Capital Pro-Egaux Inc. Quarterly Results
Price: $0.10
Common Shares: 4,195,077
Insider Holdings: 1,636,309 (39% as per the last information circular filed this year)
Options: 419,508 exercisable at $0.10
Assets
Cash: $319,939
Accounts Receivable: $29,892
Advance to shareholder: $18,000
Prepaid Expenses: $2,082
Intangible Assets: $34,574
Total Assets: $404,487
Liabilities
Accounts Payable: $164,339
Deferred Revenue: $695,479
Current Portion Deferred Revenue: $57,956
Promissory Note: $720,569
Total Liabilities: $1,638,343
Note: Deferred revenue will disappear over time. Lawsuit against various parties has commenced. See MD&A highlights below.
Revenue after 9 months
Licensing & Royalties: $723,846
Net Income: $328,830 or $0.078
MD&A Highlights
As of the date of approval of this MD&A on January 25th, 2017, the above filed action, for damages we believes are the result of professional malpractice of certain former legal counsels of Sinlab, is proceeding as per the formal Scheduling Order issued by the Hon Judge Tuter on November 18th, 2016:
· Expert disclosures by plaintiff of their opening experts to be completed by January, 10th , 2017.
· Defendants shall disclose their experts by February 24th, 2017.
· Expert deposition schedule shall take place between March 31st, 2017 and June 30th, 2017.
· Discovery deadlines: Parties shall complete all fact discoveries by March 31st, 2017. All expert discoveries by June 30th, 2017.
· Trial Witnesses: The parties shall disclose all “Trial Witnesses” (excluding experts) by August 31st, 2017.
· Trial Exhibits: The parties shall disclose all exhibits to be used at trial by August, 31st , 2017 The remaining of the Scheduling Order will be posted in our Q 4 (February 2017) end of year Management report.
During all quarters of fiscal 2017, the Company main activities were related to the follow up of the malpractice lawsuit as described in the next section of this MD&A. Also the Company concentrates its effort on pursuing smaller but numerous potential counterfeiters in all countries where our various patents have been validated by the signed licenses.
The positive resolution with 3i, the agreements signed with many patent infringers may enable us to extend license to end of patent life thus, ensuring minimum revenues. Cash flow will be used for conducting litigations in relation with the Technobar patent against small other infringers and potentially generate an additional revenue stream to our shareholders.
On December 15th, 2016, the subsidiary of the Company, Sinlab entered into a Patent License Agreement with Nsequence for Advance Dentistry (“Nsequence”) and National Dental Corporation (“National Dental”). As part of the agreement, Sinlab granted Nsequence and National Dental a worldwide, irrevocable, non-exclusive, fully paid up, royalty free and transferable license to make, use, sell and offer to sell the inventions of the Guide and Superstructure Patents in the portfolio through Licensee’s products and services that were offered commercially on or after the Effective Date. The terms and conditions of the Agreement are undisclosed for confidentiality reasons.
Business Strategy
Other than managing our malpractice action for damages we believe are the result of professional malpractice of certain former legal counsels of Sinlab, the company main focus and strategy, now that licenses have been signed with Nobel, Dentsply, Cagenix and many others, is to concentrate on pursuing the smaller but numerous potential counterfeiters in all countries where our various patents have been validated by the signed licenses.
As of January 25th, 2017 the situation is as follows:
· Patent and technology surveillance has demonstrated that, we believe, various companies have and are building their businesses along the same claim references of our patents;
· Amicable letters, from our President, proposing licensing arrangements have been forwarded to various companies on August 16th, 2014 and, to date, we have received contact feed-back from 6 companies and discussions are in progress;
· Follow up letters has been forwarded on August 26th, 2014 to the others to remind them that we have a history of respecting the intellectual property of others and a history for protection Sinlab’s intellectual property rights for the benefit of the shareholders of our public parent company, Capital Pro Égaux Inc.;
· The Company has entered into licensing discussions with various players in Europe as well as America. Due to the confidential nature of the discussions, update of the discussions will be published once all negotiations are completed;
· As reported in the “ Company Revenue stream” section, three additional licenses have been executed in the last 8 months
· The Company expects to conclude a minimum of 2 additional licenses in its next 6 months
The Company is actively looking for opportunities to conclude a business association that will create added value to our shareholders. Various business plans are being evaluated with the objective of executing a business agreement that will maximize our PUBLIC COMPANY value. Should the Company enter into such an agreement, a letter of intent will be duly signed and, a Press Release will be issued accordingly.
|
