Northcore Technologies Inc.
OTC Bulletin Board : NTLNF

March 30, 2011 19:40 ET

Northcore Reports Q4 and Year-End 2010 Results

TORONTO, ONTARIO--(Marketwire - March 30, 2011) - Northcore Technologies Inc. (TSX:NTI)(OTCBB:NTLNF), a global provider of asset management technology solutions, announced today its financial results for the fourth quarter and fiscal year ended December 31, 2010. All figures are in Canadian dollars.

Northcore reported consolidated revenues of $192,000 for the quarter, an increase of $52,000 or 37 percent from the $140,000 generated in the third quarter of 2010. In the same period of 2009, Northcore generated consolidated revenues of $179,000. For the year ended December 31, 2010, Northcore reported consolidated revenues of $636,000, a decrease of $123,000 or 16 percent from the $759,000 generated in 2009.

Northcore derives its revenues from application hosting activities provided to customers, royalty fees from its business partners, the sale of software licenses, and the delivery of technology services, such as application development and software customization.

Northcore reported a loss for the fourth quarter of $669,000 or $0.004 per share, basic and diluted. This compares to a loss of $1,044,000 or $0.006 per share, basic and diluted in the third quarter of 2010. In the same period of 2009, Northcore reported a loss of $607,000 or $0.004 per share basic and diluted. Northcore's loss for the year ended December 31, 2010 was $2,918,000 or $0.018 per share, as compared to a loss of $2,409,000 or $0.017 per share in 2009. The increase in loss was attributed to the non-cash expense of $544,000 for impaired value an investment, which if normalized, yields similar year over year results.

As at December 31, 2010, Northcore held cash of $90,000 and accounts receivable of $157,000.

Northcore achieved a number of milestones during the quarter, notably:

  • Delivered and deployed a customized Asset Seller platform to Xstrata Corporation to effect the disposition of surplus mining assets;
  • Delivered a number of enhancements to a customized Asset Tracker application used by a Global Electronics Leasing corporation;
  • Initiated initial user interface design for the Group Purchasing platform subsequently named Discount This; and
  • Closed the first tranche of an equity private placement, securing net proceeds of $625,000 through the issuance of common shares and warrants, with an additional $729,000 secured in February, 2011 as a subsequent event to the year-end.  


"I can succinctly summarize our 2010 results: We're not there yet," said Duncan Copeland, CEO of Northcore Technologies. "Although we submitted more proposals for new business in 2010 than in any year in our history, the take-up rate has been slow and the demise of Southcore was a disappointment. Nothing ventured, nothing gained. Yet today I am more optimistic than at any time since the go-go days of; and this time I'm confident it's not an illusion. We have started 2011 with two new service agreements that position Northcore to receive transaction based revenues, with the objective of participating more directly in the commercial success of our customers. We also added a new product within our Working Capital Engine and are expanding the connectivity of mobile applications, for broader functionality and reach into our Joint Venture customer targets. Finally, our development activity for Discount This is progressing according to plan and we are optimistic about the potential value of our patent protected intellectual property, as it relates to the emerging online group coupon discount marketplace. During the conference call we held on November 11, 2010 to discuss our third quarter, I alluded to potential developments in the first half of 2011 that were very exciting. All I can say at this time is that we believe that we are seeing that potential realized."

Northcore will hold a conference call at 10:00 a.m. (Eastern) on Thursday, March 31, 2011 to discuss its financial results and review operational activities. Investors and followers of Northcore are invited to listen to the call live over the Internet on the Company's website at

About Northcore Technologies Inc.

Northcore Technologies provides a Working Capital Engine™ that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government.

Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets.

Additional information about Northcore can be obtained at

This news release may include comments that do not refer strictly to historical results or actions and may be deemed to be forward-looking within the meaning of the Safe Harbor provisions of the U.S. federal securities laws. These include, among others, statements about expectations of future revenues, cash flows, and cash requirements. Forward-looking statements are subject to risks and uncertainties that may cause Northcore's ("the Company") results to differ materially from expectations. These risks include the Company's ability to raise additional funding, develop its business-to-business sales and operations, develop appropriate strategic alliances and successful development and implementation of technology, acceptance of the Company's products and services, competitive factors, new products and technological changes, and other such risks as the Company may identify and discuss from time to time, including those risks disclosed in the Company's Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that the Company's plans will be achieved. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, on SEDAR (the System for Electronic Document Analysis and Retrieval at and the US Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction.

Northcore Technologies Inc.  
Consolidated Balance Sheets  
(expressed in thousands of Canadian dollars)  
(Canadian GAAP), Unaudited  
    DECEMBER 31     DECEMBER 31     DECEMBER 31  
    2010     2010     2009  
    (in $C)     (in $US)     (in $C)  
          into $US at        
          Cdn$ 1.0009        
Cash $ 90   $ 90   $ 226  
Other current assets   193     193     288  
Other assets   31     31     591  
  Total assets $ 314   $ 314   $ 1,105  
Accounts payable and accrued liabilities $ 623   $ 623   $ 492  
Deferred revenue   29     29     27  
Current portion of long term debts   942     941     156  
Non-current portion of long term debts   149     149     446  
Total shareholders' deficiency   (1,429 )   (1,428 )   (16 )
  Total liabilities and shareholders' deficiency $ 314   $ 314   $ 1,105  
Northcore Technologies Inc.  
Consolidated Statements of Operations and Comprehensive Income  
(expressed in thousands of Canadian dollars, except per share amounts)  
(Canadian GAAP, Unaudited)  
    2010   2010     2009       2010   2010     2009  
    ($C)   ($US)     ($C)       ($C)   ($US)     ($C)  
        translated                 translated        
        into US$ at                 into US$ at        
        Cdn$ 1.0009                 Cdn$ 1.0009        
        for                 for        
        convenience                 convenience        
Revenues $ 192   $ 192   $ 179     $ 636   $ 636   $ 759  
Operating expenses:                                      
  General and administrative   396     396     342       1,451     1,450     1,269  
  Customer service and technology   184     184     193       734     733     738  
  Sales and marketing   55     55     56       188     188     181  
  Employee stock options   118     118     91       358     358     183  
  Depreciation   6     6     6       22     22     29  
    Total operating expenses   759     759     688       2,753     2,751     2,400  
Loss from operations   (567 )   (567 )   (509 )     (2,117 )   (2,115 )   (1,641 )
Interest expense:                                      
  Cash interest expense   54     54     38       154     154     260  
  Accretion of secured subordinated notes   48     48     60       160     160     508  
Total Interest expense   102     102     98       314     314     768  
Other expenses (income):                                      
Gain on settlement of debt   -     -     -       (57 )   (57 )   -  
Provision for impaired investment   -     -     -       544     544     -  
Total other expenses   -     -     -       487     487     -  
Loss and comprehensive loss for the period $ (669 ) $ (669 ) $ (607 )   $ (2,918 ) $ (2,916 ) $ (2,409 )
Loss per share, basic and diluted $ (0.004 ) $ (0.004 ) $ (0.004 )   $ (0.018 ) $ (0.018 ) $ (0.017 )
Weighted average number of shares outstanding, basic and diluted (000's)   165,118     165,118     156,241       162,899     162,899     140,434  

Contact Information