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Nov 21, 2003 - Solium Releases 2003 Third Quarter Results
FOR: SOLIUM CAPITAL INC.
CDNX SYMBOL: SUM
November 21, 2003
Solium Releases 2003 Third Quarter Results
CALGARY, ALBERTA - Solium Capital Inc. ("Solium") today announced its financial results for the quarter ended September 30, 2003.
Solium specializes in technology and services for the administration of equity-based incentive and savings programs. Through its web-based applications, Solium is focused on redefining the service standard for public corporations and their employees.
During the third quarter of 2003, Solium achieved the following milestones:
- Activated three new corporate clients onto the E-SOAP system, adding over 2,300 participants.
- Closed an initial tranche of a private placement, issuing 1,037,500 common shares at $0.40 per share for gross proceeds of $415,000. The private placement, in combination with the exercise of warrants for $650,000 and stock options for $38,695 by holders thereof, resulted in total new capital added to the Company in the third quarter of $1,103,695. An additional $100,000 was raised in the second tranche of the private placement that closed in October 2003.
- Made progress in finalizing a strategic alliance with The Great-West Life Assurance Company ("Great-West Life"). A final agreement was signed subsequent to the quarter on October 23, 2003 under which Great-West Life will utilize Solium's stock option platform and new share purchase platform as part of its service delivery to clients in Canada. Under a revenue sharing model, Solium's share of revenue from this arrangement is guaranteed at a minimum of $2.2 million during the first two years of the relationship, before any associated costs. Full migration of Great-West Life's corporate clients onto Solium's platforms is expected to be complete during the first quarter of 2004.
Revenue
Gross revenue from E-SOAP services in the third quarter of 2003 was $199,942, an increase of 66% from $120,170 in the third quarter of 2002.
The Company ended the quarter with 13,677 active participants earning revenue on the E-SOAP system. This represents a growth of 22% from the 11,254 enrolled as at September 30, 2002.
Expenses
Salaries and wages expense for the third quarter was $343,312 compared to $236,880 in the third quarter of 2002. The Company had an employee base of 22 people at the end of the third quarter of 2003 compared to 13 people at the end of the third quarter of 2002. The increase in staff is mainly attributable to the internalization of the Company's systems development through the integration of personnel from Bitonic Solutions Inc. ("Bitonic"), the subsidiary purchased in February 2003. The increase to salaries and wages expense in 2003 resulting from the acquisition of Bitonic was somewhat offset by a decrease to severance expenses which were incurred in the second quarter of 2002 and did not reoccur in 2003. In the third quarter of 2003, the Company added two individuals to its development team to aggressively pursue development of the new share purchase platform in anticipation of launching this product, in conjunction with Great-West Life, in the first quarter of 2004.
General and administrative costs totaled $183,092 in the third quarter of 2003 compared to $272,489 in the comparable quarter of 2002. The decrease is mainly a result of decreases to recurring data feed and rent costs of $60,000 and $34,000, respectively, and to a decrease in professional and legal fees incurred in the quarter of $14,000; all offset by increased travel costs incurred in the quarter of $21,000 relating to increased sales activity in Eastern Canada and work on the strategic alliance with Great-West Life in Ontario.
$25,000 in debenture interest was incurred in the quarter on the $1,000,000 of demand debentures that were issued at the end of 2002.
Net Financial Results
The net loss for the quarter ended September 30, 2003 was $399,642 compared to a net loss of $392,557 in the same quarter of 2002.
Additional Information
Solium Capital Inc.
Brian Craig, President and CEO, or Lynn Leong, Chief Financial Officer
(403) 515-3910
(877) 380-7793
Email: investorrelations@solium.com
Website: www.solium.com
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
INDUSTRY: SCR
SUBJECT: NWS
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