It is you who is IGNORANT, BII lost $13mill. approx. ending SEPT.98, burning up the proceeds($13mill.) from the first three placements up until the end of Sept.98 . Cash in the bank is not the same as no Liabilities Outstanding. CASH FLOW ever heard of the Concept. BII announced they were raising another $10 mill. in Nov.98 ( although they have yet to announce its completion by the way ).If BII did in fact do the $9 mill. in business they hoped for in the last quarter then with their burn rate that uses up the last of the placement money(if in fact they closed the placement). Let me make the concept of cash flow clearer to you, they had cash ending SEPT.98 because they had NOT PAID all their bills by SEPT. 98, get it !!! CASH FLOW simple concept !!! The company even refers to the cash ending Sept.98 as working capital-current asset, in other words to pay bills .GET IT !! CASH FLOW !!
Bid.Com International Inc -
Third quarter results
Bid.Com International Inc BII
Shares issued 21,023,000 1998-10-29 close $1.19
Friday Oct 30 1998
Mr. Paul Godin reports
Bid.Com International's revenue for the third quarter ended Sept. 30, 1998 increased 12.5 per cent to $6.3-million from $5.6-million in the second quarter of the year. Revenue for the nine months was $13.7-million, up from $1.2-million in the same period in 1997, an increase of more than 1,000 per cent.
Gross profit for the quarter increased more than 250 per cent by $0.2-million to 3.2 per cent of sales in the third quarter, up from $54,000, or 0.9 per cent of sales in the second quarter. Gross profit for the nine months was $0.3-million, an increase of more than 200 per cent compared with the 1997 period.
The improvement in gross profit resulted from increased site traffic to Top-Bid auctions, the successful launch of Dutch Auctions, as well as the introduction of new products and suppliers, particularly in non-computer related categories. Bid.Com fully believes the trend in margin improvement is sustainable now that the company has achieved critical mass and is able to manage balanced growth in revenues and margins.
The company is beginning to see evidence of its forecasted economies of scale - achieving its growth in revenues and gross profits with a reduction in marketing and operating costs. Bid.Com has been able to reduce its primary operating expense of advertising and promotion, both in gross dollar terms and as a per cent of sales, from 61 per cent to 53 per cent of sales. While other operating expenses held constant at 26 per cent of sales, actual expenditures decreased net of $170,000 in non-cash foreign exchange recognition. Reductions in expenses will occur going forward as the company starts driving the business to positive cash flow rather than building revenues at the expense of profits.
Net losses for the quarter declined marginally from $4.83-million to $4.79-million and were reduced as a percentage of sales from 86.4 per cent to 76.2 per cent.
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)
Bid.Com International Inc -
Issuance of special warrants
Bid.Com International Inc BII
Shares issued 21,023,000 1998-11-17 close $2.02
Wednesday Nov 18 1998
Mr. Paul Godin reports
Bid.Com has entered into a bought deal agreement with Yorkton Securities in connection with the issue and sale of 5.7 million special warrants. The special warrants will be issued from treasury and sold at $1.75 per special warrant for approximately $10.0-million. Paul Godin and Jeffrey Lymburner have granted Yorkton Securities an option, exercisable until closing, to acquire up to an additional 400,000 special warrants. The transaction is subject to regulatory approval and is scheduled to close on or about Nov. 30, 1998.
Subject to adjustment in certain events, each special warrant will entitle the holder to acquire, for no additional consideration, one unit consisting of one share and one-quarter of one warrant. Each whole warrant will be exercisable to acquire one share at $1.75 at any time prior to the date which is the earlier of (i) 10 days after the filing of a registration statement or preliminary prospectus for a U.S. public offering and (ii) Dec. 31, 1999. In the event that Bid.Com fails to obtain receipts for a final prospectus qualifying the distribution of the securities underlying the special warrants from applicable securities regulators prior to the date that is 90 days following the closing date, each special warrant will be exercisable to acquire 1.05 units (in lieu of one unit).
Bid.Com intends to use the net proceeds from the offering for advertising and marketing, business-to-business development, research and development, working capital and prospective acquisitions.
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