NET SHEPHERD INC.
Consolidated Statements of Loss and Deficit
Three Months Ended March 31,
(Unaudited)
---------------------------------------------------------------
2000 1999
$ $
------------------------
REVENUE 1,408,854 1,429,423
COST OF SALES 625,766 840,536
------------------------
GROSS MARGIN 783,088 588,887
------------------------
EXPENSES
Depreciation and amortization 352,338 100,384
Research and development costs 300,659 -
Selling, general and administrative 5,079,222 624,153
------------------------
5,732,219 724,537
------------------------
LOSS BEFORE THE UNDERNOTED (4,949,131) (135,650)
Loss on dilution of interest in
consolidated subsidiary (124,246) -
Non-controlling interest in loss of
consolidated subsidiary 145,432 -
------------------------
NET LOSS (4,927,945) (135,650)
DEFICIT, BEGINNING OF PERIOD (10,008,614) (5,041,313)
------------------------
DEFICIT, END OF PERIOD (14,936,559) (5,176,963)
========================
NET LOSS PER SHARE (0.08) (0.01)
========================
Consolidated Balance Sheets
March 31,
(Unaudited)
---------------------------------------------------------------
2000 1999
$ $
------------------------
ASSETS
CURRENT
Cash and cash equivalents 11,218,393 199,227
Short-term investments 588,083 712,468
Accounts receivable 876,107 1,234,334
Prepaid expenses 435,577 22,336
------------------------
13,118,160 2,168,366
Prepaid software development costs 7,350,500 -
Capital assets 2,463,685 347,308
Purchased intangible assets
and goodwill 87,410,567 764,225
------------------------
110,342,912 3,279,898
========================
LIABILITIES
CURRENT
Accounts payable 3,267,353 655,192
Deferred revenue 99,182 -
------------------------
3,366,535 655,192
Non-controlling interest in
consolidated subsidiary 2,382,198 -
------------------------
5,748,733 655,192
------------------------
SHAREHOLDERS' EQUITY
Share capital 119,530,738 7,801,669
Deficit (14,936,559) (5,176,963)
------------------------
104,594,179 2,624,706
------------------------
110,342,912 3,279,898
========================
Consolidated Statements of Cash Flows
Three Months Ended March 31,
(Unaudited)
---------------------------------------------------------------
2000 1999
$ $
------------------------
CASH FLOWS RELATED TO THE
FOLLOWING ACTIVITIES:
OPERATING
Net loss (4,927,945) (135,650)
Adjustments for:
Depreciation and amortization 352,338 100,384
Loss on dilution of interest in
consolidated subsidiary 124,246 -
Non-controlling interest in loss
of consolidated subsidiary (145,432) -
------------------------
(4,596,793) (35,266)
Changes in non-cash working capital 383,221 (39,123)
------------------------
(4,213,572) (74,389)
------------------------
FINANCING
Issuance of share capital, net of
issue costs 6,635,203 728,103
Issuance of preferred share minority
interest in consolidated subsidiary 2,492,526 -
------------------------
9,127,729 728,103
------------------------
INVESTING
Sale (purchase) of short-term investments 37,106 (507,986)
Net cash acquired on acquisition
of subsidiary 730,439 -
Purchase of capital assets (492,851) (111,021)
------------------------
274,694 (619,007)
------------------------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 5,188,851 34,707
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 6,029,542 164,520
------------------------
CASH AND CASH EQUIVALENTS,
END OF PERIOD 11,218,393 199,227
======================== |
