LAVAL, QUEBEC--(Marketwired - April 24, 2014) - Warnex Inc. (TSX VENTURE:WNX.H) ("Warnex" or the "Company") announced today financial results for the year ended December 31, 2013.
Warnex sold its Bioanalytical Services division on December 10, 2012, which represented its last operating business unit. On December 2, 2013, the Company terminated its long-term operating lease for its Laval, Quebec facilities and sold one of its subsidiaries. "These transactions have allowed Warnex to eliminate all significant future financial commitments and to aggressively manage its operating expenses," remarked Michael Singer, Chairman of Warnex. "They have also provided the Company with the flexibility required in order to explore more optimally its strategic alternatives. In this regard, discussions with external parties continue to advance and the Company expects to announce the outcome of this process in the near term."
Financial results
Consolidated revenue for the twelve-month period ended December 31, 2013, amounted to $nil compared to $9.0 million in 2012. The Company did not generate any sales, nor related cost of goods sold, in the year ended December 31, 2013, as a result of the sale of all of its operating divisions in 2012.
Net loss for twelve-month period amounted to $2.0 million or $0.07 per share compared to net earnings of $1.0 million or $0.04 per share for the same period in 2012.
Selling expenses amounted to $nil for the twelve-month period ended December 31, 2013, compared to $0.3 million for the twelve-month period ended December 31, 2012.
General and administrative expenses amounted to $1.1 million for the twelve-month period ended December 31, 2013 compared to $4.0 million for the same period in 2012.
Research and development tax credits amounted to $81,267 for the twelve-month period ended December 31, 2013 as a result of the reversal of prior period provisions following assessments by the taxation authorities ($139,998 in the year ended December 31, 2012).
Financial revenues amounted to $3,832 in the twelve-month period ended December 31, 2013 compared to financial expenses of $651,493 in the twelve-month period ended December 31, 2012. This decrease is due to the repayment in full of the Company's debts in 2012.
The Company ended fiscal 2013 with cash, cash equivalents and short-term investments of $2.1 million and working capital of $2.7 million, compared to $2.7 million in cash and a working capital of $4.1 million as at December 31, 2012.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For further information identifying known risks and uncertainties, relating to financial resources, liquidity risk, volatility of share price and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Warnex's most recent annual Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.
Neither NEX nor its Regulation Services Provider (as that term is defined in policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.
Financial statements to follow.
Consolidated Statements of Financial Position
| |
December 31
2013
$ |
|
December 31
2012
$ |
|
| Assets |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
218,299 |
|
2,742,114 |
|
| Short-term investments |
1,900,000 |
|
- |
|
| Trade and other receivables |
782,073 |
|
1,804,421 |
|
| Prepaid expenses |
55,483 |
|
70,779 |
|
| |
2,955,855 |
|
4,617,314 |
|
| |
|
|
|
|
| Non-current assets |
|
|
|
|
| Amount receivable held in trust |
- |
|
600,000 |
|
| |
2,955,855 |
|
5,217,314 |
|
| |
|
|
|
|
| Liabilities |
|
|
|
|
| Current liabilities |
|
|
|
|
| Trade and other payables |
169,731 |
|
457,317 |
|
| Provisions |
80,000 |
|
90,930 |
|
| |
249,731 |
|
548,247 |
|
| |
|
|
|
|
| Shareholders' equity |
|
|
|
|
| Capital stock |
41,706,049 |
|
41,706,049 |
|
| Other reserves |
2,803,559 |
|
2,803,559 |
|
| Deficit |
(41,803,484 |
) |
(39,840,541 |
) |
| |
2,706,124 |
|
4,669,067 |
|
| |
2,955,855 |
|
5,217,314 |
|
Consolidated Statements of Changes in Shareholders' Equity
| |
|
Other reserves |
|
|
|
|
| |
Capital
stock
$ |
Equity components of debentures
$ |
Share-based compensation
$ |
Other
$ |
Total other reserves
$ |
Deficit
$ |
|
Total
$ |
|
| Balance, December 31, 2012 |
41,706,049 |
1,734,404 |
1,028,149 |
41,006 |
2,803,559 |
(39,840,541 |
) |
4,669,067 |
|
| Net and comprehensive loss |
- |
- |
- |
- |
- |
(1,962,943 |
) |
(1,962,943 |
) |
| Balance, December 31, 2013 |
41,706,049 |
1,734,404 |
1,028,149 |
41,006 |
2,803,559 |
(41,803,484 |
) |
2,706,124 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Balance, December 31, 2011 |
40,981,049 |
1,734,404 |
1,028,149 |
41,006 |
2,803,559 |
(40,863,719 |
) |
2,920,889 |
|
| Issuance of common shares |
725,000 |
- |
- |
- |
- |
- |
|
725,000 |
|
| Net earnings and comprehensive income |
- |
- |
- |
- |
- |
1,023,178 |
|
1,023,178 |
|
| Balance, December 31, 2012 |
41,706,049 |
1,734,404 |
1,028,149 |
41,006 |
2,803,559 |
(39,840,541 |
) |
4,669,067 |
|
Consolidated Statements of Operations and Comprehensive Income
| For the years ended December 31 |
2013
$ |
|
2012
$ |
|
| Revenue |
- |
|
8,964,219 |
|
| Cost of goods sold |
- |
|
7,049,073 |
|
| Gross margin |
- |
|
1,915,146 |
|
| |
|
|
|
|
| Operating expenses |
|
|
|
|
| |
Selling |
- |
|
266,567 |
|
| |
General and administrative |
1,123,042 |
|
3,986,584 |
|
| |
Finance |
(3,832 |
) |
651,493 |
|
| |
Research and development tax credits |
(81,267 |
) |
(139,998 |
) |
| |
1,037,943 |
|
4,764,646 |
|
| |
|
|
|
|
| Loss before under noted items and income taxes |
(1,037,943 |
) |
(2,849,500 |
) |
| |
|
|
|
|
| Gain on disposal of assets |
50,001 |
|
4,261,178 |
|
| Lease termination |
(975,001 |
) |
- |
|
| Impairment of assets |
- |
|
(388,500 |
) |
| |
|
|
|
|
| Earnings (loss) before income taxes |
(1,962,943 |
) |
1,023,178 |
|
| Deferred income taxes |
- |
|
- |
|
| Net earnings (loss) and comprehensive income |
(1,962,943 |
) |
1,023,178 |
|
| |
|
|
|
|
| Basic earnings (loss) per share |
($0.07 |
) |
$0.04 |
|
| Diluted earnings (loss) per share |
($0.07 |
) |
$0.04 |
|
| Weighted average number of shares outstanding |
28,323,884 |
|
25,958,190 |
|
| Weighted average number of diluted shares outstanding |
28,323,884 |
|
27,891,802 |
|
Consolidated Statements of Cash Flow
| For the years ended December 31 |
2013
$ |
|
2012
$ |
|
| Operations |
|
|
|
|
| Net earnings (loss) |
(1,962,943 |
) |
1,023,178 |
|
| Items not affecting cash: |
|
|
|
|
| Depreciation of property, plant and equipment |
- |
|
707,352 |
|
| Amortization of intangibles |
- |
|
32,117 |
|
| Impairment of assets |
- |
|
388,500 |
|
| Gain on disposal of assets |
- |
|
(4,261,178 |
) |
| |
(1,962,943 |
) |
(2,110,031 |
) |
| Net change in non-cash working capital items |
1,339,128 |
|
(773,352 |
) |
| Net cash used in operations |
(623,815 |
) |
(2,883,383 |
) |
| |
|
|
|
|
| Investing activities |
|
|
|
|
| Acquisition of property, plant and equipment |
- |
|
(85,181 |
) |
| Proceeds of disposal of property, plant and equipment |
- |
|
6,060,205 |
|
| Proceeds of disposal of intangibles |
- |
|
58,477 |
|
| Acquisition of short-term investments |
(3,000,000 |
) |
- |
|
| Maturity and disposal of short-term investments |
1,100,000 |
|
- |
|
| Net cash provided by (used in) investing activities |
(1,900,000 |
) |
6,033,501 |
|
| |
|
|
|
|
| Financing activities |
|
|
|
|
| Decrease in bank loan |
- |
|
(740,000 |
) |
| Repayment of long term debt |
- |
|
(42,840 |
) |
| Repayment of debentures |
- |
|
(910,400 |
) |
| Net cash used in financing activities |
- |
|
(1,693,240 |
) |
| |
|
|
|
|
| Increase (decrease) in cash and cash equivalents |
(2,523,815 |
) |
1,456,878 |
|
| Cash and cash equivalents, beginning of year |
2,742,114 |
|
1,285,236 |
|
| Cash and cash equivalents, end of year |
218,299 |
|
2,742,114 |
|