TrueContext Mobile Solutions Corporation (Formerly Carlaw Capital II Corp.)
TSX VENTURE : TMN

August 20, 2009 08:36 ET

TrueContext Mobile Solutions Corporation Announces Second Quarter Results

OTTAWA, ONTARIO--(Marketwire - Aug. 20, 2009) - TrueContext Mobile Solutions Corporation (formerly Carlaw Capital II Corp.) (TSX VENTURE:TMN), a mobile data solutions company today announced its results for its second quarter ended June 30, 2009.

Highlights:

- Completion of merger between Carlaw Capital II Corp. and TrueContext Corporation

- Private placement for gross proceeds of Cdn$1,350,000 to complement the Cdn$492,000 assumed from former Carlaw

- Operating results for TrueContext Corporation (being the operating subsidiary of TrueContext Mobile Solutions Corporation):

-- Q2 2009 revenue of US$117,737 vs Q1 revenue of US$83,961

-- Reduction in loss from operations from US$395,575 in Q1 to US$113,832 in Q2

-- Q2 2009 net income of US$598,150 vs Q1 2009 net loss of US$883,076

-- Settlement of various obligations to reduce ongoing costs

"We are pleased to have completed our qualifying transaction with TrueContext Corporation, unveil our new company name and have the shares of our new company traded on the TSX Venture Exchange" said Alvaro Pombo, Chief Executive Officer. "As smartphones like BlackBerry, iPhone and Windows Mobile become commonplace for messaging in the enterprise; new, simple applications like Mobile Data Collection provide tangible productivity gains for organizations of any size. We are seeing steady progress with resellers and customer adoption of our Pronto Mobile Forms (www.prontoforms.com) service in a wide variety of business processes across multiple industries. With evidence of a long-awaited convergence around mobile applications, our depth of experience in the space, demonstrable subscription sales traction, a clean balance sheet supported by our recent financing and cost-cutting measures, break-even is a reasonable target for us in the short term. Beyond that, we feel that we are well positioned in the high growth mobility market."

Operating Results for the Quarter Ended June 30, 2009

The following is a summary of the operating results for TrueContext Corporation (the "Company"), being the operating subsidiary of TrueContext Mobile Solutions Corporation ("TCMS"), for the quarter ended June 30, 2009.

The Company had net income of US$598,150 for the three months ended June 30, 2009 compared to a net loss of US$430,922 for the same period in 2008. The majority of the net income (loss) improvement resulted from foreign exchange gain on US denominated preferred shares as the Canadian dollar strengthened against the US dollar. The preferred shares were converted into common shares prior to June 30, 2009, so ongoing results will not be impacted by foreign exchange gains and losses or interest expense on those redeemable preferred shares.

The loss from operations for the three months ended June 30, 2009 decreased to US$113,832 compared to US$322,582 for the three months ended June 30, 2008. The decrease in net loss relates to significant reductions in operating expenses.

Revenue for the three months ended June 30, 2009 was US$117,737 compared to US$262,591 for the three months ended June 30, 2008. The 2009 revenue consisted of US$46,397 of license revenue earned primarily through subscriptions and US$71,340 of professional services and support. Approximately US$180,000 of the Q2 2008 revenues was received from a mobile operator company under minimum license and market development fees.

Operating expenses for the three months ended June 30, 2009 were US$198,572 compared to US$518,680 for the three months ended June 30, 2008. The Company's Q2 2009 operating expenses excluding other settlement of obligations gain of US$76,475 and a gain from investment tax credits received in the quarter of US$120,345 equal US$395,392, which is indicative of operating costs for the remainder of the fiscal year.

As at June 30, 2009, the Company had cash and cash equivalents of US$54,003 and a working capital deficit of approximately US$391,105.

Between May 19, 2009 and July 23, 2009, the Company completed a private placement of Cdn$1,350,000. On August 11, 2009, the Company completed a reverse takeover with Carlaw Capital II Corp. providing additional cash of approximately Cdn$492,000. During this period the additional cash available for the operation of TCMS was Cdn$1,600,000, net of approximately Cdn$242,000 of costs associated with the private placement and merger.

The complete financial statements of the Company and TCMS (formerly Carlaw Capital II Corp.) for the three and six months ended June 30, 2009 will be filed on SEDAR at www.sedar.com.

ABOUT TRUECONTEXT MOBILE SOLUTIONS CORPORATION

Established in 2001, TrueContext is a pioneer in the creation and utilization of easy to use Mobile Data Collection applications. TrueContext's flagship product, Pronto Forms (www.prontoforms.com) simplifies field data capture and extends the most powerful business applications to nearly any mobile device. This award-winning, patent-pending technology allows non-technical customers to securely build, manage and deploy a wide variety of forms for mobile workforce management. For questions or additional information, please contact TrueContext at sales@truecontext.com or at +1.877.333.9779.

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. TCMS assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to TCMS. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. Additional information identifying risks and uncertainties is contained in the TCMS' filings with the Canadian securities regulators, which filings are available at www.sedar.com.

Contact Information

  • TrueContext Mobile Solutions Corporation
    Alvaro Pombo
    Chief Executive Officer
    613.599.8288 ext. 1111
    apombo@truecontext.com