EACOM Timber Corporation
NEX BOARD : ETR.H

EACOM Timber Corporation

July 29, 2009 22:29 ET

EACOM Timber Corporation Announces Financial Results for the Year Ended March 31, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 29, 2009) - EACOM Timber Corporation (NEX:ETR.H) today reported its financial results for the year ended March 31, 2009.

Results of operations for the year ended March 31, 2009

The loss and comprehensive loss for the year ended March 31, 2009 was $1,870,000 ($0.05 per common share) compared to $227,000 ($0.01 per common share) for the prior year. The increase in the loss from the prior year is due to the absence of a significant gain in the current year. In the prior year the Company recognized a gain on the sale of biopharmaceutical assets of $4,005,000 which substantially offset the loss from operations for the year. In the current year the company recognized a gain on the sale of biopharmaceutical assets of only $75,000.

Loss from operations for the year ended March 31, 2009 was $2,005,000 compared to $4,624,000 in the prior year. The decrease of $2,620,000 in the loss from operations was due primarily to lower professional fees, reduced personnel expenses and decreased employee termination expenses.

Loss on investments held for trading

During the year the Company invested in equity securities and entered into lumber futures contracts. The Company recognized a loss of $84,000 related primarily to lumber futures contracts.

Personnel expenses

Personnel expenses for the current year were $379,000 versus $1,097,000 for the prior year. The decrease of $718,000 was due to lower salaries and benefits resulting from a reduction in the number of employees.

Professional fees

For the year ended March 31, 2009, professional fees were $331,000 compared to $1,425,000 in prior year. The decrease of $1,094,000 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 and lower legal fees associated with business development activities.

Shareholder and other corporate expenses

For the year ended March 31, 2009, shareholder and other corporate expenses were $140,000 compared to $320,000 in the corresponding year. The decrease of $180,000 was due primarily to reduction in fees associated with shareholder meetings.

Insurance and other office

For the year ended March 31, 2009, insurance and other office expenses were $286,000 compared to $247,000 in prior year. The increase of $39,000 relates primarily to a foreign exchange gain netted against these expenses in prior year.

Facilities

For the year ended March 31, 2009, facility expenses were $251,000 compared to $364,000 in the corresponding year. The decrease of $113,000 was due to reduced rent expense as a result of sub-lease recoveries recognized by the Company during the year.

Travel

For the year ended March 31, 2009, travel expenses were $130,000 compared to $168,000 in prior year, a reduction of $38,000. The travel expenses decreased due to less business development activity in the current year compared to the prior year.

Amortization expenses

For the year ended March 31, 2009, amortization was $26,000 compared to $137,000 in prior year. The decrease of $111,000 was due to a lower property and equipment net asset base.

Employee termination expenses

For the year ended March 31, 2009 employee termination expenses were $377,000 compared to $925,000 in the prior year when more employees were terminated.

Interest income

For the year ended March 31, 2009, interest revenue was $60,000 compared to $149,000 in prior year. The decrease of $89,000 was due primarily to lower cash and cash equivalent balances.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2009 the Company's cash and cash equivalents totalled $1,234,000 compared to $3,247,000 at March 31, 2008. Working capital at March 31, 2009 was $1,646,000 compared to $3,116,000 at March 31, 2008. Non-cash working capital at March 31, 2009 was $413,000 compared to ($131,000) in the prior year. This change primarily reflects the investment in working capital to support the Company's lumber trading operations.

The Company used $2,170,000 to fund operations for the year ended March 31, 2009 compared with $6,900,000 for the prior year.

Cash from financing activities for the year ended March 31, 2009 was $277,000 compared to $nil cash from financing activities last year. The current year amount reflects the net proceeds from the private placement completed in the second quarter.

Cash of $119,000 was used in investing activities for the year ended March 31, 2009, compared to an inflow of $4,686,000 for the year ended March 31, 2008. The prior year amount represents the net proceeds from the sale of the Company's biopharmaceutical assets.

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

March 31, March 31,
2009 2008
------------- -------------
Assets

Current assets
Cash and cash equivalents $ 1,233,513 $ 3,247,098
Restricted short term investment (note 4) 130,000 -
Investments held for trading 89,467 -
Other receivables (note 5) 101,097 163,771
Trade accounts receivable 263,052 -
Inventory 74,469 -
Prepaid expenses 99,686 144,739
------------- -------------

1,991,284 3,555,608

Property and equipment (note 6) 13,167 39,498

------------- -------------
$ 2,004,451 $ 3,595,106
------------- -------------
------------- -------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 344,715 $ 439,524

Shareholders' equity

Capital stock (note 7) 141,349,555 141,212,889

Contributed surplus (note 7) 2,439,104 2,201,298

Deficit (142,128,923) (140,258,605)
------------- -------------
1,659,736 3,155,582

------------- -------------
$ 2,004,451 $ 3,595,106
------------- -------------
------------- -------------

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 Year Ended
---------------------------- ----------------------------
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
------------- ------------- ------------- -------------

Revenues
Sales $ 880,573 $ - $ 880,573 $ -
Cost of Sales $ (783,286) $ - $ (783,286) $ -
------------- ------------- ------------- -------------
Gross Margin $ 97,287 $ - $ 97,287 $ -

Expenses

Loss on
investments held
for trading 37,577 - 83,880 -
Personnel 71,704 110,259 378,791 1,096,630
Stock based
compensation
(note 7) 34,781 - 97,848 18,381
Professional fees 75,393 204,410 331,303 1,425,325
Shareholder and
other corporate 12,804 181,163 140,086 320,295
Insurance and
other office 61,470 160,236 285,956 246,633
Facilities 46,185 103,163 251,018 364,013
Travel 20,439 12,078 129,820 168,043
Amortization of
property,
equipment,
patents and
licenses 6,583 7,132 26,331 137,335
Research and
development - - - (77,417)
Employee
terminations
(note 8) - - 376,972 924,686
------------- ------------- ------------- -------------
366,936 778,441 2,102,005 4,623,924
------------- ------------- ------------- -------------

Loss from
operations (269,649) (778,441) (2,004,718) (4,623,924)
------------- ------------- ------------- -------------

Other income 8,763 33,685 59,587 180,942

Gain on sale of
biopharma-
ceutical assets
(note 10) - 40,000 74,813 4,005,210

Gain on deferred
licensing
revenue
(note 11) - - - 210,788

------------- ------------- ------------- -------------
Loss for the
period (260,886) (704,756) (1,870,318) (226,984)

Deficit,
beginning of
period (141,868,037) (139,553,849) (140,258,605) (140,031,621)
------------- ------------- ------------- -------------

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

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

Weighted average
number of common
shares
outstanding 36,545,344 32,795,344 35,035,070 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 Year Ended
---------------------------- ----------------------------
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
---------------------------- ----------------------------

Cash flows from
operating
activities
Loss for the
period $ (260,886) $ (704,756) $ (1,870,318) $ (226,984)
Items not
affecting cash:
Amortization of
property,
equipment,
patents and
licenses 6,583 7,132 26,331 137,335
Gain on deferred
licensing
revenue - - - (210,788)
Gain on sale of
biopharma-
ceutical assets - (40,000) (74,813) (4,005,210)
Other income - - - (19,162)
Unrealized gains
on investments
held for
trading (29,316) - (25,317) -
Stock-based
compensation 34,781 (21,474) 97,848 (3,095)
---------------------------- ----------------------------
(248,838) (759,098) (1,846,269) (4,327,904)

Changes in non-
cash working
capital (193,000) (907,484) (324,603) (2,572,284)
---------------------------- ----------------------------
(441,838) (1,666,582) (2,170,872) (6,900,188)
---------------------------- ----------------------------

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

Cash flows from
investing
activities
Purchase of
investments
held-for-trading (20,950) - (87,050) -
Proceed on sale
of investments
held for trading 22,899 - 22,899 -
Purchase of
restricted short
term investment (130,000) - (130,000) -
Proceeds from
sale of
biopharma-
ceutical assets - 40,000 74,813 4,753,470
Selling expenses
on sale of
patents and
licenses - - - (67,500)
---------------------------- ----------------------------
(128,051) 40,000 (119,338) 4,685,970

---------------------------- ----------------------------
Decrease in cash
and cash
equivalents (569,889) (1,626,582) (2,013,585) (2,214,218)

Cash and cash
equivalents,
beginning of
period 1,803,402 4,873,680 3,247,098 5,461,316
---------------------------- ----------------------------

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

Supplemental
disclosure of
cash flow
information
Interest received 9,984 38,509 50,146 149,300

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)