UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 20-F
(Amendment No. 1)
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[ ] REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
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[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011
OR
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
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[ ] SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934
Date of event requiring this shell company report ……………………
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For the transition period from __________ to __________.
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Commission File No. 001-14835
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NORTHCORE TECHNOLOGIES INC.
(Exact name of Registrant as specified in its charter)
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Not Applicable
(Translation of Registrant’s name into English)
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ONTARIO, CANADA
(Jurisdiction of incorporation or organization)
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302 The East Mall, Suite 300 Toronto, Ontario M9B 6C7
(Address of principal executive offices)
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Securities registered or to be registered pursuant to Section 12(b) of the Act.
None
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Securities registered or to be registered pursuant to Section 12(g) of the Act.
Common Shares
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Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None
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Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the Annual Report.
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226,597,702 Common Shares as of December 31, 2011
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Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act
Yes _____ No ___X___
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If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934.
Yes _____ No __X__
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes X No ______
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ X ]
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Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP [ ] International Financial Reporting Standards as issued Other [ ]
by the International Accounting Standards Board [ X ]
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Indicate by check mark which financial statement item the registrant has elected to follow.
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Item 17 ______ Item 18
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If this an annual report, indicate by check mark whether the registrant is a shell company (as determined in Rule 12b-2 of the Exchange Act).
Yes ______ No __X__
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Page | |
EXPLANATORY NOTE | 4 |
PART I | |
ITEM 3- KEY INFORMATION | 5 |
A. Selected Financial Data | 5 |
PART III | 9 |
ITEM 18 - FINANCIAL STATEMENTS | 9 |
ITEM 19 – EXHIBITS (15.1) | 9 |
A.
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SELECTED FINANCIAL DATA
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·
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Provided comparative financial information;
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Applied the same accounting policies throughout all periods presented;
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Retrospectively applied all effective IFRS standards as of December 31, 2011, as required; and
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·
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Applied certain mandatory exceptions and optional exemptions as applicable for first time IFRS adopters.
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Year Ended December 31,
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2011
(Cdn$)
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2010
(Cdn$)
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IFRS
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(in thousands except for per share data)
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Revenues
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785 | 582 | ||||||
Income from GE Asset Manager, LLC
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69 | 43 | ||||||
Operating expenses:
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General and administrative
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1,670 | 1,440 | ||||||
Customer service and technology
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726 | 734 | ||||||
Sales and marketing
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260 | 188 | ||||||
Stock-based compensation
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1,873 | 517 | ||||||
Depreciation
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32 | 22 | ||||||
Finance costs
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227 | 269 | ||||||
Other expenses (net)
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- | 487 | ||||||
Total expenses
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4,788 | 3,657 | ||||||
Loss from operations
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(3,934 | ) | (3,032 | ) | ||||
Loss per share (1)
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(0.020 | ) | (0.019 | ) | ||||
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Weighted average number of common shares
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196,180 | 162,899 |
As at December 31,
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2011
(Cdn$)
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2010
(Cdn$)
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IFRS
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(in thousands)
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Total assets
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2,909 | 284 | ||||||
Total liabilities
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415 | 1,857 | ||||||
Shareholders’ equity (deficiency)
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2,494 | (1,573 | ) | |||||
Total liabilities and shareholders’ equity
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2,909 | 284 |
Consolidated Statement of Operations and Comprehensive Loss Data | ||||||||||||
Year Ended December 31,
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2009
(Cdn$)
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2008
(Cdn$)
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2007
(Cdn$)
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(CANADIAN GAAP)
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(in thousands except for per share data)
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Revenues
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759 | 741 | 1,166 | |||||||||
Operating expenses:
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General and administrative
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1,269 | 1,485 | 1,703 | |||||||||
Customer service and technology
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738 | 689 | 762 | |||||||||
Sales and marketing
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181 | 117 | 276 | |||||||||
Stock-based compensation
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183 | 43 | 94 | |||||||||
Depreciation
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29 | 33 | 39 | |||||||||
Finance costs
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768 | 729 | 604 | |||||||||
Other expenses (net)
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- | - | - | |||||||||
Total expenses
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3,168 | 3,096 | 3,478 | |||||||||
Loss from operations
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(2,409 | ) | (2,355 | ) | (2,312 | ) | ||||||
Loss per share, basic and diluted (1)
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(0.017 | ) | (0.022 | ) | (0.025 | ) | ||||||
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Weighted average number of common shares
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140,434 | 108,861 | 93,094 |
2009
(Cdn$)
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2008
(Cdn$)
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2007
(Cdn$)
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(U.S. GAAP)
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(in thousands except for per share data) | ||||||||||||
Loss for the year as reported under Canadian GAAP
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(2,409 | ) | (2,355 | ) | (2,312 | ) | ||||||
Adjustments:
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Accretion of interest on secured subordinated notes (Note 21 (b)) | 508 | 394 | 333 | |||||||||
Amortization of deferred charges relating to secured subordinated notes under U.S. GAAP (Note 21 (b))
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(42 | ) | (21 | ) | (65 | ) | ||||||
Amortization of beneficial conversion feature (Note 21 (b))
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(971 | ) | (303 | ) | (160 | ) | ||||||
Loss and comprehensive loss for the year as reported under U.S. GAAP
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(2,914 | ) | (2,285 | ) | (2,204 | ) | ||||||
Loss per share, basic and diluted (1)
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(0.018 | ) | (0.021 | ) | (0.020 | ) |
As at December 31,
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2009
(Cdn$)
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2008
(Cdn$)
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2007
(Cdn$)
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(CANADIAN GAAP)
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(in thousands)
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Total assets
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1,105 | 812 | 687 | |||||||||
Shareholders’ equity (deficiency)
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(16 | ) | (2,403 | ) | (1,600 | ) | ||||||
Total liabilities and shareholders’ equity
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1,105 | 812 | 687 |
As at December 31,
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2009
(Cdn$)
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2008
(Cdn$)
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2007
(Cdn$)
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(U.S. GAAP)
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Total assets
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872 | 731 | 882 | |||||||||
Shareholders’ deficiency
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(3,283 | ) | (2,037 | ) | (2,458 | ) |
(1)
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For each fiscal year, the Company excluded the effect of all convertible debt, stock options and share-purchase warrants in the calculation of diluted loss per share, as their impact would have been anti-dilutive.
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(2)
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The Company has not paid dividend since its formation.
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(3)
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The significant differences between Canadian GAAP and U.S. GAAP arise primarily from the accounting differences relating to the secured subordinated notes issued.
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(4)
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The financial data for the years ended December 31, 2009, 2008 and 2007 shown separately from 2001 and 2010 as the information is not comparable with the data presented based on IFRS.
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15.1
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Consolidated Financial Statements for the year ended Dec. 31, 2011
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NORTHCORE TECHNOLOGIES INC. | ||
By: “Amit Monga” | ||
Name: Amit Monga | ||
Title: Chief Executive Officer | ||
Dated: October 30, 2012 | By: “Tam Nguyen” | |
Name: Tam Nguyen | ||
Title: Chief Financial Officer
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Management’s Report
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11
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Report of Independent Registered Public Accounting Firm
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12
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Consolidated Statement of Financial Position as at December 31, 2011 and 2010 and January 1, 2010
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13
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Consolidated Statements of Operations and Comprehensive loss for the years ended December 31, 2011 and 2010
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14
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Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2011 and 2010
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15
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Consolidated Statements of Cash Flows for the years ended December 31, 2011 and 2010
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16
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Notes to Consolidated Financial Statements
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17
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![]() |
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Amit Monga | Tam Nguyen | |
CEO | CFO |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at December 31, 2011, December 31, 2010 and January 1, 2010
(in thousands of Canadian dollars)
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December 31, 2011
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December 31, 2010
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January 1, 2010
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(Note 20)
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(Note 20)
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ASSETS
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CURRENT
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Cash
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$ | 1,760 | $ | 51 | $ | 210 | ||||||
Accounts receivable
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187 | 151 | 214 | |||||||||
Deposits and prepaid expenses
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40 | 36 | 35 | |||||||||
1,987 | 238 | 459 | ||||||||||
INVESTMENT IN GE ASSET MANAGER, LLC (Note 4)
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24 | 15 | 31 | |||||||||
INVESTMENT IN SOUTHCORE (Note 4)
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- | - | 544 | |||||||||
CAPITAL ASSETS (Note 5)
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91 | 31 | 47 | |||||||||
INTANGIBLE ASSETS (Note 6)
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807 | - | - | |||||||||
$ | 2,909 | $ | 284 | $ | 1,081 | |||||||
LIABILITIES
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CURRENT
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Accounts payable
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$ | 239 | $ | 400 | $ | 331 | ||||||
Accrued liabilities
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173 | 219 | 161 | |||||||||
Deferred revenue
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3 | 3 | 3 | |||||||||
Notes payable (Note 7)
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- | 530 | 156 | |||||||||
Current portion of secured subordinated notes (Note 8)
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- | 501 | - | |||||||||
415 | 1,653 | 651 | ||||||||||
SECURED SUBORDINATED NOTES (Note 8)
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- | 204 | 658 | |||||||||
415 | 1,857 | 1,309 | ||||||||||
SHAREHOLDERS’ EQUITY (DEFICIENCY)
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Share capital (Note 10)
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117,359 | 110,767 | 110,240 | |||||||||
Contributed surplus
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3,586 | 3,462 | 3,071 | |||||||||
Warrants (Note 11)
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836 | 834 | 490 | |||||||||
Stock options (Note 12)
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3,690 | 1,949 | 1,435 | |||||||||
Conversion feature on secured subordinated notes (Note 8)
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- | 458 | 547 | |||||||||
Deficit
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(122,977 | ) | (119,043 | ) | (116,011 | ) | ||||||
2,494 | (1,573 | ) | (228 | ) | ||||||||
$ | 2,909 | $ | 284 | $ | 1,081 |
![]() |
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Amit Monga | Christopher Bulger | |
Director | Director |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the years ended December 31, 2011 and 2010
(in thousands of Canadian dollars, except per share amounts)
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2011
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2010
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(Note 20)
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Revenues (Note 13)
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$ | 785 | $ | 582 | ||||
Other income:
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Income from GE Asset Manager, LLC (Note 4)
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69 | 43 | ||||||
Operating expenses:
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General and administrative
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1,670 | 1,440 | ||||||
Customer service and technology
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726 | 734 | ||||||
Sales and marketing
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260 | 188 | ||||||
Stock-based compensation (Note 12 (b))
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1,873 | 517 | ||||||
Depreciation
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32 | 22 | ||||||
Total operating expenses
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4,561 | 2,901 | ||||||
Loss from operations
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(3,707 | ) | (2,276 | ) | ||||
Finance costs:
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Cash interest expense (Note 8)
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103 | 154 | ||||||
Accretion of secured subordinated notes (Note 8)
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124 | 115 | ||||||
Total finance costs
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227 | 269 | ||||||
Other expenses:
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Gain on settlement of debt (Note 7 (c))
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- | (57 | ) | |||||
Provision for impaired investment (Note 4)
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- | 544 | ||||||
Total other expenses
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- | 487 | ||||||
LOSS AND COMPREHENSIVE LOSS FOR THE YEAR
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$ | (3,934 | ) | $ | (3,032 | ) | ||
LOSS PER SHARE, BASIC AND DILUTED
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$ | (0.020 | ) | $ | (0.019 | ) | ||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED (000’s)
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196,180 | 162,899 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
As at December 31, 2011 and 2010
(in thousands of Canadian dollars)
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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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Other
Options
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Conversion Feature on Secured Notes
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Deficit
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Total
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Opening balance - January 1, 2010 (Note 20)
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$ | 110,240 | $ | 3,071 | $ | 490 | $ | 1,435 | $ | - | $ | 547 | $ | (116,011 | ) | $ | (228 | ) | ||||||||||||||
Changes:
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Conversion of notes
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117 | - | 41 | - | - | (89 | ) | - | 69 | |||||||||||||||||||||||
Equity private placement
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461 | - | 164 | - | - | - | - | 625 | ||||||||||||||||||||||||
Equity line of credit
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(308 | ) | - | 562 | - | - | - | - | 254 | |||||||||||||||||||||||
Exercise of warrants
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202 | - | (32 | ) | - | - | - | - | 170 | |||||||||||||||||||||||
Expiry of warrants
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- | 391 | (391 | ) | - | - | - | - | - | |||||||||||||||||||||||
Payment of interest
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48 | - | - | - | - | - | - | 48 | ||||||||||||||||||||||||
Exercise of stock options
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7 | - | - | (3 | ) | - | - | - | 4 | |||||||||||||||||||||||
Stock-based compensation
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- | - | - | 517 | - | - | - | 517 | ||||||||||||||||||||||||
Loss for the period
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- | - | - | - | - | - | (3,032 | ) | (3,032 | ) | ||||||||||||||||||||||
Closing balance – December 31, 2010 (Note 20)
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$ | 110,767 | $ | 3,462 | $ | 834 | $ | 1,949 | $ | - | $ | 458 | $ | (119,043 | ) | $ | (1,573 | ) |
Share Capital
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Contributed Surplus
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Warrants
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Stock Options
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Other
Options
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Conversion Feature on Secured Notes
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Deficit
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Total
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Opening balance - January 1, 2011
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$ | 110,767 | $ | 3,462 | $ | 834 | $ | 1,949 | $ | - | $ | 458 | $ | (119,043 | ) | $ | (1,573 | ) | ||||||||||||||
Changes:
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Conversion of notes
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1,081 | - | 207 | - | - | (458 | ) | - | 830 | |||||||||||||||||||||||
Equity private placement
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456 | - | 149 | - | 108 | - | - | 713 | ||||||||||||||||||||||||
Acquisition of intellectual properties
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630 | - | - | - | - | - | - | 630 | ||||||||||||||||||||||||
Warrants issued for debt settlement
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- | - | 200 | - | - | - | - | 200 | ||||||||||||||||||||||||
Exercise of warrants
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3,854 | - | (477 | ) | - | - | - | - | 3,377 | |||||||||||||||||||||||
Exercise of compensation options
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241 | - | 47 | - | (108 | ) | - | - | 180 | |||||||||||||||||||||||
Expiry of warrants
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- | 124 | (124 | ) | - | - | - | - | - | |||||||||||||||||||||||
Payment of interest
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1 | - | - | - | - | - | - | 1 | ||||||||||||||||||||||||
Exercise of stock options
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329 | - | - | (132 | ) | - | - | - | 197 | |||||||||||||||||||||||
Stock-based compensation
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- | - | - | 1,873 | - | - | - | 1,873 | ||||||||||||||||||||||||
Loss for the period
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- | - | - | - | - | - | (3,934 | ) | (3,934 | ) | ||||||||||||||||||||||
Closing balance –
December 31, 2011
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$ | 117,359 | $ | 3,586 | $ | 836 | $ | 3,690 | $ | - | $ | - | $ | (122,977 | ) | $ | 2,494 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2011 and 2010
(in thousands of Canadian dollars)
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2011
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2010
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NET INFLOW (OUTFLOW) OF CASH
RELATED TO THE FOLLOWING ACTIVITIES
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(Note 20)
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OPERATING
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Loss for the year
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$ | (3,934 | ) | $ | (3,032 | ) | ||
Adjustments for:
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Income from GE Asset Manager, LLC (Note 4)
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(69 | ) | (43 | ) | ||||
Stock-based compensation
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1,873 | 517 | ||||||
Depreciation
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32 | 22 | ||||||
Cash interest expense
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103 | 154 | ||||||
Accretion of secured subordinated notes
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124 | 115 | ||||||
Gain on settlement of debt (Note 7 (c))
|
- | (57 | ) | |||||
Provision for impaired investment (Note 4)
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- | 544 | ||||||
(1,871 | ) | (1,780 | ) | |||||
Changes in non-cash operating working capital (Note 17)
|
(19 | ) | 200 | |||||
(1,890 | ) | (1,580 | ) | |||||
INVESTING
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||||||||
Cash distribution from investment in GE Asset Manager, LLC (Note 4)
|
60 | 60 | ||||||
Purchase of capital assets
|
(92 | ) | (6 | ) | ||||
Acquisition of intangible assets (Note 6)
|
(177 | ) | - | |||||
(209 | ) | 54 | ||||||
FINANCING
|
||||||||
Repayment of notes payable (Note 7)
|
(530 | ) | (465 | ) | ||||
Proceeds from issuance of notes payable (Note 7)
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- | 859 | ||||||
Issuance of equity and compensation units (Note 10)
|
1,018 | 1,008 | ||||||
Share issuance costs (Note 10 (d))
|
(125 | ) | (129 | ) | ||||
Warrants exercised (Note 11 (c))
|
3,377 | 170 | ||||||
Options exercised (Notes 12 (c))
|
197 | 4 | ||||||
Interest paid
|
(129 | ) | (80 | ) | ||||
3,808 | 1,367 | |||||||
NET CASH INFLOW (OUTFLOW) DURING THE YEAR
|
1,709 | (159 | ) | |||||
CASH, BEGINNING OF YEAR
|
51 | 210 | ||||||
CASH, END OF YEAR
|
$ | 1,760 | $ | 51 |
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
|
·
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Provided comparative financial information;
|
·
|
Applied the same accounting policies throughout all periods presented;
|
·
|
Retrospectively applied all effective IFRS standards as of December 31, 2011, as required; and
|
·
|
Applied certain mandatory exceptions and optional exemptions as applicable for first time IFRS adopters.
|
·
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Investments are initially recognized at cost;
|
·
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The Company’s share of post-acquisition profits or losses is recognized in the income statement and is adjusted against the carrying amount of the investments;
|
·
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When the Company’s share of losses equals or exceeds its interest in the investee, the Company does not recognize further losses, unless it has incurred obligations or made payments on behalf of the investee; and
|
·
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Gains and losses on transactions between the Company and its equity method investees are eliminated to the extent of the Company’s interest in these entities.
|
Computer hardware | 3 years | |
Computer software | 1 year or life of the license | |
Furniture and fixtures | 5 years | |
Leasehold improvements | Shorter of useful life or life of the lease |
Intellectual Properties | 10 years |
·
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The amount of revenue can be measured reliably;
|
·
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The stage of completion can be measured reliably;
|
·
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The receipt of economic benefits is probable; and
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·
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The costs incurred or to be incurred can be measured reliably.
|
·
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The amount of revenue can be measured reliably;
|
·
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The risks and rewards of ownership have been transferred to the buyer;
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·
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The receipt of economic benefits is probable; and
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·
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The costs incurred or to be incurred can be measured reliably.
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·
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Application Development Fees
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·
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Implementation, Training and Consulting Service Fees
|
·
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Product Maintenance and Customer Support Fees
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·
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Hosting Fees
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·
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Multiple Deliverable Revenue Arrangements
|
·
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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, 2013. The IASB has proposed to move the effective date of IFRS 9 to January 1, 2015.
|
·
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IFRS 13, Fair Value Measurement was issued by the IASB in May 2011. IFRS 13 establishes new guidance on fair value measurement and disclosure requirements for IFRSs and U.S. generally accepted accounting principles (GAAP). The guidance, set out in IFRS 13 and an update to Topic 820 in the FASB’s Accounting Standards Codification (formerly referred to as SFAS 157), completes a major project of the boards’ joint work to improve IFRSs and US GAAP and to bring about their convergence. The standard is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted.
|
·
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IAS 1, Presentation of Financial Statements was amended by the IASB in June 2011 in order to align the presentation of items in other comprehensive income with US GAAP standards. Items in other comprehensive income will be required to be presented in two categories: items that will be reclassified into profit or loss and those that will not be reclassified. The flexibility to present a statement of comprehensive income as one statement or two separate statements of profit and loss and other comprehensive income remains unchanged. The amendments to IAS 1 are effective for annual periods beginning on or after July 1, 2012.
|
4.
|
INVESTMENTS
|
GE ASSET MANAGER, LLC
|
December 31, 2011
|
December 31, 2010
|
January 1, 2010
|
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(in thousands)
|
||||||||||||
Statement of Financial Position
|
||||||||||||
Assets | ||||||||||||
Cash
|
$ | 91 | $ | 80 | $ | 30 | ||||||
Accounts receivable
|
13 | 14 | 30 | |||||||||
Total assets
|
$ | 104 | $ | 94 | 60 | |||||||
Liabilities and Equity
|
||||||||||||
Accounts payable
|
- | 9 | - | |||||||||
Deferred revenue
|
55 | 56 | - | |||||||||
Equity
|
49 | 29 | 60 | |||||||||
Total liabilities and equity
|
$ | 104 | $ | 94 | $ | 60 | ||||||
Statement of Operations
|
||||||||||||
Operating revenue
|
$ | 147 | $ | 104 | ||||||||
Operating expenses
|
(9 | ) | (18 | ) | ||||||||
Net income
|
$ | 138 | $ | 86 | ||||||||
Statement of Cash Flows
|
||||||||||||
Operating activities
|
$ | 11 | $ | 50 | ||||||||
Investing activities
|
- | - | ||||||||||
Financing activities
|
- | - | ||||||||||
Net cash inflow
|
$ | 11 | $ | 50 |
5.
|
CAPITAL ASSETS
|
Computer
Hardware
|
Computer
Software
|
Furniture
and Fixtures
|
Leasehold Improvements
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Cost:
|
||||||||||||||||||||
January 1, 2010
|
$ | 133 | $ | 15 | $ | - | $ | 27 | $ | 175 | ||||||||||
Additions
|
6 | - | - | - | 6 | |||||||||||||||
December 31, 2010
|
$ | 139 | $ | 15 | $ | - | $ | 27 | $ | 181 | ||||||||||
Additions
|
38 | - | 11 | 43 | 92 | |||||||||||||||
December 31, 2011
|
$ | 177 | $ | 15 | $ | 11 | $ | 70 | $ | 273 | ||||||||||
Accumulated depreciation:
|
||||||||||||||||||||
January 1, 2010
|
$ | 100 | $ | 1 | $ | - | $ | 27 | $ | 128 | ||||||||||
Depreciation for the year
|
14 | 8 | - | - | 22 | |||||||||||||||
December 31, 2010
|
$ | 114 | $ | 9 | $ | - | $ | 27 | $ | 150 | ||||||||||
Amortization for the year
|
20 | 6 | 1 | 5 | 32 | |||||||||||||||
December 31, 2011
|
$ | 134 | $ | 15 | $ | 1 | $ | 32 | $ | 182 | ||||||||||
Carrying amount:
|
||||||||||||||||||||
January 1, 2010
|
$ | 33 | $ | 14 | $ | - | $ | - | $ | 47 | ||||||||||
December 31, 2010
|
$ | 25 | $ | 6 | $ | - | $ | - | $ | 31 | ||||||||||
December 31, 2011
|
$ | 43 | $ | - | $ | 10 | $ | 38 | $ | 91 |
6.
|
INTANGIBLE ASSETS
|
7.
|
NOTES PAYABLE
|
a)
|
The Series H notes payable matured on December 31, 2009 and were secured as per the Series H security terms; however, the final installment had not been remitted and the Company was in negotiation with the debt holders over the timing of the final settlement amount of $30,000.
|
b)
|
On October 28, 2010, the Company received an operating loan from a private institution in the amount of $500,000. The loan bore interest at 18.75 percent, matured in six months from the closing date and was secured by a general security agreement and common shares pledged by certain shareholders of the Company. The balance outstanding as at December 31, 2010 was $500,000.
|
c)
|
The Series G notes payable matured on December 31, 2009 and were secured as per the Series G security terms; however, the final installment had not been remitted and the Company was in negotiation with the debt holders over the timing of the final settlement amount of $126,000.
|
8.
|
SECURED SUBORDINATED NOTES
|
a)
|
The following summarizes the face and carrying values of the secured subordinated notes.
|
Secured Subordinated Notes
|
December 31, 2011
|
December 31, 2010
|
January 1, 2010
|
|||||||||||||||||||||
Face Value
|
Carrying Value
|
Face Value
|
Carrying Value
|
Face Value
|
Carrying Value
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Series N (Note 8 (b))
|
$ | - | $ | - | $ | 600 | $ | 501 | $ | 600 | $ | 423 | ||||||||||||
Series L (Note 8 (c))
|
- | - | 360 | 204 | 525 | 235 | ||||||||||||||||||
Closing balance
|
$ | - | $ | - | $ | 960 | $ | 705 | $ | 1,105 | $ | 658 | ||||||||||||
Current portion of notes
|
$ | - | $ | - | $ | 600 | $ | 501 | $ | - | $ | - | ||||||||||||
Long-term portion of notes
|
$ | - | $ | - | $ | 360 | $ | 204 | $ | 1,105 | $ | 658 |
b)
|
During the year ended December 31, 2008, the Company issued Series N secured subordinated notes with a face value of $600,000. The Series N notes matured on December 12, 2011, had an annual interest rate of 10 percent and were convertible into equity units at a price of $0.10 per unit. Interest was payable in cash upon the earlier of each quarter end, conversion, or maturity of the notes. Each equity unit consisted of one common share and one share-purchase warrant with an exercise price of $0.15 per warrant. The warrants expired on December 12, 2011. Dundee Securities Corporation received a brokerage commission of four percent on a portion of the private placement. The afore-mentioned conversion provisions were subject to a four month and one day hold period. The Series N notes were secured by a general security agreement on the assets of the Company, subordinated to the security claims provided to the holders of previously issued notes.
|
c)
|
During the year ended December 31, 2008, the Company issued Series L secured subordinated notes with a face value of $525,000. The Series L notes mature on March 31, 2013, have an annual interest rate of 10 percent and are convertible into equity units at a price of $0.10 per unit. Interest for the first two years is payable in shares upon the earlier of conversion or each anniversary date of the closing date. Interest payable for the remaining term of the notes is payable in cash upon the earlier of conversion, each anniversary date of the closing date, or maturity. Each equity unit consisted of one common share and one share-purchase warrant with an exercise price of $0.15 per warrant. The warrants expire on the earlier of (i) March 31, 2013 and (ii) the date which is sixty days following the issuance of a notice by the Company to holders confirming that the closing price of the Company’s common shares, on the TSX was greater than or equal to $0.36 for any 10 consecutive trading days. Dundee Securities Corporation received a brokerage commission of four percent on a portion of the private placement. The afore-mentioned conversion provisions are subject to a four month and one day holding period. The Series L notes are secured by a general security agreement on the assets of the Company, subordinated to the security claims provided to the holders of previously issued notes.
|
d)
|
During the year ended December 31, 2011, the Company recorded cash interest expense aggregating $103,000 (2010 - $154,000) and interest accretion of $124,000 (2010 - $115,000).
|
e)
|
As at December 31, 2011, accrued liabilities include $nil (2010 - $62,000) of unpaid interest payable relating to the secured subordinated notes.
|
f)
|
The following summarizes the change in the face and carrying values of the liability and equity components of the secured subordinated notes.
|
Secured Subordinated Notes (liability component)
|
2011 | 2010 | ||||||||||||||
Face Value
|
Carrying Value
|
Face Value
|
Carrying Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Opening balance
|
$ | 960 | $ | 705 | $ | 1,105 | $ | 658 | ||||||||
Accreted (non-cash) interest
|
- | 124 | - | 115 | ||||||||||||
Conversion of notes:
|
||||||||||||||||
Series N (Note 8 (b))
|
(600 | ) | (592 | ) | - | - | ||||||||||
Series L (Note 8 (c))
|
(360 | ) | (237 | ) | (145 | ) | (68 | ) | ||||||||
Closing balance
|
$ | - | $ | - | $ | 960 | $ | 705 |
Conversion Features on Secured Subordinated Notes Including Conversion of Attached Warrants
|
2011 | 2010 | ||||||||||||||
Common Shares Issuable
|
Carrying Value
|
Common Shares Issuable
|
Carrying Value
|
|||||||||||||
(in thousands of shares and dollars)
|
||||||||||||||||
Opening balance
|
19,200 | $ | 458 | 22,100 | $ | 547 | ||||||||||
Conversion of notes:
|
||||||||||||||||
Series N (Note 8 (b))
|
(12,000 | ) | (237 | ) | - | - | ||||||||||
Series L (Note 8 (c))
|
(7,200 | ) | (221 | ) | (2,900 | ) | (89 | ) | ||||||||
Closing balance
|
- | $ | - | 19,200 | $ | 458 |
9.
|
INCOME TAXES
|
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
DEFERRED TAX ASSET
|
||||||||
Tax losses carried forward
|
$ | 6,916 | $ | 6,454 | ||||
Difference in tax and accounting valuations for capital assets and investments
|
76 | 124 | ||||||
6,992 | 6,578 | |||||||
Temporary differences not recognized
|
(6,992 | ) | (6,578 | ) | ||||
Deferred tax asset
|
$ | - | $ | - |
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
PROVISION FOR INCOME TAXES
|
||||||||
Income taxes at statutory rate
|
$ | (1,112 | ) | $ | (940 | ) | ||
Change in enacted rates
|
63 | 123 | ||||||
Non-deductible interest on subordinated notes
|
35 | 36 | ||||||
Stock-based compensation not deductible for tax
|
529 | 160 | ||||||
Write-down of investment
|
- | 169 | ||||||
Expiry of tax loss carry-forwards
|
- | 1,297 | ||||||
Loss carry-forwards not recognized
|
414 | (823 | ) | |||||
Other
|
71 | (22 | ) | |||||
Provision for income taxes
|
$ | - | $ | - |
Year
|
Amount
|
|||
(in thousands)
|
||||
2014
|
$ | 3,047 | ||
2015
|
3,351 | |||
2026
|
2,588 | |||
2027
|
2,050 | |||
2028
|
1,969 | |||
2029
|
1,700 | |||
2030
|
1,741 | |||
2031
|
1,892 | |||
Tax loss carry-forwards that do not expire
|
9,294 | |||
$ | 27,632 |
10.
|
SHARE CAPITAL
|
a)
|
Authorized
|
Unlimited number of common shares
|
Unlimited number of preference shares – issuable in series
|
2011
|
2010
|
|||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||
(in thousands of shares and dollars)
|
||||||||||||||||
Opening balance
|
172,170 | $ | 110,767 | 159,353 | $ | 110,240 | ||||||||||
Shares issued pursuant to:
|
||||||||||||||||
Conversion of subordinated notes (Note 8 (b) and (c))
|
9,600 | 1,081 | 1,450 | 117 | ||||||||||||
Payment of interest (Note 10 (c))
|
6 | 1 | 232 | 48 | ||||||||||||
Equity private placements (Note 10 (d))
|
10,478 | 456 | 10,007 | 153 | ||||||||||||
Exercise of compensation options (Note 10 (d))
|
2,250 | 241 | - | - | ||||||||||||
Warrants exercised (Note 11 (c))
|
26,260 | 3,854 | 1,083 | 202 | ||||||||||||
Stock options exercised (Note 12 (c))
|
1,334 | 329 | 45 | 7 | ||||||||||||
Acquisition of intellectual properties (Note 6)
|
4,500 | 630 | - | - | ||||||||||||
Closing balance
|
226,598 | $ | 117,359 | 172,170 | $ | 110,767 |
c)
|
Payment of Interest
|
d)
|
Equity Private Placements
|
11.
|
WARRANTS
|
a)
|
The following table summarizes the transactions within warrants.
|
2011
|
2010
|
|||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||
(in thousands of warrants and dollars)
|
||||||||||||||||
Opening balance
|
15,818 | $ | 834 | 10,249 | $ | 490 | ||||||||||
Warrants issued pursuant to:
|
||||||||||||||||
Conversion of subordinated notes (Note 8 (b) and (c)) | 9,600 | 207 | 1,450 | 41 | ||||||||||||
Equity private placements (Note 10 (d))
|
10,478 | 149 | 13,816 | 726 | ||||||||||||
Exercise of compensation options (Note 10 (d)) | 2,250 | 47 | - | - | ||||||||||||
Debt settlement (Note 11 (b)) | 2,900 | 200 | - | - | ||||||||||||
Warrants exercised (Note 11 (c))
|
(26,260 | ) | (477 | ) | (1,083 | ) | (32 | ) | ||||||||
Warrants expired (Note 11 (d))
|
(3,121 | ) | (124 | ) | (8,614 | ) | (391 | ) | ||||||||
Closing balance
|
11,665 | $ | 836 | 15,818 | $ | 834 |
b)
|
Warrants Issued For Debt Settlement
|
c)
|
Warrants Exercised
|
d)
|
Warrants Expired
|
e)
|
Fair Value of Warrants Issued
|
2011
|
2010
|
|||||||
Share price
|
$ | 0.16 | $ | 0.19 | ||||
Dividend yield
|
- | - | ||||||
Risk free interest rate
|
1.85 | % | 1.68 | % | ||||
Volatility
|
103.57 | % | 98.89 | % | ||||
Expected term, in years
|
2.00 | 2.43 |
12.
|
STOCK OPTIONS
|
a)
|
The following table summarizes the transactions within stock options.
|
2011
|
2010
|
|||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||
(in thousands of warrants and dollars)
|
||||||||||||||||
Opening balance
|
10,946 | $ | 1,949 | 5,036 | $ | 1,435 | ||||||||||
Granted
|
10,150 | - | 7,515 | - | ||||||||||||
Exercised (Note 12 (c))
|
(1,334 | ) | (132 | ) | (45 | ) | (3 | ) | ||||||||
Cancelled
|
(472 | ) | - | (1,560 | ) | - | ||||||||||
Stock-base compensation expense
|
- | 1,873 | - | 517 | ||||||||||||
Closing balance
|
19,290 | $ | 3,690 | 10,946 | $ | 1,949 |
b)
|
Employee Stock Options
|
Exercise Prices
|
Number of Options Outstanding
(in thousands)
|
Remaining Contractual Life
(in years)
|
Number of Options Exercisable
(in thousands)
|
|||||||
$ | 0.10 | 3,434 | 3.7 | 2,867 | ||||||
$ | 0.12 | 1,406 | 1.1 | 1,406 | ||||||
$ | 0.19 | 3,440 | 4.3 | 2,220 | ||||||
$ | 0.20 | 4,660 | 3.2 | 4,660 | ||||||
$ | 0.32 | 6,350 | 4.4 | 3,528 | ||||||
19,290 | 14,681 |
2011
|
2010
|
|||||||
Share price
|
$ | 0.27 | $ | 0.15 | ||||
Dividend yield
|
- | - | ||||||
Risk free interest rate
|
2.47 | % | 2.63 | % | ||||
Volatility
|
100.32 | % | 89.10 | % | ||||
Expected term, in years
|
5 | 5 |
c)
|
During the year ended December 31, 2011, total proceeds of $197,000 were realized from the exercise of 1,334,000 stock options (book value of $132,000) at an average exercise price of $0.15. The average trading price at the time of exercise of these options was $0.27.
|
13.
|
REVENUES
|
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Services
|
$ | 543 | $ | 317 | ||||
Hosting fees
|
242 | 255 | ||||||
Royalty fees
|
- | 10 | ||||||
$ | 785 | $ | 582 |
14.
|
FINANCIAL INSTRUMENTS AND FINANCIAL RISK FACTORS
|
|
a)
|
Financial Instruments
|
|
December 31, 2011
|
December 31, 2010
|
January 31, 2010
|
|||||||||
(in thousands)
|
||||||||||||
Financial Assets:
|
||||||||||||
Fair value through profit and loss
|
||||||||||||
Cash
|
$ | 1,760 | $ | 51 | $ | 210 | ||||||
Loans and receivables, recorded at amortized cost
|
||||||||||||
Accounts receivable
|
$ | 187 | $ | 151 | $ | 214 | ||||||
Financial Liabilities:
|
||||||||||||
Financial liabilities measured at amortized cost
|
||||||||||||
Accounts payable and accrued liabilities
|
$ | 412 | $ | 619 | $ | 492 | ||||||
Notes payable
|
- | 530 | 156 | |||||||||
Secured subordinated notes
|
- | 705 | 658 |
|
b)
|
Financial Risk Factors
|
December 31, 2011
|
December 31, 2010
|
January 31, 2010
|
||||||||||
(in thousands)
|
||||||||||||
Current
|
$ | 144 | $ | 93 | $ | 63 | ||||||
Past due (61-120 days)
|
36 | 46 | 91 | |||||||||
Past due (> 120 days)
|
7 | 12 | 60 | |||||||||
|
$ | 187 | $ | 151 | $ | 214 |
15.
|
CAPITAL DISCLOSURES
|
16.
|
COMMITMENTS AND CONTINGENCIES
|
a)
|
Minimum payments under operating leases are as follows:
|
Year
|
Amount
(in thousands)
|
|||
2012
|
$ | 156 | ||
2013
|
$ | 156 | ||
2014
|
$ | 130 |
b)
|
During the year ended December 31, 2009, the Company entered into a technology licensing agreement with a Fortune 500 company that provides Northcore with access to a portfolio of intellectual property patents over a six year period for a minimum fee of US $260,000 over the term of the agreement. Minimum payments over the remaining term are as follows: 2012 - $50,000, 2013 - $50,000, 2014 - $50,000.
|
c)
|
In connection with the acquisition of all the Intellectual Property of Discount This Holdings limited, the Company agreed to pay a 10 percent commission on all proceeds realized, if the Intellectual Property is sold or licensed to a third party within the two year period following the close date of December 28, 2011.
|
17.
|
SUPPLEMENTAL INFORMATION
|
a)
|
Cash Flow
|
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Accounts receivable
|
$ | (36 | ) | $ | 63 | |||
Deposits and prepaid expenses
|
(4 | ) | (1 | ) | ||||
Accounts payable
|
(161 | ) | 69 | |||||
Accrued liabilities
|
182 | 69 | ||||||
$ | (19 | ) | $ | 200 |
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Issuance of common shares in settlement of interest payments (Note 10 (c))
|
$ | 1 | $ | 48 | ||||
Reduction in debt from conversion of secured subordinated notes (Note 8 (f))
|
(829 | ) | (68 | ) | ||||
Reduction in conversion feature from conversion of secured subordinated notes (Note 8 (f))
|
(458 | ) | (89 | ) | ||||
Issuance of common shares for acquisition of intangible assets (Note 6)
|
630 | - | ||||||
Issuance of warrants for settlement of trade payables (Note 12 (b))
|
200 | - |
b)
|
Employee Benefits
|
18.
|
RELATED PARTY TRANSACTIONS
|
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Salaries and other benefits
|
$ | 430 | $ | 355 | ||||
Stock-based compensation
|
741 | 144 | ||||||
$ | 1,171 | $ | 499 |
19.
|
SUBSEQUENT EVENT
|
|
Subsequent to the year ended December 31, 2011, the Company entered into an agreement to acquire a software development firm.. The purchase price of $1,000,000 will be satisfied by $300,000 cash payment and $700,000 through the issuance of 7,777,777 common shares at $0.09. The cash payment will be satisfied by $100,000 cash payment at closing with the remaining $200,000 to be paid over the next two years, subject to achieving specific performance criteria. The financial effect of this transaction cannot be determined at this time.
|
20.
|
TRANSITION TO IFRS
|
|
IFRS 1 requires the presentation of comparative information as at the January 1, 2010 transition date and subsequent comparative periods as well as the consistent and retrospective application of IFRS accounting policies. To assist with the transition, the provisions of IFRS 1 allow for certain mandatory exceptions and optional exemptions for first-time adopters to alleviate the retrospective application of all IFRSs. The Company has applied the following exemptions in its consolidated financial statements at the transition date:
|
·
|
Share-Based Payments
|
·
|
Financial Instruments
|
·
|
Business Combinations
|
·
|
Estimates
|
IFRS OPENING CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at January 1, 2010
(in thousands of Canadian dollars)
|
||||||||||||||||||||
IFRS ADJUSTMENTS
|
||||||||||||||||||||
Previous GAAP
|
Stock-based Compensation
|
Investment in GEAM, LLC
|
Secured Subordinated Notes
|
IFRS
|
||||||||||||||||
(Note 20 (a))
|
(Note 20 (b))
|
(Note 20 (c))
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash
|
$ | 226 | $ | - | $ | (16 | ) | $ | - | $ | 210 | |||||||||
Accounts receivable
|
253 | - | (39 | ) | - | 214 | ||||||||||||||
Deposits and prepaid expenses
|
35 | - | - | - | 35 | |||||||||||||||
514 | - | (55 | ) | - | 459 | |||||||||||||||
INVESTMENT IN GEAM, LLC
|
- | - | 31 | - | 31 | |||||||||||||||
INVESTMENT IN SOUTHCORE
|
544 | - | - | - | 544 | |||||||||||||||
CAPITAL ASSETS
|
47 | - | - | - | 47 | |||||||||||||||
$ | 1,105 | $ | - | $ | (24 | ) | $ | - | $ | 1,081 | ||||||||||
LIABILITIES
|
||||||||||||||||||||
Accounts payable
|
$ | 331 | $ | - | $ | - | $ | - | $ | 331 | ||||||||||
Accrued liabilities
|
161 | - | - | - | 161 | |||||||||||||||
Deferred revenue
|
27 | - | (24 | ) | - | 3 | ||||||||||||||
Notes payable
|
156 | - | - | - | 156 | |||||||||||||||
675 | - | (24 | ) | - | 651 | |||||||||||||||
SECURED SUBORDINATED NOTES
|
446 | - | - | 212 | 658 | |||||||||||||||
1,121 | - | (24 | ) | 212 | 1,309 | |||||||||||||||
SHAREHOLDERS' DEFICIENCY | ||||||||||||||||||||
Share capital
|
110,238 | - | - | 2 | 110,240 | |||||||||||||||
Contributed surplus
|
3,071 | - | - | - | 3,071 | |||||||||||||||
Warrants
|
492 | - | - | (2 | ) | 490 | ||||||||||||||
Stock options
|
1,425 | 10 | - | - | 1,435 | |||||||||||||||
Conversion feature on secured subordinated notes
|
779 | - | - | (232 | ) | 547 | ||||||||||||||
Deficit
|
(116,021 | ) | (10 | ) | - | 20 | (116,011 | ) | ||||||||||||
(16 | ) | - | - | (212 | ) | (228 | ) | |||||||||||||
$ | 1,105 | $ | - | $ | (24 | ) | $ | - | $ | 1,081 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at December 31, 2010
(in thousands of Canadian dollars)
|
||||||||||||||
IFRS ADJUSTMENTS
|
||||||||||||||||||||
Previous GAAP
|
Stock-based Compensation
|
Investment in GEAM, LLC
|
Secured Subordinated Notes
|
IFRS
|
||||||||||||||||
(Note 20 (a))
|
(Note 20 (b))
|
(Note 20 (c))
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash
|
$ | 90 | $ | - | $ | (39 | ) | $ | - | $ | 51 | |||||||||
Accounts receivable
|
157 | - | (6 | ) | - | 151 | ||||||||||||||
Deposits and prepaid expenses
|
36 | - | - | - | 36 | |||||||||||||||
283 | - | (45 | ) | - | 238 | |||||||||||||||
INVESTMENT IN GEAM, LLC
|
- | - | 15 | - | 15 | |||||||||||||||
CAPITAL ASSETS
|
31 | - | - | - | 31 | |||||||||||||||
$ | 314 | $ | - | $ | (30 | ) | $ | - | $ | 284 | ||||||||||
LIABILITIES
|
||||||||||||||||||||
Accounts payable
|
$ | 404 | $ | - | $ | (4 | ) | $ | - | $ | 400 | |||||||||
Accrued liabilities
|
219 | - | - | - | 219 | |||||||||||||||
Deferred revenue
|
29 | - | (26 | ) | - | 3 | ||||||||||||||
Notes payable
|
530 | - | - | - | 530 | |||||||||||||||
Current portion of secured subordinated notes
|
412 | - | - | 89 | 501 | |||||||||||||||
1,594 | - | (30 | ) | 89 | 1,653 | |||||||||||||||
SECURED SUBORDINATED NOTES
|
149 | - | - | 55 | 204 | |||||||||||||||
1,743 | - | (30 | ) | 144 | 1,857 | |||||||||||||||
SHAREHOLDERS’ DEFICIENCY
|
||||||||||||||||||||
Share capital
|
110,762 | - | - | 5 | 110,767 | |||||||||||||||
Contributed surplus
|
3,462 | - | - | - | 3,462 | |||||||||||||||
Warrants
|
839 | - | - | (5 | ) | 834 | ||||||||||||||
Stock options
|
1,780 | 169 | - | - | 1,949 | |||||||||||||||
Conversion feature on secured subordinated notes
|
667 | - | - | (209 | ) | 458 | ||||||||||||||
Deficit
|
(118,939 | ) | (169 | ) | - | 65 | (119,043 | ) | ||||||||||||
(1,429 | ) | - | (144 | ) | (1,573 | ) | ||||||||||||||
$ | 314 | $ | - | $ | (30 | ) | $ | - | $ | 284 |
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
Twelve Months Ended December 31, 2010
(in thousands of Canadian dollars, except per share amounts)
|
||||||||||||||||||||
IFRS ADJUSTMENTS
|
||||||||||||||||||||
Previous GAAP
|
Stock-based Compensation
|
Investment in GEAM, LLC
|
Secured Subordinated Notes
|
IFRS
|
||||||||||||||||
(Note 20 (a))
|
(Note 20 (b))
|
(Note 20 (c))
|
||||||||||||||||||
Revenues
|
$ | 636 | $ | - | $ | (54 | ) | $ | - | $ | 582 | |||||||||
Other income:
|
||||||||||||||||||||
Income from GEAM, LLC
|
- | - | 43 | - | (43 | ) | ||||||||||||||
Operating expenses:
|
||||||||||||||||||||
General and administrative
|
1,451 | - | (11 | ) | - | 1,440 | ||||||||||||||
Customer service and technology
|
734 | - | - | - | 734 | |||||||||||||||
Sales and marketing
|
188 | - | - | - | 188 | |||||||||||||||
Stock-based compensation
|
358 | 159 | - | - | 517 | |||||||||||||||
Depreciation
|
22 | - | - | - | 22 | |||||||||||||||
Total operating expenses
|
2,753 | 159 | (11 | ) | - | 2,901 | ||||||||||||||
Loss from operations before the under-noted
|
(2,117 | ) | (159 | ) | - | - | (2,319 | ) | ||||||||||||
Finance costs:
|
||||||||||||||||||||
Cash interest expense
|
154 | - | - | - | 154 | |||||||||||||||
Accretion of secured subordinated notes
|
160 | - | - | (45 | ) | 115 | ||||||||||||||
Total finance costs
|
314 | - | - | (45 | ) | 269 | ||||||||||||||
Other expenses:
|
||||||||||||||||||||
Gain on settlement of debt
|
(57 | ) | - | - | - | (57 | ) | |||||||||||||
Provision for impaired investment
|
544 | - | - | - | 544 | |||||||||||||||
Total other expenses
|
487 | - | - | - | 487 | |||||||||||||||
LOSS AND COMPREHENSIVE LOSS FOR THE YEAR
|
$ | (2,918 | ) | $ | (159 | ) | $ | - | $ | 45 | $ | 3,032 | ||||||||
LOSS PER SHARE, BASIC AND DILUTED
|
$ | (0.018 | ) | $ | (0.019 | ) | ||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED (000’s)
|
162,899 | 162,899 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Twelve Months Ended December 31, 2010
(in thousands of Canadian dollars)
|
IFRS ADJUSTMENTS
|
||||||||||||||||||||
Previous GAAP
|
Stock-based Compensation
|
Investment in GEAM, LLC
|
Secured Subordinated Notes
|
IFRS
|
||||||||||||||||
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES
|
|
(Note 20 (a))
|
(Note 20 (b))
|
(Note 20 (c))
|
||||||||||||||||
OPERATING
|
||||||||||||||||||||
Loss for the year
|
$ | (2,918 | ) | $ | (159 | ) | $ | - | $ | 45 | $ | (3,032 | ) | |||||||
Items not affecting cash:
|
||||||||||||||||||||
Income from GEAM, LLC
|
- | - | (43 | ) | - | (43 | ) | |||||||||||||
Stock-based compensation
|
358 | 159 | - | - | 517 | |||||||||||||||
Depreciation
|
22 | - | - | - | 22 | |||||||||||||||
Cash interest expense
|
154 | - | - | - | 154 | |||||||||||||||
Accretion of secured subordinated notes
|
160 | - | - | (45 | ) | 115 | ||||||||||||||
Gain on settlement of debt
|
(57 | ) | - | - | - | (57 | ) | |||||||||||||
Provision for impaired investment
|
544 | - | - | - | 544 | |||||||||||||||
(1,737 | ) | - | (43 | ) | - | (1,780 | ) | |||||||||||||
Changes in non-cash operating working capital
|
240 | - | (40 | ) | - | 200 | ||||||||||||||
(1,497 | ) | - | (83 | ) | - | (1,580 | ) | |||||||||||||
INVESTING
|
||||||||||||||||||||
Cash distributions from investment in GEAM, LLC
|
- | - | 60 | - | 60 | |||||||||||||||
Capital assets
|
(6 | ) | - | - | - | (6 | ) | |||||||||||||
(6 | ) | - | 60 | - | 54 | |||||||||||||||
FINANCING
|
||||||||||||||||||||
Repayment of notes payable
|
(465 | ) | - | - | - | (465 | ) | |||||||||||||
Proceeds from issuance of notes payable
|
859 | - | - | - | 859 | |||||||||||||||
Warrants exercised
|
170 | - | - | - | 170 | |||||||||||||||
Options exercised
|
4 | - | - | - | 4 | |||||||||||||||
Issuance of common shares and warrants
|
1,008 | - | - | - | 1,008 | |||||||||||||||
Share issuance costs
|
(129 | ) | - | - | - | (129 | ) | |||||||||||||
Interest paid
|
(80 | ) | - | - | - | (80 | ) | |||||||||||||
1,367 | - | - | - | 1,367 | ||||||||||||||||
NET CASH OUTFLOW DURING THE YEAR
|
(136 | ) | - | (23 | ) | - | (159 | ) | ||||||||||||
CASH, BEGINNING OF YEAR
|
226 | - | (16 | ) | - | 210 | ||||||||||||||
CASH, END OF YEAR
|
$ | 90 | $ | - | $ | (39 | ) | $ | - | $ | 51 |
a)
|
Stock-Based Compensation
|
b)
|
Investment in GEAM, LLC
|
c)
|
Secured Subordinated Notes
|
DIRECTORS
Anthony DeCristofaro
Chairman of the Board
T. Christopher Bulger
Chairman of the Audit Committee
Ryan Deslippe
Board Member
Marvin Igelman
Board Member
Amit Monga
Chief Executive Officer and Board Member
Jim Moskos
Chief Operating Officer and Board Member
|
CORPORATE OFFICE
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, Ontario M9B 6C7
1 888 287 7467
AUDITORS
Collins Barrow Toronto LLP
11 King Street, West, Suite 700
Toronto, Ontario, M5H 4C7
ADDITIONAL SHAREHOLDER INFORMATION
Website:
www.northcore.com
Email:
investor-relations@northcore.com
|
SHARES OUTSTANDING
As at December 31, 2011:
226,597,702 common shares
REGISTRAR & TRANSFER AGENT
Equity Financial Trust Company
200 University Avenue, Suite 400
Toronto, ON M5H 4H1
STOCK EXCHANGE LISTINGS
Toronto Stock Exchange (TSX)
Symbol: NTI
OTC Bulletin Board (OTCBB)
Symbol: NTLNF
![]() © 2012 Northcore Technologies Inc.
|