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FOR: SOLIUM CAPITAL INC. CDNX SYMBOL: SUM NOVEMBER 29, 2001 Solium Announces Third Quarter Results CALGARY, ALBERTA--Solium Capital Inc. ("Solium") today reviewed its operating and financial results for the third quarter. "The economic downturn coupled by the tragic events of September 11th have resulted in slower than expected sales and the delay of some of the strategic initiatives we started this summer," said John Kenny, President and CEO. "We have, however, made good progress in our sales efforts, as our e-SOAP client base now stands at 14 corporate clients. Additionally, we are experiencing strong renewed interest in our service with the potential of closing at least three significant prospects before the end of January 2002." "Solium has also made good progress in ensuring we are in a strong position to weather this economic downturn and to capitalize on the anticipated turnaround in the new year. Over the past few months we have rationalized non-productive assets, reduced monthly net operating costs by approximately 50%, and have completed a private placement via a debt for equity swap for $100,000. These measures have enhanced our working capital position and reduced the ongoing burn rate. We will continue to actively review operations with the objective to reduce the net burn rate even further." "The management team and Board members of Solium are confident that the strategic financing, operating and sales initiatives we have taken will provide the foundation for enhanced shareholder value." Review of Financial Results Revenue for the quarter ended September 30, 2001 totaled $81,000 compared to $34,000 for the corresponding period in 2000, and $125,000 for the year to date compared to $57,000 for the same period in 2000. Third quarter revenue in 2001 included $61,000 of corporate services revenue derived from fees generated from 12 corporate clients which were implemented throughout the period. These clients will continue to generate recurring revenue on an ongoing basis. Revenue in 2000 was comprised solely of interest revenue. The net loss for the quarter ended September 30, 2001 was $0.9 million, an increase of $0.2 million from the loss in the same quarter of 2000. This change is attributable to an increase in expenses, somewhat offset by the increase in revenue. Expenses totaled $0.9 million for the third quarter of 2001 and $2.9 million for the nine months ended September 30, 2001, compared to $0.7 million and $1.4 million in the comparable periods in 2000. The increase in costs represents increased salaries and wages and general and administration costs associated with approximately 14 people added during 2000. Since the third quarter, staffing has been decreased by ten people. Development costs totaled $0.2 million for the third quarter in 2001 as compared to $0.2 million for the same quarter in 2000. These costs represent programming completed to stabilize the e-SOAP platform such that, since the third quarter, development costs could be scaled back by more than 75%. Cash on hand at September 30, 2001 was just over $1.0 million inclusive of approximately $0.6 million of unencumbered capital which must be maintained for regulatory purposes in connection with the Online brokerage operations. /T/
Consolidated Statement of Loss and Deficit
(Unaudited)
-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Three Months Ended Nine Months Ended
-- - - - - - - - - - - - - - - - - - - - - - - - - - -
Sept 30, Sept 30, Sept 30, Sept 30,
2001 2000 2001 2000
$ $ $ $
-- - - - - - - - - - - - - - - - - - - - - - - - - - -
REVENUE
Corporate services 60,943 - 65,279 -
Brokerage commissions 5,332 - 13,942 -
Interest and other 14,268 33,500 46,149 57,165
-- - - - - - - - - - - - - - - - - - - - - - - - - - -
80,543 33,500 125,370 57,165
-- - - - - - - - - - - - - - - - - - - - - - - - - - -
EXPENSES
Salaries and wages 369,640 268,418 1,059,673 545,068
General and administrative 299,284 181,539 851,735 320,860
Development costs 226,124 211,208 733,400 516,891
Amortization 40,851 20,569 118,890 34,099
Brokerage clearing costs 30,032 - 93,273 -
-- - - - - - - - - - - - - - - - - - - - - - - - - - - -
965,931 681,734 2,856,971 1,416,918
-- - - - - - - - - - - - - - - - - - - - - - - - - - - -
NET LOSS 885,388 648,234 2,731,601 1,359,753
DEFICIT, BEGINNING OF
PERIOD 4,329,313 758,819 2,483,100 47,300
-- - - - - - - - - - - - - - - - - - - - - - - - - - - -
DEFICIT, END OF PERIOD 5,214,701 1,407,053 5,214,701 1,407,053
-- - - - - - - - - - - - - - - - - - - - - - - - - - - -
NET LOSS PER SHARE 0.08 0.09 0.25 0.19
-- - - - - - - - - - - - - - - - - - - - - - - - - - - -
Consolidated Balance Sheet
-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Sept 30, December 31,
2001 2000
(unaudited) (audited)
$ $
-- - - - - - - - - - - - - - - - - - - -
ASSETS
CURRENT
Cash and cash equivalents 1,016,118 1,851,391
Receivables 66,964 52,785
Employee loans receivable 104,500 44,500
Prepaid expenses 72,783 46,017
-- - - - - - - - - - - - - - - - - - - -
1,260,365 1,994,693
Capital assets 203,595 245,734
-- - - - - - - - - - - - - - - - - - - -
1,463,960 2,240,427
-- - - - - - - - - - - - - - - - - - - -
-- - - - - - - - - - - - - - - - - - - -
LIABILITIES
CURRENT
Accounts payable and accrued liabilities 420,393 511,138
Deferred revenue 56,302 -
Obligation under capital lease 16,148 -
-- - - - - - - - - - - - - - - - - - - -
492,843 511,138
-- - - - - - - - - - - - - - - - - - - -
SHAREHOLDERS' EQUITY
Special warrants - 2,822,113
Share capital 6,185,818 1,390,276
Deficit (5,214,701) (2,483,100)
-- - - - - - - - - - - - - - - - - - - -
971,117 1,729,289
-- - - - - - - - - - - - - - - - - - - -
1,463,960 2,240,427
-- - - - - - - - - - - - - - - - - - - -
-- - - - - - - - - - - - - - - - - - - -
Consolidated Statements of Cash Flows
(Unaudited)
-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Three Months Ended Nine Months Ended
-- - - - - - - - - - - - - - - - - - - - - - - - -
Sept 30, Sept 30, Sept 30, Sept 30,
2001 2000 2001 2000
$ $ $ $
-- - - - - - - - - - - - - - - - - - - - - - - - -
CASH FLOWS RELATED TO
THE FOLLOWING ACTIVITIES:
OPERATING
Net loss (885,388) (648,234) (2,731,601)(1,359,753)
Adjustment for:
Amortization 40,851 20,569 118,890 34,099
-- - - - - - - - - - - - - - - - - - - - - - - -
(844,537) (627,665) (2,612,711)(1,325,654)
Changes in non-cash
working capital 93,972 (70,367) (135,386) (97,982)
-- - - - - - - - - - - - - - - - - - - - - - - -
(750,565) (698,032) (2,748,097)(1,423,636)
-- - - - - - - - - - - - - - - - - - - - - - - -
FINANCING
Capital lease (5,135) - 16,148 -
Issuance of special warrants - 318,439 - 2,833,620
Issuance of common shares (80,260) - 1,973,427 25,000
-- - - - - - - - - - - - - - - - - - - - - - - -
(85,395) 318,439 1,989,575 2,858,620
-- - - - - - - - - - - - - - - - - - - - - - - -
INVESTING
Purchase of capital assets (16,617) (78,506) (76,751) (158,748)
-- - - - - - - - - - - - - - - - - - - - - - -
NET INCREASE IN CASH
AND CASH EQUIVALENTS (852,577) (458,099) (835,273) 1,276,236
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 1,868,695 3,022,649 1,851,391 1,288,314
-- - - - - - - - - - - - - - - - - - - - - - -
CASH AND CASH EQUIVALENTS,
END OF PERIOD 1,016,118 2,564,550 1,016,118 2,564,550
-- - - - - - - - - - - - - - - - - - - - - - -
-- - - - - - - - - - - - - - - - - - - - - - -
/T/
See accompanying notes to the financial statements on www.soliuminvestor.com -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 - |
