Innovium Media Properties Corp.
TSX VENTURE : IN
FRANKFURT : IH7

Innovium Media Properties Corp.

August 26, 2010 08:30 ET

Innovium Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2010) - Innovium Media Properties Corp.'s ("Innovium" or the "Company") (TSX VENTURE:IN)(FRANKFURT:IH7) second quarter 2010 results are discussed below.

Innovium had 2010 second quarter net earnings of $288,000 compared to a second quarter net loss of $1,087,000 in 2009 (a loss of $429,000 for the first six months of 2010 compared to a loss of $708,000 for the same period in 2009). For the three months ended June 30, 2010, the Company recorded a negative operating cash flow, after changes in non-cash working capital items, of $258,000 compared to a negative operating cash flow of $378,000 for the second three months of 2009 (negative operating cash flow of $473,000 for the first six months of 2010 compared to a negative cash flow of $655,000 for the first six months of 2009).

In the second quarter of 2010, the Company recorded an unrealized foreign exchange gain of $684,000 (unrealized foreign exchange loss of $1,038,000 for the second quarter of 2009) on its investment in Seed Media Group LLC ("Seed"). For the first six months of 2010, the Company recorded an unrealized foreign exchange gain of $202,000 (unrealized foreign exchange loss of $602,000 for the same period in 2009) on its investment in Seed.

Compared to the second quarter of 2009, the Company experienced a 5% decrease in general and administrative costs in the second quarter of 2010 (a 14% decrease for the first six months of 2010 compared to the same period in 2009). The year-over-year decrease reflects the efforts made by Management to control costs as well as the fact that in 2009 consultants had been engaged for the purpose of accessing capital.

In the second quarter, an additional US$192,500 was advanced as a Series C Unit advance, accruing interest at 12% per annum. These Series C Unit advances were subsequently converted into a secured Seed 18% Bridge Loan, convertible into Seed equity at a 15% discount to the price of a subsequent equity financing, at any time prior to maturity ("Seed Bridge"). Subsequent to the quarter end, an additional US$35,000 was advanced as part of the Seed Bridge.

In the second quarter, Innovium received advances totaling $399,000 in the form of 3-year term loans bearing interest at 12% per annum. In July and August of 2010, Innovium received advances totaling $87,000 on the same terms. The Company has the option of repaying these loans in full, without penalty, after six months from the date of the advances.

About Innovium Media Properties Corp.

Innovium's venture investment portfolio is devoted to Seed Media Group LLC, a private media and technology company focused on the professional and consumer science markets. Seed's award winning brands include Seed® (www.seedmagazine.com) and ScienceBlogs® (www.scienceblogs.com). Innovium trades under the symbol IN on the TSX Venture Exchange ("TSX-V") and IH7 on the Frankfurt Stock Exchange ("FWB").

Table of Highlights of the Financial Statements  
   
  Three months ended June 30   Six months ended June 30  
(Expressed in thousands of Canadian dollars, except per share amounts)   2010     2009     2010     2009  
                         
Unrealized gains (losses) on investments $ 684   $ (1,038 ) $ 293   $ (602 )
Interest and dividend income   -     302     2     604  
                         
                         
General and administrative expenses   297     311     570     663  
Interest expense   79     30     144     38  
Depreciation and amortization   5     7     11     14  
Foreign exchange loss (gain)   15     3     (1 )   (5 )
                         
Net earnings (loss) $ 288   $ (1,087 ) $ (429 ) $ (708 )
                         
Net earnings (loss) per share $ 0.00   $ (0.01 ) $ (0.00 ) $ (0.01 )
                         
Cash used in operating activities (after net change in working capital balances) $ (258 ) $ (378 ) $ (473 ) $ (655 )
     
     
    As At
(Expressed in thousands of Canadian dollars)   June 30, 2010   Dec. 31, 2009
         
Cash and cash equivalents $ - $ 10
Accounts receivable and other assets   27   40
Short-term investments   59   58
         
Total current assets   86   108
         
Venture investments   14,941   14,328
Capital assets, net   110   121
         
Total assets $ 15,137 $ 14,557
         
Bank indebtedness $ 21 $ -
Accounts payable and accrued liabilities   191   108
Term loans   2,734   1,829
Future tax liability   103   103
         
Total liabilities $ 3,049 $ 2,040
         
Shareholders' equity $ 12,088 $ 12,517

Full financial results are available on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. We seek safe harbour.

Contact Information

  • Innovium Media Properties Corp.
    Neil Raymond
    Chairman and CEO
    (514) 281-0481
    ceo@innovium.ca
    or
    Innovium Media Properties Corp.
    Jamie Macintosh
    President and COO
    (416) 862-7444
    coo@innovium.ca
    or
    Innovium Media Properties Corp.
    Julio DiGirolamo
    CFO and Corporate Secretary
    (416) 862-7444
    cfo@innovium.ca
    innovium@innovium.ca