ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

November 16, 2011 18:38 ET

ENGINEERING.com Incorporated Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2011) - ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online resource for engineers today announced its unaudited financial results for the third quarter ended September 30, 2011.

Beginning with the first quarter of 2011, Engineering.com reported its financial results in accordance with International Financial Reporting Standards (IFRS), as required for public companies in Canada. Previously, the Company reported its financial results under Canadian Generally Accepted Accounting Standards (GAAP). Financial results for the corresponding period in 2010 have been restated to reflect the adoption of IFRS.

ENGINEERING.com revenue was $437,982 for the three month ended September 30, 2011, compared to revenue of $312,503 for the third quarter in 2010. The net loss for the three months ended September 30, 2011, totaled ($25,919) and ($0.00) per Common Share compared with a net loss of ($129,620) and ($0.00) for the same period a year ago.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($19,709) or ($0.00) per Common Share for the third quarter of 2011 compared with an operating loss of ($108,750) or ($0.00) per Common Share for the three month period ended September 30, 2010. The operating expenses in the latest period were $260,350, down from $288,868 in the third quarter a year earlier.

"We were delighted that our private placement share offering in Q3 was fully subscribed," said John Hayes, President of ENGINEERING.com. "We are grateful that shareholders have endorsed our vision for the Company's future."

As at September 30, 2011, the Company had a cash balance of $393,073 compared to a cash balance of $30,635 as at June 30, 2010. On August 15, 2011 the Company completed a private placement of 7,000,000 Common Shares at a subscription price of $0.05 per share for net proceeds of $337,214. The proceeds from this private placement will be used for general working capital purposes.

Today the Company also announced it has granted incentive stock options to employees and directors of the Company pursuant to the Company's Stock Option Plan. The company has granted 1,560,000 common shares exercisable for a period of 5 years at a price of $0.05 per share.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the developer-owner of the www.ENGINEERING.com Web site and business. ENGINEERING.com offers marketing and lead generation services to manufacturers, technology inventors and engineering academia around the world. The ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.

EBITDA

EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock-based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under IFRS principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with IFRS principles) as a measure of liquidity.

Forward Looking Statements

This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.

The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.

Condensed Interim Statements of Financial Position (In Canadian dollars, Unaudited)
September 30,
2011
December 31,
2010
$ $
ASSETS
CURRENT ASSETS
Cash 393,073 78,244
Accounts receivable 343,255 316,302
Prepaid expenses and deposits 22,688 13,895
TOTAL CURRENT ASSETS 759,016 408,441
PROPERTY AND EQUIPMENT 13,621 20,727
INTANGIBLE ASSETS 322,459 316,063
TOTAL ASSETS 1,095,096 745,231
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities 622,400 489,015
Deferred revenue 99,316 65,640
TOTAL LIABILITIES 721,716 554,655
SHAREHOLDERS' EQUITY
Share capital 15,450,966 15,113,752
Contributed surplus 487,336 472,843
Deficit (15,564,922 ) (15,396,019 )
TOTAL SHAREHOLDERS' EQUITY 373,380 190,576
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,095,096 745,231
Condensed Interim Statements of Loss and Comprehensive Loss
(In Canadian dollars, Unaudited)
Three months
ended September 30,
Nine month months
ended September 30,
2011 2010 2011 2010
$ $ $ $
REVENUE 437,982 312,503 1,164,223 1,042,941
COST OF SALES 197,341 132,385 518,131 427,942
GROSS PROFIT 240,641 180,118 646,092 614,999
OPERATING EXPENSES
Salaries and benefits 141,617 125,799 418,600 404,997
Marketing expenses 22,731 27,856 66,902 76,356
Development costs 47,007 50,151 144,133 156,388
General and administrative 48,995 85,062 161,777 209,127
260,350 288,868 791,412 846,868
LOSS BEFORE UNDERNOTED ITEMS: (19,709 ) (108,750 ) (145,320 ) (231,869 )
Stock based compensation (3,490 ) (2,105 ) (14,493 ) (14,131 )
Amortization expense (2,720 ) (18,765 ) (9,090 ) (116,464 )
NET LOSS (25,919 ) (129,620 ) (168,903 ) (362,465 )
Loss per share
Basic 0.00 0.00 0.00 (0.01 )
Diluted 0.00 0.00 0.00 (0.01 )

Weighted average number of Common Shares
(basic and diluted)


40,446,710


36,870,623


38,075,751


36,870,623

ENGINEERING.COM INC
Condensed Statements of Changes in Shareholder's Equity
(In Canadian dollars, Unaudited)
Nine months ended September 30, 2011:
#
Number
of
Common
Shares
$
Share
Capital
$
Contributed
Surplus

$
Deficit

$
Total
At December 31, 2010 36,870,623 15,113,752 472,843 (15,396,019 ) 190,576
Share Issuance 7,000,000 337,214 -- -- 337,214
Net Loss for the period -- -- -- (168,903 ) (168,903 )
Stock based compensation -- -- 14,493 14,493
At September 30, 2011 43,870,623 15,450,966 487,336 (15,564,922 ) 373,380
Nine months ended September 30, 2010:
At January 1, 2010 36,870,623 15,113,752 445,548 (15,468,881 ) 90,419
Net Loss for the period -- -- -- (362,464 ) (362,464 )
Stock based compensation -- -- 14,132 14,132
At September 30, 2010 36,870,623 15,113,752 459,680 (15,831,345 ) (257,913 )
ENGINEERING.COM INC
Condensed Interim Statements of Cash Flows
(In Canadian dollars, Unaudited)
Three months
ended September 30,
Nine months
ended September 30,
2011 2010 2011 2010
$ $ $ $
OPERATING ACTIVITIES
Net loss (25,919 ) (129,620 ) (168,903 ) (362,465 )
Add items not affecting cash:
Stock based compensation 3,490 2,105 14,493 14,131
Amortization 2,720 18,765 9,090 116,464
Changes in operating assets and liabilities other than cash
47,975


67,698


131,314


311,678

CASH FLOWS FROM OPERATING ACTIVITIES 28,266 (41,052 ) (14,006 ) 79,808
FINANCING ACTIVITIES
Proceeds of share issuance 337,214 -- 337,214 --
Promissory notes -- (4,031 ) -- (24,999 )
CASH FLOWS FROM FINANCING ACTIVITIES 337,214 (4,031 ) 337,214 (24,999 )
INVESTING ACTIVITIES
Additions to property and equipment (951 ) (4,348 ) (1,984 ) (6,798 )
Additions to intangible assets (2,091 ) -- (6,396 ) (6,115 )
CASH FLOWS FROM INVESTING ACTIVITIES (3,042 ) (4,348 ) (8,380 ) (12,913 )
INCREASE IN CASH 362,438 (49,431 ) 314,829 41,896
CASH, beginning of period 30,635 197,445 78,244 106,118
CASH, end of period 393,073 148,014 393,073 148,014
NOTICE: The Company's auditors have not audited or reviewed these financial statements.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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