TORONTO, March 13, 2014 /CNW/ - Redline Communications
(www.rdlcom.com) Group Inc. (TSX: RDL), the creator of powerful
wide-area wireless networks for mission-critical applications in
challenging locations, today announced operating results¹ for the
three and twelve months ended December 31,
2013.
Financial highlights for the fiscal year ended December 31, 2013 include:
- Order Bookings² were $36.8
million, down 26% over 2012
- Approximately 43% of total Order Bookings were from customers
in the Energy vertical
- Core BWI revenues were $29.3
million, down 2.3% over 2012
- Total Recognized Revenues⁴ were $31.7
million, down 35.4% over 2012
- $17.0 million Order Backlog² at
December 31, 2013, up 16.8% over
2012
- 61% gross margins, up 5 percentage points over 2012
- Operating expenses were $26.0
million, up 3.0% over 2012. Other expenses include a
$0.8 million restructuring charge in
Q4 2013
- December 2013 reduction in
overall workforce and spending expected to reduce annual costs by
approximately $10.0 million in
2014
- Adjusted EBITDA² loss of $5.6
million, a decrease of $9.4
million over the Adjusted EBITDA of $3.8 million in 2012
- EPS of ($0.55) excluding the
non-cash expense relating to the fair market adjustment on the
Debenture⁵, compared to EPS of $0.29
in 2012
- Cash of $13.5 million as of
December 31, 2013
- Completion of a Cdn. $10.6
million private placement in July
2013
- December 2013 reduction in
overall workforce and spending is expected to reduce annual costs
by approximately $10.0 million in
2014
Financial Review
Order Bookings for the twelve months ended
December 31, 2013 were $36.8 million, down 26% from the same period in
2012. Management estimates that approximately 43% of total Bookings
for the period were from customers in the Energy sector. In 2012
the Company benefited by signing a number of early adopter
customers in the oil and gas sector, successfully closing several
large multi-field deals that are being deployed over several years.
In 2013, while the Company accepted orders from a record number of
new oil and gas customers, the majority of these new customers
provided orders for single field deployments that could lead to
orders for more deployments over time.
Orders with associated longer delivery timeframes have resulted
in an Order Backlog of $17.0 million,
up $2.4 million over $14.6 million at December
31, 2012.
Revenue from Redline's core BWI product line for
the three and twelve months ended December
31, 2013 was $7.4 million and
$29.3 million respectively, down 29%
and 2.3% over the same periods in 2012. BWI revenue growth was
hindered by longer sales cycles associated with acquiring new
customers and delivering large oil and gas projects. Total
recognized revenue for the three months and twelve months ended
December 31, 2013 was $7.7 million and $31.7
million, down 30% and 35.4% over the same periods in 2012.
The year over year decrease in total revenue is almost entirely
attributed to the loss of amortized deferred revenue from the
discontinued RedMAX product line which contributed approximately
$16 million in 2012.
"Our current revenue levels don't yet reflect
the level of interest and activity we are seeing in the energy
sector", said Robert Williams,
Redline's CEO. "We continue to see strong interest in this sector
as evidenced by the signing of a record number of new oil and gas
customers, most of these late in 2013, including one of the largest
oil companies in the world. Also, as of the end of 2013, Redline
had 10 active pilot programs compared to 3 at the same stage in
2012. These pilot programs are small installations that give
operators an opportunity to evaluate Redline's solutions in a real
field setting and are a leading indicator of future new business,
although the timing of any future orders is dependent on the buying
cycles of these large companies which is largely out of Redline's
control."
Gross margin on core (BWI) product sales during the three months
ended December 31, 2013 was 66%, up 3
percentage points from the 63% for the three months ended
December 31, 2012. For the twelve
months ended 2013 gross margin on core BWI product sales was 64%,
up 3 percentage points over the same period in 2012.
Overall operating expenses for the three months ended
December 31, 2013, were $5.9 million, a decrease of 13.4% compared to
$6.9 million reported for the same
period last year. Overall operating expenses for the year ended
December 31, 2013, were $26.0 million, an increase of 3.0% compared to
$25.3 million reported for the same
period last year. A reduction in overall workforce of full-time,
part-time and contract employees by 39 people and cuts to
marketing, travel and other spending were announced on December 10, 2013 and are expected to reduce
annual costs by approximately $10
million. Other expenses include a $0.8 million restructuring charge in Q4 2013.
Adjusted EBITDA loss for the three months ended
December 31, 2013 was $1.1 million, a decrease of $1.3 million over the Adjusted EBITDA of
$0.3 million for the corresponding
period in 2012. The Adjusted EBITDA loss for the year ended
December 31, 2013 was $5.6 million, a decrease of $9.4 million over the Adjusted EBITDA of
$3.8 million for the corresponding
period in 2012. The Adjusted EBITDA decrease for the three months
ended December 31, 2013 was a result
of the decrease in revenue in the period as compared to the
corresponding period in 2012. For the year ended December 31, 2013 the year over year decrease is
a result of the decrease in revenue as a result of the completion
of the amortization period of all RedMAX Amortized Deferred Revenue
at the end of June 30, 2012 and the
increase in operating costs for the year ended December 31, 2013 over the same period in
2012.
A non-cash gain of $2.3 million in
the fourth quarter of 2013 relating to the fair market value
adjustment on the Debenture⁵ resulted in a Net Profit for the
period of $0.13 million, or
$0.01 per share as compared to a loss
of $5.6 million, or ($0.55) per share in the fourth quarter of 2012.
For the full year, Redline reported a Net Loss of $4.1 million, or ($0.29) per share, as compared to a Net Loss of
$9.5 million, ($1.00) per share in 2012. The difference is
attributed to a $3.8 million non-cash
gain in 2013 relating to the fair market value adjustment on the
Debenture and the effects of substantial deferred amortized revenue
included in 2012 and not included in 2013. Excluding the non-cash
gain relating to the fair market adjustment on the Debenture, net
loss for the 2013 year was $7.9
million or ($0.55) per share,
and for the three months ended December 31,
2012 was ($2.2) million or
($0.14) per share.
In the first quarter of 2013 the Company received approximately
Cdn. $2.9 million from the exercise
of additional warrants associated with the Debenture. On
July 30, 2013 the Company completed a
private placement for total gross proceeds of Cdn. $10.6 million. At December
31st, 2013, Redline held cash of $13.5 million, up $7.5
million from the cash net of bank indebtedness of
approximately $6.0 million at
December 31, 2012.
Conference Call and Webcast - March
14th, 2014 at 10:00 a.m.
ET
A conference call and webcast to discuss the results has been
scheduled for the following day, March 14,
2014 at 10:00 a.m. Eastern
Time.
To participate, please dial 1-647-427-7450 or 1-888-231-8191
approximately 10 minutes before the conference call, and provide
passcode 5782869. A recording of the call will be available through
May 1, 2014. To listen to the
rebroadcast please dial 1-416-849-0833 or 1-855-859-2056 and enter
passcode 5782869. A webcast of the call will also be available on
Redline's website at
http://www.rdlcom.com/en/about/investors/webcasts.
The selected financial information included in this release is
qualified in its entirety by, and should be read together with the
Consolidated Financial Statements of the Company for the year ended
December 31, 2013 and the Company's
Management Discussion and Analysis for the three and twelve month
periods ended December 31, 2013
("2013 MD&A"), copies of which are available on SEDAR at
www.sedar.com.
About Redline Communications
Redline Communications (www.rdlcom.com) is the creator of powerful
wide-area wireless networks for the most challenging locations and
mission-critical applications. Redline networks are used by oil and
gas companies to manage onshore and offshore assets, by militaries
for secure battlefield communications, by municipalities to
remotely monitor infrastructure, and by telecom service providers
to deliver premium services. Hundreds of businesses worldwide rely
on Redline to engineer, plan and deliver secure and reliable
networks for their M2M, voice, data and video communications needs
- in locations that include the deserts of the Middle East, the rainforests of South America, and the frozen Alaskan slopes.
For more information visit www.rdlcom.com.
NOTES: |
|
1 |
All amounts reported in this press release are in US dollars
unless otherwise stated. |
|
2 |
To better assess the health and growth of the Redline's
business, the Company reports on several non-IFRS metrics,
including "Orders or Bookings", "Shipped or Shipments", "Backlog",
"EBITDA", "Adjusted EDITDA","EPS excluding the non-cash expense
relating to the fair market adjustment on the Debenture", and
"Amortized Deferred Revenue". Further information including
definitions of these measures and a reconciliation to their closest
IFRS measures, if applicable, can be found in the Company's
Management Discussion and Analysis for the three and twelve months
ended December 31, 2013 ("Q4 and 2013 Year MD&A"), copies of
which are available on SEDAR at www.sedar.com. Further details on
the three and twelve month results ended December 31, 2013 can be
found in the condensed consolidated annual audited statement of
financial position, condensed consolidated annual audited statement
of comprehensive income, condensed consolidated annual audited
statement of changes in equity and condensed consolidated annual
audited statement of cash flows reproduced at the end of this press
release. The selected financial information included in this
release is qualified in its entirety by, and should be read
together with the Condensed Consolidated Audited Financial
Statements of the Company for the three and twelve months ended
December 31, 2013 and the Q4 and 2013 Year MD&A. |
|
3 |
http://en.wikipedia.org/wiki/Big_Oil |
|
4 |
Included in the definition of total Recognized Revenue is
amortized deferred revenue from prior RedMAX™ sales. As the
timeframe associated with the recognition of amortized deferred
revenue from prior RedMAX sales ended June 30, 2012, the lower
amount of amortized revenue in 2012 lowered the year-over-year
comparative performance of total Recognized Revenue.
Going forward BWI revenue will equal Total Revenue. |
|
5 |
In June 2011, the Company completed a private placement
("Debenture") of $8.5 million (Cdn. $8.3 million) of senior secured
convertible debentures |
Forward Looking Statements
Certain statements in this release may constitute
forward-looking statements or forward-looking information within
the meaning of applicable securities laws. In some cases,
forward-looking statements can be identified by terms such as
"could", "expect", "may", "will", "anticipate", "believe",
"intend", "estimate", "plan", "potential", "project" or other
expressions concerning matters that are not historical facts.
Readers are cautioned not to place undue reliance upon any such
forward-looking statements. Such forward-looking statements are not
promises or guarantees of future performance and involve both known
and unknown risks and uncertainties that may cause the actual
results, performance, achievements or developments of Redline to
differ materially from the results, performance, achievements or
developments expressed or implied by such forward-looking
statements. Forward-looking statements, by their nature, are based
on certain assumptions regarding expected growth, management's
current plans, estimates, projections, beliefs, opinions and
business prospects and opportunities (collectively, the
"Assumptions"). While the Company considers these Assumptions to be
reasonable, based on the information currently available, they may
prove to be incorrect.
Many risks, uncertainties and other factors could cause the
actual results of Redline to differ materially from the results,
performance, achievements or developments expressed or implied by
such forward-looking statements. These risks, uncertainties and
other factors include but are not limited to the following:
significant competition, competitive pricing practices, cautious
capital spending by customers, industry consolidations, rapidly
changing technologies, evolving industry standards, frequent new
product introductions, short product life cycles and other trends
and industry characteristics affecting the telecommunications
industry; any material, adverse affects on Redline's performance if
its expectations regarding market demand for particular products
prove to be wrong; any negative developments associated with
Redline's suppliers and contract manufacturing agreements including
the Company's reliance on certain suppliers for key components;
potential penalties, damages or cancelled customer contracts from
failure to meet delivery and installation deadlines and any defects
or errors in Redline's current or planned products; fluctuations in
foreign currency exchange rates; potential higher operational and
financial risks associated with Redline's efforts to expand
internationally; a failure to protect Redline's intellectual
property rights, or any adverse judgments or settlements arising
out of disputes regarding intellectual property; changes in
regulation of the wireless industry or other aspects of the
industry; any failure to successfully operate or integrate
strategic acquisitions, or failure to consummate or succeed with
strategic alliances; and Redline's potential inability to attract
or retain the personnel necessary to achieve its business
objectives or to maintain an effective risk management strategy
(collectively, the "Risks").
For additional information on these Risks, see Redline's most
recently filed Annual Information Form ("AIF") and Annual MD&A,
which are available on SEDAR at www.sedar.com and on the Company's
website at www.redlinecommunications.com. Redline assumes no
obligation to update or revise any forward-looking statements or
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by law. All forward looking statements contained in this
release are expressly qualified in their entirety by this
cautionary statement.
REDLINE COMMUNICATIONS GROUP
INC. |
|
|
|
|
Consolidated Statements of Financial
Position |
|
|
|
|
(Expressed in U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
December
31,
2013 |
|
December 31,
2012 |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash |
|
$ |
13,473,246 |
|
$ |
8,286,732 |
|
Trade receivables |
|
|
10,340,537 |
|
|
12,639,570 |
|
Other receivables |
|
|
1,155,514 |
|
|
571,382 |
|
Inventories |
|
|
6,138,547 |
|
|
6,973,414 |
|
Deferred cost of revenue |
|
|
40,059 |
|
|
905,250 |
|
Prepaid expenses and other
deposits |
|
|
928,350 |
|
|
1,061,622 |
|
|
|
32,076,253 |
|
|
30,437,970 |
Non-current assets: |
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
1,768,479 |
|
|
875,352 |
|
Intangible assets |
|
|
59,809 |
|
|
107,593 |
|
Other assets |
|
|
99,753 |
|
|
99,180 |
|
|
|
1,928,041 |
|
|
1,082,125 |
Total Assets |
|
$ |
34,004,294 |
|
$ |
31,520,095 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Bank indebtedness |
|
$ |
- |
|
$ |
2,296,855 |
|
Trade and other payables |
|
|
5,553,916 |
|
|
4,249,973 |
|
Income tax payable |
|
|
153,403 |
|
|
292,927 |
|
Deferred revenue |
|
|
1,105,333 |
|
|
2,796,497 |
|
Borrowings |
|
|
4,981,078 |
|
|
5,116,527 |
|
|
|
11,793,730 |
|
|
14,752,779 |
Non-current liabilities |
|
|
|
|
|
|
|
Other payables |
|
|
788,592 |
|
|
418,622 |
|
Other financial liability |
|
|
111,548 |
|
|
- |
|
Convertible debenture (principal and
interest) |
|
|
287,175 |
|
|
1,100,788 |
|
Fair market value adjustment on
convertible debenture |
|
|
920,739 |
|
|
8,357,396 |
|
|
|
2,108,054 |
|
|
9,876,806 |
Total Liabilities |
|
|
13,901,784 |
|
|
24,629,585 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Share capital |
|
|
168,903,267 |
|
|
152,123,803 |
Share purchase loan |
|
|
(365,780) |
|
|
(365,780) |
Warrant |
|
|
310,000 |
|
|
310,000 |
Contributed surplus |
|
|
8,911,025 |
|
|
8,361,465 |
Deficit |
|
|
(157,656,002) |
|
|
(153,538,978) |
|
|
|
20,102,510 |
|
|
6,890,510 |
Total liabilities and
equity |
|
$ |
34,004,294 |
|
$ |
31,520,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDLINE
COMMUNICATIONS GROUP INC. |
Consolidated Statements of Comprehensive Income (Loss) |
(Expressed in U.S.
dollars) |
|
|
|
Three months ended
December 31, |
|
Year ended
December 31, |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
7,687,118 |
|
$ |
11,007,568 |
|
$ |
31,702,847 |
|
$ |
49,041,485 |
Cost of revenue |
|
|
2,997,792 |
|
|
4,241,688 |
|
|
12,328,254 |
|
|
21,373,057 |
Gross profit |
|
|
4,689,326 |
|
|
6,765,880 |
|
|
19,374,593 |
|
|
27,668,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
1,206,873 |
|
|
1,662,795 |
|
|
6,049,163 |
|
|
6,240,559 |
|
Finance and administration |
|
|
2,099,520 |
|
|
2,174,465 |
|
|
8,173,840 |
|
|
7,572,283 |
|
Sales and marketing |
|
|
2,297,358 |
|
|
2,601,734 |
|
|
10,331,375 |
|
|
9,685,446 |
|
Operations and customer support |
|
|
331,171 |
|
|
414,832 |
|
|
1,485,420 |
|
|
1,790,628 |
|
|
|
5,934,922 |
|
|
6,853,826 |
|
|
26,039,798 |
|
|
25,288,916 |
Income (Loss) before
other expenses |
|
|
(1,245,596) |
|
|
(87,946) |
|
|
(6,665,205) |
|
|
2,379,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses
(gains) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expense (income) |
|
|
41,564 |
|
|
(605,562) |
|
|
274,638 |
|
|
(390,804) |
|
Restructuring costs |
|
|
841,069 |
|
|
- |
|
|
841,069 |
|
|
- |
|
(Gain) loss on fair market value of
financial instruments |
|
|
(2,301,672) |
|
|
6,446,773 |
|
|
(3,778,206) |
|
|
12,287,156 |
|
Foreign exchange loss (gain) |
|
|
(4,778) |
|
|
(206,983) |
|
|
(134,316) |
|
|
110,288 |
|
|
|
(1,423,817) |
|
|
5,634,228 |
|
|
(2,796,815) |
|
|
12,006,640 |
Income (loss) before
income taxes |
|
|
178,221 |
|
|
(5,722,174) |
|
|
(3,868,390) |
|
|
(9,627,128) |
Income tax expense
(recovery) |
|
|
51,114 |
|
|
(125,586) |
|
|
248,634 |
|
|
(125,586) |
Net income (loss) and
total comprehensive income (loss) |
|
$ |
127,107 |
|
$ |
(5,596,588) |
|
$ |
(4,117,024) |
|
$ |
(9,501,542) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
0.01 |
|
$ |
(0.57) |
|
$ |
(0.29) |
|
$ |
(1.00) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDLINE
COMMUNICATIONS GROUP INC. |
Consolidated Statements
of Changes in Equity |
(Expressed in U.S.
dollars) |
|
|
|
Share
capital |
Share purchase
loan |
|
Warrant |
|
Contributed
surplus |
|
Deficit |
|
Total |
Balance at
December 31, 2011 |
|
$ |
134,336,023 |
$ |
(365,780) |
|
$ |
310,000 |
|
$ |
7,635,506 |
|
$ |
(144,037,436) |
|
$ |
(2,121,687) |
|
Net loss |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
|
(9,501,542) |
|
|
(9,501,542) |
|
Shares issued on
conversion of debenture |
|
|
905,627 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
905,627 |
|
Shares issued on conversion of
warrants |
|
|
16,709,436 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
16,709,436 |
|
Exercise of options |
|
|
172,717 |
|
- |
|
|
- |
|
|
(92,929) |
|
|
- |
|
|
79,788 |
|
Share-based payments |
|
|
- |
|
- |
|
|
- |
|
|
818,888 |
|
|
- |
|
|
818,888 |
Balance at
December 31, 2012 |
|
$ |
152,123,803 |
$ |
(365,780) |
|
$ |
310,000 |
|
$ |
8,361,465 |
|
$ |
(153,538,978) |
|
$ |
6,890,510 |
Balance at
December 31, 2012 |
|
$ |
152,123,803 |
$ |
(365,780) |
|
$ |
310,000 |
|
$ |
8,361,465 |
|
$ |
(153,538,978) |
|
$ |
6,890,510 |
|
Net loss |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
|
(4,117,024) |
|
|
(4,117,024) |
|
Shares issued on
conversion of debenture |
|
|
2,132,243 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,132,243 |
|
Shares issued on
conversion of warrants |
|
|
5,334,306 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,334,306 |
|
Shares issued on
private placement |
|
|
8,835,392 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
8,835,392 |
|
Exercise of options |
|
|
477,523 |
|
- |
|
|
- |
|
|
(209,795) |
|
|
- |
|
|
267,728 |
|
Share-based payments |
|
|
- |
|
- |
|
|
- |
|
|
759,355 |
|
|
- |
|
|
759,355 |
Balance at
December 31, 2013 |
|
$ |
168,903,267 |
$ |
(365,780) |
|
$ |
310,000 |
|
$ |
8,911,025 |
|
$ |
(157,656,002) |
|
$ |
20,102,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDLINE
COMMUNICATIONS GROUP INC. |
Consolidated
Statements of Cash Flows |
(Expressed in U.S.
dollars) |
|
|
Three months ended December 31, |
|
Year ended December 31, |
|
2013 |
2012 |
|
2013 |
|
2012 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
127,109 |
$ |
(5,596,592) |
|
$ |
(4,117,024) |
|
$ |
(9,501,542) |
|
Adjustments to
reconcile net income (loss) to net cash from
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Finance expense |
|
41,564 |
|
(605,562) |
|
|
274,638 |
|
|
(390,804) |
|
|
Depreciation and amortization of
non-current assets |
|
110,632 |
|
101,781 |
|
|
385,471 |
|
|
413,177 |
|
|
Loss on disposal of asset |
|
- |
|
- |
|
|
28,963 |
|
|
- |
|
|
Recognition of share based
payments |
|
65,416 |
|
65,037 |
|
|
759,355 |
|
|
818,888 |
|
|
Foreign exchange loss (gain) on
cash held in foreign currency |
|
(32,314) |
|
18,569 |
|
|
138,322 |
|
|
(29,199) |
|
|
Foreign exchange loss (gain) on
borrowings |
|
(277,627) |
|
(151,758) |
|
|
(653,717) |
|
|
100,955 |
|
|
(Gain) loss on fair market value
of Debenture |
|
(2,301,672) |
|
6,446,774 |
|
|
(3,778,206) |
|
|
12,287,156 |
|
|
Income tax |
|
(25,197) |
|
(125,586) |
|
|
172,323 |
|
|
(125,586) |
|
|
(2,292,089) |
|
152,663 |
|
|
(6,789,875) |
|
|
3,573,045 |
|
Change in non-cash
operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in deferred
cost of revenue |
|
47,829 |
|
(60,517) |
|
|
865,191 |
|
|
6,912,618 |
|
|
(Decrease) increase in deferred
revenue |
|
(246,350) |
|
(270,895) |
|
|
(1,691,164) |
|
|
(13,702,410) |
|
|
Change in other non-cash operating
assets and liabilities |
|
1,683,548 |
|
(4,385,214) |
|
|
4,044,533 |
|
|
(5,340,505) |
Cash (used in)
operating activities |
|
(807,062) |
|
(4,563,963) |
|
|
(3,571,315) |
|
|
(8,557,252) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment |
|
(24,424) |
|
(54,143) |
|
|
(1,226,822) |
|
|
(156,692) |
|
Acquisition of
intangible assets |
|
- |
|
- |
|
|
(32,955) |
|
|
(54,711) |
|
Redemption of
investments |
|
- |
|
33,003 |
|
|
- |
|
|
125,147 |
Cash (used in)
investing activities |
|
(24,424) |
|
(21,140) |
|
|
(1,259,777) |
|
|
(86,256) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
8,550 |
|
(5,033) |
|
|
(68,899) |
|
|
21,234 |
|
Proceeds from exercise
of options |
|
- |
|
25,679 |
|
|
267,728 |
|
|
79,788 |
|
Proceeds from
conversion of debenture and warrants |
|
- |
|
10,481,815 |
|
|
2,931,614 |
|
|
10,513,308 |
|
(Payment) proceeds
from bank indebtedness |
|
(3,353,590) |
|
2,296,855 |
|
|
(2,296,855) |
|
|
2,296,855 |
|
Net proceeds from
private placement |
|
- |
|
103,488 |
|
|
9,322,340 |
|
|
103,488 |
|
Principal repayment of
borrowings |
|
9,798 |
|
(764,916) |
|
|
- |
|
|
(764,916) |
Cash from financing
activities |
|
(3,335,242) |
|
12,137,888 |
|
|
10,155,928 |
|
|
12,249,757 |
Foreign exchange
(loss) gain on cash held in foreign currency |
|
32,314 |
|
(18,569) |
|
|
(138,322) |
|
|
29,199 |
Increase (decrease) in
cash |
|
(4,134,414) |
|
7,534,216 |
|
|
5,186,514 |
|
|
3,635,448 |
Cash, beginning of the
period |
|
17,607,660 |
|
752,516 |
|
|
8,286,732 |
|
|
4,651,284 |
Cash, end of the
period |
$ |
13,473,246 |
$ |
8,286,732 |
|
$ |
13,473,246 |
|
$ |
8,286,732 |
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$ |
13,473,246 |
$ |
8,286,732 |
|
$ |
13,473,246 |
|
$ |
8,286,732 |
Bank indebtedness
|
|
- |
|
(2,296,855) |
|
|
- |
|
|
(2,296,855) |
Cash, net of bank
indebtedness |
$ |
13,473,246 |
$ |
5,989,877 |
|
$ |
13,473,246 |
|
$ |
5,989,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Redline Communications Group Inc.