FOR IMMEDIATE RELEASE Tuesday, September 4, 2001
(No. 2001-09-06)
Contact: Mr. Praveen Varshney, Director
or Mr. Adrian Lee
Phone (604) 629-0264 or Toll Free 1-866-629-0264
investors@carmanah.com
CARMANAH ANNOUNCES SECOND QUARTER RESULTS
Vancouver, BC – September 4, 2001 - Carmanah Technologies Corporation (CDNX: CMH) is
pleased to announce the second quarter results for the period ended June 30, 2001.
For the six-month period ended June 30, 2001, the Corporation generated revenues of $1,682,983, an
increase of 45% over the same period in 2000’ s revenues of $1,123,671. Revenue growth was
achieved through increasing sales of existing product lines, introduction of additional product lines to
market, as well as increased investment in sales and marketing resources and activities.
Total operational expenses for the six months ended June 30, 2001 were $1,059,422 overall, a 114%
increase over the $497,079 in same period 2000. This is the result of increased staff and administrative
expenses to support the Corporation’ s expansion into new products and new markets.
Net loss for the period ended June 30, 2001 was $215,763 compared to net earnings of $38,555 for the
same period 2000. The increase can be attributed to the additional resources and administrative
expenses required to provide and support the extensive sales and marketing activities, as well as
professional services required for the reverse takeover of Carmanah Technologies Inc. (“CTI”).
The Corporation’ s net working capital balance increased from $659,300 as at December 31, 2000 to
$2,303,969 as at June 30, 2001, an increase of $1,644,669. The increase was primarily attributable to
the cash received on the reverse takeover of CTI.
Pursuant to a share purchase agreement dated June 14, 2001, the Corporation acquired all of the
issued and outstanding securities of CTI in exchange for the issuance of 14,000,000 post consolidated
common shares of the Corporation.
CTI is a technology corporation specializing in the design, manufacture and supply of patented,
proprietary solar L.E.D. (light emitting diode) lighting solutions for the marine, roadway and railway
markets worldwide. CTI’ s products are designed for markets with strict, regulated requirements for
performance, dependability, and vandal resistance. CTI’ s products are built to require no servicing for
five years and are virtually indestructible. They are sold around the world through an extensive system
of distributors, and via e-commerce at carmanah.com. Established in 1993 and headquartered in
Victoria, British Columbia, Canada, CTI currently has over 80 distributors worldwide and approximately
28,000 lights installed to-date.
Consolidated Balance Sheets
(Unaudited - Prepared by Management)
June 30, 2001 December 31, 2000
(unaudited) (audited)
Assets
Current assets:
Cash $ 1,488,225 $ 185,634
Accounts receivable 370,523 229,179
Taxes recoverable 238,080 133,273
Prepaid expenses and deposits 2,053 –
Inventory 649,168 495,000
Current portion of advances receivable 60,000 –
2,808,049 1,043,086
Advances receivable 111,500 –
Capital assets 261,163 208,472
Deferred development costs 133,162 203,281
Patents and other intangibles 35,321 28,989
$ 3,349,195 $ 1,483,828
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities $ 388,788 $ 233,282
Bank loan 60,000 90,000
Current portion of long-term debt 27,258 36,121
Current portion of obligations under capital lease 13,034 9,383
Current portion of future income taxes 15,000 15,000
504,080 383,786
Long-term debt 38,291 27,318
Obligations under capital lease 56,060 20,040
Advances received – 200,000
Future income taxes 3,000 3,000
Shareholders' equity:
Share capital 3,061,581 947,739
Contributed surplus 26,188 26,188
Deficit (340,005) (124,243)
2,747,764 849,684
$ 3,349,195 $ 1,483,828
Consolidated Interim Statements of Loss and Retained Earnings (Deficit)
(Unaudited - Prepared by Management)
Six months ended June 30
2001 2000
Revenues $ 1,628,983 $ 1,123,671
Cost of goods sold 739,853 593,293
889,130 530,378
Expenses:
Amortization of:
Capital assets 41,507 37,642
Deferred development costs 70,119 –
Patents and other intangible assets 3,700 –
Bank charges and interest 15,583 13,690
Office and administration 180,924 56,066
Research and development 125,287 147,700
Sales and marketing 112,486 32,640
Wages and benefits 509,816 209,341
1,059,422 497,079
Operating income (loss) for the period (170,292) 33,299
Other income (expense):
Interest and other income 43,015 5,556
Reverse takeover costs (88,485) –
(45,470) 5,556
Income (loss) for the period (215,762) 38,855
Retained earnings (deficit), beginning of period
(124,243) (34,974)
Retained earnings (deficit), end of period $ (340,005) $ 3,881
Earnings (loss) per share $ (0.03) $ 0.00
Management is pleased with the financial results as it continues to grow the business and focus on
enhancing shareholder value.
On Behalf of the Board of Directors
Carmanah Technologies Corporation
“ Praveen Varshney ”
Praveen Varshney
Director |
