SILLI again you post false hype.YOUR math is WRONG $12.8 mill. losses till end of sept. they raised money to cover them . I suggest you read wording and timing very carefully. As well if they did $8 mill. this last quarter then with their historic loss rate that's another $7.5 mill. in losses. POOF, most if not all the money raised to-date and maybe more is gone. Maybe why the continuing dilution.
The company's balance sheet reflects the closing of three equity financings in the third quarter with investors from Canada, the United States and Europe. These financings, from new distribution partner, Rogers Media, from Bid.Com's supply chain, and from financial institutions, provided more than $13-million in gross proceeds to Bid.Com. The net effect is an increase in current assets from $2.6-million to $9.8-million, and an improvement in the company's working capital position by $7.7-million from the previous quarter.
As announced in Stockwatch Oct. 29, 1998, the company has secured the URL www.dutchauction.com, in the belief that the declining price auction format should capture a meaningful share of the forecast $50-billion plus on-line auction industry by 2002. The Dutch Auction is proving to be more effective in a number of product categories than Top Bid auctions. Specifically, Bid.Com believes that the Dutch Auction will prove to be a superior format for liquidation opportunities and business to business commodity transactions.
Earlier this month, the company also launched Bid Buddy and Bid Search. These leading edge technology tools automate key functions of the on-line bidding process.
In its first day of operation, more than 50 per cent of the company's bid activity was generated by Bid Buddy, confirming Bid.Com's belief that it is an effective tool that eliminates the need for customers to be physically present at auctions. The ability to place absentee bids through an intelligent agent, requiring only a single mouse click to implement, greatly increases the accessibility of the company's on-line auctions to the market. Bid Buddy is technologically superior to existing agents offered within the on-line auction sector, and Bid.Com believes it to be the most user-friendly agent currently available on the Internet.
As previously announced, on the distribution front, Bid.Com closed the largest e-commerce content deal in Canadian history, valued at over $6-million during the initial term, with Rogers Media. As part of the agreement, site traffic will be stimulated by a media campaign across a number of Rogers' properties, which include print, radio, television and the Internet, as well as a committed advertising spend on non-Rogers properties. With the launch expected in the fourth quarter, the company expects that Bid.Com will become a household name in Canada by year end, and be on target to assume the dominant on-line auction position in Canada.
The alliance has strategic importance for the company. It was negotiated as a content licence at nominal incremental cost to Bid.Com and includes a substantial up-front payment from a licencee that is responsible for driving site traffic. As well, it provides for an continuing profit sharing partnership.
Bid.Com continues to make excellent progress in all aspects of its operations and financial performance. The company is committed to being the technological leader in on-line auctions and now offers its unique auction platform for licence. It has created an easily integrated, fully year 2000 compliant system, which is capable of running many concurrent rising price auctions, falling price auctions and static priced e-commerce transactions, imbedded with state of the art bidding and search agents. The technology has proven its scalability to many thousands of simultaneous users, its adaptability to multiple countries and currencies, its assembly line operational efficiency, and its plug and play user interface. Bid.Com will provide licencees with stand-alone turnkey installations on client servers as well as custom-branded applications from Bid.Com's servers.
WARNING: The company relies on litigation protection for "forward-looking" statements.
STATEMENT OF EARNINGS
Three months ended Sept. 30
1998 1997
Revenue $ 6,290,003 $ 666,387
Cost of goods
sold 6,086,959 924,010
----------- -----------
203,044 (257,623)
----------- -----------
Expenses
Advertising &
promotion 3,333,907 972,677
Other 1,659,003 1,015,751
----------- -----------
4,992,910 1,988,428
----------- -----------
Net (loss) ($ 4,789,866) ($ 2,246,051)
=========== ===========
(Loss) per
share (cents) (23) (19)
STATEMENT OF EARNINGS
Nine months ended Sept. 30
1998 1997
Revenue $13,712,527 $ 1,175,817
Cost of goods
sold 13,422,462 1,455,038
----------- -----------
290,065 (279,221)
----------- -----------
Expenses
Advertising &
promotion 8,901,837 1,233,856
Other 4,263,936 2,159,885
----------- -----------
13,165,773 3,393,741
----------- -----------
Net (loss) ($12,875,708) ($ 3,672,962)
=========== ===========
(Loss) per
share (cents) (62) (31)
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