VANCOUVER, Feb. 21 /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 six month periods ended December 31, 2007. All results are reported in Canadian dollars unless otherwise stated.
Second Quarter Fiscal 2008 Summary
----------------------------------
- Revenue of $0.5 million, a 103% increase over Q2 2007
- Cumulative transactions processed in B.C. increased to approximately
12,000 compared to approximately 6,500 in Q2 2007
- Average daily revenue in B.C. grew to approximately $4,900 from
approximately $2,700 in Q2 2007
- EBITDA(x) (as defined at the end of the release) of $(1.1) million,
compared to $(1.1) million in Q2 2007
- Net loss of $1.2 million, or $(0.02) per share, compared to net loss
of $1.9 million, or $(0.10) per share, in Q2 2007
- Subsequent to quarter end, Company entered into a binding Memorandum
of Understanding for the sale of its U.K. based subsidiary, OneMove
Limited.
"During the second quarter, we continued to demonstrate significant year-over-year growth in our B.C. operations," said Martin Johnson, President and CEO, OneMove. "We are pleased with our performance to date. However, results in the U.K., although steadily improving, have been lower than expected. As such, we are shifting our focus back to our domestic operations, and as announced subsequent to quarter end, we are selling our U.K.-based subsidiary."
Mr. Johnson continued: "With an average of 800,000 residential real estate transactions conducted per year in B.C., and the continued push toward paperless transactions, we believe there is significant opportunity for growth domestically. We will continue to increase revenue per transaction by integrating with other real estate industry service providers and grow transaction volume by concentrating our marketing and sales efforts on law firms that have higher volumes of conveyance transactions."
Second Quarter Review
---------------------
Revenue for Q2 fiscal 2008 grew 103% to $0.5 million, compared to $0.2 million for the same period in fiscal 2007. Revenue from Canadian operations was $0.4 million, and revenue from U.K. operations was $0.1 million. For the first half of fiscal 2008, revenue was $1.0 million, up from $0.5 million for the first half of fiscal 2007.
During Q2 2008, OneMove processed 12,000 econveyance transactions in B.C., compared with 6,500 transactions in Q2 of last year, resulting in an increase in average daily revenue to approximately $4,900, from approximately $2,700 in Q2 of 2007. In the U.K., the Company completed 161 contracts, compared to 78 in Q2 2007 and saw customer sign-ups increase to 274 compared to 104 in the prior year.
For Q2 fiscal 2008, total expenses were $1.8 million, or 361% of revenue, compared to $1.9 million, or 790% of revenue, for fiscal 2007. The year-over-year decrease primarily reflects a reduction in advertising expense, amortization of deferred development costs and interest on convertible loans. Total expenses for the first half of 2008 were $3.5 million, compared to $3.4 million for the prior year.
EBITDA was $(1.1) million for Q2 fiscal 2008, compared to $(1.1) million in fiscal 2007. EBITDA for Canadian operations was $(0.05) million, compared to $(0.3) million in fiscal 2007, and for the U.K., Q2 EBITDA was $(0.8) million, in line with $(0.8) million in fiscal 2007. During the quarter, the Company's year-over-year improvements in revenue were offset by continued investment in its operations and further enhancements to its product and service offerings. EBITDA for the first half of fiscal 2008 was $(2.2) million, compared to $(2.1) for the first half of fiscal 2007.
For Q2, net loss was $1.2 million, or $(0.02) per share, compared to $1.9 million, or $(0.10) per share, in Q2 of fiscal 2007. Operating loss from Canadian operations was $0.1 million, compared to a loss of $0.4 million for Q2 fiscal 2007. For its U.K. operations, OneMove's operating loss for the quarter was $0.8 million, compared to a loss of $1.0 million the prior year. Net loss for the first half of fiscal 2008 was $(2.4) million compared to $(3.1) million for the prior year.
Cash and cash equivalents were $1.5 million at December 31, 2007. In addition, the Company had working capital of $0.8 million at December 31, 2007, compared to $3.0 million at June 30, 2007.
Subsequent Events
-----------------
On February 13, 2008, OneMove entered into a binding Memorandum of Understanding for the sale of its U.K.-based wholly owned subsidiary, OneMove Limited, to Neil Patel, CEO, OneMove Limited. Under the terms of the agreement, Mr. Patel will return to treasury all 5.6 million of his currently held shares in OneMove that were issued to him as consideration for the original purchase of OneMove Limited. OneMove Limited will issue a debenture to OneMove for approximately (pnds stlg)1.3 million, to be paid out over a term of 10 years. OneMove will renounce ownership of OneMove Limited, returning all shares held, and provide (pnds stlg)175,000 in funding, 50% of which OneMove Limited will repay by way of the debenture. In addition, the representatives for each company will step down from the other company's Board of Directors, and the companies will enter into a brand sharing and a software royalty license agreement, the terms of which will be finalized upon closing. The sale is expected to close on or before February 28, 2008.
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) is a real estate transaction platform, currently serving the British Columbia, England and Wales real estate markets. By combining personal service, unique products and leading edge technology, OneMove(TM) simplifies and expedites the process of buying and selling real estate. The Company's product and service offerings include: econveyance(TM) the largest conveyance platform in British Columbia, and a Move Management System, Personal Moving Consultants, Home Buyer Expense Insurance, and the largest free online real estate listing database in England and Wales. 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.
December 31, June 30,
2007 2007
CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited)
-------------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ 1,457,016 $ 3,877,897
Receivables 188,954 267,386
Government assistance receivable 6,727 98,474
Prepaid expenses and deposits 78,435 76,010
-------------------------------------------------------------------------
1,731,132 4,319,767
Equipment 831,802 843,231
Intangible asset 5,400 10,800
Long term deposits 289,538 299,434
-------------------------------------------------------------------------
$ 2,857,872 $ 5,473,232
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 701,115 $ 877,828
Deferred income 11,335 22,867
Current portion of loans payable 169,828 434,555
Current portion of capital
lease obligations 64,133 33,528
-------------------------------------------------------------------------
946,411 1,368,778
Loans payable 262,487 312,652
Capital lease obligations 118,600 72,882
-------------------------------------------------------------------------
1,327,498 1,754,312
-------------------------------------------------------------------------
Shareholders' equity
Capital stock 18,690,662 18,550,451
Contributed surplus 1,649,939 1,607,344
Deficit (18,810,227) (16,438,875)
-------------------------------------------------------------------------
1,530,374 3,718,920
-------------------------------------------------------------------------
$ 2,857,872 $ 5,473,232
-------------------------------------------------------------------------
-------------------------------------------------------------------------
"Martin Johnson" Director "Stuart Bonner" Director
---------------------- ----------------------
ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED
STATEMENTS OF
OPERATIONS AND Three months ended Six months ended
DEFICIT December 31, December 31,
--------------------------- ---------------------------
(Unaudited) 2007 2006 2007 2006
-------------------------------------------------------------------------
REVENUES $ 486,287 $ 239,583 $ 984,166 $ 457,193
EXPENSES
Advertising 174,491 211,751 277,055 372,601
Amortization of
deferred
development
costs - 62,946 - 125,891
Amortization of
equipment 103,101 148,792 195,806 176,766
Amortization of
intangible
asset 2,700 2,403 5,400 5,400
Commissions and
fees 171,064 58,442 332,895 110,193
Consulting fees 22,591 11,160 22,591 24,140
Insurance 18,009 11,555 32,404 26,959
Interest and
bank charges 6,957 6,762 13,670 20,868
Interest on
convertible
loans - 12,860 - 67,103
Interest on
loans 16,683 81,162 30,356 116,006
Investor
relations and
filing fees 53,072 23,544 101,294 28,641
Office and
general 95,902 49,062 183,487 113,879
Professional
fees 94,132 47,897 171,124 77,299
Rent and
utilities 81,024 66,868 161,420 133,837
Stock-based
compensation 11,925 204,561 42,595 259,503
Salaries and
wages 746,611 666,947 1,543,496 1,274,329
Telephone 39,851 98,482 94,234 177,851
Travel 119,031 127,606 242,541 263,140
Web site
planning
and design - - 10,000 -
-------------------------------------------------------------------------
1,757,144 1,892,800 3,460,368 3,374,406
-------------------------------------------------------------------------
Loss before other
items (1,270,857) (1,653,217) (2,476,202) (2,917,213)
-------------------------------------------------------------------------
OTHER ITEMS
Other income 20,661 7,992 51,685 13,827
Dividends on
preferred shares - (6,000) - (12,000)
Foreign exchange
gain (loss) 24,528 (254,305) 53,165 (246,519)
Loss on disposal
of assets - (31,633) - (31,633)
-------------------------------------------------------------------------
45,189 (283,946) 104,850 (276,325)
-------------------------------------------------------------------------
Net loss for the
period before
non-controlling
interest (1,225,668) (1,937,163) (2,371,352) (3,193,538)
Non-controlling
interest - - - 69,493
-------------------------------------------------------------------------
Net loss for the
period (1,225,668) (1,937,163) (2,371,352) (3,124,045)
Deficit, beginning
of period (17,584,559) (9,417,266) (16,438,875) (8,230,384)
-------------------------------------------------------------------------
Deficit, end of
period $(18,810,227) $(11,354,429) $(18,810,227) $(11,354,429)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net loss per
common share
Basic $ (0.02) $ (0.10) $ (0.05) $ (0.21)
Fully diluted $ (0.02) $ (0.10) $ (0.05) $ (0.21)
Weighted average
number of common
shares
Basic 49,977,687 19,531,250 49,940,312 14,885,510
Fully diluted 49,977,687 19,531,250 49,940,312 14,885,510
-------------------------------------------------------------------------
ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED
STATEMENTS OF Three months ended Six months ended
CASH FLOW December 31, December 31,
--------------------------- ---------------------------
(Unaudited) 2007 2006 2007 2006
-------------------------------------------------------------------------
CASH FLOWS FROM
OPERATING
ACTIVITIES
Loss for the
period $ (1,225,668) $ (1,937,163) $ (2,371,352) $ (3,124,045)
Items not
affecting
cash:
Amortiza-
tion of
deferred
development
costs - 62,946 - 125,891
Amortization
of
equipment 103,101 148,792 195,806 176,766
Amortization
of
intangible
asset 2,700 2,403 5,400 5,400
Stock-based
compensa-
tion 11,925 204,561 42,595 259,503
Unrealized
foreign
exchange (935) - 5,832 -
Accrued
interest
on
convertible
loans - 12,860 - 67,103
Dividends on
preferred
shares - 6,000 - 12,000
Non-
controlling
interest - - - (69,493)
Interest on
loans - 61,077 - 61,077
Loss on
disposal of
assets - 31,633 - 31,633
Changes in non-
cash working
capital
(Increase)
decrease in
receivables 47,482 225,092 78,433 171,243
Decrease in
government
assistance
receivable - 180,185 91,747 390,867
Increase in
prepaid
expenses and
deposits 72,862 (52,260) (2,424) (114,582)
Increase
(decrease) in
accounts
payable 112,858 (144,321) (161,712) 245,832
Increase in
deferred
revenue (6,259) - (11,532) -
-------------------------------------------------------------------------
Net cash used by
operating
activities (881,934) (1,198,195) (2,127,207) (1,760,805)
-------------------------------------------------------------------------
CASH FLOWS FROM
FINANCING
ACTIVITIES
Loan repayments (72,962) (794,509) (150,529) (904,427)
Share issuance
costs (1,962) (531,706) (4,589) (531,706)
Capital lease
payments (12,896) - (20,761) -
Long term
deposits 3,036 - 1,597 -
Convertible loan
proceeds - 2,150 - 424,650
Loan proceeds - 168,586 - 853,797
Issuance of
shares for cash - 2,122,789 - 2,122,789
Deferred
financing
fees - - - (50,995)
-------------------------------------------------------------------------
Net cash provided
(used) by
financing
activities (84,784) 967,310 (174,282) 1,914,108
-------------------------------------------------------------------------
CASH FLOWS FROM
INVESTING
ACTIVITIES
Purchase of
equipment (27,354) (11,108) (80,464) (188,584)
Long term
deposits - - - -
Cash received on
acquisition of
OneMove Tech - 211,829 - 211,829
-------------------------------------------------------------------------
Net cash used by
investing
activities (27,354) 200,721 (80,464) 23,245
-------------------------------------------------------------------------
Effect of foreign
exchange on cash
and cash
equivalents (5,500) - (38,928) -
Change in cash and
cash equivalents
during the period (999,572) (30,164) (2,420,881) 176,548
Cash and cash
equivalents,
beginning of
period 2,456,588 209,392 3,877,897 2,680
-------------------------------------------------------------------------
Cash and cash
equivalents, end
of period $ 1,457,016 $ 179,228 $ 1,457,016 $ 179,228
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash paid during
the period for
interest $ 16,683 $ 47,441 $ 30,356 $ 67,785
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash paid during
the period for
income taxes $ - $ - $ - $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
%SEDAR: 00023118E