EACOM Timber Corporation
NEX BOARD : ETR.H

EACOM Timber Corporation

November 28, 2008 19:00 ET

EACOM Timber Corporation Announces Financial Results for the Quarter and Six Months Ended September 30, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) - EACOM Timber Corporation (NEX:ETR.H) today reported its financial results for the three and six months ended September 30, 2008.

Recent developments

During the quarter, the Company's shareholders voted in a new board of directors to oversee the Company as it seeks to enter into the forestry sector business. New management, with experience in the sector, was also appointed and the Company changed its name to EACOM Timber Corporation (formerly Inflazyme Pharmaceuticals Ltd.). The Company is currently in the start-up phase with plans to initiate a lumber trading business while adopting an opportunistic approach to acquiring assets in the forestry sector.

As part of this transition the Company effected a 1:4 common share consolidation and completed a non-brokered private placement issuing 3,750,000 (15,000,000 pre-consolidation) units at $0.08 ($0.02 pre-consolidation) per unit for gross proceeds of $300,000. Each unit consisted of one common share and one common share purchase warrant (the "Warrant"). Each Warrant allows the holder to purchase one common share at a price of $0.10 ($0.025 pre-consolidation) and the warrant expires August 25, 2009.

Also during the quarter, Orexo AB announced the initiation of a Phase II clinical study with a compound that originated at the Company. If Orexo AB decide to later take this compound into a Phase IIb clinical study, then a $1.5 million milestone payment would be payable to the Company. The Company expects to have further information on the progress of this study in the first half of 2009.

Results of operations for the quarter ended September 30, 2008

The net loss for the second quarter ended September 30, 2008 was $554,000 ($0.02 per common share) compared to a net loss of $321,000 ($0.01 per common share) for the corresponding quarter last year. The increase in the net loss was primarily due to a gain recognized on deferred licensing revenue of $211,000 in the corresponding quarter last year.

Loss from operations for the quarter ended September 30, 2008 was $566,000 compared to $580,000 for the corresponding quarter last year. The decrease of $14,000 in the loss from operations was due primarily to lower professional fees and personnel expenses in the current year offset by a net recovery of contract research and development expenses of $302,000 in the corresponding quarter last year.

For the quarter ended September 30, 2008, professional fees were $108,000 compared to $333,000 in the corresponding quarter of the prior year. The decrease of $225,000 was due primarily to lower legal fees associated with the filing and maintenance of intellectual property assets which were abandoned or disposed of in the prior year.

Personnel expenses for the current quarter were $121,000 versus $345,000 for the corresponding quarter last year. The decrease of $224,000 was due to lower salaries and benefits resulting from a reduction in the number of employees.

Results of operations for the six months ended September 30, 2008

The net loss for the six months ended September 30, 2008 was $1,321,000 ($0.04 per common share) compared to a net loss of $1,014,000 ($0.03 per common share) for the same period in the prior year. The increase in the net loss was primarily due to a gain recognized on the deferred licensing revenue of $211,000 and a gain on the sale of fixed assets of $640,142 in the prior year period, offset by a lower loss from operations in the current period.

Loss from operations for the six months ended September 30, 2008 was $1,366,000 compared to $1,944,000 for the same period last year. The decrease of $578,000 was due primarily to the reduction in professional fees and personnel expenses, offset by higher employee termination expenses in the current period.

Professional fees for the six months ended September 30, 2008 were $192,000 compared to $870,000. The decrease of $678,000 was due primarily to lower legal fees associated with the filing and maintenance of intellectual property assets which were abandoned or disposed of in the prior year.

Personnel expenses for the six months ended September 30, 2008 were $242,000 compared to $649,000 for the corresponding period last year. The decrease of $407,000 was due to lower salaries and benefits resulting from a reduction in the number of employees.

For the six months ended September 30, 2008, employee termination expenses were $377,000, representing severance and other employee separation costs. There were no employee termination expenses for the corresponding period of the prior year.

Liquidity and Capital Resources

At September 30, 2008 the Company's cash and cash equivalents totaled $2,286,000 compared to $3,247,000 at March 31, 2008. Working capital at September 30, 2008 was $2,114,000 compared to $3,116,000 at March 31, 2008.

The Company used $658,000 to fund operations during the quarter ended September 30, 2008 compared with $1,613,000 for the corresponding quarter last year. For the six month period ended September 30, 2008 the Company used $1,249,423 to fund operations compared to $4,257,000 for the corresponding period last year.

Cash from financing activities for the quarter and six months ended September 30, 2008 was $277,000 compared to cash from financing activities of $nil for the corresponding periods last year. The cash from financing activities was the net proceeds from the non-brokered private placement.

Cash from investing activities for the quarter ended September 30, 2008, were $nil compared to $15,000 for the corresponding quarter last year. For the six month period ended September 30, 2008 cash from investing activities was $12,000 compared to $715,000 for the corresponding period in the prior year. In the prior year period the Company disposed of substantially all of its research equipment for proceeds of $715,000.

The Company believes its current cash resources are sufficient to fund the start-up of its proposed lumber trading activities.

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)
September 30, March 31,
2008 2008
-------------- --------------
Assets

Current assets
Cash and cash equivalents $ 2,286,304 $ 3,247,098
Receivables 100,375 163,771
Prepaid expenses 102,696 144,739
-------------- --------------
2,489,375 3,555,608

Property and equipment 26,334 39,498

-------------- --------------
$ 2,515,709 $ 3,595,106
-------------- --------------
-------------- --------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 375,023 $ 439,524

Shareholders' equity

Capital stock 141,349,555 141,212,889

Contributed surplus 2,370,480 2,201,298

Deficit (141,579,349) (140,258,605)
-------------- --------------
2,140,686 3,155,582

-------------- --------------
$ 2,515,709 $ 3,595,106
-------------- --------------
-------------- --------------

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 Operations and Deficit
(Unaudited)

For the Three Months Ended For the Six Months Ended
---------------------------- ----------------------------
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
------------- ------------- ------------- -------------

Revenues
Licensing
revenue $ - $ 22,061 $ - $ 31,642
------------- ------------- ------------- -------------

Expenses

Research and
development - (301,879) - (77,417)
Personnel 120,861 344,958 241,814 649,113
Stock based
compensation 27,891 3,748 29,224 11,133
Professional
fees 108,444 332,875 191,841 870,240
Shareholder
and other
corporate 77,885 12,783 118,603 47,607
Insurance and
other office 90,767 50,122 143,023 90,249
Facilities 65,743 84,364 174,337 176,512
Travel 67,420 44,627 77,426 115,680
Amortization
of property,
equipment,
patents and
licenses 6,583 30,656 13,166 92,953
Employee
terminations - - 376,972 -
------------- ------------- ------------- -------------
565,594 602,254 1,366,406 1,976,070
------------- ------------- ------------- -------------

Loss from
operations (565,594) (580,193) (1,366,406) (1,944,428)
------------- ------------- ------------- -------------

Interest income 11,541 33,283 33,658 79,738

Gain on sale of
fixed assets - 15,020 12,004 640,142

Gain on
deferred
licensing
revenue - 210,788 - 210,788
------------- ------------- ------------- -------------
Loss for
the period (554,053) (321,102) (1,320,744) (1,013,760)

Deficit,
beginning
of period (141,025,296) (140,724,279) (140,258,605) (140,031,621)
------------- ------------- ------------- -------------

Deficit,
end of period $(141,579,349) $(141,045,381) $(141,579,349) $(141,045,381)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------

Basic and
diluted loss
per common
share $ (0.02) $ (0.01) $ (0.04) $ (0.03)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------

Weighted
average number
of common
shares
outstanding 34,262,735 32,795,344 33,533,049 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 For the Six Months Ended
---------------------------- ----------------------------
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
------------- ------------- ------------- -------------
Cash flows from
operating
activities
Loss for the
period $ (554,053) $ (321,102) $ (1,320,744) $ (1,013,760)
Items not
affecting cash:
Amortization of
property,
equipment,
patents and
licenses 6,583 30,656 13,166 92,953
Gain on sale of
fixed assets - (15,020) (12,004) (640,142)
Gain on deferred
licensing
revenue - (210,788) - (210,788)
Deferred
licensing
revenue - (9,581) - (19,162)
Stock-based
compensation 27,891 3,748 29,224 11,133
---------------------------- ---------------------------
(519,579) (522,087) (1,290,358) (1,779,766)

Changes in
non-cash working
capital (137,993) (1,091,070) 40,935 (2,477,198)
---------------------------- ---------------------------
(657,572) (1,613,157) (1,249,423) (4,256,964)
---------------------------- ---------------------------

Cash flows from
financing
activities
Proceeds from
private
placement 300,000 300,000
Finance costs
re private
placement (23,375) (23,375)
---------------------------- ---------------------------
276,625 276,625

Cash flows from
investing
activities
Proceeds from
sale of fixed
assets - 15,020 12,004 715,112
---------------------------- ---------------------------
- 15,020 12,004 715,112

---------------------------- ---------------------------
Decrease in cash
and cash
equivalents (380,947) (1,598,137) (960,794) (3,541,852)

Cash and cash
equivalents,
beginning of
period 2,667,250 3,517,601 3,247,098 5,461,316
---------------------------- ---------------------------

Cash and cash
equivalents,
end of period $ 2,286,303 $ 1,919,464 $ 2,286,304 $ 1,919,464
---------------------------- ---------------------------
---------------------------- ---------------------------

Supplemental
disclosure of
cash flow
information
Interest
received 15,316 36,100 33,005 79,378

See accompanying notes to the interim consolidated financial statements.


The TSX Venture Exchange (NEX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this information.

Contact Information

  • EACOM Timber Corporation
    Michael Liggett
    C.F.O.
    Toll Free: 1-800-315-3660 or (604) 279-8511
    (604) 279-8711 (FAX)