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)
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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 -
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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
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$ 3,763,413 $ 5,473,232
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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
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217,727 242,257
Capital lease obligations 130,355 72,882
Liabilities related to assets held for sale - 1,439,173
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348,082 1,754,312
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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)
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3,415,331 3,718,920
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$ 3,763,413 $ 5,473,232
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ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED
STATEMENTS OF Three months ended Nine months ended
OPERATIONS AND March 31, March 31,
DEFICIT --------------------------- ---------------------------
2008 2007 2008 2007
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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 -
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747,216 667,218 2,355,558 2,276,224
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Loss before other
items (411,806) (429,349) (1,210,510) (1,667,108)
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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
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126,652 11,164 (133,296) 12,991
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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)
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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 -
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Deficit, end
of period $(16,964,992) $(12,634,827) $(16,964,992) $(12,634,827)
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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
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ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED Three months ended Nine months ended
STATEMENTS OF March 31, March 31,
CASH FLOW --------------------------- ---------------------------
(Unaudited) 2008 2007 2008 2007
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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 -
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Net cash provided
(used) by operating
activities (421,061) (70,782) (1,022,961) (456,577)
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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
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Net cash provided
(used) by financing
activities (16,000) 1,078,342 (41,349) 3,251,245
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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
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Net cash prvided
(used) by investing
activities (5,036) (34,984) (43,001) 148,479
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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)
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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
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Cash and cash
equivalents, end
of period $ 475,976 $ 180,222 $ 490,976 $ 180,222
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Cash paid during
the period for
interest $ 11,371 $ - $ 28,214 $ -
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Cash paid during
the period for
income taxes $ - $ - $ - $ -
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%SEDAR: 00023118E