Ecopia BioSciences Inc.: Third Quarter 2004 Operating Highlights And Financial Results.MONTREAL Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. -- Ecopia BioSciences Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :EIA (Electronic Industries Alliance, Arlington, VA, www.eia.org) A membership organization founded in 1924 as the Radio Manufacturing Association. It sets standards for consumer products and electronic components. ) today reviewed recent operating highlights and announced its financial results for the third quarter ended August 31, 2004.
- Ecopia presented a poster with preclinical data, at the
16th EORTC-NCI-AACR Symposium, confirming the efficacy of
its lead cancer compound, ECO-04601, in increasing survival
in a brain cancer animal model. The poster also included
positive data on the compound's absorption and tissue
distribution.
A[cedilla] - Data demonstrating that ECO-04601 crosses the blood
brain barrier was announced in September. This data
reinforces Ecopia's strategy to develop the compound as a
novel therapy for primary brain cancer.
A[cedilla] - DECIPHER(R) technology yielded 12 new chemical entities
("NCEs") to the Company's discovery accomplishments of which
four will go into further profiling, bringing the total
number of NCEs to an impressive 19 in only 20 months.
A[cedilla] - Ecopia expanded its preclinical drug development team
to include expertise in pharmacology and toxicology,
formulation, manufacturing, quality control and regulatory
affairs. This team will lead the development of ECO-4601,
as well as other compounds that will advance in the
Company's pipeline.
A[cedilla] - Liquidity position was $11.4 million as at
August 31, 2004.
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 OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THE QUARTER ENDED AUGUST 31, 2004 OVERVIEW Duringthethird quarter, the Company'spreclinical development team continued its efforts to advance the development of it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have lead anticancer anticancer, n a medicine or substance used to treat cancer. compound, ECO- eco- pref. Ecology; ecological: ecosystem. 4601, to treat primary brain tumours Noun 1. brain tumour - a tumor in the brain brain tumor neoplasm, tumor, tumour - an abnormal new mass of tissue that serves no purpose glioblastoma, spongioblastoma - a fast-growing malignant brain tumor composed of spongioblasts; nearly always . This work is being done with severaloutsidecollaborators in preparation of an Investigational New Drug ("IND") application with the appropriate 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 . The filing, which will allow the Company to enter into clinical trials, is scheduled to be completed by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2005. Some of the results of the ongoing work done during the third quarter on ECO-4601 were presented on October October: see month. 1, 2004, at the 16th EORTC-NCI-AACR Symposium symposium In ancient Greece, an aristocratic banquet at which men met to discuss philosophical and political issues and recite poetry. It began as a warrior feast. Rooms were designed specifically for the proceedings. during a poster session A poster session is the juried presentation of research information by representatives of several research teams at a congress or conference with an academic or professional focus. These are particularly prominent at scientific conferences such as medical congresses. .This symposium brings together three of the world's leading cancer organizations as well as prominent oncologists.The data presented in the poster poster, placard designed to be posted in some public place for purposes of commercial announcement or propaganda. Advertising makes wide use of posters, as do charitable and political organizations. shows that ECO-4601 crosses the blood brain barrier, an important property required to reach malignant malignant /ma·lig·nant/ (-nant) 1. tending to become worse and end in death. 2. having the properties of anaplasia, invasiveness, and metastasis; said of tumors. tumours found in patients afflicted af·flict tr.v. af·flict·ed, af·flict·ing, af·flicts To inflict grievous physical or mental suffering on. [Middle English afflighten, from afflight, with brain cancer. This property would allow the compound to be easily administered to patients without the use of invasive invasive /in·va·sive/ (-siv) 1. having the quality of invasiveness. 2. involving puncture of the skin or insertion of an instrument or foreign material into the body; said of diagnostic techniques. delivery techniques.In addition, the data demonstrated the efficacy efficacy /ef·fi·ca·cy/ (ef´i-kah-se) 1. the ability of an intervention to produce the desired beneficial effect in expert hands and under ideal circumstances. 2. of this compound in increasing survival when used to treat mice bearing a brain tumour and also showed the compound's absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. and tissue distribution. Insummary, the ECO-4601's combined ability to inhibit inhibit /in·hib·it/ (in-hib´it) to retard, arrest, or restrain. in·hib·it v. 1. To hold back; restrain. 2. tumour tumour or neoplasm Mass of abnormal tissue that arises from normal cells, has no useful function, and tends to grow. Cell abnormalities may include increased size or number or loss of characteristics that differentiate their tissue of origin. growth, increase survival and cross the blood-brain barrier blood-brain barrier n. Abbr. BBB A physiological mechanism that alters the permeability of brain capillaries so that some substances, such as certain drugs, are prevented from entering brain tissue, while other substances are allowed to gives it the potential to become the medication medication /med·i·ca·tion/ (med?i-ka´shun) 1. medicine (1). 2. impregnation with a medicine. 3. administration of a medicine or other remedy. of choice to treat primary brain cancer. Last quarter, Ecopia announced that the production of the compound was improved by more than fivefold fivefold Adjective 1. having five times as many or as much 2. composed of five parts Adverb by five times as many or as much Adj. 1. . As the year unfolds, the Company expects to improve the production of ECO-4601 to sufficient levels as to advance an IND and to meet all regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for quality standards. Between the months of June June: see month. and September September: see month. , Ecopia recruited five new employees, including a vice-president vice president or vice-pres·i·dent n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. of preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. development, to strengthen its preclinical development team.This team is implementing a drug development plan covering several aspects, including Good Laboratory Practices (GLP See gateway location protocol. ) manufacturing, quality assurance, quality control, formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation and regulatory affairs Regulatory Affairs (RA), also called Government Affairs, is a profession within regulated industries, such as pharmaceuticals, medical devices, energy, and banking. Regulatory Affairs professionals usually have responsibility for the following general areas: The discovery team's achievements during the five-month period ended in August were underscored by the discovery of 12 NCEs.This shows the power and uniqueness of DECIPHER Same as decrypt. (R) technology in discovering innovative and valuable bioactive bi·o·ac·tive adj. Of or relating to a substance that has an effect on living tissue. bioactive having an effect on or eliciting a response from living tissue. classes of molecules with remarkable therapeutic potential. In less than two years, Ecopia has discovered 19 new compounds by screening less than 50 soil-dwelling bacteria bacteria [pl. of bacterium], microscopic unicellular prokaryotic organisms characterized by the lack of a membrane-bound nucleus and membrane-bound organelles. Once considered a part of the plant kingdom, bacteria were eventually placed in a separate kingdom, Monera. called actinomycetes Actinomycetes A heterogeneous collection of bacteria that form branching filaments. The actinomycetes encompass two different groups of filamentous bacteria: the actinomycetes per se and the nocardia/streptomycete complex. , of which ECO-4601 is presently the most advanced.
SUMMARY OF OPERATING RESULTS
Selected financial information for the comparable quarters
Quarters ended August 31 (unaudited)
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(in thousands, except per share amounts) 2004 2003 Variance
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(restated)
$ $ %
Interest revenues 76 109 (30.3)
Research and development 1,720 1,607 7.0
expenditures, before tax
credits and grants
General and administrative
expenditures 679 579 17.3
Net loss 2,049 1,689 21.3
Net loss per share 0.03 0.03 -
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Weighted average shares outstanding 58,852 50,445 16.7%
(in thousands)
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Selected financial information for the comparable nine-month periods
Nine-month periods ended August 31 (unaudited)
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(in thousands, except per share amounts) 2004 2003 Variance
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(restated)
$ $ %
Interest revenues 234 349 (33.0)
Research and development 5,062 4,663 8.6
expenditures, before tax
credits and grants
General and administrative
expenditures 2,111 1,920 9.9
Net loss 6,221 5,360 16.1
Net loss per share 0.11 0.11 -
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Weighted average shares outstanding 56,592 50,407 12.3%
(in thousands)
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Revenues Interest revenues amounted to $76,033 for the quarter ended August 31, 2004, compared with $109,254 for the same period in 2003. Interest revenues for the nine-month period ended August 31, 2004 amounted to $233,806, compared with $349,213 for the same period in 2003.These variances are attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower liquidity positions and lower interest rates. R&D Activities Research and development ("R&D") expenditures, before tax credits and grants, amounted to $1,720,400 in the third quarter of 2004, compared with $1,607,219 in third quarter of 2003, an increase of 7.0%. R&D expenditures, before tax credits and grants, amounted to $5,062,019 for the first nine months of 2004, compared with $4,662,552 for the first nine months of 2003, an increase of 8.6%. These increases in R&D expenses result from higher preclinical expenses to develop ECO-4601 and profiling activities with respect to other compounds we discovered. Moreover, chemistry expenses were higher on account of new discoveries and compound production. This change in the nature of the Company's R&D expenses is consistent with the business strategy. General and Administrative Expenditures General and administrative ("G&A") expenses amounted to $678,831 in the third quarter of 2004, compared with $578,540 in the third quarter of 2003, an increase of 17.3%. G&A expenses in the first nine months of 2004 amounted to $2,111,076, compared with $1,911,989 in the first nine months of 2003, an increase of 9.9%. These increases are largely explained by the recognition in 2004 of the accounting costs related to stock options, higher listing fees and higher costs related to our intellectual property activities. Earnings Results The Company recorded a net loss of $2,049,306 or $0.03 per share in the third quarter of 2004, compared with $1,689,436 or $0.03 in the third quarter of 2003. The net loss for the first nine months of 2004 amounted to $6,220,879, compared with $5,360,387 for the first nine months of 2003. The loss per share remained unchanged at $0.11. The increase in the loss with respect to both periods reflects higher R&D expenditures and G&A expenditures discussed above. The loss per share remains unchanged because of the higher number of shares outstanding resulting from the equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. closed in February February: see month. 2004. On December December: see month. 1, 2003, the Company adopted the accounting method based on fair value regarding stock-based compensation and other stock-based payments resulting in a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of certain financial information of 2003.See note 1(b) under the Notes to the Financial Statements Notes to the financial statements A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. .
FINANCIAL POSITION
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(in thousands of dollars) August 31, 2004 November 30, 2003
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(unaudited) (audited)
(restated)
Cash and bonds(i) $7,526 $6,216
Tax credits receivable $589 $1,024
Bonds(ii) $3,283 $2,330
Total assets $15,203 $14,052
Capital stock + contributed surplus $44,827 $36,146
Shareholders' equity $13,969 $12,227
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(i) Cash invested in investment-grade bonds due in less
than one year.
(ii) Cash invested in investment-grade bonds due in more
than one year.
Liquidity and Financial Position On August 31, 2004, the Company's cash position amounted to $10,807,863 measured in terms of cash and investments in investment-grade bonds Investment-grade bonds A bond that is assigned a rating in the top four categories by commercial credit rating companies. S&P classifies investment-grade bonds as BBB or higher, and Moody's classifies investment grade bonds as BAA or higher. Related: High-yield bond. . Tax credits receivable amounted to $588,784. Thus, the Company's liquidity position, measured in terms of cash, bonds and tax credits receivable, amounted to $11,396,647 on August 31, 2004, compared with $9,569,945 on November November: see month. 30, 2003. The increase in the Company's cash position takes into account the issuance of units on February 12, 2004 for gross proceeds of $8.5 million. The Company disbursed $91,337 in the third quarter of 2004, for additions to capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) and for costs related to patent acquisitions.A write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. patent costs totalling $59,101 was recorded in the third quarter because of a decision not to pursue patent applications relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc certain genetic pathways A Genetic pathway is the set of interactions occurring between a group of genes who depend on each other's individual functions in order to make the aggregate function of the network available to the cell. that did not assist in discovering NCEs.These applications were abandoned in order to keep our resources for patent applications relating to the discovery of new compounds. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. amounted to $13,969,176 on August 31, 2004, compared with $12,226,941 on November 30, 2003. Total assets amounted to $15,203,305 on August 31, 2004, compared with $14,051,760 on November 30, 2003. The increases in shareholders' equity and assets reflect the closing of the unit offering for gross proceeds of $8.5 million, after giving effect to the loss for the first nine months of 2004. The Company's liquidity position, both in the short term and long term, is allocated to salaries, the funding of R&D activities, patent filings and the acquisition of capital assets. Based on its current operating plan, the Company's management believes that its liquidity position will be sufficient to meet all anticipated future cash needs at least to the end of 2005. On September 30, 2004, the number of commonshares outstanding totalled 58,851,584, while 3,889,850 options were granted under the share purchase option plan and 4,154,167 share purchase warrants are outstanding pursuant to the unit offering completed in February 2004. The outstanding options are exercisable at a weighted average price of $1.53 per share and the share purchase warrants are exercisable at a price of $1.28 each. Webcast October 5, 2004 at 4:00 p.m. - Dr. Pierre Pierre (pēr), city (1990 pop. 12,906), state capital (since 1889) and seat of Hughes co., central S.Dak., on the east bank of the Missouri River, opposite Fort Pierre; inc. 1883. Falardeau, President and Chief Executive Officer and Mr. Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Littlejohn Littlejohn may refer to: People
About Ecopia Using its DECIPHER(R) technology, Ecopia continues to build a pipeline that includes several anticancer, antibacterial antibacterial /an·ti·bac·te·ri·al/ (-bak-ter´e-al) destroying or suppressing growth or reproduction of bacteria; also, an agent that does this. an·ti·bac·te·ri·al adj. and antifungal agents antifungal agents, n.pl agents that inhibit, control, or kill fungi. The most common yeastlike fungus occurring in or near the oral cavity is C. albicans. .The Company is advancing its most promising compound ECO-4601, a potential new drug to treat brain cancer, through preclinical trials Noun 1. preclinical trial - a laboratory test of a new drug or a new invasive medical device on animal subjects; conducted to gather evidence justifying a clinical trial preclinical phase, preclinical test and expects to file an IND in 2005. With its innovative DECIPHER(R) technology, Ecopia uses a radically different approach to discover new drugs from bacteria called actinomycetes.The most promising discoveries are added to the Company's rapidly growing pipeline for further development. Ecopia's shares are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors :EIA). Additional information about the Company can be obtained from Ecopia's website at www.ecopiabio.com. This press release 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. that reflect the Company's current expectations regarding future events. The forward-looking statements, including expectations as to the pharmaceutical potential of compounds discovered by the Company's platform, the timeframe for preclinical and clinical development of the compounds into new medications, and expansion of the Company's product pipeline involve risk and uncertainties.Actual events could differ materially from those projected here and depend on a number of factors, including scientific uncertainties relating to scientific hypotheses and experimental approaches in regard to the drug discovery platform, uncertainties related to the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. process for drug development and the success and timely completion of clinical studies and trials, and the impact of general economic conditions.Investors are cautioned against placing undue reliance on forward-looking statements.A more complete discussion of the risks and uncertainties facing the Company appears in Ecopia's 2003 Annual Report.
Financial Statements of
ECOPIA BIOSCIENCES INC.
Period ended August 31, 2004
ECOPIA BIOSCIENCES INC.
Balance Sheets
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August 31 November 30
2004 2003
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(Unaudited) (Audited)
(Restated)
Assets
Current assets:
Cash $1,063,583 $71,262
Bonds 6,462,264 6,145,191
Sales tax receivable and other 55,448 121,680
Tax credits receivable 588,784 1,023,656
Research supplies, at cost 4,900 42,000
Deposits and prepaid expenses 170,292 284,064
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8,345,271 7,687,853
Bonds 3,282,016 2,329,836
Capital assets (note 2) 3,030,961 3,676,547
Patents 545,057 357,524
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$15,203,305 $14,051,760
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $1,234,129 $1,824,819
Shareholders' equity:
Capital stock (note 3) 44,652,273 36,075,613
Contributed surplus (note 1) 174,852 70,768
Deficit (30,857,949) (23,919,440)
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13,969,176 12,226,941
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$15,203,305 $14,051,760
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See accompanying notes to unaudited financial statements.
ECOPIA BIOSCIENCES INC.
Statements of Earnings
(Unaudited)
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Three-month period Nine-month period
ended August 31 ended August 31
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2004 2003 2004 2003
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(Restated) (Restated)
Interest income $76,033 $109,254 $233,806 $349,213
Costs and expenses:
Research and
development 1,720,400 1,607,219 5,062,019 4,662,552
Tax credits and
grants (273,892) (387,069) (718,410) (864,941)
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1,446,508 1,220,150 4,343,609 3,797,611
General and
administrative 678,831 578,540 2,111,076 1,911,989
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2,125,339 1,798,690 6,454,685 5,709,600
Net loss $2,049,306 $1,689,436 $6,220,879 $5,360,387
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Net basic and
diluted loss per
share $0.03 $0.03 $0.11 $0.11
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Weighted average
number of
outstanding shares 58,851,584 50,444,765 56,591,845 50,406,996
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Statements of Deficit
(Unaudited)
Nine-month period ended August 31
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2004 2003
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Deficit, beginning of period,
restated (note 1b) $23,919,440 $16,757,340
Net loss 6,220,879 5,360,387
Share issue costs 717,630 -
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Deficit, end of period $30,857,949 $22,117,727
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See accompanying notes to unaudited financial statements.
ECOPIA BIOSCIENCES INC.
Statements of Cash Flows
(Unaudited)
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Three-month period Nine-month period
ended August 31 ended August 31
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2004 2003 2004 2003
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(Restated) (Restated)
Cash flows from
operating activities:
Net loss $(2,049,306)$(1,689,436)$(6,220,879) $(5,360,387)
Adjustment for:
Depreciation of
capital assets 250,229 271,031 743,672 787,692
Depreciation of
patents 6,755 3,071 17,884 8,204
Write-off of
capital assets - - 95,200 -
Write-off of patents 59,101 - 66,295 -
Stock-based
compensation 37,364 14,764 104,084 40,350
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(1,695,857) (1,400,570) (5,193,744) (4,524,141)
Change in operating
assets and
liabilities:
Interest
receivable on bonds 97,970 106,827 113,135 190,116
Sales tax receivable
and other 13,278 18,496 66,232 64,636
Tax credits
receivable 879,390 541,932 434,872 70,704
Research supplies 37,100 19,992 37,100 5,670
Deposits and prepaid
expenses 62,715 (42,960) 113,772 229,375
Accounts payable
and accrued
liabilities (103,853) 74,602 (252,246) 64,147
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986,600 718,889 512,865 624,648
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(709,257) (681,681) (4,680,879) (3,899,493)
Cash flows from
financing
activities:
Proceeds from share
issuance - 11,000 8,576,660 77,600
Share issue costs - - (717,630) -
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- 11,000 7,859,030 77,600
Cash flows from
investing
activities:
Acquisition of bonds (49,000) - (7,999,921) -
Proceeds from
disposal
of bonds 1,826,611 1,832,808 6,617,534 6,930,482
Additions to capital
assets (16,624) (237,954) (511,643) (1,312,894)
Costs relating to
patent acquisitions (74,713) (59,101) (295,600) (148,339)
Proceeds from
disposal of
capital assets - - 3,800 -
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1,686,274 1,535,753 (2,185,830) 5,469,249
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Net increase in cash
and cash equivalents 977,017 865,072 992,321 1,647,356
Cash and cash
equivalents, beginning
of period 86,566 927,251 71,262 144,967
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Cash and cash
equivalents, end
of period $1,063,583 $1,792,323 $1,063,583 $1,792,323
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Supplemental cash flow information (note 4)
See accompanying notes to unaudited financial statements.
ECOPIA BIOSCIENCES INC.
Notes to Financial Statements
(Unaudited)
Nine-month period ended August 31, 2004
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1. Significant accounting policies: (a) Basis of presentation: These financial statements included in this report are unaudited and reflect normal and recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. adjustments which are, in the opinion of the Company, considered necessary for a fair presentation. These financial statements have been prepared in conformity with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting .The same accounting policies as described in the Company's latest annual report have been used, except the change in accounting policy as described below.However, these financial statements do not include all disclosures required under generally accepted accounting principles and accordingly should be read in connection with the financial statements and the notes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. included in the Company's latest annual report. (b) Change in accounting policy On December 1, 2001, the Company implemented by anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, the recommendations issued in Section 3870 of the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. ("CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) ") Handbook
This article is about reference works. For the subnotebook computer, see .
The phrase pro forma information on the net loss and net loss per share was disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). as if the Company had accounted for these awards on a fair value basis for options granted since the implementation date. Any consideration resulting from the exercise of stock options was credited to share capital. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the changes made to Section 3870, the Company early implemented the recommendation to account for stock option awards to employees using the fair value method on a retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a basis and by restating the comparative figures for 2003 in order to take into account the cost relating to these awards, which had been included in the pro forma information note for prior periods since December 1, 2001. Consequently, the deficit at the beginning of 2004 and 2003 increased by $70,768 and $15,100, respectively and a compensation cost of $40,350 and $14,764 was recognized for the nine-month and the three-month period ended August 31, 2003, respectively.
2. Capital assets:
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August 31
2004
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Accumulated
depreciation and Net book
Cost amortization value
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Specialized computer
equipment $1,205,621 $1,066,227 $139,394
Machinery and equipment 4,562,110 2,575,099 1,987,011
Leasehold improvements 1,163,171 258,615 904,556
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$6,930,902 $3,899,941 $3,030,961
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November 30
2003
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Accumulated
depreciation and Net book
Cost amortization value
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Specialized computer
equipment $1,462,668 $1,036,405 $426,263
Machinery and equipment 4,375,662 2,104,890 2,270,772
Leasehold improvements 1,152,533 173,021 979,512
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$6,990,863 $3,314,316 $3,676,547
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Certain specialized computer equipment are no longer utilized in the
activities of the Company. As a result, net book value of the related
equipment was reduced by $ 95,200 in order to reflect the estimated
recoverable value.
3. Capital stock:
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August 31 November 30
2004 2003
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Authorized in unlimited number and
without par value:
Common shares
Preferred shares, issuable in series
Issued:
58,851,584 common shares
(November 30, 2003 - 50,465,200) $44,652,273 $36,075,613
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(a) Changes in the issued and outstanding capital stock were as
follows:
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Number Dollars
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Balance, November 30, 2003 50,465,200 $36,075,613
Shares issued pursuant to a private
placement 8,333,334 8,500,001
Shares issued pursuant to exercise
of options 40,550 60,659
Shares issued pursuant to exercise
of warrants 12,500 16,000
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Balance, August 31, 2004 58,851,584 44,652,273
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In February 2004, the Company closed a private placement for the
issuance of 8,333,334 units, each unit comprised of one common share
and one-half of one common share purchase warrant. Each unit was
sold at $1.02, allowing the Company to raise gross proceeds of
approximately $8.5 million. Each full share purchase warrant will
allow the holders to purchase one common share of the Company at an
exercise price of $1.28 and will expire in February 2008.
(b) Stock option plan:
Changes in the number of options outstanding during the nine-month
period ended August 31, 2004 were as follows:
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Weighted average
exercise price
Options per share
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Options, November 30, 2003 3,768,350 $1.51
Granted 265,000 1.67
Exercised (40,550) 1.50
Cancelled (102,950) 1.04
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Options, May 31, 2004 3,889,850 $1.53
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As at August 31, 2004, the number of exercisable options was
2,393,320.
The fair value of the options granted since December 1st, 2001 was
estimated at the date of grant using the Black-Scholes option pricing
model with the following assumptions: average risk free interest rate
of 4.50%, expected dividend yield of nil, expected volatility ranging
from 72% to 117% and expected option life of 5 years. The weighted-
average fair value of the options granted in 2004 is $1.17 (2002 and
2003 - $0.45 and $0.57 respectively).
The Black-Scholes model, used by the Company to calculate option
values, was developed to estimate fair value of freely tradable,
fully transferable options without vesting restrictions, which
significantly differs from the Company's stock option awards. This
model also requires four highly subjective assumptions, including
future stock price volatility and expected time until exercise, which
greatly affect the calculated values.
(C) Diluted loss per share:
Diluted loss per share was not presented as the effect of options
and warrants would have been anti-dilutive. Furthermore, for the
nine-month and three-month periods ended August 31, 2004, the
exercise of 1,523,000 options (1,644,000 and 1,631,000 options
in 2003 respectively) would not have been considered in such
computation since the exercise price of these options was
higher than the average market price.
4. Supplemental cash flow information:
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August 31 November 30
2004 2003
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Costs relating to patent acquisitions
included in accounts payable and accrued
liabilities $61,499 $85,386
Acquisition of capital assets included
in accounts payable and accrued
liabilities 63,142 377,699
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Ecopia BioSciences Inc. (TSX:EIA) |
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