EACOM Timber Corporation
TSX VENTURE : ETR.H

EACOM Timber Corporation

March 01, 2010 19:58 ET

EACOM Timber Corporation Announces Financial Results for the Quarter Ended December 31, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2010) - EACOM Timber Corporation (TSX VENTURE:ETR.H) today reported its financial results for the quarter ended December 31, 2009.

Results of operations for the quarter ended December 31, 2009

The loss and comprehensive loss for the quarter ended December 31, 2009 was $864,000 ($0.02 per common share) compared to $289,000 ($0.01 per common share) for the quarter ended December 31, 2008, an increase of $575,000. This increase was due to higher professional fees for the quarter offset by a gain on investments held for trading and gross profit on sales.

Professional fees were $694,000 for the quarter ended December 31, 2009, compared to $64,000 in the same quarter of 2008. The increase was due primarily to higher consulting and advisory services related to business development activities and the preparation of a filing statement required to seek graduation to the TSX Venture exchange from NEX. The Company has incurred expenses of $590,000 related to the due diligence and negotiation of a purchase agreement for one of the opportunities it is pursuing. These activities are on-going.

The loss and comprehensive loss for the nine months ended December 31, 2009 was $1,498,000 ($0.03 per common share) compared to $1,609,000 ($0.05 per common share) for the same period in the prior year, a decrease of $111,000. This decrease was due to a reduction in overall expenses (except for professional fees), a gain on investments held for trading and gross profit on sales.

Liquidity and Capital Resources

At December 31, 2009 the Company's cash and cash equivalents totalled $4,028,000 compared to $1,234,000 at March 31, 2009. Working capital at December 31, 2009 was $3,862,000 compared to $1,647,000 at March 31, 2009. Included in working capital at December 31, 2009, are prepaid expenses of $195,000 related to the acquisition of the Big River sawmill. These acquisition costs will be reversed and recognized as property, plant and equipment, when the Big River sawmill is purchased. Accounts payable and accrued liabilities at December 31, 2009 include accrued liabilities of $590,000 related to the due diligence and negotiation of a purchase agreement for one of the opportunities it is pursuing.

During the quarter, the Company reported cash used in operations of $233,000 compared to cash used in operations for the corresponding quarter last year of $417,000. For the nine months ended December 31, 2009, the Company used $707,000 for operations compared to $1,666,000 for the corresponding period of the prior year.

Cash from financing activities was $2,400,000 for the quarter ended December 31, 2009 compared to $nil from financing activities for same quarter last year. Cash from financing activities in the current period relates to proceeds from the exercise of warrants in November 2009. For the nine months ended December 31, 2009, the Company received cash from financing activities of $3,557,000 compared to $277,000 for the corresponding period of the prior year.

Cash from investing activities for the quarter ended December 31, 2009 was $113,000 compared with cash consumed in investing activities of $66,000 in the corresponding period of the prior year. For the nine month period the Company used $57,000 in investing activities compared to $54,000 for the corresponding period last year.

As at February 26, 2010, the Company has 70,295,344 issued and outstanding common shares, and 2,514,750 outstanding options to purchase common shares and 10,000,000 outstanding warrants to purchase common shares. For additional share information, refer to note 5 of the unaudited consolidated financial statements for the quarter ended December 31, 2009.

Statements in this news release other than historical information are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the availability of resources, the timing and effects of regulatory actions, the strength of competition, the outcome of litigation and the potential for obtaining timber supply and other acquisition transactions.

Additional information regarding risks and uncertainties is set forth in the current MD&A for EACOM Timber Corporation on file with the Canadian Securities Commissions.



EACOM Timber Corporation
(Formerly Inflazyme Pharmaceuticals Ltd.)
Consolidated Balance Sheets
(Unaudited)
December 31, March 31,
2009 2009
-------------- --------------
Assets

Current assets
Cash and cash equivalents $ 4,027,686 $ 1,233,513
Restricted cash and short term investment 144,490 130,000
Investments held for trading 57,475 89,467
Other receivables 68,588 101,097
Trade accounts receivable 79,648 263,052
Inventory 55,272 74,469
Deferred financing costs 37,305 -
Prepaid expenses 358,091 99,686
-------------- --------------
4,828,555 1,991,284

Property and equipment - 13,167

-------------- --------------
$ 4,828,555 $ 2,004,451
-------------- --------------
-------------- --------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 966,932 $ 344,715

-------------- --------------
966,932 344,715
-------------- --------------

Shareholders' equity

Capital stock 4,367,485 141,349,555

Contributed surplus 358,578 2,439,104

Deficit (864,440) (142,128,923)
-------------- --------------
3,861,623 1,659,736

-------------- --------------
$ 4,828,555 $ 2,004,451
-------------- --------------
-------------- --------------


EACOM Timber Corporation
(Formerly Inflazyme Pharmaceuticals Ltd.)
Consolidated Statements of Loss, Comprehensive Loss and Deficit
(Unaudited)

For the Three Months For the Nine Months
Months Ended Months Ended
------------------------------ ----------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
--------------- ------------- ------------- -------------
Revenues
Sales $ 1,324,603 $ - $ 3,364,043 $ -
Cost of Sales (1,275,198) - (3,315,050) -
--------------- ------------- ------------- -------------
Gross Profit 49,405 - 48,993 -

Expenses

Loss/(gain) on
investments
held for trading (141,126) 46,303 (95,899) 46,303
Personnel 79,668 65,273 236,108 307,087
Stock based
compensation 44,597 33,843 104,814 63,067
Professional fees 693,659 64,069 855,68 255,910
Shareholder
and other
corporate 50,112 8,679 101,207 127,282
Insurance and
other office 68,560 81,463 176,363 224,486
Facilities 35,917 30,496 86,002 204,833
Travel 84,053 31,955 149,970 109,381
Amortization of
property,
equipment, patents
and licenses - 6,582 13,166 19,748
Employee terminations - - - 376,972
--------------- ------------- ------------- -------------
915,440 368,663 1,627,418 1,735,069
--------------- ------------- ------------- -------------

Loss from
operations (866,035) (368,663) (1,578,425) (1,735,069)
--------------- ------------- ------------- -------------

Other income 1,595 17,166 80,841 50,824

Gain on sale of
biopharmaceutical
assets - 62,809 - 74,813

--------------- ------------- ------------- -------------

Loss and
comprehensive
loss for the
period (864,440) (288,688) (1,497,584) (1,609,432)

Deficit,
beginning
of period - (141,579,349) (142,128,923) (140,258,605)

Elimination of
Deficit - - 142,762,067 -

Deficit, end of
period $ (864,440) $(141,868,037) $ (864,440) $(141,868,037)
--------------- ------------- ------------- -------------

Basic and
diluted loss
per common
share $ (0.02) $ (0.01) $ (0.03) $ (0.05)
--------------- ------------- ------------- -------------

Weighted average
number of
common shares
outstanding 54,603,768 36,545,344 44,350,344 34,540,798
--------------- ------------- ------------- -------------


EACOM Timber Corporation
(Formerly Inflazyme Pharmaceuticals Ltd.)
Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months For the Nine Months
Months Ended Months Ended
------------------------------ ----------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------------------------ ----------------------------
Cash flows from
operating
activities
Loss for the
period $ (864,440) $ (288,688) $ (1,497,584) $ (1,609,432)
Items not
affecting
cash:
Amortization
of property,
equipment,
patents and
licenses - 6,582 13,166 19,748
Gain on sale of
biopharmaceutical
assets - (62,809) - (74,813)
(Gain)/loss on
investments
held for trading (141,126) 26,467 (95,899) 26,467
Option fee
received for
Big River
sawmill (Note 4) - - (70,000) -
Stock-based
compensation
(Note 5) 44,597 33,843 104,814 63,067
------------------------------ ----------------------------
(960,969) (284,605) (1,545,503) (1,574,963)
Changes in
non-cash
working capital 728,126 (132,197) 838,922 (91,262)
------------------------------ ----------------------------
(232,843) (416,802) (706,581) (1,666,225)
------------------------------ ----------------------------
Cash flows from
financing
activities
Proceeds from
private
placement(Note 5) - - 800,000 300,000
Finance costs for
private
placement(Note 5) - - (17,845) (23,375)
Proceeds from
exercise of
Warrants(Note 5) 2,437,500 - 2,812,500 -
Deferred finance
costs (Note 7) (37,305) - (37,305) -
------------------------------ ----------------------------
2,400,195 - 3,557,350 276,625
Cash flows from
investing
activities
Purchase of
investments
held-for-trading (12,165) (66,100) (68,356) (66,100)
Proceeds on
sale of
investments
held for trading 127,869 - 196,250 -
Increase in
restricted cash
and short term
investment 97,053 - (14,490) -
Option fees paid
on sawmill
assets(Note 4) (100,000) - (240,000) -
Option fee received
for Big
River sawmill
(Note 4) - - 70,000 -
Proceeds from
sale of
biopharmaceutical
assets - - - 12,004
------------------------------ ----------------------------
112,757 (66,100) (56,596) (54,096)

------------------------------ ----------------------------
Increase /
(Decrease)
in cash
and cash
equivalents 2,280,109 (482,902) 2,794,173 (1,443,696)
Cash and cash
equivalents,
beginning of
period 1,747,577 2,286,304 1,233,513 3,247,098
------------------------------ ----------------------------
Cash and cash
equivalents,
end of period $ 4,027,686 $ 1,803,402 $ 4,027,686 $ 1,803,402
------------------------------ ----------------------------
Supplemental
disclosure of
cash flow
information
Interest
received 2,527 7,157 10,841 40,162


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • EACOM Timber Corporation
    Michael Liggett
    C.F.O.
    1.800.315.3660/604.279.8511
    604.279.8711 (FAX)