity of five years, share price of $0.02 and a dividend yield of nil.
|
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
|
c)
|
During the quarter ended March 31, 2012, total proceeds of $24,000 were realized from the exercise of 250,000 stock options (book value of $16,000) at an average exercise price of $0.10. The average trading price at the time of exercise of these options was $0.11.
|
11.
|
REVENUES
|
Three Months Ended
Sept. 30,
|
Nine Months Ended
Sep 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||||
(in thousands)
|
|||||||||||||||||
Services
|
$ | 146 | $ | 288 | $ | 568 | $ | 806 | |||||||||
Hosting fees
|
47 | 99 | 205 | 226 | |||||||||||||
$ | 193 | $ | 387 | $ | 773 | $ | 1,032 |
12.
|
SUPPLEMENTAL CASH FLOWS INFORMATION
|
Nine Months Ended
Sept. 30,
|
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Accounts receivable
|
$ | 58 | $ | 55 | ||||
Deposits and prepaid expenses
|
4 | (21 | ) | |||||
Accounts payable
|
132 | (13 | ) | |||||
Accrued liabilities
|
244 | (14 | ) | |||||
Deferred revenue
|
(44 | ) | 84 | |||||
$ | 394 | $ | 91 |
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
|
|
Nine Months Ended
Sept. 30,
|
|||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Issuance of debenture
|
61 | |||||||
Issuance of common shares for acquisition of businesses
|
$ | - | $ | 933 |
13.
|
FINANCIAL RISK FACTORS
|
Sept. 30,
2013
|
December 31,
2012
|
|||||||
(in thousands)
|
||||||||
Current
|
$ | 57 | $ | 87 | ||||
Past due (61-120 days)
|
13 | 46 | ||||||
Past due (> 120 days)
|
44 | 38 | ||||||
|
$ | 114 | $ | 171 |
14.
|
TRANSACTIONS WITH RELATED PARTIES
|
For the Three and Nine Months Periods Ended September 30, 2013 and 2012
(Expressed in Canadian dollars) (Unaudited)
|
15.
|
EXTRA ORDINARY ITEMS
|
DIRECTORS
T. Christopher Bulger
Chairman,
Interim CEO & CFO
Douglas Mackenzie
Board Member
Jared Scharf
Board Member
|
CORPORATE OFFICES
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, Ontario, M9b 6C7
Envision Online Media Inc.
1306 Wellington St. W. Ste 401
Ottawa, Ontario
K1Y 3B2
AUDITORS
A Chan LLP
1066 West Hastings Street
Suite 1850
Vancouver, B.C.
V6E 3X2
ADDITIONAL SHAREHOLDER INFORMATION
Website:
www.northcore.com
Email:
investor-relations@northcore.com
|
SHARES OUTSTANDING
As at Sept. 30, 2013:
234,625,479 common shares
REGISTRAR & TRANSFER AGENT
Equity Financial Trust Company
200 University Avenue,
Suite 400
Toronto, Ontario
M5H 4H1
STOCK EXCHANGE LISTINGS
NEX
Symbol: NTI.H
OTC Bulletin Board
Symbol: NTLNF
![]() © 2013 Northcore Technologies Inc.
|
·
|
Election of Directors: C. Bulger, R. Deslippe, D. Mackenzie, M. Smith
|
·
|
Appointment of Auditors: A Chan LLP
|
·
|
Consolidation of Common Shares: 20:1 consolidation
|
·
|
Asset Purchase Transaction: issuance of 48% common shares in Northcore to Cielo for the purchase of renewable diesel intellectual property
|
·
|
Name Change: to Cielo Technologies, or such other name as the directors decide
|
·
|
Option Pool Increase: to 15% of outstanding shares post Cielo IP purchase
|
·
|
The timing of our future capital needs and our ability to raise additional capital when needed;
|
·
|
Current short term liquidity risks and potential legal action by creditors;
|
·
|
Regulatory challenges in satisfying new listing requirements;
|
·
|
Increasingly longer sales cycles;
|
·
|
Potential fluctuations in our financial results and our difficulties in forecasting;
|
·
|
Volatility of the stock markets and fluctuations in the market price of our stock;
|
·
|
The ability to buy and sell our shares on the OTC Bulletin Board;
|
·
|
Our ability to compete with other companies in our industry;
|
·
|
Our dependence upon a limited number of customers;
|
·
|
Our ability to retain and attract key personnel;
|
·
|
Risk of significant delays in product development;
|
·
|
Failure to timely develop or license new technologies;
|
·
|
Risks relating to any requirement to correct or delay the release of products due to software bugs or errors;
|
·
|
Risk of system failure or interruption;
|
·
|
Risks associated with any further dramatic expansions and retractions in the future;
|
·
|
Risks associated with international operations;
|
·
|
Problems which may arise in connection with the acquisition or integration of new businesses, products, services, technologies or other strategic relationships;
|
·
|
Risks associated with protecting our intellectual property, and potentially infringing the intellectual property rights of others;
|
·
|
Fluctuations in currency exchanges;
|
·
|
Risks to holders of our common shares following any issuance of our preferred shares; and
|
·
|
The ability to enforce legal claims against us or our officers or directors.
|
Quarter ended
|
Sep 30,
2013
|
June 30,
2013
|
Mar 31,
2013
|
Dec 31,
2012
|
Sep 30,
2012
|
Jun 30,
201
|
Mar 31,
2012
|
Dec 31,
2011
|
|||||||||||||||||||||
(in thousands of Canadian dollars, except per share amounts)
|
|||||||||||||||||||||||||||||
Revenues
|
193 | $ | 291 | $ | 289 | $ | 330 | $ | 387 | $ | 415 | $ | 230 | ||||||||||||||||
Other income:
|
|||||||||||||||||||||||||||||
Income from GE Asset Manager
|
(58 | ) | 28 | 27 | 27 | 18 | 19 | 18 | |||||||||||||||||||||
Operating expenses:
|
|||||||||||||||||||||||||||||
General and administrative
|
115 | 264 | 331 | 392 | 429 | 428 | 436 | ||||||||||||||||||||||
Customer service and technology
|
149 | 245 | 259 | 295 | 321 | 331 | 166 | ||||||||||||||||||||||
Sales and marketing
|
34 | 49 | 51 | 50 | 71 | 77 | 27 | ||||||||||||||||||||||
Stock-based compensation
|
3 | 113 | (165 | ) | 107 | 140 | 343 | ||||||||||||||||||||||
Depreciation and amortization
|
55 | 61 | 61 | 24 | 12 | 14 | 11 | ||||||||||||||||||||||
Total operating expenses
|
353 | 622 | 815 | 596 | 940 | 990 | 983 | ||||||||||||||||||||||
Loss from operations
|
(218 | ) | (303 | ) | (499 | ) | (239 | ) | (535 | ) | (556 | ) | (735 | ) | |||||||||||||||
Extra Ordinary items
|
49 | ||||||||||||||||||||||||||||
Finance costs:
|
|||||||||||||||||||||||||||||
Interest on notes payable and secured subordinated notes
|
- | - | - | - | - | - | |||||||||||||||||||||||
Accretion of secured subordinated notes
|
- | - | - | - | - | - | |||||||||||||||||||||||
Total finance costs
|
- | - | - | - | - | - | |||||||||||||||||||||||
Loss before recovery of income taxes
|
(267 | ) | (303 | ) | (499 | ) | (239 | ) | (535 | ) | (556 | ) | (735 | ) | |||||||||||||||
Recovery of income taxes
|
- | - | - | (36 | ) | - | - | - | |||||||||||||||||||||
Loss and comprehensive loss for the period
|
(267 | ) | $ | (303 | ) | $ | (499 | ) | $ | (203 | ) | $ | (535 | ) | $ | (556 | ) | $ | (735 | ) | |||||||||
Loss per share - basic and diluted
|
(0.001 | ) | $ | (0.001 | ) | $ | (0.002 | ) | $ | (0.001 | ) | $ | (0.002 | ) | $ | (0.002 | ) | $ | (0.003 | ) |
Quarter ended
|
Sep.30
2013
|
Jun 30,
2013
|
Mar 31,
2013
|
Dec 31,
2012
|
Sep 30,
2012
|
Jun 30,
2012
|
Mar 31,
2012
|
Dec 31,
2011
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Loss for the period, as per above
|
$ | (267 | ) | $ | (303 | ) | $ | (499 | ) | $ | (203 | ) | $ | (535 | ) | $ | (556 | ) | $ | (735 | ) | $ | (660 | ) | ||||||||
Reconciling items:
|
||||||||||||||||||||||||||||||||
Stock-based compensation
|
- | 3 | 113 | (165 | ) | 107 | 140 | 343 | 248 | |||||||||||||||||||||||
Depreciation
|
55 | 61 | 61 | 24 | 12 | 14 | 11 | 12 | ||||||||||||||||||||||||
Interest expense
|
- | - | - | - | - | - | 31 | |||||||||||||||||||||||||
Recovery of income taxes
|
- | - | (36 | ) | - | - | - | - | ||||||||||||||||||||||||
Non-recurring items fees
|
49 | - | - | - | - | 27 | 25 | - | ||||||||||||||||||||||||
OPERATIONAL EBITDA
|
$ | (163 | ) | $ | (239 | ) | $ | (325 | ) | $ | (380 | ) | $ | (416 | ) | $ | (375 | ) | $ | ( 356 | ) | $ | (369 | ) |
(1)
|
Operational EBITDA is defined as the loss before interest, taxes, depreciation, stock-based compensation, non-cash and non-recurring items. The Company considers Operational EBITDA to be a meaningful performance measure as it provides an approximation of operating cash flows.
|
Amount
|
||||
(in thousands)
|
||||
Cash
|
$ | 100 | ||
Common shares (7,778,000 at $0.12 per share)
|
933 | |||
Net present value of estimated future payments
|
134 | |||
Total Purchase Price
|
$ | 1,167 |
Amount
|
||||
(in thousands)
|
||||
Cash
|
$ | 3 | ||
Short-term investments
|
40 | |||
Accounts receivable
|
79 | |||
Deposits and prepaid expenses
|
15 | |||
Capital assets
|
8 | |||
Accounts payable
|
(101 | ) | ||
Accrued liabilities
|
(33 | ) | ||
Deferred revenue
|
(35 | ) | ||
Deferred tax liability
|
(36 | ) | ||
Total net assets
|
(60 | ) | ||
Envision customer list
|
28 | |||
Envision trade name
|
60 | |||
Kuklamoo technology
|
48 | |||
Goodwill
|
1,091 | |||
Total Purchase Price
|
$ | 1,167 |
Total
|
Remainder
of 2013
|
2014
|
2015
|
2016
|
2017
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Operating leases
|
$ | 447 | $ | 69 | $ | 196 | $ | 66 | $ | 66 | $ | 50 | ||||||||||||
License agreements
|
100 | 50 | 50 | - | - | - | ||||||||||||||||||
$ | 589 | $ | 161 | $ | 246 | $ | 66 | $ | 66 | $ | 50 |
·
|
The amount of revenue can be measured reliably;
|
·
|
The stage of completion can be measured reliably;
|
·
|
The receipt of economic benefits is probable; and
|
·
|
The costs incurred or to be incurred can be measured reliably.
|
·
|
The amount of revenue can be measured reliably;
|
·
|
The risks and rewards of ownership have been transferred to the buyer;
|
·
|
The receipt of economic benefits is probable; and
|
·
|
The costs incurred or to be incurred can be measured reliably.
|
·
|
Application and Web Development Fees
|
·
|
Implementation, Training and Consulting Service Fees
|
·
|
Product Maintenance and Customer Support Fees
|
·
|
Hosting Fees
|
·
|
Multiple Deliverable Revenue Arrangements
|
·
|
IFRS 9, Financial Instruments was issued by the IASB in October 2010 and will replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2015.
|
DIRECTORS
T. Christopher Bulger
Chairman,
Interim CEO & CFO
Douglas Mackenzie
Board Member
Jared Scharf
Board Member
|
CORPORATE OFFICES
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, Ontario, M9b 6C7
Envision Online Media Inc.
1306 Wellington St. W. Ste 401
Ottawa, Ontario
K1Y 3B2
AUDITORS
A Chan LLP
1066 West Hastings Street
Suite 1850
Vancouver, B.C.
V6E 3X2
ADDITIONAL SHAREHOLDER INFORMATION
Website:
www.northcore.com
Email:
investor-relations@northcore.com
|
SHARES OUTSTANDING
As at September 30, 2013:
234,625,479 common shares
REGISTRAR & TRANSFER AGENT
Equity Financial Trust Company
200 University Avenue, Suite 400
Toronto, Ontario
M5H 4H1
STOCK EXCHANGE LISTINGS
Toronto Stock Exchange NEX
Symbol: NTI.H
OTC Bulletin Board
Symbol: NTLNF
![]() © 2013 Northcore Technologies Inc.
|
1. | Review: I have reviewed the interim financial statements and interim MD&A (together, the "interim filings") of Northcore Technologies Inc. (the"issuer") for the interim period ended September 30, 2013. |
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, financial performance 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 Northcore Technologies Inc. (the"issuer") for the interim period ended September 30, 2013. |
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, financial performance 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.
|
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