Financials: as expected, reflects significant start up costs but the
strong balance sheet should facilitate the continued rollout and expansion.
If I recall, the pattern looks very similar to BCE Emergis' early days.
Basis100 Reports 10 Month Results
TSE: BAS
CUSIP No. : 070120 10 0
TORONTO, Dec. 29 /CNW/ - Basis 100 Inc. ("Basis100" or the Company"), an
Internet-based e-commerce services provider, announced today that for the
ten-month period ending October 31, 1999, the Company recognized revenue of
$1,526,118.
Basis100's earnings are primarily generated from licensing fees related
to its Online Mortgage Explorer software, and an operations and management
services agreement entered into with Shorcan Brokers Ltd. in May 1999. Gross
profit was $569,496, while cost of goods sold amounted to $956,622; almost
entirely attributable to variable costs associated with the Shorcan agreement.
The Company incurred operating expenses of $5,210,228, resulting in a net
loss of $4,714,832. Fifty percent of the operating costs relate to salaries
and consulting fees associated with the build-out of the Company's core
technology platform as well as the integration of companies and technologies
acquired throughout the period. There were also a number of one-time expenses
during the period in the amount of $1,516,464. These costs were associated
with the write-off of a license to certain technology rights that the Company
acquired in 1998 and the costs associated with the final settlement of a legal
dispute in respect of those technology rights. As e-Net (Canada) Financial
Services Ltd., one of the predecessor companies to Basis100, was established
in October 1998, there are no comparable numbers for the same period last
year.
As of October 31, 1999, Basis100 had current assets of $9,866,915 and
total assets of $28,782,381. The Company has placed $1,000,000 of its
$8,731,610 in cash in escrow with a Canadian law firm as security for
potential contingent obligations related to the purchase of certain assets. On
or before January 15, 2000 the cash will either be returned to the Company or
used to settle the potential contingent obligations. Current liabilities as of
October 31, 1999 amounted to $4,128,093; shareholders' equity was $24,550,388.
The Company has no long-term liabilities as of October 31, 1999 excepting
capital lease obligations, which amounted to $103,900. Included in the current
liabilities is a convertible debenture for $2,217,114, which, as of December
15, 1999, has been converted to shares, thereby, eliminating this debt. During
the 10 month period ended October 31, 1999, Basis100 raised equity capital of
$15,892,000.
"We have accomplished a lot in our first year of business," said Gary
Bartholomew, Chairman and CEO of Basis100. "We have built the foundation for a
company that is now positioned to be a global leader in providing
business-to-business e-commerce services to the financial services industry."
Basis 100 Inc. currently operates in North America and is listed on the
Toronto Stock Exchange under the trading symbol BAS. A leading provider of
Internet-based business-to-business and business-to-consumer e-commerce
solutions, the company focuses on creating mortgage, consumer credit,
securitization, and fixed income electronic marketplaces. Basis100 provides
its technology as a service to financial institutions, intermediaries, and
service providers.
<<
Basis 100 Inc.
Consolidated Balance Sheet
As at October 31, 1999 (unaudited)
$
ASSETS
CURRENT
Cash 7,731,610
Restricted cash 1,000,000
Accounts receivable 894,236
Prepaid expenses 241,069
-------------------------------------------------------------------------
9,866,915
FIXED ASSETS (net of accumulated depreciation
of $59,197) 629,372
ADVANCE TO RELATED PARTY 18,880
INVESTMENT HELD AT COST 125,000
SOFTWARE, LICENSE & RIGHTS (net of accumulated depreciation
of $344,282) 18,142,214
-------------------------------------------------------------------------
28,782,381
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES
CURRENT
Accounts payable and accrued liabilities 1,821,444
Convertible debentures 2,217,114
Current portion of capital lease obligations 72,476
Lease inducement 17,059
-------------------------------------------------------------------------
4,128,093
-------------------------------------------------------------------------
CAPITAL LEASE OBLIGATIONS 103,900
-------------------------------------------------------------------------
4,231,993
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Share capital 29,900,250
Warrants 2
Deficit (5,349,864)
-------------------------------------------------------------------------
24,550,388
-------------------------------------------------------------------------
28,782,381
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basis 100 Inc.
Consolidated Statement of Operations and Deficit
For the ten months ending October 31, 1999 (unaudited)
$
REVENUE 1,526,118
COST OF GOODS SOLD 956,622
-------------------------------------------------------------------------
GROSS MARGIN 569,496
-------------------------------------------------------------------------
-------------------------------------------------------------------------
EXPENSES
Bank charges, interest, and foreign exchange (gains) loss 30,045
Consulting, legal and professional fees 1,186,517
Entertainment 56,618
Equipment rental 80,159
General and administrative 125,669
Marketing, promotion, and public relations 93,486
Rent and occupancy costs 154,276
Salaries and benefits 1,400,641
Telephone, network and internet 55,119
Travel and accommodation 99,870
-------------------------------------------------------------------------
3,282,400
-------------------------------------------------------------------------
Loss before depreciation, amortization and other
operating expenses 2,712,904
Depreciation and amortization 402,279
Write-off of intangible 516,462
Settlement of legal dispute with issuance of shares 1,000,002
Write off receivables and fixed assets 9,085
-------------------------------------------------------------------------
LOSS BEFORE INCOME TAX 4,640,732
-------------------------------------------------------------------------
Income tax 74,100
-------------------------------------------------------------------------
NET LOSS 4,714,832
-------------------------------------------------------------------------
-------------------------------------------------------------------------
DEFICIT AT BEGINNING OF PERIOD 320,377
Costs of amalgamation 314,655
-------------------------------------------------------------------------
DEFICIT AT END OF PERIOD 5,349,864
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Loss per Common Share
Basic and Fully Diluted (0.60)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basis 100 Inc.
Consolidated Statement of Cashflow
For the ten months ending October 31, 1999 (unaudited)
$
SOURCE (USE) OF CASH IN OPERATING ACTIVITIES
Loss for the period (4,714,832)
Add back depreciation and amortization 402,296
Settlement of legal issue with shares/warrants 1,000,002
Services paid with shares 46,733
Write-off of Sanga intangible 516,462
-------------------------------------------------------------------------
(2,749,339.00)
Items not impacting cash
Accounts receivable (832,615)
Accounts payable and accrued liabilities 1,235,651
Prepaid expenses (94,631)
Lease inducements 17,059
-------------------------------------------------------------------------
(2,423,875.00)
-------------------------------------------------------------------------
SOURCE (USE) OF CASH IN INVESTING ACTIVITIES
Purchase of fixed assets (432,597)
Investments - I-formation for Financial Services (1,250,000)
Investments - I-formation for Insurance (811,440)
Investments - OME License 100,000
Purchase of investments held at cost (125,000)
Purchase of Morty technology (250,000)
Net cash outflow on acquisition - I-formation for
Financial Services (25,918)
Net cash outflow on acquisition - I-formation for
Insurance (40,601)
Net cash outflow on acquisition - OME US Rights (116,725)
Net cash outflow on acquisition - OME License (130,207)
-------------------------------------------------------------------------
(3,082,488.00)
-------------------------------------------------------------------------
SOURCE (USE) OF CASH IN FINANCING ACTIVITIES
Net cash outflow on costs of amalgamation (314,655)
Issuance of Special warrants 14,723,039
Issuance of common shares 7,325
Decrease in amount due to Sanga (139,016)
Increase (decrease) in amounts due to related parties (34,380)
Reduction of lease obligation (21,914)
Restricted cash (1,000,000)
-------------------------------------------------------------------------
13,220,399
-------------------------------------------------------------------------
INCREASE IN CASH 7,714,036
CASH, BEGINNING OF PERIOD 17,574
-------------------------------------------------------------------------
CASH, END OF PERIOD 7,731,610
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
-30-
For further information: Mike Kraemer, Basis100 Inc., (416) 364-6085
Ext: 106, email: mkraemer@basis100.com |
