Goldhills Holding Ltd. press release
OneMove(TM) Reports Third Quarter Fiscal 2008 Results
TSXV - TSX Venture Exchange · Copper · Molybdenum · Silver · Gold · Zinc · Canada
Company appoints interim Chief Financial Officer
VANCOUVER, May 29 /CNW/ - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX-V: OM), a provider of a leading web-based real estate transaction platform, today announces its financial results for the three- and nine-month periods ended March, 31 2008. All dollar figures are reported in Canadian dollars unless otherwise stated.
On March 7, 2008, OneMove completed the sale of its U.K.-based subsidiary, OneMove Limited. As a result of this transaction, OneMove's financial results for the three-and nine month periods for fiscal 2008 and fiscal 2007 exclude contributions from OneMove Limited, and are reported as continuing operations.
Third Quarter Fiscal 2008 Summary Revenue of $0.3 million, a 41% increase over revenue of $0.2 million in Q3 2007 Cumulative transactions processed in B.C. increased to approximately 11,200, compared to approximately 7,900 in Q3 2007 Average daily revenue from B.C. grew to approximately $4,600 from approximately $3,200 in Q3 2007 EBITDA(x) (as defined at the end of the release) of $(0.3) million, in line with $(0.3) million in Q3 2007 Net loss from continuing operations of $0.3 million, or $(0.01) per share, compared to $0.4 million, or $(0.02) per share, in Q3 in 2007 Increased number of econveyance users to 620 lawyers and notaries from 393 lawyers and notaries in Q3 2007 Completed the sale of OneMove Limited, the Company's U.K.-based operations Named one of the Branham300 Top 25 Up and Coming Information Technology Companies
"During the quarter, we continued to realize increased adoption of econveyance," said Martin Johnson, President and CEO, OneMove. "In addition, with the sale of OneMove Limited and the organizational changes we made subsequent to quarter end, we have reduced our cost base and are able to allocate greater resources toward the market opportunity in B.C. The push toward paperless conveyance transactions continues across the province. More specifically, earlier this year, the Land Title and Survey Authority of British Columbia presented their business plan, which states that electronic filing of completed conveyance documents will be mandatory by 2011."
Mr. Johnson continued: "Looking ahead, we believe we have established an operating platform and strong market position with the right technology, strategy and personnel to drive growth over the long-term. We will continue to increase revenue per transaction by integrating with other real estate industry service providers, as demonstrated by the recent mortgage processing integration agreement we signed with First Canadian Title and the title insurance integration agreement we signed with Chicago Title. In addition, we plan to grow transaction volume by increasing the number of lawyers and notaries on our econveyance platform and concentrating our marketing and sales efforts on law firms and realtors that process higher volumes of conveyance transactions."
Third Quarter Review
Revenue for Q3 2008 grew 41% to $0.3 million, compared to $0.2 million for the same period in 2007. During Q3 2008, OneMove processed approximately 11,200 econveyance transactions, compared to 7,900 transactions in Q3 of last year. As a result, average daily revenue increased to approximately $4,600, from approximately $3,200 in Q3 2007. For the nine months ended March 31, 2008, revenue was $1.1 million, up from $0.6 million for the nine months ended March 31, 2007.
For Q3 2008, total expenses were $0.7 million, or 223% of revenue, compared to $0.7 million, or 280% of revenue, for Q3 2007. OneMove realized year-over-year decreases in advertising expense, amortization of deferred development costs, travel expense and interest on loans. These reductions were offset primarily by increased salaries and wages, as the Company exhausted its government funding contributions, which OneMove had previously used to offset salaries and wages of its technology development team. Total expenses for the nine months ended March 31, 2008 were $2.4 million, compared to $2.3 million for the comparable period in 2007. As previously announced, subsequent to quarter end, OneMove made organizational changes which the Company expects will generate annualized cost savings of $0.3 million.
EBITDA was $(0.3) million for Q3 2008, in line with $(0.3) million for the same period last year. EBITDA for the nine months ended March 31, 2008 was $(1.0) million, compared to $(0.9) million for the nine months ended March 31, 2007.
For Q3 2008, loss from continuing operations was $0.3 million, or $(0.01) per share, compared to $0.4 million, or $(0.02) per share, in Q3 2007. Loss from continuing operations for the nine months ended March 31, 2008 was $1.3 million, or $(0.03) per share, compared to $1.7 million, or $(0.11) per share, for the comparable period in 2007.
Net loss including discontinued operations was $1.2 million, or $(0.03) per share for Q3 2008, compared to $1.3 million, or $(0.07) per share, in Q3 2007. Net loss for the nine months ended March 31, 2008 was $3.6 million, or $(0.07) per share, compared to $4.4 million, or $(0.30) per share for the nine months ended March 31, 2007.
Cash flows from continuing operations were $(0.4) million for Q3 2008, compared to $1.0 million in Q3 2007, and cash flows from discontinued operations were $(0.5) million for Q3 2008, compared to $(1.0) million in Q3 2007. As part of the sale of OneMove Limited, completed during the quarter, OneMove made a one-time cash payment of approximately $0.4 million to OneMove Limited, 50% of which OneMove Limited will repay. As at March 31, 2008, the Company had cash and cash equivalents of $0.5 million, compared to $3.7 million as at June 30, 2007, and the Company had working capital of $0.5 million, compared to $3.6 million at June 30, 2007. The Company is currently evaluating its financing options to strengthen its cash position.
As at March 31, 2008, total shares issued and outstanding were 47,884,942.
Subsequent Event
OneMove also announces today that Gordon Gee has been appointed interim Chief Financial Officer (CFO) of the Company, effective immediately. Mr. Gee, a seasoned accountant, has operated his own firm, Gordon K. W. Gee Ltd, Chartered Accountant, for over 15 years. He has held senior positions at Vancouver-based Loewen Stronach, Chartered Accountants and Crawford Willows Paterson, Chartered Accountants as well as with the computer audit group of Clarkson Gordon, Chartered Accountants. Mr. Gee began his career at Coopers and Lybrand. He is a member of the Institute of Chartered Accountants of British Columbia, and holds a Bachelor of Science and a Licentiate in Accounting from the University of British Columbia.
Full financial statements and MD&A for OneMove will be available at www.onemovetech.com and www.sedar.com
(x)EBITDA is used internally by the Company to compare cash operating
resulted from one period to another. EBITDA for the purposes of this
analysis also excludes stock based compensation, shares issued for
services and "Other income/losses" per the financial statements. EBITDA
does not have any standardized meaning prescribed by GAAP and therefore
may not be comparable to similar measures presented by other companies.
About OneMove Technologies Inc.
OneMove Technologies Inc. (TSX-V: OM) offers a leading real estate transaction platform. Through econveyance(TM), its proprietary web-based conveyancing software solution, OneMove(TM) simplifies and expedites the process of buying and selling real estate in British Columbia, Canada. Econveyance links all participants in the property transfer process, offering a secure and efficient means of seamlessly completing the transaction online. Additional information about OneMove can be found at www.onemovetech.com or www.sedar.com.
Forward Looking Statements
This press release contains certain "forward looking statements." These statements relate to future events or future performance and reflect expectations and belief regarding growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect current internal projections, expectations or beliefs and are based on information currently available. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. Although it is believed that the forward looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this press release, and OneMove Technologies Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
ONEMOVE TECHNOLOGIES INC.
March 31, June 30, 2008 2007 CONSOLIDATED BALANCE SHEET (Unaudited) (Audited)
ASSETS
Current Cash and cash equivalents $ 475,976 $ 3,704,971 Receivables 99,212 38,153 Government assistance receivable 51,526 98,474 Prepaid expenses and deposits 12,934 46,929 Current portion of loan receivable 89,080 -
728,728 3,888,527 Equipment 343,601 247,400 Intangible asset 2,700 10,800 Long term deposits 127,835 131,979 Loan receivable 2,560,549 - Assets held for sale - 1,194,526
$ 3,763,413 $ 5,473,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Accounts payable and accrued liabilities $ 108,634 $ 208,729 Deferred income 30,000 - Current portion of capital lease obligations 79,093 33,528
217,727 242,257 Capital lease obligations 130,355 72,882 Liabilities related to assets held for sale - 1,439,173
348,082 1,754,312
Shareholders' equity Capital stock 18,243,377 18,550,451 Contributed surplus 2,136,946 1,607,344 Deficit (16,964,992) (16,438,875) 3,415,331 3,718,920
$ 3,763,413 $ 5,473,232
ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF Three months ended Nine months ended OPERATIONS AND March 31, March 31, DEFICIT --------------------------- --------------------------- 2008 2007 2008 2007
REVENUES $ 335,410 $ 237,869 $ 1,145,048 $ 609,116
EXPENSES Advertising 1,288 4,613 10,070 10,677 Amortization of deferred development costs - 62,946 - 188,837 Amortization of equipment 33,105 17,020 86,050 41,844 Amortization of intangible asset 2,700 2,700 8,100 8,100 Commissions and fees 82,045 56,982 277,932 156,142 Consulting fees 3,132 9,000 25,723 33,140 Insurance 12,718 4,663 38,340 31,622 Interest and bank charges 2,374 2,855 5,390 19,169 Interest on convertible loans - - - 67,103 Interest on loans 11,371 17,224 28,214 116,973 Investor relations and filing fees 36,108 36,824 137,402 65,465 Office and general 30,147 20,780 102,330 64,110 Professional fees 37,735 35,837 107,918 70,268 Rent and utilities 30,996 20,968 85,156 65,989 Stock-based compensation 40,274 57,120 82,869 316,623 Salaries and wages 384,764 176,906 1,126,520 692,995 Telephone 11,916 20,197 36,415 53,748 Travel 26,543 120,583 187,129 273,419 Web site planning and design - - 10,000 - 747,216 667,218 2,355,558 2,276,224
Loss before other items (411,806) (429,349) (1,210,510) (1,667,108)
OTHER ITEMS Other income 6,352 2,241 58,037 16,068 Dividends on preferred shares - - - (12,000) Foreign exchange gain (loss) 120,300 8,923 (191,333) 8,923 126,652 11,164 (133,296) 12,991 Loss from continuing operations (285,154) (418,185) (1,343,806) (1,654,117) Loss from dis- continued operations (944,756) (862,214) (2,257,456) (2,750,326)
Net loss for the period (1,229,910) (1,280,399) (3,601,262) (4,404,443) Deficit, beginning of period (18,810,227) (11,354,428) (16,438,875) (8,230,384) Related party adjustment 3,075,145 - 3,075,145 -
Deficit, end of period $(16,964,992) $(12,634,827) $(16,964,992) $(12,634,827)
Net loss per common share Basic and diluted: Loss from continuing operations $ (0.01) $ (0.02) $ (0.03) $ (0.11) Net loss $ (0.03) $ (0.07) $ (0.07) $ (0.30)
Weighted average number of common shares Basic 48,382,210 19,531,250 49,424,722 14,885,510 Fully diluted 48,382,210 19,531,250 49,424,722 14,885,510
ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED Three months ended Nine months ended STATEMENTS OF March 31, March 31, CASH FLOW --------------------------- --------------------------- (Unaudited) 2008 2007 2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES Loss from continuing operations for the period $ (285,154) $ (418,185) $ (1,343,806) $ (1,654,117) Items not affecting cash: Amortization of deferred development costs - 62,946 - 188,837 Amortization of equipment 33,105 17,020 86,050 41,844 Amortization of intangible asset 2,700 2,700 8,100 8,100 Stock-based compensation 40,274 57,120 82,869 316,623 Unrealized foreign exchange (123,287) - 179,035 - Accrued interest on convertible loans - - - 67,103 Dividends on preferred shares - - - 12,000 Interest on loans - - - 61,077
Changes in non-cash working capital (Increase) decrease in receivables (54,130) 2,202 (61,059) 3,027 (Increase) decrease in government assistance receivable (44,799) 9,274 46,948 400,141 (Increase) de- crease in pre- paid expenses and deposits 13,465 21,548 33,995 (24,208) Increase (de- crease) in accounts payable (33,235) 174,593 (85,093) 122,996 Increase in deferred revenue 30,000 - 30,000 - Net cash provided (used) by operating activities (421,061) (70,782) (1,022,961) (456,577) CASH FLOWS FROM FINANCING ACTIVITIES Share issuance refunds (costs) (551) 8,342 (5,140) (549,391) Capital lease payments (15,449) - (36,209) - Convertible loan proceeds - - - 424,650 Loan proceeds - 1,050,000 - 2,000,211 Loan repayments - - - (811,237) Issuance of shares for cash - 20,000 - 2,142,790 Deferred financing fees - - - 44,222 Net cash provided (used) by financing activities (16,000) 1,078,342 (41,349) 3,251,245 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment (5,036) (34,984) (43,001) (63,350) Cash received on acquisition of OneMove Tech - - - 211,829 Net cash prvided (used) by investing activities (5,036) (34,984) (43,001) 148,479 Effect of foreign exchange on cash and cash equivalents - - 61 - Cashflows from continuing operations (442,097) 972,576 (1,107,250) 2,943,147 Cashflows from discontinued operations (542,709) (954,353) (2,106,744) (2,783,516) Change in cash and cash equivalents for the period (984,806) 18,223 (3,213,995) 159,631 Cash and cash equivalents, beginning of period 1,460,782 161,999 3,704,971 20,591 Cash and cash equivalents, end of period $ 475,976 $ 180,222 $ 490,976 $ 180,222 Cash paid during the period for interest $ 11,371 $ - $ 28,214 $ - Cash paid during the period for income taxes $ - $ - $ - $ -
%SEDAR: 00023118E