Company delivers solid operating results and a strengthened balance
sheet
TORONTO, March 27, 2013 /CNW/ - Redline Communications (www.rdlcom.com Group Inc. TSX: RDL), a leading provider of broadband wireless solutions for
machine-to-machine (M2M) communications, today announced operating
results for the three and twelve month periods ended December 31, 2012.
Highlights for the fiscal year ended December 31, 2012 include:
Solid sales traction and operating results:
-
Record new Bookings² of $49.5 million of which approximately 45% were in
Energy vertical
-
Recognized revenue of $49.0 million
-
$14.6 million Backlog² at December 31, 2012
-
63% gross margin on core Broadband Wireless Infrastructure (BWI) product
sales, and 56% blended gross margin
-
Operating expenses down 9% from fiscal 2011
-
Adjusted EBITDA² of $3.8 million marking the third consecutive year of
positive Adjusted EBITDA
-
EPS of $0.29, excluding the non-cash expense relating to the fair market
adjustment on the Debenture²
Strengthened Balance Sheet:
-
Established Cdn. $10.0 million credit facility with HSBC Bank Canada
-
Amended loan agreement with Ontario Ministry of Economic Development and
Innovation reducing interest charges by $0.7 million
-
Warrant exercises (during and subsequent to 2012) resulted in
approximately Cdn. $13.4 million cash receipts to the Company
Financial Review
Order Bookings² for the year ended December 31, 2012 were a record $49.5
million and outpaced Shipments in the year of $35.9 million. This
resulted in a healthy Backlog of $14.6 million at the end of the 2012
fiscal year, largely as a result of larger orders with associated
longer delivery timeframes. Bookings in 2012 were primarily driven
from strong and growing sales to the energy sector, which represented
approximately 45% of total Bookings, as well as continued strength in
the telecom and public safety sectors.
BWI Revenue for the three months ended December 31, 2012 was $10.4
million, the strongest BWI quarterly revenue for fiscal 2012. BWI
Revenue was strengthened by several large contracts in oil and gas and
telecom. BWI Revenue for the three months ended December 31, 2012 was
down 8% from $11.3 million for the same period last year, primarily as
a result of final acceptance on a large oil and gas project received in
the fourth quarter of fiscal 2011 for work undertaken throughout 2011.
Overall for the 2012 year, BWI Revenue was $30.0 million, down
marginally from the $31.0 million reported for the 2011 year.
"I am very happy with our 2012 results. Strong product performance,
high customer satisfaction and a growing reputation helped us increase
our sales momentum, our average contract size is larger, and our
top-tier customers are expanding their networks," said Eric Melka,
Redline's CEO. "These complex networks are providing significant long
term opportunity for Redline as they roll out over time and I am very
excited about the future."
Included in the definition of total Recognized Revenue is amortized
deferred revenue from prior RedMAX™ sales. As the timeframe associated
with the recognition of amortized deferred revenue from prior RedMAX
sales ended June 30, 2012, the lower amount of amortized revenue in
2012 lowered the year-over-year comparative performance of total
Recognized Revenue. Hence for the 2012 year, total Recognized Revenue
was $49.0 million, a decrease from $58.0 million reported in 2011 which
included $18.7 million of amortized deferred revenue, versus $9.0
million of amortized deferred revenue included in 2012. Similarly,
total Recognized Revenue for the three months ended December 31, 2012
was $11.0 million, down $7.2 million from $18.2 million for the same
period last year, which included $4.7 million of amortized deferred
revenue.
Gross margin on core (BWI) product sales during the 2012 fourth quarter
and for the 2012 year was 63%. Blended gross margin for the 2012 fourth
quarter was 61%, an improvement of nine percentage points compared to
blended gross margin of 52% reported for the fourth quarter of 2011.
The increase was the result of a higher relative contribution of BWI
sales in the comparative sales mix. For the year, blended gross margin
was 56% compared to a blended gross margin of 58% for the year ended
December 31, 2011. The small decrease is primarily a result of a
higher relative mix of lower margin "other" products required to
deliver complete solutions in 2012.
The Company's ongoing commitment to manage operating costs and improve
operating efficiencies resulted in a decrease in overall operating
expenses of 3% to $6.9 million for the three months ended December 31,
2012 compared to $7.1 million reported for the same period last year.
Overall operating expenses for the 2012 year were $25.3 million, 9%
lower than the $27.8 million reported for the same period last year,
largely the result of efficiencies from the implementation of new
information technology, which allowed the Company to continue to reduce
overall staffing levels.
Adjusted EBITDA for the three months ended December 31, 2012 was $0.3
million, a decrease of $2.6 million over the $2.9 million for the
corresponding period in 2011. Adjusted EBITDA for the year ended
December 31, 2012 was $3.8 million, a decrease of $4.0 million compared
to $7.8 million for the corresponding period in 2011. The decrease is a
direct result of the decrease in revenue as a result of the completion
of the amortization period of all RedMAX Amortized Deferred Revenue at
the end of June 30, 2012.
A non-cash loss of $6.4 million in the fourth quarter of 2012 relating
to the fair market value adjustment on the Debenture resulted in a Net
Loss for the period of $5.6 million, or ($0.58) per share as compared
to a profit of $1.1 million, or $0.20 per share in the fourth quarter
of 2011. For the full year, Redline reported a Net Loss of $9.5
million, or ($1.00) per share, as compared to a Net Profit of $4.1
million, $0.76 per share in 2011. The difference is attributed to a
$12.3 million non-cash expense in 2012 relating to the fair market
value adjustment on the Debenture and the effects of substantial
deferred amortized revenue present in 2011 and not equally present for
2012. Excluding the non-cash expense relating to the fair market
adjustment on the Debenture, net income for the 2012 year was $2.8
million or $0.29 per share, and for the three months ended December 31,
2012 was $0.9 million or $0.09 per share.
During 2012, the Company received approximately Cdn. $10.5 million in
consideration from the exercise of warrants associated with the
Debenture. Subsequent to December 31, 2012 the Company received an
additional approximately Cdn. $2.9 million from the exercise of
additional warrants, also associated with the Debenture. The Company
also obtained a demand operating facility of Cdn. $10.0 million with
HSBC Bank Canada ("HSBC"), providing additional working capital.
"Redline's balance sheet has been greatly strengthened this year
providing working capital for our anticipated growth," added Melka.
"The conversion of almost all of the outstanding Debenture and
associated warrants has added to our cash and has also significantly
reduced the non-cash charges, which have obscured otherwise positive
net income for the second year in a row."
At December 31, 2012, Redline held cash of approximately $8.3 million,
up $3.5 million from the cash and short term investments balance of
$4.8 million at December 31, 2011.
2012 business highlights included:
Selected Customer Wins:
-
The Company received and shipped a large BWI product order to complete a
major expansion of its wireless project for Shell Oil joint venture
Petroleum Development Oman LLC (PDO), making it the Company's largest
oil field deployment with over 5000 radios.
-
Redline's wireless products were chosen by the Abu Dhabi Company for
Onshore Oil Operations in the United Arab Emirates as part of an
integrated digital oil field system to be delivered by systems
integrator Alcatel-Lucent.
-
Redline received a contract representing approximately 10% of Redline's
annual revenue for 2012 with an existing oil and gas customer. Redline
will be their prime contractor for a high-capacity wireless network in
their new location in Oman.
-
Redline received and shipped a $2 million order for its RAS system to a
major US-based oil and gas company, providing high-capacity,
high-availability mobile communications for drilling rigs.
-
In the service provider space, Redline won a multi-million dollar
multi-phase order for BWI product from an existing customer in
Pakistan.
Partnerships:
-
Redline joined the Cisco Developer Network as a Solution Developer and
Redline's RDL-3000 system successfully completed interoperability
testing with Cisco Access Points.
-
Redline joined Honeywell's PKS Advantage™ program, together
demonstrating complete integrated M2M solutions for the oil and gas
industry.
Product Milestones:
-
In the third quarter of fiscal 2012, Redline announced the availability
and shipment of over 300 of their ruggedized nomadic RAS Solution, the
first wireless broadband networking system to automatically locate, and
connect to a network base station, providing automatic, reliable
wireless connectivity for mobile rigs and vehicles.
-
In November 2012, Redline's RAS Nomadic Platform won top honors in the
Backhaul Innovation category of the Fierce Innovation Awards.
Quality Recognition:
-
Redline once again completed its ISO 9001 certification, receiving a
perfect score.
-
Subsequent to the end of 2012, Redline won the BSI Group Award of
Excellence in recognition of its commitment to quality and business
excellence in all aspects of its operation.
Conference Call and Webcast - March 27th, 2013 at 10:00 a.m. ET
A conference call and webcast to discuss the results will be held March
27, 2013 at 10:00 a.m. ET. To participate in the conference call,
please dial 1-647-427-7450 or 1-888-231-8191 approximately 10 minutes
before the conference call, and provide passcode 99021008. A recording
of the call will be available through April 4, 2012. To listen to the
rebroadcast please dial 1-416-849-0833 or 1-855-859-2056 and enter
passcode 99021008. A webcast of the call will also be available on
Redline's website at http://www.rdlcom.com/en/about/investors/webcasts.
The selected financial information included in this release is qualified
in its entirety by, and should be read together with the Consolidated
Financial Statements of the Company for the year ended December 31,
2012 and the Company's Management Discussion and Analysis for the three
and twelve month periods ended December 31, 2012 ("2012 MD&A"), copies
of which are available on SEDAR at www.sedar.com.
About Redline Communications
Redline Communications (www.rdlcom.com) the innovator of Virtual Fiber™,
a specialized wireless broadband system used by companies and
governments worldwide to cost-effectively deploy distributed services
and applications. Redline Virtual Fiber™ solutions are used to
facilitate and enhance public safety networks, deploy and extend secure
networks, connect digital oil fields and smart grids, and bring
dedicated Internet access wherever and whenever it's needed. Redline
has been delivering powerful, versatile and reliable wireless systems
to governments, the military, oil and gas, and the telecom industry for
over a decade through its global network of certified partners. For
more information visit www.rdlcom.com.
NOTES:
|
|
1
|
All amounts reported in this press release are in US dollars unless
otherwise stated.
|
|
2
|
To better assess the health and growth of the Redline's business, the
Company reports on several key metrics, including "Orders or Bookings",
"Shipped or Shipments", "Backlog", "EBITDA", "EPS excluding the
non-cash expense relating to the fair market adjustment on the
Debenture", and "Amortized Deferred Revenue". Further information
including definitions of these categories can be found in the Company's
Management Discussion and Analysis for the three and twelve months
ended December 31, 2012 ("Q4 and 2012 Year MD&A"), copies of which are
available on SEDAR at www.sedar.com. Further details on the three and twelve month results ended December
31, 2012 can be found in the condensed consolidated annual audited
statement of financial position, condensed consolidated annual audited
statement of comprehensive income, condensed consolidated annual
audited statement of changes in equity and condensed consolidated
annual auditedstatement of cash flows reproduced at the end of this
press release. The selected financial information included in this
release is qualified in its entirety by, and should be read together
with the Condensed Consolidated Audited Financial Statements of the
Company for the three and twelve months ended December 31, 2012 and
the Q4 and 2012 Year MD&A.
|
Forward Looking Statements
Certain statements in this release may constitute forward-looking
statements or forward-looking information within the meaning of
applicable securities laws. In some cases, forward-looking statements
can be identified by terms such as "could", "expect", "may", "will",
"anticipate", "believe", "intend", "estimate", "plan", "potential",
"project" or other expressions concerning matters that are not
historical facts. Readers are cautioned not to place undue reliance
upon any such forward-looking statements. Such forward-looking
statements are not promises or guarantees of future performance and
involve both known and unknown risks and uncertainties that may cause
the actual results, performance, achievements or developments of
Redline to differ materially from the results, performance,
achievements or developments expressed or implied by such
forward-looking statements. Forward-looking statements, by their
nature, are based on certain assumptions regarding expected growth,
management's current plans, estimates, projections, beliefs, opinions
and business prospects and opportunities (collectively, the
"Assumptions"). While the Company considers these Assumptions to be
reasonable, based on the information currently available, they may
prove to be incorrect.
Many risks, uncertainties and other factors could cause the actual
results of Redline to differ materially from the results, performance,
achievements or developments expressed or implied by such
forward-looking statements. These risks, uncertainties and other
factors include but are not limited to the following: significant
competition, competitive pricing practices, cautious capital spending
by customers, industry consolidations, rapidly changing technologies,
evolving industry standards, frequent new product introductions, short
product life cycles and other trends and industry characteristics
affecting the telecommunications industry; any material, adverse
affects on Redline's performance if its expectations regarding market
demand for particular products prove to be wrong; any negative
developments associated with Redline's suppliers and contract
manufacturing agreements including the Company's reliance on certain
suppliers for key components; potential penalties, damages or cancelled
customer contracts from failure to meet delivery and installation
deadlines and any defects or errors in Redline's current or planned
products; fluctuations in foreign currency exchange rates; potential
higher operational and financial risks associated with Redline's
efforts to expand internationally; a failure to protect Redline's
intellectual property rights, or any adverse judgments or settlements
arising out of disputes regarding intellectual property; changes in
regulation of the wireless industry or other aspects of the industry;
any failure to successfully operate or integrate strategic
acquisitions, or failure to consummate or succeed with strategic
alliances; and Redline's potential inability to attract or retain the
personnel necessary to achieve its business objectives or to maintain
an effective risk management strategy (collectively, the "Risks").
For additional information on these Risks, see Redline's most recently
filed Annual Information Form ("AIF") and Annual MD&A, which are
available on SEDAR at www.sedar.com and on the Company's website at www.redlinecommunications.com. Redline assumes no obligation to update or revise any forward-looking
statements or forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly required
by law. All forward looking statements contained in this release are
expressly qualified in their entirety by this cautionary statement.
REDLINE COMMUNICATIONS GROUP INC.
|
|
|
|
|
|
|
Consolidated Statements of Financial Position
|
|
|
|
|
|
|
(Expressed in U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
December 31,
2011
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
8,286,732
|
|
$
|
4,651,284
|
|
Short-term investment
|
|
|
-
|
|
|
92,144
|
|
Restricted short-term investments
|
|
|
-
|
|
|
33,003
|
|
Trade receivables
|
|
|
12,639,570
|
|
|
9,913,208
|
|
Other receivables
|
|
|
571,382
|
|
|
340,499
|
|
Inventories
|
|
|
6,973,414
|
|
|
7,851,884
|
|
Deferred RedMAX cost of revenue
|
|
|
-
|
|
|
7,484,581
|
|
Deferred cost of revenue
|
|
|
905,250
|
|
|
333,287
|
|
Prepaid expenses and other deposits
|
|
|
1,061,622
|
|
|
2,214,309
|
|
|
|
30,437,970
|
|
|
32,914,199
|
Non-current assets:
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
875,352
|
|
|
1,026,480
|
|
Intangible assets
|
|
|
107,593
|
|
|
158,239
|
|
Other assets
|
|
|
99,180
|
|
|
97,365
|
|
|
|
1,082,125
|
|
|
1,282,084
|
Total Assets
|
|
$
|
31,520,095
|
|
$
|
34,196,283
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Bank indebtedness
|
|
$
|
2,296,855
|
|
$
|
-
|
|
Trade and other payables
|
|
|
4,249,973
|
|
|
9,081,197
|
|
Income tax payable
|
|
|
292,927
|
|
|
292,927
|
|
Deferred RedMAX revenue
|
|
|
-
|
|
|
14,213,501
|
|
Deferred revenue
|
|
|
2,796,497
|
|
|
2,285,406
|
|
Current portion of borrowings
|
|
|
5,116,527
|
|
|
6,182,398
|
|
|
|
14,752,779
|
|
|
32,055,429
|
Non-current liabilities
|
|
|
|
|
|
|
|
Other payables
|
|
|
418,622
|
|
|
-
|
|
Convertible debenture (principal and interest)
|
|
|
1,100,788
|
|
|
1,344,095
|
|
Fair market value adjustment on convertible debenture
|
|
|
8,357,396
|
|
|
2,918,446
|
|
|
|
9,876,806
|
|
|
4,262,541
|
Total Liabilities
|
|
|
24,629,585
|
|
|
36,317,970
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY (DEFICIENCY)
|
|
|
|
|
|
|
Share capital
|
|
|
152,123,803
|
|
|
134,336,023
|
Share purchase loan
|
|
|
(365,780)
|
|
|
(365,780)
|
Warrant
|
|
|
310,000
|
|
|
310,000
|
Contributed surplus
|
|
|
8,361,465
|
|
|
7,635,506
|
Deficit
|
|
|
(153,538,978)
|
|
|
(144,037,436)
|
|
|
|
6,890,510
|
|
|
(2,121,687)
|
Total liabilities and equity
|
|
$
|
31,520,095
|
|
$
|
34,196,283
|
|
|
|
|
|
|
|
REDLINE COMMUNICATIONS GROUP INC.
|
|
|
|
|
|
|
Consolidated Statements of Comprehensive (Loss) Income
|
|
|
|
|
|
|
(Expressed in U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
Revenue
|
|
$
|
49,041,485
|
|
$
|
58,023,426
|
Cost of revenue
|
|
|
21,373,057
|
|
|
24,248,263
|
Gross profit
|
|
|
27,668,428
|
|
|
33,775,163
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Research and development
|
|
|
6,240,559
|
|
|
5,776,334
|
|
Finance and administration
|
|
|
7,572,283
|
|
|
9,489,000
|
|
Sales and marketing
|
|
|
9,685,446
|
|
|
10,314,476
|
|
Operations and customer support
|
|
|
1,790,628
|
|
|
2,303,826
|
|
Gain on disposal of assets
|
|
|
-
|
|
|
(51,519)
|
|
|
|
25,288,916
|
|
|
27,832,117
|
Profit before other expenses (income)
|
|
|
2,379,512
|
|
|
5,943,046
|
|
|
|
|
|
|
|
Other expenses (income)
|
|
|
|
|
|
|
|
Finance (income) expense
|
|
|
(390,804)
|
|
|
749,295
|
|
Loss on fair market value of Debenture
|
|
|
12,287,156
|
|
|
1,285,811
|
|
Foreign exchange loss (gain)
|
|
|
110,288
|
|
|
(274,214)
|
|
|
|
12,006,640
|
|
|
1,760,892
|
(Loss) profit before income taxes
|
|
|
(9,627,128)
|
|
|
4,182,154
|
Income tax (recovery) expense
|
|
|
(125,586)
|
|
|
120,000
|
Net (loss) profit and total comprehensive (loss) income
|
|
$
|
(9,501,542)
|
|
$
|
4,062,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(1.00)
|
|
$
|
0.76
|
|
Diluted
|
|
$
|
(1.00)
|
|
$
|
0.71
|
|
|
|
|
|
|
|
REDLINE COMMUNICATIONS GROUP INC.
|
Consolidated Statements of Changes in Equity
|
(Expressed in U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
Share purchase
loan
|
|
|
Warrant
|
|
|
Contributed
surplus
|
|
|
Deficit
|
|
|
Total
|
Balance at December 31, 2010
|
|
$
|
128,532,124
|
|
$
|
(365,780)
|
|
$
|
310,000
|
|
$
|
6,387,487
|
|
$
|
(148,099,590)
|
|
$
|
(13,235,759)
|
|
Net profit
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4,062,154
|
|
|
4,062,154
|
|
Shares issued on
conversion of debenture
|
|
|
5,562,950
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,562,950
|
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,382,301
|
|
|
-
|
|
|
1,382,301
|
|
Exercise of options
|
|
|
240,949
|
|
|
-
|
|
|
-
|
|
|
(134,282)
|
|
|
-
|
|
|
106,667
|
Balance at December 31, 2011
|
|
$
|
134,336,023
|
|
$
|
(365,780)
|
|
$
|
310,000
|
|
$
|
7,635,506
|
|
$
|
(144,037,436)
|
|
$
|
(2,121,687)
|
Balance at December 31, 2011
|
|
$
|
134,336,023
|
|
$
|
(365,780)
|
|
$
|
310,000
|
|
$
|
7,635,506
|
|
$
|
(144,037,436)
|
|
$
|
(2,121,687)
|
|
Net loss
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9,501,542)
|
|
|
(9,501,542)
|
|
Shares issued on
conversion of debenture
|
|
|
905,627
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
905,627
|
|
Shares issued on
conversion of warrants
|
|
|
16,709,436
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
16,709,436
|
|
Exercise of options
|
|
|
172,717
|
|
|
-
|
|
|
-
|
|
|
(92,929)
|
|
|
-
|
|
|
79,788
|
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
818,888
|
|
|
-
|
|
|
818,888
|
Balance at December 31, 2012
|
|
$
|
152,123,803
|
|
$
|
(365,780)
|
|
$
|
310,000
|
|
$
|
8,361,465
|
|
$
|
(153,538,978)
|
|
$
|
6,890,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDLINE COMMUNICATIONS GROUP INC.
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
(Expressed in U.S. dollars)
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net profit (loss)
|
|
$
|
(9,501,542)
|
|
$
|
4,062,154
|
|
Adjustments to reconcile profit (loss) before taxes to net cash from
operating activities
|
|
|
|
|
|
|
|
|
Finance expense
|
|
|
(390,804)
|
|
|
749,295
|
|
|
Depreciation and amortization of non-current assets
|
|
|
413,177
|
|
|
438,715
|
|
|
Gain on disposal of asset
|
|
|
-
|
|
|
(51,519)
|
|
|
Recognition of share based payments
|
|
|
818,888
|
|
|
1,382,301
|
|
|
Foreign exchange (gain) loss on cash held in foreign currency
|
|
|
(29,199)
|
|
|
824
|
|
|
Foreign exchange loss (gain) on borrowings
|
|
|
100,955
|
|
|
(578,584)
|
|
|
Loss on fair market value of Debenture
|
|
|
12,287,156
|
|
|
1,285,811
|
|
|
Income tax
|
|
|
(125,586)
|
|
|
120,000
|
|
|
|
3,573,045
|
|
|
7,408,997
|
|
Change in non-cash operating assets and liabilities
|
|
|
|
|
|
|
|
|
Decrease in deferred cost of revenue
|
|
|
6,912,618
|
|
|
10,997,382
|
|
|
Decrease in deferred revenue
|
|
|
(13,702,410)
|
|
|
(20,554,729)
|
|
|
Change in other non-cash operating assets and liabilities
|
|
|
(5,340,505)
|
|
|
(6,882,569)
|
Cash used in operating activities
|
|
|
(8,557,252)
|
|
|
(9,030,919)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment
|
|
|
(156,692)
|
|
|
(583,582)
|
|
Acquisition of intangible assets
|
|
|
(54,711)
|
|
|
(272,056)
|
|
Proceeds from the disposal of property, plant and equipment
|
|
|
-
|
|
|
51,519
|
|
Redemption (purchase) of investments
|
|
|
125,147
|
|
|
(32,707)
|
Cash (used in) from investing activities
|
|
|
(86,256)
|
|
|
(836,826)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Finance costs
|
|
|
21,234
|
|
|
(66,424)
|
|
Proceeds from exercise of options
|
|
|
79,788
|
|
|
106,667
|
|
Proceeds from conversion of warrants
|
|
|
10,513,308
|
|
|
-
|
|
Proceeds from bank indebtedness
|
|
|
2,296,855
|
|
|
-
|
|
Proceeds of borrowings
|
|
|
103,488
|
|
|
8,534,848
|
|
Repayment of borrowings
|
|
|
(764,916)
|
|
|
(78,308)
|
Cash from (used in) financing activities
|
|
|
12,249,757
|
|
|
8,496,783
|
Foreign exchange gain (loss) on cash held in foreign currency
|
|
|
29,199
|
|
|
(824)
|
Increase (decrease) in cash
|
|
|
3,635,448
|
|
|
(1,371,786)
|
Cash, beginning of the period
|
|
|
4,651,284
|
|
|
6,023,070
|
Cash, end of the period
|
|
$
|
8,286,732
|
|
$
|
4,651,284
|
|
|
|
|
|
|
|
SOURCE: Redline Communications Group Inc.