Atlantis Systems Corp.

TSX VENTURE : AIQ.H


Atlantis Systems Corp.

August 27, 2013 17:11 ET

Atlantis Reports Second Quarter 2013 Financial Results

HALIFAX, NOVA SCOTIA--(Marketwired - Aug. 27, 2013) -

This news release may contain forward-looking statements. Reference should be made to "Forward-looking Statements" at the end of this news release. All amounts are stated in Canadian dollars except where otherwise noted.

Atlantis Systems Corp. (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its unaudited condensed consolidated interim financial statements for the second quarter ended June 30, 2013. Full results are available on www.sedar.com.

The financial statements have not been reviewed by an auditor. The unaudited condensed consolidated interim financial statements of Atlantis Systems Corp. have been prepared by and are the responsibility of management acting on behalf of Atlantis Systems Corp. The Company's independent auditors, Deloitte & Touche LLP have not performed a review of these condensed interim consolidated interim financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed consolidated interim financial statements by an entity's auditor.

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

About Atlantis Systems Corp.

Atlantis Systems (NEX:AIQ.H) uses its core capabilities in simulation-aided design and engineering and e-learning, combined with various technology tools, to help customers in military and commercial markets to ensure the feasibility, capability, and effective utilization of their complex assets. In more than 30 years of operation, Atlantis has developed a solid reputation for its creative workforce and innovative solutions in supporting global OEM customers and defence organizations. To learn more, please visit the Company's web site at www.atlantissc.com.

Forward-Looking Statements

Atlantis assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or for any other reason. Additional information regarding risks and uncertainties that could affect Atlantis' business is contained in the Business Risk Factors section of Atlantis's Annual MD&A available on SEDAR at www.sedar.com.

Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Comprehensive Loss
For the three and six months ended June 30, 2013 and 2012
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
For the three months For the six months
ended June 30, ended June 30,
2013 2012 2013 2012
Revenue $ 2,006 $ 3,287 $ 4,165 $ 6,301
Cost of revenue 1,781 1,926 3,525 3,806
Gross margin 225 1,361 640 2,495
Other income (Note 10) 64 478 134 598
Expenses
General and administrative 665 1,017 1,202 2,026
Selling and marketing 301 101 653 212
Restructuring costs 60 26 60 51
1,026 1,144 1,915 2,289
Operating (loss) income (737) 695 (1,141) 804
Depreciation and amortization 35 39 58 79
Interest and financing costs, net 458 401 1,083 777
Accretion expense 17 18 8 35
Foreign currency loss 489 263 737 85
Gain on disposal of capital assets - (7 ) (4) (7 )
Net and comprehensive loss $ (1,736) $ (19 ) $ (3,023) $ (165 )
Loss per share
Basic $ (0.17) $ (0.002 ) $ (0.30) $ (0.02 )
Diluted $ (0.17) $ (0.002 ) $ (0.30) $ (0.02 )
Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Financial Position
As at June 30, 2013 and December 31, 2012
(Expressed in thousands of Canadian dollars)
(Unaudited)
June 30, December 31,
2013 2012
ASSETS
Current Assets
Cash and cash equivalents $ 149 $ 15
Trade and other receivables (Note 6) 2,319 3,567
Unbilled revenue 1,935 2,492
Prepaid expenses 154 21
4,557 6,095
Unbilled revenue 151 125
Capital assets, net 328 370
Other long term assets 64 67
543 562
$ 5,100 $ 6,657
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 1,863 $ 1,898
Deferred revenue 418 136
Provisions (Note 7) 402 627
Term debt (Note 8) 360 -
3,043 2,661
Deferred revenue 123 248
Term note (Note 9 and 13) 6,872 6,504
Convertible note (Note 9 and 13) 7,587 6,747
Derivative liability (Note 13) 18 17
14,600 13,516
17,643 16,177
SHAREHOLDERS' DEFICIENCY
Share capital and warrants 92,810 92,810
Share-based payments reserve 9,338 9,338
Deficit (114,691 ) (111,668 )
(12,543 ) (9,520 )
$ 5,100 $ 6,657
Going concern (Note 1); Commitments (Note 11)

Approved on behalf of the Board of Directors:

signed: David Williams, Director signed: Ken Howard, Director
Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Changes in Shareholder's Deficiency
For the six months ended June 30, 2013 and 2012
(Expressed in thousands of Canadian dollars except number of shares)
(Unaudited)
Share-based Total
Number of Common payments Accumulated shareholders'
shares stock Warrants reserve deficit deficiency
Balance January 1, 2012 10,233,683 $ 92,810 $ 27 $ 9,338 $ (111,132 ) $ (8,957 )
Comprehensive loss - - - - (146 ) (146 )
Balance June 30, 2012 10,233,683 92,810 27 9,338 (111,278 ) (9,103 )
Comprehensive loss - - - - (417 ) (417 )
Warrants expired - - (27 ) - 27 -
Balance December 31, 2012 10,233,683 92,810 - 9,338 (111,668 ) (9,520 )
Comprehensive gain - - - - (3,023 ) (3,023 )
Balance June 30, 2013 10,233,683 $ 92,810 $ - $ 9,338 $ (114,691 ) $ (12,543 )
Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Cash Flows
For the six months ended June 30, 2013 and 2012
(Expressed in thousands of Canadian dollars)
(Unaudited)
For the six months
ended June 30,
2013 2012
Cash flows provided by (used in):
Operating activities:
Net loss $ (3,023) $ (165 )
Items not affecting cash:
Depreciation and amortization 58 79
Foreign currency loss 737 33
Interest and finance costs 1,083 777
Accretion expense 8 35
Expirations of warrants - (27 )
Long-term unbilled receivables - (1,668 )
Other long-term assets 3 2
Net change in non-cash working capital (Note 9) 1,543 195
Interest and finance costs paid (619) (273 )
Net cash (used) in operating activities (210) (1,012 )
Investing activities:
Investment in capital assets (16) -
Net cash used in investing activities (16) -
Financing activities:
Term debt proceeds 1,430 0
Term debt repayment (1,070) -
Net cash provided by financing activities 360 -
Net increase (decrease) in cash and cash equivalents 134 (1,012 )
Cash and cash equivalents, beginning of period 15 1,610
Cash and cash equivalents, end of period 149 598

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