ex991.htm

EX-99.1 2 ex991.htm NEWS RELEASE DATED NOVEMBER 11, 2009 ex991.htm

Exhibit 99.1

News release via Canada NewsWire, Toronto 416-863-9350

Attention Business/Financial Editors:

Northcore Reports Third Quarter 2009 Financial Results

(TSX: NTI; OTCBB: NTLNF)

TORONTO, Nov. 11 /CNW/ - Northcore Technologies Inc. (TSX: NTI; OTCBB:

NTLNF), a global provider of asset management technology solutions, announced

today its interim financial results for the third quarter ended September 30,

2009. All figures are reported in Canadian dollars.

In the third quarter of 2009, Northcore reported consolidated revenues of

$213,000, representing a slight increase from the $208,000 realized in the

second quarter of 2009 and the $200,000 of revenues in the third quarter of

2008.

Northcore derives its revenues from application hosting activities

provided to customers, royalty fees from its business partners, the sale of

software licenses, and the delivery of technology services, such as

application development and software customization.

Northcore reported a loss for the third quarter of $610,000 or $nil per

share, basic and diluted. This compares to a loss of $433,000 or $nil per

share, basic and diluted, in the second quarter of 2009. Adjusting the second

quarter for a non-recurring reduction in settlement of past debts with a

creditor for $240,000, there was a nine percent sequential improvement from

operations in the third quarter. In the third quarter of 2008, Northcore

reported a loss of $536,000 or $0.01 per share, basic and diluted.

As at September 30, 2009, Northcore held cash and cash equivalents of

$661,000, and accounts receivable of approximately $247,000.

Operating Highlights

Northcore completed the following customer and operating activities in

the period:

- Implemented a new media marketing platform supporting high value

assets for a major strategic partner that enables high resolution

close-up viewing of asset detail. This brings a new level of image

quality to the industry, heretofore only provided by world leading

art galleries and museums;

- Worked with a key strategic partner to ensure the GE Asset Manager

suite of products meet compliance and regulatory requirements through

their certification process;

- Began a "Liberate Your Working Capital" sales campaign in the U.S.

and Canada;

- Introduced the Working Capital Engine(TM) product and services

offering by Southcore Technologies Ltd. through participation in the

government sponsored eTeck ICT Symposium in Trinidad;

- Closed an equity private placement, securing net proceeds of $495,000

through the issuance of common shares; and

- Completed a series of debt to equity conversions by investors

totaling $596,000.

Highlights subsequent to the quarter ended September 30, 2009:

- A Memorandum of Understanding with Home Hardware Stores Limited to

provide an intranet for Home Hardware Dealers across Canada to more

efficiently source assets for their business needs; and

- An additional $477,000 in debt to equity conversions by investors,

resulting in the equity conversion of all remaining Series K

Debentures and improving the reduction in the Company's total

liabilities to 57 percent since the start of 2009.

Outlook

"We have customers that can evidence clear savings from their investment

in Northcore's Working Capital Engine(TM). A substantial return on investment

is a cornerstone of our value proposition to prospective customers and we are

encouraged by their receptivity. While current economic conditions continue to

challenge many, at Northcore we see opportunity. We now look forward to

producing tangible financial results for our shareholders through expanded

deployment of our cost saving technology solutions," said Duncan Copeland, CEO

of Northcore Technologies.

Northcore will hold a conference call at 10:00 a.m. (Eastern time) on

Thursday November 12 to discuss its financial results and review operational

activities. Investors and followers of the Company can listen to a live

broadcast of the call from the investor relations section of the Company's

website, http://www.northcore.com/events.html.

About Northcore Technologies Inc.

---------------------------------

Northcore Technologies provides a Working Capital Engine(TM) that helps

organizations source, manage, appraise and sell their capital equipment.

Northcore offers its software solutions and support services to a growing

number of customers in a variety of sectors including financial services,

manufacturing, oil and gas and government.

Northcore owns 50 percent of GE Asset Manager, LLC, a joint business

venture with GE. Together, the companies work with leading organizations

around the world to help them liberate more capital value from their assets.

Northcore also owns a 40 percent interest in Southcore Technologies Ltd.,

a strategic partnership with the Pan Pacific Group International Ltd. ("Pan

Pacific"). Through this collaboration, Pan Pacific markets Northcore's proven

suite of online products to its broad international business network and

connects certain assets of Pan Pacific, on an exclusive basis, with enabling

technologies from Northcore.

Additional information about Northcore can be obtained at

www.northcore.com.

This news release may include comments that do not refer strictly to

historical results or actions and may be deemed to be forward-looking within

the meaning of the Safe Harbor provisions of the U.S. federal securities laws.

These include, among others, statements about expectations of future revenues,

cash flows, and cash requirements. Forward-looking statements are subject to

risks and uncertainties that may cause Northcore's ("the Company") results to

differ materially from expectations. These risks include the Company's ability

to raise additional funding, develop its business-to-business sales and

operations, develop appropriate strategic alliances and successful development

and implementation of technology, acceptance of the Company's products and

services, competitive factors, new products and technological changes, and

other such risks as the Company may identify and discuss from time to time,

including those risks disclosed in the Company's Form 20-F filed with the

Securities and Exchange Commission. Accordingly, there is no certainty that

the Company's plans will be achieved.

Northcore Technologies Inc.

Consolidated Balance Sheets

(expressed in thousands of Canadian dollars)

(Canadian GAAP, Unaudited)

-------------------------------------------------------------------------

----------------------------------------

September 30 Septmber 30 December 31

2009 2009 2008

----------------------------------------

(Unaudited) (Unaudited) (Audited)

(in US$)

translated

into US$ at

Cdn$ 1.0719

for

convenience

Cash $ 661 $ 617 $ 460

Other current assets 293 273 333

Other assets 565 527 19

----------------------------------------

Total assets $ 1,519 $ 1,417 $ 812

----------------------------------------

Accounts payable and accrued

liabilities $ 543 $ 507 $ 948

Deferred revenue 100 93 30

Current portion of long term debts 661 617 1,507

Non-current portion of long

term debts 443 413 730

Total shareholders' deficiency (228) (213) (2,403)

----------------------------------------

Total liabilities and

shareholders' deficiency $ 1,519 $ 1,417 $ 812

----------------------------------------

Northcore Technologies Inc.

Consolidated Statements of Operations and Comprehensive Income

(expressed in thousands of dollars, except per share amounts)

(Canadian GAAP, Unaudited)

----------------------------- -----------------------------

Three Months Ended Nine Months Ended

----------------------------- -----------------------------

September 30 September 30

----------------------------- -----------------------------

2009 2009 2008 2009 2009 2008

($C) ($US) ($C) ($C) ($US) ($C)

----------------------------- -----------------------------

translated translated

into US$ at into US$ at

Cdn$ 1.0719 Cdn$ 1.0719

for for

convenience convenience

Revenues $ 213 $ 199 $ 200 $ 580 $ 541 $ 564

----------------------------- -----------------------------

Operating

expenses:

General and

admini-

strative 328 306 339 927 865 1,180

Customer

service and

technology 191 178 165 545 508 518

Sales and

marketing 55 51 18 125 117 101

Employee

stock

options 5 5 9 92 86 28

Depreciation 7 7 8 23 21 26

----------------------------- -----------------------------

Total

operating

expenses 586 547 539 1,712 1,567 1,853

----------------------------- -----------------------------

Loss from

operations (373) (348) (339) (1,132) (1,056) (1,289)

----------------------------- -----------------------------

Interest

expense:

Cash

interest

expense 64 60 93 222 207 241

Accretion

of secured

subordi-

nated notes 173 161 104 448 418 273

----------------------------- -----------------------------

Total interest

expense 237 221 197 670 625 514

----------------------------- -----------------------------

Loss and

comprehensive

loss for the

period $ (610) $ (569) $ (536) $(1,802) $(1,681) $(1,803)

----------------------------- -----------------------------

Loss per

share, basic

and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.01) $ (0.01) $ (0.02)

----------------------------- -----------------------------

Weighted

average

number of

outstanding,

basic and

diluted

(000's) 145,883 145,883 108,881 135,106 135,106 108,678

----------------------------- -----------------------------

%SEDAR: 00019461E %CIK: 0001079171

/For further information: Northcore Technologies Inc., Investor

Relations, Tel: (416) 640-0400 ext. 273, Fax: (416) 640-0412, E-mail:

InvestorRelations(at)northcore.com/

(NTI. NTLNF)

CO: Northcore Technologies Inc.

CNW 17:15e 11-NOV-09