Q2 Financials Just noticed this on sedar when I went looking for the latest NR.
Nice to see all the new contracts lately.
From the "Quarterly Financial Data" section down below
Total sales for Q1 and Q2 = $586,026
Total cost of sales = $287,367
Total operating expenses = $2,094,074
The burn rate for Q1 and Q2 is $2,094,074 + $287,367 - $586,026 = $1,795,415
Therefore Q2's burn rate is $1743644 - $898,214 = $897,201
Not too far off from the $800,000 speculation eh?
From www.sedar.com (Aug 1 2001 Form 61 (BC))
SCS SOLARS COMPUTING SYSTEMS INC.
Supplementary information
For the period ended May 30, 2001
Related Party Transactions:
For the current year to date:
The following fees to Directors and Officers were paid or accrued:
1. Brian Lawrence O’Brien Chairman and C.E.O. $120,000
2. Frank Wells Vice Chairman 42,000
3. Andrew O’Leary President 42,000
4. Patricia Wilson Corporate Secretary 24,000
5. Robert Chisholm C.F.O 60,000
2, For the quarter under review:
(a) Summary of securities issued during the period: Nil
Issued and fully paid:
Number Amount
Balance February 28, 2001 45,366,550 $ 15,223,881
Committed not issued 2,759,200 689,800
b) Summary of options granted:
Nil
3, As at the end of the quarter:
(a) Authorized Capital 100,000,000 N.P.V.
(b) Options outstanding:
1,975,000 @ $1.30 February 10, 2002
(c) Warrants Outstanding:
April 10, 2000 1,250,000 @ $0.60 Expire 04,10, 2002
April 10, 2000 625,000 @ $0.60 Expire 04,10, 2002
(c) Shares held in escrow: 3,696,208
(e) List of Directors and Officers:
Lawrence O’Brien CEO and Chairman, Frank Wells Vice Chairman , Andrew O'Leary President, Patricia Wilson Corporate
Secretary K. Barry Sparks, Charles S. Walker,
MANAGEMENT REPORT
May 30, 2001
In the first six months of fiscal 2001, the Company was successful in signing six new
consolidators to its LiveLinx product, as follows: Brazilian Wave Tours; Up and Away
Travel; Hari World Travel; Airliners; Trade Winds Associates, Inc.; and TFI Tours. The
Company has also expanded its sales and usage of LiveLinx*PLUS by signing nine of its
air consolidators onto this new product. Usage of this new system has been slower than
anticipated, but continues to grow. Customers of the LiveLinx*PLUS product pay a
booking fee based upon usage.
On December 20, 2000 the court case with Grand Adventures Tours and Travel was
dismissed. At that time both parties agreed to drop their respective claims against one
another and fully dismissed the pending lawsuits without any financial consideration by
either party. Since this dismissal the level of interest by third parties in the Company’s
TourTek Software Management System has grown significantly. The Company’s
TourTek division is presently in discussions with and have completed demonstrations for
a number of Canadian and US Tour Operators.
During the quarter ending May 31, 2001 the Company introduced the TourTek Service
Bureau. The TourTek Service Bureau’s pricing model has been structured to
accommodate the smaller tour operator, as it is based on the philosophy of ‘pay as you
go’. The Company presently has one signed contract for this service bureau and once it
has signed two additional customers it will operationally launch this product. The
Company anticipates this launch to occur in the fourth quarter of this year.
The company has completed the changes necessary in the WINGS database product to
make it a truly global fare management system. The legacy WINGS software product
was written in FoxPro 3 and SolarNet has completed its upgrade of the system to FoxPro
6, the most recent version. This has enabled SolarNet to make the software international
in functionality. This new and improved version of WINGS will also be functional in the
US and, as a result, will be the only version the company will offer to its clients. Since
upgrading the WINGS software the Company has received interest in the WINGS fare
management system from companies in the Pan Pacific/Asian, Canadian and European
regions.
The Company entered into an agreement whereby Amadeus’ 55,000 travel agency
locations worldwide can access consolidator fares, view fare rules and perform booking
requests through a new, direct bypass to the Company’s “Solarnet” application. Amadeus
will promote the usage of the Solarnet application to its agencies worldwide, who can
access fare information for participating consolidators via Solarnet’s LiveLinx product,
free of charge, eliminating timely telephone calls and hold times presently encountered in
booking with a consolidator. Amadeus agencies will also benefit from access to
Solarnet’s LiveLinx* PLUS product, which allows the agency to check flight availability,
fare rules and transmit a booking request directly to participating consolidators that utilize
the Amadeus GDS within their office location.
Quarterly Financial Data
The Company’s total sales for the six months ended May 31, 2001 were $586,026 as
compared to $462,790 for the corresponding period in the year 2000, an increase of
$123,236 or 26.6%. The Company’s sole source of revenue during this period was from
the sale of its SolarNet distribution product.
Cost of goods sold in the six months ended May 31, 2001 was $287,367 compared to
$260,700 in the corresponding period in the year 2000. The corresponding gross margins
were 51% in 2001, 43.7% in 2000.
Operating expenses consist primarily of salaries and benefits, consulting fees, legal and
accounting, marketing, office and general and rent and utilities. The operating expenses
for the six months ended May 31, 2001 were $2,094,074 as compared to $2,042,303 in
the corresponding period in the year 2000.
The Company had working capital of $457,808 at May 31, 2001 compared to $931,493 at
November 30, 2000. The Company believes that outside sources of financing, if needed,
will be available to fund further research and development and ongoing operations. The
form of any financing will vary depending upon prevailing market and other conditions.
However, there can be no assurances that funds will be available on terms acceptable to
the Company and its actions with respect to these activities will be guided accordingly.
Subsequent to the end of the Company’s second quarter, the Company completed a non-brokered
private placement in the amount of $689,800.
Year to date there were no expenditures made to outside investor relations.
The Company received approval to reduce the exercise price of 1,250,000 outstanding
share purchase warrants and 625,000 share purchase warrants issued to two brokerage
firms from $1.30 to $0.60. Each warrant entitles the holder to acquire one common share
of the Company. The warrants, which are held by a total of 61 warrant holders, were
issued pursuant to a private placement which was completed on April 10, 2000. Insiders
of the Company held less than 1% of the warrants. The expiry date of the warrants were
also extended from April 10, 2001 to April 10, 2002.
Subsequent to the end of the period
On May 30, 2001 the Company completed an interim agreement, which will see the
immediate installation of the TourTek Software Management System in a US Tour
Operator.
The Company completed a non-brokered private placement of 2,759,200 units at a price
of $0.25 per unit for gross proceeds of $689,800. Each unit consisted of one common
share and one common share purchase warrant. Each common share purchase warrant is
exercisable at $0.35 into a common share of the Company for a period of one year.
On June 15, 2001Lawrence O’Brien tendered his resignation as Chief Executive Officer
and on July 3, 2001 Mr. O’Brien tendered his resignation as a director and Chairman of
the Board.
On behalf of the Board
“Frank Wells”