EACOM Timber Corporation
NEX BOARD : ETR.H

EACOM Timber Corporation

February 27, 2009 17:01 ET

EACOM Timber Corporation Announces Financial Results for the Quarter and Nine Months ended December 31, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2009) - EACOM Timber Corporation (NEX:ETR.H) today reported its financial results for the three and nine months ended December 31, 2008.

Results of operations for the quarter ended December 31, 2008

The net loss for the third quarter ended December 31, 2008 was $289,000 ($0.01 per common share) compared to net income of $1,492,000 ($0.05 per common share) for the corresponding quarter last year. In the corresponding quarter last year the Company recognized a gain on the sale of patents of $3,325,000 resulting in the net income. The Company did not have a similar transaction during this quarter but it did reduce its loss from operations compared to the corresponding quarter last year.

Loss from operations for the quarter ended December 31, 2008 was $369,000 compared to $1,869,000 for the corresponding quarter last year. The decrease of $1,500,000 in the loss from operations was due primarily to the absence of employee termination expenses, lower professional fees and lower personnel expenses in the current quarter.

Results of operations for the nine months ended December 31, 2008

The net loss for the nine months ended December 31, 2008 was $1,610,000 ($0.05 per common share) compared to a net income of $478,000 ($0.01 per common share) for the same period in the prior year. The change to a net loss was primarily due to a gain recognized on deferred licensing revenue of $211,000; a gain on sale of patents of $3,325,000 and a gain on the sale of fixed assets of $640,000 in the prior year period, offset by a lower loss from operations in the current period.

Loss from operations for the nine months ended December 31, 2008 was $1,735,000 compared to $3,814,000 for the same period last year. The decrease of $2,079,000 was due primarily to the reduction in professional fees, personnel expenses and employee termination expenses.

Liquidity and Capital Resources

At December 31, 2008 the Company's cash and cash equivalents totalled $1,803,000 compared to $3,247,000 at March 31, 2008. In addition, the Company held liquid equity investments with a fair value of $62,100. Working capital at December 31, 2008 was $1,866,000 compared to $3,116,000 at March 31, 2008.

The Company used $417,000 to fund operations during the quarter ended December 31, 2008 compared with $976,000 for the corresponding quarter last year. For the nine month period ended December 31, 2008 the Company used $1,666,000 to fund operations compared to $5,233,000 for the corresponding period last year.

Cash from financing activities for the nine months ended December 31, 2008 was $277,000 compared to cash from financing activities of $nil for the corresponding periods last year. This reflects the net proceeds from the private placement completed in the second fiscal quarter.

Cash of $66,000 was used in investing activities for the quarter ended December 31, 2008, compared to an inflow of $3,930,000 for the corresponding quarter last year, representing the net proceeds from the sale of patents and licenses. For the nine month period ended December 31, 2008 cash used in investing activities was $54,000 compared to cash from investing activities of $4,646,000 for the corresponding period in the prior year, representing the net proceeds from the sale of fixed assets, patents and licences.

Initiation of lumber trading business

Subsequent to the quarter end, the Company initiated its lumber trading business. The Company is purchasing lumber from producers and then selling to its customers, with working capital provided by its existing cash resources. Most transactions are based on pre-orders from customers and the Company may be required to hold inventory for a short period of time during transit. It is expected that the Company will realize gross margins ranging from 4-10% on these transactions. To date the Company has sales and sales orders of approximately US$700,000 with an expected gross profit of approximately US$50,000. These transactions will be recognized in the consolidated statements of operations for the quarter ended March 31, 2009.

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)
December 31, March 31,
2008 2008
-------------- ------------

Assets

Current assets
Cash and cash equivalents $ 1,803,402 $ 3,247,098
Investments held for trading 62,100 -
Receivables 161,141 163,771
Prepaid expenses 135,926 144,739
-------------- ------------
2,162,569 3,555,608

Property and equipment 19,750 39,498

-------------- ------------
$ 2,182,319 $ 3,595,106
-------------- ------------
-------------- ------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 296,478 $ 439,524

Shareholders' equity

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

Contributed surplus 2,404,323 2,201,298

Deficit (141,868,037) (140,258,605)
-------------- ------------
1,885,841 3,155,582

-------------- ------------
$ 2,182,319 $ 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 Nine Months Ended
---------------------------- ----------------------------
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
------------- ----------- ------------- -------------

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

Expenses

Research and
development - - - (77,417)
Loss on
investments
held for
trading 46,303 - 46,303 -
Personnel 65,273 328,332 307,087 977,445
Stock based
compensation 33,843 7,248 63,067 18,381
Professional
fees 64,069 305,346 255,910 1,175,586
Shareholder and
other corporate 8,679 91,525 127,282 139,132
Insurance and
other
office 81,463 44,651 224,486 134,899
Facilities 30,496 88,313 204,833 264,825
Travel 31,955 42,062 109,381 157,743
Amortization of
property,
equipment,
patents and
licenses 6,582 37,250 19,748 130,203
Employee
terminations - 924,686 376,972 924,686
------------- ----------- ------------- -------------
368,663 1,869,413 1,735,069 3,845,483
------------- ----------- ------------- -------------

Loss from
operations (368,663) (1,869,413) (1,735,069) (3,813,841)
------------- ----------- ------------- -------------

Interest and
dividend income 17,166 35,877 50,824 115,615

Gain on sale of
patents 62,809 3,325,068 62,809 3,325,068

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

Gain on deferred
licensing
revenue - - - 210,788
------------- ----------- ------------- -------------
Loss for the
period (288,688) 1,491,532 (1,609,432) 477,772

Deficit,
beginning
of period (141,579,349) (141,045,381) (140,258,605) (140,031,621)
------------- ----------- ------------- -------------

Deficit, end
of period $(141,868,037) $(139,553,849) $(141,868,037) $(139,553,849)
------------- ----------- ------------- -------------

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

Weighted
average number
of common
shares
outstanding 36,545,344 32,795,344 34,540,798 32,795,344
------------- ----------- ------------- -------------
------------- ----------- ------------- -------------

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

For the Three Months Ended For the Nine Months Ended
---------------------------- ----------------------------
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
---------------------------- ----------------------------

Cash flows from
operating
activities
Loss for the
period $ (288,688) $ 1,491,532 $ (1,609,432) $ 477,772
Items not
affecting
cash:
Amortization
of property,
equipment,
patents and
licenses 6,582 37,250 19,748 130,203
Gain on sale
of fixed
assets - - (12,004) (640,142)
Gain on
deferred
licensing
revenue - - - (210,788)
Gain on
sale of
patents (62,809) (3,325,068) (62,809) (3,325,068)
Deferred
licensing
revenue - - - (19,162)
Unrealize
loss on
derivative
instruments 26,467 - 26,467 -
Stock-based
compensation 33,843 7,248 63,067 18,381
---------------------------- ----------------------------
(284,605) (1,789,038) (1,574,963) (3,568,804)

Changes in non-
cash working
capital (132,197) 812,395 (91,262) (1,664,803)
---------------------------- ----------------------------
(416,802) (976,643) (1,666,225) (5,233,607)
---------------------------- ----------------------------

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 (66,100) - (66,100) -
Proceeds from
sale of
patents and
licenses - 4,000,000 - 4,000,000
Selling
expenses
on sale of
patents and
licenses - (69,141) - (69,141)
Proceeds from
sale of
fixed assets - - 12,004 715,112
---------------------------- ----------------------------
(66,100) 3,930,859 (54,096) 4,645,971

---------------------------- ----------------------------
Decrease in
cash and
cash
equivalents (482,902) 2,954,216 (1,443,696) (587,636)
Cash and cash
equivalents,
beginning of
period 2,286,304 1,919,464 3,247,098 5,461,316
---------------------------- ----------------------------
Cash and cash
equivalents,
end of period $ 1,803,402 $ 4,873,680 $ 1,803,402 $ 4,873,680
---------------------------- ----------------------------
---------------------------- ----------------------------
Supplemental
disclosure of
cash flow
information
Interest
received 7,157 31,053 40,162 115,615


Contact Information

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