Azure Dynamics Reports on Progress and Releases 2004 Third Quarter Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Azure azure /az·ure/ (azh´er) one of three metachromatic basic dyes (A, B, and C). az·ure n. Any of various dyes used in biological stains, especially for blood and nuclear staining. Dynamics Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AZD AZD Alpha Xi Delta sorority AZD Ambiguity Zone Detection (iterative decoder) & LSE LSE - Language Sensitive Editor :ADC (1) See A/D converter. (2) (Apple Display Connector) A peripheral connector from Apple that combines digital video display, USB and power in one cable. ) ("Azure" or the "Company") a leading developer of hybrid electric powertrains for commercial vehicles is pleased to announce its results for the three months ended September September: see month. 30, 2004 ("quarter"). "In the third quarter of 2004, Azure completed a major financing, securing access to approximately $11.5 million in funds, and the Company's shares and certain warrants were listed on the Alternative Investment Market ("AIM") of the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. in August 2004," said Mr D. Campbell Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. Deacon deacon: see orders, holy. DEACON - Direct English Access and CONtrol. English-like query system. Sammet 1969, p.668. , Deputy Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "From a financing and shareholder base perspective, our platform to grow the Company is in sound shape," he added. "Our technical reputation has been enhanced by the positive reception of new products launched this year - the electric Renault Master Renault Master is the name used by French vehicle manufacturer Renault for its upper-medium size van (around the 3.5 ton segment) — similar in size to the largest models of the more common Ford Transit. in March 2004, the London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. black taxi in June June: see month. 2004 and the all-electric eMercury launched in July July: see month. 2004," he stated. "Our immediate product focus has turned to the development work required to launch our first-to-market product, Azure's G1 powertrain to be applied in the Purolator Purolator may refer to:
adj. 1. Of actual or full size; not reduced: a full-scale model. 2. Employing all resources; not limited or partial: production of the G1 product in 2005 will be achieved". Azure is developing its G1 and G2 series hybrid electric and all-electric powertrain technology for commercial vehicles and is evaluating several alternatives whereby it can develop an efficient and a cost effective parallel solution for this market to compliment Not to be confused with Complement. Compliment may be
G1 Powertrain Base product - Purolator - Main focus of the development team; - Currently building confirmation prototypes; - Initial delivery of 30 units to Purolator is anticipated to commence late 2004; - Commercial production is expected to commence in the 2nd half of 2005. Canada Post Canada Post Corporation (French: Société canadienne des postes) is a Canadian postal service operated as a crown corporation. The successor to the Post Office Department of the Government of Canada, Canada Post was created on October 16, 1981 by the Program - Seven trucks built; - Operated thousands of kilometres in-service in-service In-service training adjective Referring to any form of on-the-job training noun In-service training of an employee and testing; - Recently upgraded to Nickel Metal Hydride (NiMH) A rechargeable battery technology that has approximately 30-50% more charge per pound than nickel cadmium. Introduced in the early 1990s, it uses nickel and metal hydride plates with potassium hydroxide as the electrolyte. batteries (product component shift by Azure to capture longer life benefits and performance enhancements from this technology). eMercury (now "Modec") - Two all-electric prototypes of the new ground-up designed delivery vehicles, powered with Azure's technology, launched in July 2004; - Third prototype with G1 series hybrid powertrain completed in September 2004; - Vehicles are being used for testing and customer demonstration purposes and have been driven for over eight thousand miles; - In October October: see month. 2004, LTI LTI Linear Time Invariant LTI Long Term Incentive (NZ) LTI Lingua Tertii Imperii (language of the NAZI empire, Latin) LTI Lost Time Injury LTI Leadership Training Institute LTI Lost Time Incident sold its interest in the eMercury program to Modec Ltd. - a UK company with access to the multi-million funding required to achieve commercial production; - Commercial production of the all-electric version is expected to commence mid- mid- pref. Middle: midbrain. 2006; - The vehicles were awarded the "Eco Van of The Year Award 2004" by What Van?, a United Kingdom publication, in October 2004. G2 Powertrain London Taxi - The series hybrid black taxi was launched in June 2004; - Two prototypes are undergoing tests and customer demonstrations, one in England and one in Canada; - Initial modeling of the hybrid electric taxi indicates favourable economics; - A third 'second-generation' taxi is in the planning and design stage with a view to determining timing of potential commercial development. Renault Master - The all-electric delivery Renault Master van, built in conjunction with Leyland Product Development and Renault Trucks Renault Trucks is a French truck manufacturer with its corporate headquarters at Saint-Priest near Lyon. Since 2001 it has been owned by Volvo Group. From its beginnings in 1978 to 2002, the company was called Renault Véhicules Industriels UK, was launched in March 2004; - The van is being used for customer demonstration purposes; - This vehicle was awarded second place in the "Eco Van of The Year Award 2004" by What Van?. Parallel Powertrain - The G1 and G2 project for the development of a parallel HEV HEV abbr. hepatitis E virus HEV hemagglutinating encephalomyelitis virus of pigs. system for demonstration to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval is in the design and planning stage; - Azure also expects to make its series hybrid technology available to USPS (1) (Uninterruptible Switching Power Supply) A power supply for a computer that contains its own battery and uninterruptible power supply (UPS) circuitry. See power supply and UPS. in the first quarter of 2005. Statement of Operations See Income statement. Discussion For the quarter ended September 30, 2004, the Company incurred a net loss of $2,552,900 ($0.03 per share) compared to a net loss of $1,255,251 ($0.03 per share) in 2003; for the nine months ended September 30, 2004 the cumulative net loss was $5,469,449 ($0.07 per share) compared to $2,674,516 ($0.06 per share) in 2003. The loss is higher in 2004, when compared to 2003, as the Company has increased its activity levels to progress its ongoing customer and development programs. Contributions from customers, sponsors and government funding, have helped offset the higher expenditure levels; contributions totalled $2.0 million for the nine months ended September 30, 2004 compared to $1.3 million for the comparable period in 2003. The Company's interim financial statements and Management's discussion and analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial are available for inspection at www.sedar.com or on the Company's website. An extract of the interim financial statements is attached to this press release. Azure Dynamics Corporation provides Hybrid Electric Vehicle A hybrid electric vehicle (HEV) is a vehicle which combines a conventional propulsion system with an on-board rechargeable energy storage system (RESS) to achieve better fuel economy than a conventional vehicle without being hampered by range from a charging unit like an technology for light and medium duty commercial vehicles in urban areas. Azure is a public company trading on both the TSX Exchange in Canada as well as the AiM market in London. The Company is currently working with various partners and customers worldwide including Purolator Courier Purolator Courier is a Canadian courier that is 97% owned by Canada Post. The company was originally organized as Trans Canada Couriers, Ltd. In 1967 it was acquired by the US manufacturer of oil and air filters: the name was originally an abbreviated form of "pure oil Ltd., Canada Post, London Taxis taxis (tăk`sĭs), movement of animals either toward or away from a stimulus, such as light (phototaxis), heat (thermotaxis), chemicals (chemotaxis), gravity (geotaxis), and touch (thigmotaxis). International, Modec, Leyland Product Development, Renault Trucks UK and the United States Postal Service. Azure has employees based in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. Note: The foregoing information may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, but are not limited to the ability to raise the capital required for product development and operations, product development delays, changing environmental regulations, the ability to attract and retain business partners, competition from other developers of hybrid electric vehicle control systems, competition from other advanced or existing power technologies and evolving markets for power for transportation vehicles. These factors should be considered carefully and readers should not place undue reliance on Azure's forward-looking statements. Investors are encouraged to review the risks detailed from time to time in the Company's filings with regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities .
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Azure Dynamics Corporation
(A Development Stage Enterprise)
Consolidated Balance Sheets
September 30 December 31 September 30
2004 2003 2003
As at (Unaudited) (Audited) (Unaudited)
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$ $ $
ASSETS
Current
Cash and cash equivalents 9,032,576 9,075,219 1,320,724
Accounts receivable 268,422 337,794 155,499
Contributions receivable 842,224 780,459 -
Inventory and related
prepayments 603,802 - -
Prepaid expenses 343,595 61,655 20,003
Deferred financing costs - - 182,029
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11,090,619 10,255,127 1,678,255
Employee loans - 91,727 107,799
Deferred costs 530,084 - -
Property and equipment 509,696 162,048 184,665
Other assets 112,698 117,279 115,154
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12,243,097 10,626,181 2,085,873
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and
accrued liabilities 1,488,372 567,692 753,653
Convertible debentures - - 2,070,772
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1,488,372 567,692 2,824,425
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Shareholders' equity
Share capital 29,633,074 23,991,665 11,850,125
Special warrants - - 90,000
Convertible debentures - - 177,500
Contributed surplus 692,074 167,798 86,489
Deficit (19,570,423) (14,100,974) (12,942,666)
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10,754,725 10,058,489 (738,552)
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12,243,097 10,626,181 2,085,873
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(a) Certain comparative numbers have been restated as described
in Note 3(e).
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Azure Dynamics Corporation
(A Development Stage Enterprise)
Unaudited Consolidated Statements of Operations and Deficit
For the three For the nine
months ended months ended
September 30 September 30
2004 2003 2004 2003
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$ $ $ $
Revenue
Other 60,869 9,540 147,959 23,390
Expenses
Research and
development, net 1,333,797 703,418 2,212,635 1,058,864
Selling and
marketing 454,844 140,862 1,189,914 434,627
General and
administrative 579,767 250,756 1,694,426 834,667
Rent and ancillary 200,784 53,606 382,612 167,442
Amortization of
property and
equipment and
other assets 44,577 43,924 137,821 130,081
Accretion expense on
convertible debentures - 32,272 - 32,272
Amortization of
deferred financing costs - 39,953 - 39,953
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2,613,769 1,264,791 5,617,408 2,697,906
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Net loss for
the period (2,552,900) (1,255,251) (5,469,449) (2,674,516)
Deficit, beginning
of period (17,017,523) (11,687,415) (14,100,974) (10,268,150)
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Deficit, end
of period (19,570,423) (12,942,666) (19,570,423) (12,942,666)
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Loss per share
- basic (0.03) (0.03) (0.07) (0.06)
Weighted average
number of shares
- basic 87,322,084 45,044,375 83,592,765 45,024,998
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(a) No fully diluted earnings per share have been disclosed, as these
would be anti dilutive.
(b) Certain comparative numbers have been restated as described
in Note 3(e).
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Azure Dynamics Corporation
(A Development Stage Enterprise)
Unaudited Consolidated Statements of Cash Flows
For the three For the nine
months ended months ended
September 30 September 30
2004 2003 2004 2003
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$ $ $ $
Cash flows from
operating activities
Net loss for
the period (2,552,900) (1,255,251) (5,469,449) (2,674,516)
Adjustments for:
Amortization of
property and
equipment and
other assets 44,577 43,924 137,821 130,081
Common shares
issued in exchange
for services - 6,250 27,500 18,750
Stock option
compensation
expense 126,153 25,122 467,718 86,489
Accretion expense
on convertible
debentures - 32,272 - 32,272
Amortizaton of
deferred financing
costs - 39,953 - 39,953
Changes in non-cash
working capital
items (340,794) (153,357) 42,545 (456,436)
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(2,722,964) (1,261,087) (4,793,865) (2,823,407)
Cash flows from
financing activities
Issuance of
common shares
(net of costs) 2,648,298 36,220 7,072,826 36,220
Alternative
Investment Market
listing costs (211,790) - (967,443) -
Capital Assurance
Agreement costs (965,000) - (965,000) -
Research and
Development
sponsorship funds
received - - - 1,000,000
Convertible
debentures funds
received
(net of costs) - 1,994,019 - 1,994,019
Repayment of
obligations under
capital lease - (2,573) - (9,796)
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1,471,508 2,027,666 5,140,383 3,020,443
Cash flows from
investing activities
Acquisition of
property and
equipment (64,404) (5,636) (451,444) (8,882)
Acquisition of
other assets (17,999) (24,159) (29,444) (48,990)
Changes in loans
to employees - 150,966 91,727 150,966
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(82,403) 121,171 (389,161) 93,094
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Increase (decrease) in
cash and cash
equivalents (1,333,859) 887,750 (42,643) 290,130
Cash and cash
equivalents,
beginning
of period 10,366,435 432,974 9,075,219 1,030,594
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Cash and cash
equivalents,
end of period 9,032,576 1,320,724 9,032,576 1,320,724
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(a) Certain comparative numbers have been restated as described in
Note 3(e).
The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release. Azure Dynamics Corporation (TSX:AZD) (LSE:ADC) |
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