Innovium Announces Second Quarter Results
August 26 2010 - 7:30AM
Marketwired Canada
Innovium Media Properties Corp.'s ("Innovium" or the "Company") (TSX
VENTURE:IN)(FRANKFURT:IH7) second quarter 2010 results are discussed below.
Innovium had 2010 second quarter net earnings of $288,000 compared to a second
quarter net loss of $1,087,000 in 2009 (a loss of $429,000 for the first six
months of 2010 compared to a loss of $708,000 for the same period in 2009). For
the three months ended June 30, 2010, the Company recorded a negative operating
cash flow, after changes in non-cash working capital items, of $258,000 compared
to a negative operating cash flow of $378,000 for the second three months of
2009 (negative operating cash flow of $473,000 for the first six months of 2010
compared to a negative cash flow of $655,000 for the first six months of 2009).
In the second quarter of 2010, the Company recorded an unrealized foreign
exchange gain of $684,000 (unrealized foreign exchange loss of $1,038,000 for
the second quarter of 2009) on its investment in Seed Media Group LLC ("Seed").
For the first six months of 2010, the Company recorded an unrealized foreign
exchange gain of $202,000 (unrealized foreign exchange loss of $602,000 for the
same period in 2009) on its investment in Seed.
Compared to the second quarter of 2009, the Company experienced a 5% decrease in
general and administrative costs in the second quarter of 2010 (a 14% decrease
for the first six months of 2010 compared to the same period in 2009). The
year-over-year decrease reflects the efforts made by Management to control costs
as well as the fact that in 2009 consultants had been engaged for the purpose of
accessing capital.
In the second quarter, an additional US$192,500 was advanced as a Series C Unit
advance, accruing interest at 12% per annum. These Series C Unit advances were
subsequently converted into a secured Seed 18% Bridge Loan, convertible into
Seed equity at a 15% discount to the price of a subsequent equity financing, at
any time prior to maturity ("Seed Bridge"). Subsequent to the quarter end, an
additional US$35,000 was advanced as part of the Seed Bridge.
In the second quarter, Innovium received advances totaling $399,000 in the form
of 3-year term loans bearing interest at 12% per annum. In July and August of
2010, Innovium received advances totaling $87,000 on the same terms. The Company
has the option of repaying these loans in full, without penalty, after six
months from the date of the advances.
About Innovium Media Properties Corp.
Innovium's venture investment portfolio is devoted to Seed Media Group LLC, a
private media and technology company focused on the professional and consumer
science markets. Seed's award winning brands include Seed(R)
(www.seedmagazine.com) and ScienceBlogs(R) (www.scienceblogs.com). Innovium
trades under the symbol IN on the TSX Venture Exchange ("TSX-V") and IH7 on the
Frankfurt Stock Exchange ("FWB").
Table of Highlights of the Financial Statements
Three months ended Six months ended
June 30 June 30
-----------------------------------------
(Expressed in thousands of Canadian
dollars, except per share amounts) 2010 2009 2010 2009
------- -------- ------- -------
Unrealized gains (losses) on
investments $ 684 $ (1,038) $ 293 $ (602)
Interest and dividend income - 302 2 604
General and administrative expenses 297 311 570 663
Interest expense 79 30 144 38
Depreciation and amortization 5 7 11 14
Foreign exchange loss (gain) 15 3 (1) (5)
Net earnings (loss) $ 288 $ (1,087) $ (429) $ (708)
Net earnings (loss) per share $ 0.00 $ (0.01) $ (0.00) $ (0.01)
Cash used in operating activities
(after net change in working
capital balances) $ (258) $ (378) $ (473) $ (655)
As At
-----------------------
June 30, Dec. 31,
(Expressed in thousands of Canadian dollars) 2010 2009
---------- ----------
Cash and cash equivalents $ - $ 10
Accounts receivable and other assets 27 40
Short-term investments 59 58
Total current assets 86 108
Venture investments 14,941 14,328
Capital assets, net 110 121
Total assets $ 15,137 $ 14,557
Bank indebtedness $ 21 $ -
Accounts payable and accrued liabilities 191 108
Term loans 2,734 1,829
Future tax liability 103 103
Total liabilities $ 3,049 $ 2,040
Shareholders' equity $ 12,088 $ 12,517
Full financial results are available on SEDAR at www.sedar.com.
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