Here is an excert from the audited financials. It does not indicate how may of the shares are held by executives, however, it does indicate the number of options that will be coming due in the subsequent years. In FY 1997, they issued 1.767 million options of which most of them come due in October 2002. Looks like when the new executive team came on they were given options that vested after 5 years. Hopefully this is incentive enough to make the execs really come up with a viable product that will make millions.
Section from Audited Financials
The following details the changes in issued and outstanding shares and options for the two years ended October 31, 1997 after giving retroactive effect to a one for four share consolidation as at May 12, 1997.
Common Share
Purchase Options Common Shares
Number Amount Number Amount Total
Balance, October 31, 1995 340,000 $ --- 11,816,997 $ 34,415,775 $ 34,415,775
Granted during the year 412,500 --- ___ ___ ___
Sold during the year (b) 175,000 97,500 ___ ___ 97,500
Issued during the year (a) ___ ___ 2,558,679 7,500,000 7,500,000
Balance, October 31, 1996 927,500 97,500 14,375,676 41,915,775 42,013,275
Granted during the year 1,767,500 ___ ___ ___ ___
Expired during the year (b) (175,000) (97,500) ___ ___ (97,500)
Options exercised and shares
issued (1,250) ___ 1,250 2,500 2,500
Cancelled during the year (1,082,500) ___ ___ ___ ___
Balance, October 31, 1997 1,436,250 $ ___ 14,376,926 $ 41,918,275 $ 41,918,275
(a) During 1996, 2,558,679 common shares were issued in part consideration of purchased technology for an amount of $7,500,000.
(b) Options to purchase 175,000 common shares were issued for $97,500 cash. These options were exercisable at $28.52 per share and expired November 25, 1996. The amount received has been transferred to contributed surplus.
As at October 31, 1997 the common share purchase options outstanding were as follows:
Number of shares Exercise Price Expiry
92,500 $ 2.00 Fiscal year ending October 31, 1999
76,250 $ 2.00 Fiscal year ending October 31, 2000
600,000 $ 0.85 Fiscal year ending October 31, 2002
583,750 $ 1.50 Fiscal year ending October 31, 2002
50,000 $ 2.00 Fiscal year ending October 31, 2002
33,750 $ 3.60 Fiscal year ending October 31, 2002
1,436,250
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7. SOFTWARE RESEARCH AND DEVELOPMENT AND PURCHASED TECHNOLOGY
The following details software research and development and purchased technology expenditures expensed in these financial statements and related to the Company's continuing operations:
1997 1996
Purchased technology $ ___ $ 10,000,000
Development costs prior to completion of detailed program design 65,785 ___
Development costs for abandoned projects 467,969 ___
$ 533,754 $ 10,000,000 |
