FSC / Press Release
OceanLake Commerce Reports Interim Quarterly Financial Results for the period ended June 30, 2007 and appoints new CFO
Singapore and Toronto, Ontario CANADA, August 28, 2007 /FSC/ - Oceanlake Commerce Inc. (OLI - TSX Venture, OLIKF - OTCBB_Pink_Sheets), reported Interim Canadian GAAP financial results for the three months ended June 30, 2007. The company also announced that has been appointed to the Chief Financial Officer positions, after joining the company in June, 2007 as Vice President Finance.
For the three months ended June 30, 2007 (Q1-2008) the Company posted revenue of $146,829 as compared with $70,323 for the three months ended June 30, 2006 (Q1-2007). The increase was primarily due to increased business in Singapore and new deals signed in Canada. The operating expenses increased by $395,803, or 250 percent, from $262,726 in Q1-2007 to $658,529 in Q1-2008. Of the total increase in operating expenses, $250,850 was due to increased headcount; $178,201 was attributable to increased general and administrative expenses; $49,772 was attributable to interest and other financing costs; $37,331 was due to amortization of stock based compensation; $22,018 was attributable to amortization of fixed assets and $44,635 was attributable to increased sales and marketing expenses. These increases were partially offset by a net foreign exchange gain of $187,004 in Q1-2008 over Q1-2007.
The Company also reported cash and short-term investments of $699,374, and the working capital of ($821,821) for the three months ended June 30, 2007. Accounts receivable, net of an allowance for doubtful accounts, at the end of Q1-2008 totaled $331,088 and other current assets, composed primarily of prepaid items, totaled $43,919. As part of building the infrastructure for "meemo" the Company purchased fixed assets amounting to $122,289. The Company also reported accounts payable of $432,900, Loans from related parties $1,245,302 and a deferred revenue of $218,000. The deferred revenue is the first partial billing of the contract with Jabios H.K Limited, for licensing OceanLake's "meemo" service direct to consumers in Taiwan. Once the essential services under the contract are delivered the amount will be recognized as revenue provided all the remaining criteria for revenue recognition has been met.
"In fiscal 2008, OceanLake continues its transition into its growth phase. With several key customer wins in the fiscal year, we are well positioned to further accelerate our growth plans,” said William Car, CEO OceanLake Commerce. "Our objective is to continue to grow the company on a global basis, with a commitment to providing quality mobile products to our customers and to the continued management of expenses in 2008."
Rajeev Agarwal had joined the company on June 4, 2007 as Vice President of Finance has now assumed the role of Chief Financial Officer. He reports to William Car, CEO of OceanLake Commerce.
"I am very pleased to welcome Rajeev to his expanded role as Chief Financial Officer,” said William Car, CEO of OceanLake Commerce. "Rajeev has proven to be an extremely strong asset in his tenure so far dealing with financial and regulatory aspects for OceanLake. I look forward to his expanded contributions in his CFO positions as we continue to execute our global growth strategy."
In this expanded role, Mr. Agarwal is responsible for all strategic financing activities, quarterly reporting, business planning, forecasting and analysis, risk management, corporate governance, implementation of internal controls, policies and procedures of OceanLake Commerce.
"I am very appreciative of the confidence that the board and Will have shown in my contributions to the financial management of the company," said the CFO of OceanLake Commerce. "This is an exciting time for OceanLake and I am pleased to be able to work with such a strong management team as we move forward."
About OceanLake Commerce Inc.
OceanLake provides mobile enabling products that meet the mobile connectivity requirements of service providers and telecommunication carriers, content owners and developers. OceanLake has also developed its own direct to consumer strategy in North America, providing a mobile email service that has been branded as "meemo". OceanLake's meemo service is based on its proprietary product called OceanLake MobileMail. Mobile enabling is the process of delivering internet content in a fashion that is accessible to mobile users, worry-free for network managers and strategic for business. OceanLake's mission is to offer a single source of mobile enabling technology and to service and support mobile internet requirements at all levels. OceanLake is focused on one of the largest and fastest growing segments of the global mobile telecommunications market: the delivery of mobile services. OceanLake's unique and proprietary architecture allows e-mail, web pages, images, music, games, video, ring tones and wallpapers to be delivered to and experienced by users in a reliable and consistent manner on every model of internet-enabled phone and PDA in use globally.
Forward-looking Statements
Certain statements included in this document constitute forward-looking statements, including those identified by the expressions anticipate, believe, plan, estimate, expect, intend, and similar expressions to the extent they relate to OceanLake or its management. These forward-looking statements are not facts, promises, or guarantees; rather, they reflect current expectations regarding future results or events. These forward-looking statements are subject to risks and uncertainties that could cause actual results, activities, performance, or events to differ materially from current expectations. These include risks related to revenue growth, operating results, industry, products, and litigation, as well as the matters discussed in OceanLake's annual MD&A under Risk Factors. Readers should not place undue reliance on any such forward-looking statements. OceanLake disclaims any obligation to publicly update or to revise any such statements to reflect any change in the Company's expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
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OCEANLAKE COMMERCE INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, March 31,
2007 2007(Audited)
--------- -------------
Assets:
Current assets:
Cash and cash equivalents $699,374 $772,428
Accounts receivable 331,088 115,790
Prepaid Expenses 43,919 36,675
---------- ----------
Total current assets 1,074,381 924,893
Property and equipment (note 2) 236,247 136,497
Goodwill (note 6) 60,705 60,705
---------- ----------
Total assets $1,371,333 $1,122,095
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Liabilities and shareholders' equity:
Current liabilities:
Accounts payable and accrued liabilities (note 3,7) $432,900 $481,012
Deferred Revenue 218,000 -
Loans from related parties (note 3) 1,245,302 3,516,429
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Total current liabilities 1,896,202 3,997,441
--------- ---------
Minority Interests 1,043,175 1,049,168
Shareholders' equity:
Share Capital (note 4):
Common shares 23,564,248 21,712,905
Treasury shares - (60,100)
Class A Convertible Preference shares
Issued - 11,969,628 2,992,407 2,992,407
Contributed surplus 1,818,569 845,958
Deficit (29,943,268) (29,415,684)
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Total shareholders' equity (1,568,044) (3,924,514)
------------ ------------
Total liabilities and shareholders' equity $1,371,333 $1,122,095
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OCEANLAKE COMMERCE INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited)
Three months ended
June 30
--------------------------
2007 2006
--------- --------
Total Revenue $146,829 $70,323
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Cost of Sales $(21,877) -
--------- --------
Gross Margin $124,952 70,323
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Expenses:
Salary, Wages and benefits $360,323 $109,473
General and Administrative 319,420 141,219
Stock based compensation 37,331 -
Sales and Marketing 54,073 9,438
Foreign exchange Loss (Gain) (184,929) 2,075
Interest and other financing costs 49,772 -
Amortization 22,539 521
--------- ---------
Total expenses 658,529 262,726
--------- ---------
Net loss from operations before Minority Interests (533,577) (192,403)
Minority Interests 5,993 -
--------- ---------
Net loss after Minority Interests (527,584) (192,403)
Deficit at the beginning of the period (29,415,684) (27,604,133)
------------ ------------
Deficit at the end of the period C/F
to Balance sheet (29,943,268) (27,796,536)
------------ ------------
Basic and fully diluted loss per share 0.03 $0.01
Weighted average number of Common
shares outstanding ('000) 73,021 59,169
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OCEANLAKE COMMERCE INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
June 30
--------------------------
2007 2006
--------- --------
Cash flows from operating activities:
Net income (loss) $(527,584) (192,403)
Adjustments to reconcile net income (loss) to
net cash
provided by (used for) operating activities:
Amortization 22,539 521
Amortization of stock-based compensation 37,331 -
Change in operating assets and liabilities:
Decrease (increase) in accounts receivable (215,298) 29,968
Decrease (increase) in Prepaid Expenses (7,244) (10,563)
Increase (decrease) in accounts payable and accruals (48,112) 120,629
Increase (decrease) in deferred revenue 218,000 -
--------- ---------
Net cash provided by (used for) operating activities (520,368) (51,848)
--------- ---------
Cash flows from investing activities:
Net Advances to investee company - (66,000)
Purchase of property and equipment (122,289) (5,960)
--------- ---------
Net cash provided by (used for) investing activities (122,289) (71,960)
--------- ---------
Cash flows from financing activities:
Proceeds from related parties and other loans - 124,760
Repayment of loans from related parties (2,271,127) -
Minority Interests in OceanLake
Commerce International Inc (note 8) (5,993)
Proceeds from sale of treasury shares 272,000 -
Net proceeds from issue of common shares 2,574,723 -
---------- ---------
Net cash provided by financing activities 569,603 124,760
---------- ---------
Change in cash and cash equivalents (73,054) 952
Cash and cash equivalents, beginning of period 772,428 12,062
---------- ---------
Cash and cash equivalents, end of period $699,374 $13,014
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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Investors Inquiries:
William Car
CEO, OceanLake Commerce
wcar@oceanlake.com
(416) 637-3501
Source: Oceanlake Commerce Inc. (TSX-V: OLI) http://www.oceanlake.com
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