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FOR: SOLIUM CAPITAL INC. CDNX SYMBOL: SUM AUGUST 29, 2001 Solium Capital Inc. Releases Second Quarter Results and Development Update CALGARY, ALBERTA--Solium Capital Inc. ("Solium") today announced its financial results for the second quarter and the six months ended June 30, 2001. The net loss for the quarter ended June 30, 2001 totalled $979,890 or $0.09 per share, compared to a loss of $367,140 or $0.05 per share for the same quarter of 2000. Total revenue for the second quarter of 2001 was $23,768, comprised mainly of interest revenue as the Company continued to market its e-SOAP (employee stock option administration platform) product during this period. Solium executed a number of e-SOAP contracts with corporate clients during the second quarter. TransAlta Corporation and Ensource Energy Services Inc. of Calgary, and EXFO Electro-Optical Engineering Inc. of Montreal were among the companies added to Solium's client base during this period. Subsequent to the quarter, Solium also entered into a contract with Microcell Telecommunications Inc. of Montreal. Since the beginning of the year, Solium's corporate client base has grown to 10 clients and the number of e-SOAP participants has grown to approximately 6,400. Solium anticipates revenue growth in the second half of 2001 as these clients are implemented onto the application and as the Company's target market continues to adopt the e-SOAP system. Development of the e-SOAP application continued during the second quarter of 2001. The participant side of the application was fully translated into French, thus making the application bilingual and applicable to companies with French-speaking employees. In addition, the application has been enhanced to recognize foreign currency. This expands the applicability of the system to companies that trade on stock exchanges in the U.S., and prepares the application to handle international exchanges. Development of Solium's e-SPP (employee share purchase plan) application was suspended during the second quarter in order to focus Solium's resources on e-SOAP. The foundation and backbone for e-SPP has been developed and programming on this application can be resumed when additional financial resources are secured. Management continues to make progress and is continuing its ongoing discussions with potential strategic alliance partners to further enhance the branding of the Solium name. Solium Capital Inc. (www.solium.com) is an independent full service provider of solutions for the administration and execution of employee share entitlement programs. It currently provides the only end-to-end web-based application in Canada for the administration of stock option plans. /T/
Consolidated Statement of Loss and Deficit
(Unaudited)
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Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
$ $ $ $
-- - - - - - - - - - - - - - - - - - - - - - - -
REVENUE
Corporate services 2,854 - 4,336 -
Brokerage commissions 4,917 - 8,610 -
Interest and other 15,997 13,709 32,174 23,665
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23,768 13,709 45,120 23,665
-- - - - - - - - - - - - - - - - - - - - - - - -
EXPENSES
Salaries and wages 342,227 155,642 690,033 269,850
General and administrative 311,165 61,958 552,744 143,396
Development costs 279,213 152,032 507,276 305,683
Amortization 39,185 11,216 78,039 16,254
Brokerage clearing costs 31,868 - 63,241 -
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1,003,658 380,849 1,891,333 735,183
-- - - - - - - - - - - - - - - - - - - - - - - -
NET LOSS 979,890 367,140 1,846,213 711,519
DEFICIT, BEGINNING OF PERIOD 3,349,423 391,679 2,483,100 47,300
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DEFICIT, END OF PERIOD 4,329,313 758,819 4,329,313 758,819
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-- - - - - - - - - - - - - - - - - - - - - - - -
NET LOSS PER SHARE 0.09 0.05 0.17 0.10
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Consolidated Balance Sheet
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June 30, December 31
2001 2000
(unaudited) (audited)
$ $
-- - - - - - - - - - - - - - - -
ASSETS
CURRENT
Cash and cash equivalents 1,868,695 1,851,391
Receivables 50,473 52,785
Employee loans receivable 104,500 44,500
Prepaid expenses 44,494 46,017
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2,068,162 1,994,693
Capital assets 227,830 245,734
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2,295,992 2,240,427
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-- - - - - - - - - - - - - - - -
LIABILITIES
CURRENT
Accounts payable and accrued liabilities 310,862 511,138
Deferred revenue 27,084 -
Obligation under capital lease 21,283 -
-- - - - - - - - - - - - - - -
359,229 511,138
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SHAREHOLDERS' EQUITY
Special warrants - 2,822,113
Share capital 6,266,076 1,390,276
Deficit (4,329,313) (2,483,100)
-- - - - - - - - - - - - - - -
1,936,763 1,729,289
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2,295,992 2,240,427
-- - - - - - - - - - - - - - -
-- - - - - - - - - - - - - - -
Consolidated Statements of Cash Flows
(Unaudited)
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Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
$ $ $ $
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CASH FLOWS RELATED TO
THE FOLLOWING ACTIVITIES:
OPERATING
Net loss (979,890) (367,140) (1,846,213) (711,519)
Adjustment for:
Amortization 39,185 11,213 78,039 16,254
-- - - - - - - - - - - - - - - - - - - - -
(940,705) (355,924) (1,768,174) (695,265)
Changes in non-cash working
capital (55,953) 12,091 (229,357) (27,615)
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(996,658) (343,833) (1,997,531) (722,880)
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FINANCING
Capital lease (8,871) - 21,283 -
Issuance of special warrants - 2,515,181 - 2,515,181
Issuance of common shares 2,053,700 - 2,053,687 25,000
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2,044,829 2,515,181 2,074,970 2,540,181
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INVESTING
Purchase of capital assets (15,450) (73,153) (60,135) (82,966)
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NET INCREASE IN CASH
AND CASH EQUIVALENTS 1,032,721 2,098,195 17,304 1,734,335
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 835,974 924,454 1,851,391 1,288,314
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CASH AND CASH EQUIVALENTS,
END OF PERIOD 1,868,695 3,022,649 1,868,695 3,022,649
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See accompanying notes to the financial statements on www.soliuminvestor.com. /T/ -30 - FOR FURTHER INFORMATION PLEASE CONTACT:
Solium Capital Inc. The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
INDUSTRY: SCR -0 - |
