NEXUS Group Reports First Quarter 2002 Results
BURLINGTON, ON, Nov 29, 2001 (Canada NewsWire via COMTEX) -- NEXUS Group International Inc.
(TSE:NXS) reports its fiscal 2002 first quarter results for the period ending September 30, 2001. Nexus reports its results
in Canadian dollars.
Revenues for the period ended September 30, 2001, decreased marginally to $122,816 from $155,216 reported for the
same period in 2001. The net loss for the quarter increased to $2.3 million from $875,160 for the same period in fiscal
2001. An increase in research and development costs and a significant increase in SG&A costs - a result of increased
staffing, marketing and travel expenses relating to the company's continuing efforts to reposition itself as a biometric
technology firm.
"A great deal of activity took place for AcSys and NEXUS during the last quarter. For example, AcSys received
worldwide attention at the International Civil Aviation Organization's 33rd Assembly. In collaboration with DynCorp and
ESS, AcSys installed a demonstration Face Recognition System at the facilities of a U.S. Intelligence Community member
and MAXIMUS successfully integrated our Face Recognition System onto an integrated chip," said David Lobb, president
and CEO, NEXUS Group International Inc.
"The interest in the biometric market has significantly increased brought about by the catastrophic events of September 11.
We believe our technology can greatly assist in the resulting increased security efforts. Concurrently, however we continue
to pursue other markets such as the medical, financial and manufacturing industries as well as law enforcement and
corrections facilities," Lobb said.
NEXUS is a Burlington, Ontario-based, organization focused on leading- edge technologies. Its goal is to position itself as
the leader in biometric technology and other advanced fields. NEXUS trades on the Toronto Stock Exchange as NXS.
Nexus Group International Inc.
(formerly Heritage Concepts International Inc.)
Consolidated Balance Sheets
-------------------------------------------------------------------------
-------------------------------------------------------------------------
September 30 June 30
2001 2001
(unaudited) (audited)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Assets
Current assets:
Cash $ 130,447 $ 49,846
Accounts receivable less allowance
for doubtful accounts
Related parties 291,872 380,592
Other 402,187 180,094
Advances to limited partnership 517,534 517,534
Current portion of notes and other
long-term receivables, net 18,528 18,528
Inventories 17,199 18,086
Prepaid expenses 17,375 17,466
-----------------------------------------------------------------------
Total current assets 1,395,142 1,182,146
Land held for resale 2,600,000 2,600,000
Notes and other long-term receivables, net 133,649 137,133
Long-term receivable from joint venture 1,767,789 1,384,226
Capital assets 191,471 202,240
License rights, intellectual property and
other assets 6,889,807 6,899,307
Goodwill 184,783 184,783
-------------------------------------------------------------------------
-------------------------------------------------------------------------
$ 13,162,641 $ 12,589,835
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 2,098,033 $ 2,499,144
Current portion of long-term debt 1,988,149 1,988,756
-----------------------------------------------------------------------
Total current liabilities 4,086,182 4,487,900
Long-term debt 88,288 95,931
-------------------------------------------------------------------------
-------------------------------------------------------------------------
4,174,470 4,583,831
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Shareholders' equity:
Capital stock :
Preferred shares 51,359 51,359
Common shares 34,769,655 31,470,406
-----------------------------------------------------------------------
34,821,014 31,521,765
Contributed surplus 131,000 131,000
Deficit (25,963,843) (23,646,761)
-----------------------------------------------------------------------
Net shareholders' equity 8,988,171 8,006,004
-------------------------------------------------------------------------
-------------------------------------------------------------------------
$ 13,162,641 $ 12,589,835
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Nexus Group International Inc.
(formerly Heritage Concepts International Inc.)
Consolidated Statements of Loss and Deficit
-------------------------------------------------------------------------
-------------------------------------------------------------------------
September 30 September 30
2001 2000
(unaudited) (unaudited)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Revenues:
Restaurant $ 122,816 $ 155,216
Technology - -
-----------------------------------------------------------------------
122,816 155,216
Operating expenses and other cost of sales 43,052 50,296
-------------------------------------------------------------------------
Contribution 79,764 104,920
-------------------------------------------------------------------------
Expenses:
Selling, general and administration 1,507,844 763,066
Research and development 792,845 139,818
Bad debts - -
Amortization 29,769 10,773
Interest 66,388 66,423
-----------------------------------------------------------------------
2,396,846 980,080
-------------------------------------------------------------------------
Loss for the period 2,317,082 875,160
Deficit, beginning of period 23,646,761 15,314,757
-------------------------------------------------------------------------
Deficit, end of period $ 25,963,843 16,189,917
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Loss per share $ 0.008 $ 0.004
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Nexus Group International Inc.
(formerly Heritage Concepts International Inc.)
Consolidated Statement of Cash Flows
-------------------------------------------------------------------------
-------------------------------------------------------------------------
September 30 September 30
2001 2000
(unaudited) (unaudited)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating activities:
Loss for the period $ (2,317,082) $ (875,160)
Items not affecting cash
Amortization 29,769 10,773
Expenses paid through issuance of stock 646,667 477,965
Bad Debt - -
Imputed interest on convertible debenture - 11,113
Asset write downs and other expenses - -
-----------------------------------------------------------------------
(1,640,646) (375,309)
Changes in non-cash working capital items (533,507) 53,540
-----------------------------------------------------------------------
Cash used in operating activities (2,174,153) (321,769)
-------------------------------------------------------------------------
Investing activities:
Cash acquired on acquisition of joint venture - -
Advances to joint ventures (383,563) (283,606)
Acquisition of joint venture - -
(Increase) decrease in notes receivables
and other long term receivables, net 3,486 -
Repayments of advances to limited partnership - 71,386
Additions to capital assets (9,500) -
-------------------------------------------------------------------------
Cash (used in) investing activities (389,577) (212,220)
-------------------------------------------------------------------------
Financing activities:
Repayment of other long-term debt (2,967) -
(Decrease) increase in bank loan (5,284) -
Issuance of common shares (note 1) 2,652,582 469,225
-------------------------------------------------------------------------
Cash provided by financing activities 2,644,331 469,225
-------------------------------------------------------------------------
Increase (decrease) in cash for the period 80,601 (64,764)
Cash, beginning of period 49,846 160,947
-------------------------------------------------------------------------
Cash, end of period $ 130,447 $ 96,183
-------------------------------------------------------------------------
Nexus Group International Inc.
(formerly Heritage Concepts International Inc.)
Consolidated Statement of Cash Flows
These consolidated interim financial statements should be read in
conjunction with the Company's most recent annual consolidated financial
statements (June 30, 2001) as they do not conform in all respects to the
disclosure requirements of annual financial statements prepared in
accordance with Canadian generally accepted accounting principles. These
consolidated interim financial statements follow the same accounting
policies and methods of application as the most recent annual
consolidated financial statements.
(1) Capital Stock
Share transactions during the period are as follows
-------------------------------------------------------------------------
Number of shares Amount
-------------------------------------------------------------------------
Balance outstanding, June 30, 2001 288,514,246 $31,470,406
-------------------------------------------------------------------------
For services rendered
- officers and directors 4,041,667 646,667
-------------------------------------------------------------------------
For cash
- under private placements 19,377,272 2,131,500
- on exercise of shareholders options 3,550,000 562,000
-------------------------------------------------------------------------
Expenses relating to legal and other costs
of issue (40,918)
-------------------------------------------------------------------------
Balance outstanding, September 30, 2001 315,483,185 $34,769,655
-------------------------------------------------------------------------
(2) Segment Disclosure
-------------------------------------------------------------------------
Restaurant Technology Total
-------------------------------------------------------------------------
09/30/01 09/30/00 09/30/01 09/30/00 09/30/01 09/30/00
-------------------------------------------------------------------------
Revenue $122,816 $155,216 - - $122,816 $155,216
-------------------------------------------------------------------------
Income
(loss) from
operations,
before
amortization 8,766 (42,392) (1,852,694) (149,129) (1,843,928) (191,521)
-------------------------------------------------------------------------
Loss from
operations (734) (53,165) (1,872,963) (149,129) (1,873,697) (202,294)
-------------------------------------------------------------------------
Corporate
Expenses (443,385) (672,866)
-------------------------------------------------------------------------
Loss for
the period (2,317,082) (875,160)
-------------------------------------------------------------------------
Total
assets 110,360 673,366 13,052,281 6,974,544 13,162,641 7,647,910
-------------------------------------------------------------------------
Total
liabili-
ties 155,246 170,669 4,019,224 3,272,357 4,174,470 3,443,046
-------------------------------------------------------------------------
Capital
asset
additions - - 9,500 - 9,500 -
-------------------------------------------------------------------------
%SEDAR: 00002884E
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION:
newswire.ca
CONTACT: For further information: NEXUS Group International Inc.,
Phone: (905) 634-4111, Fax: (905) 634-1101, www.nxsgrp.com; Richard Bennet,
Vice President, Finance ext. 39; Darlene Marks, Director, Communications,
ext. 37
News release via Canada NewsWire, Toronto 416-863-9350
Copyright (C) 2001 CNW, All rights reserved
-0-
KEYWORD: BURLINGTON, ON
SUBJECT CODE: ERN |
