EACOM Timber Corporation
NEX BOARD : ETR.H

EACOM Timber Corporation

August 28, 2009 19:49 ET

EACOM Timber Corporation Announces Financial Results for the Quarter Ended June 30, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2009) - EACOM Timber Corporation (NEX:ETR.H) today reported its financial results for the quarter ended June 30, 2009.

Results of operations for the quarter ended June 30, 2009

The loss and comprehensive loss for the quarter ended June 30, 2009 was $204,000 ($0.01 per common share) compared to $767,000 ($0.02 per common share) for the quarter ended June 30, 2008, a decrease in the net loss of $563,000.

Loss from operations for the quarter ended June 30, 2009 was $208,000 compared to $801,000 in the corresponding quarter last year. The decrease of $592,000 in the loss from operations was due primarily to lower professional fees, reduced personnel expenses and decreased employee termination expenses combined with a gross margin from lumber sales this quarter.

Sales, cost of sales and gross margin

During the quarter the Company recognized sales of $1,062,000 and realized a gross margin of $51,000, for a gross margin percent of 4.8%. The Company expects to earn a gross margin percent between 4% and 8% on its sales. The Company did not have any sales in the corresponding quarter of the prior year.

Gain on investments held for trading

During the year the Company invested in equity securities and entered into lumber futures contracts. The Company recognized a gain of $25,000 related primarily to lumber futures contracts.

Personnel expenses

Personnel expenses for the current quarter were $71,000 versus $121,000 for the corresponding quarter last year. The decrease of $50,000 was due to lower salaries and benefits resulting from a reduction in the number of employees.

Professional fees

For the quarter ended June 30, 2009, professional fees were $54,000 compared to $84,000 in the first quarter of last year. The decrease of $30,000 was due primarily to a reduction in legal and directors' fees offset by an increase in consulting fees.

Shareholder and other corporate expenses

For the quarter ended June 30, 2009, shareholder and other corporate expenses were $33,000 compared to $41,000 in the corresponding quarter last year. The decrease of $8,000 was due primarily to the absence of fees associated with shareholder meetings in the current quarter offset by the amortized portion ($25,000) of the option fee paid related to the Big River sawmill.

Facilities

For the quarter ended June 30, 2009, facility expenses were $27,000 compared to $109,000 in the prior year. The decrease of $81,000 was due to reduced rent expense as a result of sub-lease recoveries recognized by the Company during the current quarter. Also, in the corresponding quarter in the prior year, the Company incurred commission fees related to the sub-leasing of its facility.

Travel

For the quarter ended June 30, 2009, travel expenses were $20,000 compared to $10,000 in the corresponding quarter last year. The increase in travel expenses was due to increased business development activity in the current quarter compared to the prior year.

Employee termination expenses

For the quarter ended June 30, 2009 employee termination expenses were nil compared to $377,000 in the corresponding quarter of the prior year when two employees were terminated.

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2009 the Company's cash and cash equivalents totaled $807,000 compared to $1,234,000 at March 31, 2009. Working capital at June 30, 2009 was $1,474,000 compared to $1,647,000 at March 31, 2009. Non-cash working capital at June 30, 2009 was $667,000 compared to $413,000 at March 31, 2009. This increase primarily reflects the investment in working capital required for the Company's lumber trading operations.

The Company used $427,000 to fund operations for the quarter ended June 30, 2009 compared with $580,000 for the corresponding quarter of the prior year.

Cash from financing activities ended June 30, 2009 was nil for both quarters this & last year.

Cash of $12,000 was used in investing activities for the quarter ended June 30, 2009, reflecting a net purchase of investments held for trading. In the corresponding quarter of the prior year, the Company had an inflow of $12,000 from investing activities. This amount represents the net proceeds from the sale of biopharmaceutical assets.

Subsequent to the quarter end, the Company received proceeds of $1,175,000 from exercise of warrants and the completion of the non-brokered private placement. In August 2009, 3,750,000 warrants were exercised at an exercise price of $0.10 for proceeds of $375,000. 3,750,000 shares were issued as a result of the exercise of these warrants. On August 26, 2009 the Company completed a non-brokered private placement issuing 10,000,000 Units for gross proceeds of $800,000. Each Unit consisted of one common share and one warrant to purchase a common share and the Units were priced at $0.08 per Unit. Each warrant entitles the holder to acquire one common share for a price of $0.25 up until the first anniversary of the private placement closing and the warrants must be exercised under certain circumstances.

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 effectiveness of patent protection. 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)

June 30, March 31,
2009 2009
------------------------------

Assets

Current assets
Cash and cash equivalents $ 806,793 $ 1,233,513
Restricted short term investment 130,000 130,000
Investments held for trading 94,097 89,467
Other receivables 130,021 101,097
Trade accounts receivable 159,571 263,052
Inventory 244,251 74,469
Prepaid expenses 171,585 99,686
------------------------------
1,736,318 1,991,284

Property and equipment 6,584 13,167
------------------------------
$ 1,742,902 $ 2,004,451
------------------------------
------------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 262,450 $ 344,715
------------------------------
262,450 344,715
------------------------------

Shareholders' equity

Capital stock 141,349,555 141,349,555

Contributed surplus 2,463,732 2,439,104

Deficit (142,332,835) (142,128,923)
------------------------------
1,480,452 1,659,736

------------------------------
$ 1,742,902 $ 2,004,451
------------------------------
------------------------------

See accompanying notes to the interim consolidated financial statements.

On behalf of the board

Rick Doman (signed) Michael Liggett (signed)
--------------------------- ---------------------------
President and CEO Chief Financial Officer
Director Director


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

For the Three Months Ended
------------------------------
June 30, 2009 June 30, 2008
-------------- --------------

Revenues

Sales $ 1,062,479 $ -
Cost of Sales (1,011,090) -
-------------- --------------
Gross Margin 51,389 -

Expenses

Loss/(gain) on investments held for trading (25,252) -
Personnel 71,152 120,956
Stock based compensation 24,628 1,330
Professional fees 54,445 83,397
Shareholder and other corporate 32,612 40,718
Insurance and other office 48,108 52,256
Facilities 27,219 108,594
Travel 20,376 10,006
Amortization of property, equipment,
patents and licenses 6,583 6,583
Employee terminations - 376,972
-------------- --------------
259,871 800,812
-------------- --------------

Loss from operations (208,482) (800,812)
-------------- --------------

Other income 4,570 22,117

Gain on sale of biopharmaceutical assets - 12,004
-------------- --------------
Loss and comprehensive loss for the period (203,912) (766,691)

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

Deficit, end of period $ (142,332,835) $ (141,025,296)
-------------- --------------
-------------- --------------

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

Weighted average number of common
shares outstanding 36,545,344 32,795,344
-------------- --------------
-------------- --------------

See accompanying notes to the interim consolidated financial statements.


EACOM Timber Corporation
(Formerly Inflazyme Pharmaceuticals Ltd.)
Consolidated Statements of Cash Flows
(Unaudited)

For the Three Months Ended
------------------------------
June 30, 2009 June 30, 2008
-------------- --------------

Cash flows from operating activities
Loss for the period $ (203,912) $ (766,691)
Items not affecting cash:
Amortization of property, equipment,
patents and licenses 6,583 6,583
Gain on sale of biopharmaceutical assets - (12,004)
Gain on sale of equity instruments (2,516) -
Unrealized (gain)/loss on
investments held for trading 9,671 -
Stock-based compensation 24,628 1,330
-------------- --------------
(165,546) (770,782)

Changes in non-cash working capital (249,389) 178,931
-------------- --------------
(414,935) (591,851)
-------------- --------------

Cash flows from investing activities
Purchase of investments held-for-trading (48,801) -
Proceed on sale of investments
held for trading 37,016 -
Proceeds from sale of
biopharmaceutical assets - 12,004
-------------- --------------
(11,785) 12,004

-------------- --------------
Decrease in cash and cash equivalents (426,720) (579,847)

Cash and cash equivalents,
beginning of period 1,233,513 3,247,098
-------------- --------------

Cash and cash equivalents, end of period $ 806,793 $ 2,667,251
-------------- --------------
-------------- --------------

Supplemental disclosure of cash
flow information
Interest received - 17,689

See accompanying notes to the interim consolidated financial statements.


Contact Information

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