TORONTO, ONTARIO -- (Marketwire) -- 06/02/11 -- Northcore Technologies Inc. (TSX: NTI)(OTCBB: NTLNF), a global provider of asset management technology solutions, reported today its interim financial results for the first quarter ended March 31, 2011. All figures are reported in Canadian dollars and under International Financial Reporting Standards.
Northcore reported consolidated revenues of $183,000 for the first quarter, an increase of four percent over the $176,000 reported in the fourth quarter of 2010. In the same period of 2010, Northcore reported consolidated revenues of $150,000.
Northcore derives its revenues from application hosting activities provided to customers, the sale of software licenses and the delivery of technology services, such as application development and software customization.
Northcore reported a loss for the first quarter of $574,000 or $0.003 per share, basic and diluted. This compares to a loss of $677,000 or $0.004 per share, basic and diluted, in the fourth quarter of 2010. In the first quarter of 2010, Northcore reported a loss of $713,000 or $0.004 per share, basic and diluted.
As at March 31, 2011, Northcore held cash of $376,000, and accounts receivable of $162,000.
Operating Highlights
Northcore accomplished the following activities in the period:
-- Completed the analysis and design phase for the Dutch Auction / Group
Purchasing platform "Discount This";
-- Designed, developed and delivered a series of enhancements to the
Holistic Remarketing application used by the NACCO Material Handling
Group;
-- Launched the Home Dealer-Owners Connect website at the Bi-Annual Home
Hardware market showcase;
-- Initiated a comprehensive Search Engine Optimization project for a major
strategic partner; and
-- Closed the second tranche of an equity private placement, securing net
proceeds of $713,000 through the issuance of common shares and warrants.
Subsequent to the quarter ended March 31, 2011, the Company fully repaid the operating loan received on October 28, 2010 from a private institution. The Company also completed a series of debt to equity conversions by investors totaling $185,000. As a result of the conversions, the Company issued 1,850,000 common shares and 1,850,000 warrants with an exercise price of $0.15. Additionally, the Company generated total proceeds of $338,000 through the exercise of warrants.
Outlook
"We are focused on creating rapid growth of the Company's core business through strategic partnerships and relationships provided by the new leadership team announced yesterday," said Dr. Amit Monga, President and CEO of Northcore Technologies. "Transaction revenues, increased development revenues, maintaining our leading-edge positioning of technology, and increasing activity through our joint venture, all lead to building the value of our intellectual property and giving us a good roadmap of our path-to-profitability. We have the commitment from a number of shareholders to fund our vision through the exercise of existing warrants in the capital structure. We can now focus on delivering our multiple platforms through tablets and mobile devices and expanding our patent portfolio, including unique social offerings that are enhanced with elements of our Dutch Auction patents in the exciting group coupon discount marketplace."
Northcore will hold a conference call at 10:00 a.m. (Eastern Standard Time) on Friday June 3, 2011 to discuss its financial results and review operational activities. Investors and followers of the Company can listen to a live broadcast of the call from the investor relations section of the Company's website, www.northcore.com.
About Northcore Technologies Inc.
Northcore Technologies provides a Working Capital Engine™ that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government.
Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets.
Additional information about Northcore can be obtained at www.northcore.com.
This news release may include comments that do not refer strictly to historical results or actions and may be deemed to be forward-looking within the meaning of the Safe Harbor provisions of the U.S. federal securities laws. These include, among others, statements about expectations of future revenues, cash flows, and cash requirements. Forward-looking statements are subject to risks and uncertainties that may cause Northcore's ("the Company") results to differ materially from expectations. These risks include the Company's ability to raise additional funding, develop its business-to-business sales and operations, develop appropriate strategic alliances and successful development and implementation of technology, acceptance of the Company's products and services, competitive factors, new products and technological changes, and other such risks as the Company may identify and discuss from time to time, including those risks disclosed in the Company's Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that the Company's plans will be achieved.
Northcore Technologies Inc.
Consolidated Statements of Financial Position
(expressed in thousands of Canadian dollars)
(IFRS, Unaudited)
----------------------------------------------------------------------------
--------------------------------------------
March 31, March 31, December 31,
2011 2011 2010
($C) ($US) ($C)
--------------------------------------------
translated
into US$ at
Cdn$ 0.9717
for
convenience
Cash $ 376 $ 387 $ 51
Other current assets 194 199 187
Non-current assets 25 26 46
--------------------------------------------
Total assets $ 595 $ 612 $ 284
--------------------------------------------
--------------------------------------------
Accounts payable and accrued
liabilities $ 595 $ 612 $ 619
Deferred revenue 69 71 3
Current portion of long term
debts 956 984 1,031
Non-current portion of long
term debts 215 221 204
Shareholders' deficiency (1,240) (1,276) (1,573)
--------------------------------------------
Total liabilities and
shareholders' deficiency $ 595 $ 612 $ 284
--------------------------------------------
--------------------------------------------
Northcore Technologies Inc.
Consolidated Statements of Operations and Comprehensive Loss
(expressed in thousands of Canadian dollars, except per share amounts)
(IFRS, Unaudited)
----------------------------------------------------------------------------
--------------------------------------------
Three Months Ended
March 31,
2011 2011 2010
($C) ($US) ($C)
--------------------------------------------
translated
into US$ at
Cdn $0.9717
for
convenience
Revenues $ 183 $ 188 $ 150
--------------------------------------------
Expenses:
General and administrative 372 383 387
Customer service and technology 181 186 192
Sales and marketing 69 71 51
Stock-based compensation 83 86 193
Depreciation 6 6 6
--------------------------------------------
Total operating expenses 711 732 829
--------------------------------------------
Loss from operations before the
under-noted (528) (544) (679)
--------------------------------------------
Interest expense:
Interest on notes payable and
secured subordinated notes 45 46 29
Accretion of secured
subordinated notes 36 37 26
--------------------------------------------
Total interest expense 81 83 55
--------------------------------------------
Other income:
Income from GE Asset Manager,
LLC 35 36 21
--------------------------------------------
--------------------------------------------
Loss and comprehensive loss for
the period $ (574) $ (591) $ (713)
--------------------------------------------
--------------------------------------------
Loss per share, basic and
diluted $ (0.003) $ (0.003) $ (0.004)
--------------------------------------------
--------------------------------------------
Weighted average number of
shares outstanding basic and
diluted (000's) 177,825 177,825 161,035
--------------------------------------------
--------------------------------------------
Contacts:
Northcore Technologies Inc.
Investor Relations
(416) 640-0400 ext. 273
(416) 640-0412 (FAX)
InvestorRelations@northcore.com
www.northcore.com
