QUANTITATIVE ALPHA TRADING INC. REPORTS 1ST QUARTER 2011
FINANCIAL RESULTS
June 30, 2011 (Toronto) – Quantitative Alpha Trading Inc. (CNSX: QAT)(OTCBB:
RTNSF) (the “Company” or “QAT”), announced today the release of its financial
statements for the period ending March 31, 2011, together with the management’s
discussion & analysis in respect of the Company’s financial results and performance.
The results are issued for the first time under the International Financial Reporting
Standards (IFRS) which replaced Canadian Generally Accepted Accounting
Principles (GAAP) effective January 1, 2011 for all publicly accountable enterprises
in Canada.
The Company reported a net loss of $1,643,609 ($0.01 per share) for the three
months ended March 31, 2011 as compared to a net loss of $1,853,285 ($0.02 per
share) for the three months ended March 31, 2010. The change was mainly due to a
decrease in advertising and promotion and stock based compensation offset by an
increase in software amortization, bank charges and interest, foreign exchange,
management consulting and administrative, professional fees and salary and wages.
“The first quarter was primarily a transitional quarter for the Company,” said James
McGovern, Chief Executive Officer of QAT. “The Company underwent a number of
significant changes in the first quarter including a restructuring of its capital,
involving the retirement of certain debt in exchange for shares, the completion of a
private placement to raise additional working capital and a significant recomposition
of the Board and senior management. We expect these changes will assist the
Company in achieving its business objectives going forward. For the foreseeable
future, those objectives will be focussed upon continuing to actively market the
Company’s proprietary software to institutional investment managers and hedge
funds.”
At March 31, 2011, the Company had $2,192,098 in cash and cash equivalents (2010
– $478,936) and a working capital of $2,296,677 (2010 –$423,948).
On January 19, 2011, the Company successfully completed a non-brokered private
placement for gross proceeds of $500,000. Pursuant to the private placement, the
Company issued 9,523,809 units at a purchase price of $0.0525 per unit. Each unit
consists of one common share and four common share purchase warrants. All of these
warrants were exercised resulting in additional gross proceeds of approximately
$2,000,000.
About QAT
For more than a decade, QAT has been researching, developing and maintaining
proprietary algorithmic securities trading systems that operate across numerous
financial markets. Relying on behavioural science patterns, the Company’s
proprietary systems use a linked series of computer programs to analyze securities
market data in real-time and directly execute buy or sell orders over the electronic
securities exchanges while monitoring the status of every trade within a given
portfolio without human intervention. The Company trades on CNSX under the
symbol QAT and in the United States on the OTCBB under the symbol RTNSF.
For further information:
Contact: Jim McGovern, Chief Executive Officer, QAT - 1-416-323-0477
jim@qatinc.com
Except for historic information, the matters discussed in this document contain
certain forward-looking statements. These statements involve known and unknown
risks, delays, uncertainties and other factors not under the Corporation's control that
may cause actual results, levels of activity, performance or achievements to be
materially different from the results, levels of activity, performance, achievements or
expectations expressed or implied by these forward-looking statements.
CNSX has not reviewed and does not accept responsibility for the adequacy or
accuracy of the content of this news release.
2
Quantitative Alpha Trading Inc.
(Formerlyknownas RTN StealthSoftware Inc.)
CondensedInterimFinancialStatements
StatementofLossandComprehensiveLoss
For the three months ended March 31, 2011 and 2010
(Unaudited, expressed in Canadian dollars)
March 31,
March 31,
2011
2010
Expenses
Advertising and promotion
-
22,632
Amortization - Equipment
1,978
3,748
Amortization - Intangible
207,744
-
Finance costs
22,173
239
Foreign exchange (gain)
31,373
-
Management,consulting and administrative
60,405
33,600
Office
10,967
3,001
Professionalfees
64,844
30,208
Rent
16,637
12,500
Salary and wages
62,914
–
Share based compensation
1,143,272
1,736,064
Travel
10,194
1,500
Trust and filing fees
11,108
9,805
Loss before the following:
(1,643,609)
(1,853,297)
Interest and other income
-
12
Net loss and comprehensive loss
$ (1,643,609) $ (1,853,285)
Loss per share,basic
(0.01)
(0.02)
Loss per share,fully diluted
(0.01)
(0.02)
Weighted average number of common shares outstanding,basic
135,344,145
99,416,860
Weighted average number of common shares outstanding,fully diluted
135,500,552
99,416,860
3
Quantitative Alpha Trading Inc.
(Formerlyknownas RTN StealthSoftware Inc.)
CondensedInterimFinancialStatements
StatementofFinancialPosition
As at,
March 31
December 31
January 1
(Unaudited - expressed inCanadianDollars)
2011
2010
2010
(Note 11)
(Note 11)
Assets
Current assets
Cash and cash equivalents
$
2,192,098
$
174,530
$
379,284
Marketable securities
–
–
1,448,800
Other receivables
29,393
28,664
242,744
Prepaid expenses (Note 2)
222,135
216,135
10,000
2,443,626
419,329
2,080,828
Equipment (Note 5)
5,906
7,884
3,940
Intangible (Note 6)
7,582,647
7,790,391
–
Prepaid Expenses - long term(Note 2)
234,375
286,458
–
Mineralproperty
–
–
67,185
Oiland gas property
–
–
1
$ 10,266,554
$
8,504,062
$
2,151,954
Liabilities and Shareholders' Equity
Current liabilities
Trade and other payables
$
146,949
$
115,046
$
75,072
Deposit on private placement
–
250,000
–
Notes payable - current portion (Note 7)
–
358,445
–
146,949
723,491
75,072
Note payable -long term
–
2,095,476
–
146,949
2,818,967
75,072
Shareholders' equity
Share capitaland warrants (Note 8)
13,926,529
8,939,599
3,919,865
Contributed surplus
3,497,627
2,406,438
670,374
Accumulated other comprehensive income
–
–
504,770
Deficit
(7,304,551)
(5,660,942)
(3,018,127)
$ 10,266,554
$
8,504,062
$
2,151,954
Approved bythe Audit Committee on behalf of Board of Directors on June 29, 2011
Director
Director
4
Quantitative Alpha Trading Inc.
(Formerlyknownas RTN StealthSoftware Inc.)
CondensedInterimFinancialStatements
StatementofChangesinEquity
For the three months ended March 31, 2011 and 2010
(Unaudited, expressed in Canadian dollars)
Accumulated
other
Share Capital
Contributed
comprehensive
and Warrants
Surplus
Income
Deficit
Total Equity
$
$
$
$
$
As at January 1, 2011
8,939,599
2,406,438
-
(5,660,942)
5,685,095
Loss from continuing operations attributable to
owners of the Company
-
-
-
(1,643,609)
(1,643,609)
Issuance - private placement (Note 8a)
500,000
-
-
-
500,000
Issuance - conversion of notes payable (Note 7)
2,486,930
-
-
-
2,486,930
Issuance - warrant exercise (Note 8a)
2,000,000
-
-
-
2,000,000
Share based compensation (Note 8b)
-
1,091,189
-
-
1,091,189
Asat March 31, 2011
13,926,529
3,497,627
-
(7,304,551)
10,119,605
As at January 1, 2010
3,919,865
670,374
504,770
(3,018,127)
2,076,882
Loss from continuing operations attributable to
owners of the Company
-
-
-
(1,853,285)
(1,853,285)
Issuance - Arrangement Agreement
-
-
-
-
-
Redemption of Class A preferred shares
(1,515,986)
-
(504,770)
504,770
(1,515,986)
Share based compensation
-
1,736,064
-
-
1,736,064
Issuance-acquisition of software license
150,000
-
-
-
150,000
As at March 31, 2010
2,553,879
2,406,438
-
(4,366,642)
593,675
5
Quantitative Alpha Trading Inc.
(Formerlyknownas RTN StealthSoftware Inc.)
CondensedInterimFinancialStatements
CashFlowStatement
For the three months ended March 31, 2011
(Unaudited, expressed in Canadian dollars)
March 31,
March 31,
2011
2010
Cash provided by (used in)
Operating activities
Loss for the period
$
(1,643,609) $ (1,853,285)
Items not involving cash:
Share based compensation
1,143,272
1,736,064
Amortization
209,722
3,748
Accrued interest income
–
(12)
Accrued interest on notes payable
21,631
–
Foreign exchange on notes payable
11,378
–
(257,606)
(113,485)
Net changes in non-cash working capital
Other receivables
(729)
(7,632)
Prepaid expenses
(6,000)
10,000
Trade and other payables
31,903
(10,072)
(232,432)
(121,189)
Investing activities
Purchase of equipment
–
(7,159)
Short term investments
–
(10,000)
–
(17,159)
Financing activities
Common shares issued
2,500,000
–
Share subscription receivable
–
238,000
Deposit on private placement
(250,000)
–
2,250,000
238,000
Increase in cash and cash equivalents
2,017,568
99,652
Cash and cash equivalents, beginning of period
174,530
379,284
Cash and cash equivalents, end of period
$
2,192,098 $
478,936
Supplementary information:
Cash received from interest
$
– $
12
Non-cash transactions:
Conversion of notes payable
$
2,486,930 $
–
Shares distributed as part of corporate restructuring
$
– $ 1,515,986
Acquisiton of Software License
$
– $
150,000
6
