iWave Information Systems Inc.

iWave Information Systems Inc.

May 30, 2005 18:10 ET

iWave Announces First Quarter Results; Update on Sale of Rainforest Subsidiary

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(CCNMatthews - May 30, 2005) - iWave Information Systems Inc. ("iWave") (TSX VENTURE:IWX) announced today results for its first quarter ended March 31, 2005. Revenues for the three-month period then ended were $261,000, compared to $36,500 for the same period in 2004. This large increase in revenue for the quarter is due to the adoption of a new accounting policy for recognizing revenue effective January 1, 2004. For comparison purposes only, if revenue in the prior period had been calculated on a comparable basis, revenue would have been approximately $271,000, representing a 4% decrease in sales in the current quarter.

The quarter ended March 31, 2004 is inclusive only of subscriptions beginning between January 1, 2004 and March 31, 2004, and inclusive only of the proportional revenue to be recognized for the subscription term. All revenue which relates to subscription terms beyond March 31, 2004 was recorded as deferred revenue, as per CICA Abstract 141.

The company's net loss for the three-months ended March 31, 2005 was $27,000 ($0.00 per share) compared to a net loss of $259,819($0.04 per share) for the same period in 2004. However, this large loss is again due to the change in accounting policy and for comparison purposes only, adding back the deferred portion attributable to the three months ended March 31, 2004, a net loss of $25,000 ($0.00 per share) would have been recognized.

Summary financial data is as follows:

Three Months Ended
March 31

2005 2004
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Revenue $261,000 $36,000

Per Share $0.04 $0.01

Loss $27,000 $260,000

Per Share $0.00 ($0.04)

As at March 31, 2005 As at December 31, 2004
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Cash $ 96,854 $142,615

Other current assets 173,356 170,842

Long-term assets 171,302 182,688
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TOTAL ASSETS $441,512 $496,145
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Current liabilities $639,419 $721,991

Long-term liabilities 190,322 135,035

Shareholders' Deficit (388,229) (360,881)
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SHAREHOLDERS' EQUITY $441,512 $496,145
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iWave's also wishes to provide an update on the proposal made by Jamie Hill, Chief Executive Officer of iWave, to purchase from iWave its operating subsidiary Rainforest Publications Inc. and related intellectual property, as announced on May 11, 2005. After its review of the proposal, the board of directors has approved the sale, subject to shareholder approval, and iWave has entered into a definitive purchase and sale agreement with a company controlled by Mr. Hill in respect of the transaction. In connection with its review, the board received an independent valuation from Klein Farber Corporate Finance Inc. of Toronto.

As previously announced, an annual and special meeting of shareholders is to be held on June 24, 2005 in Charlottetown to consider the proposed transaction and related matters. Proxy materials for the meeting are in the process of being mailed to shareholders and will be available on SEDAR shortly. The Rainforest sale requires the approval of iWave shareholders by both special resolution and on a majority of the minority basis.

As announced on May 1, 2005, iWave appointed an additional independent director, Mr. Douglas Wright, to its board. In order to make room on the board for Mr. Wright's appointment, Andrew J. Pickens resigned as a director. Mr. Pickens continues to serve as the Chief Operating Officer of iWave.

About iWave Information Systems Inc.:

iWave (TSXV:IWX) is a publicly traded research company that provides detailed information to specialized business markets. Over the past ten years, iWave has developed very efficient methods for the collection, analysis and online packaging of information for markets that depend on access to timely and accurate information to succeed. The company's flagship product, Prospect Research Online, provides subscribers with research on corporations, foundations and individuals. iWave has been serving clients online since 1996. Representative clients include Harvard University, Yale, Junior Achievement World Wide, The Smithsonian, and Ducks Unlimited. For more information about iWave, please visit the company's web site at http://www.iwave.com.

Shares Issued - 5,902,433

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

Contact Information

  • iWave Information Systems Inc.
    Mark McLane