QUANTITATIVE ALPHA TRADING INC. REPORTS 2ND QUARTER 2011 FINANCIAL
RESULTS
August 16, 2011 (Toronto) – Quantitative Alpha Trading Inc. (CNSX: QAT)(OTCQB:RTNSF) (the
“Company” or “QAT”), announced today the release of its financial statements for the period ending June
30, 2011, together with the management’s discussion & analysis in respect of the Company’s financial
results and performance using the International Financial Reporting Standards (IFRS) applicable to all
publicly accountable enterprises in Canada.
The Company reported a net loss of $991,215 ($0.00 per share) for the three months ended June 30, 2011
as compared to a net loss of $314,675 ($0.00 per share) for the three months ended June 30, 2010. The
change was mainly due to a decrease in advertising and promotion expense, management consulting and
administrative expense, an increase in interest and other income, offset by an increase in stock based
compensation, software amortization, foreign exchange, professional fees and salary and wages.
The Company reported a net loss of $2,646,984 ($0.01 per share) for the six months ended June 30, 2011
as compared to a net loss of $2,167,992 ($0.02 per share) for the six months ended June 30, 2010. The
change was mainly due to a decrease in advertising and promotion expense, management consulting and
administrative expense, stock based compensation expense, an increase in interest and other income offset
by an increase in software amortization, finance costs, foreign exchange, professional fees and salary and
wages.
“The Company’s transition is nearly complete,” said James McGovern, Chief Executive Officer of QAT.
“With the conversion of its preferred shares in process, the Company is now completing the simplification
and streamlining of its capital structure following on significant changes in the first quarter including a
restructuring of its capital generally, 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. The final phase of our transition in this quarter has been devoted to
readying our trading systems for full operation, preparing for our US subsidiary’s operations and
proceeding with our application to move the Company from the CNSX to the TSX-V.”
At June 30, 2011, the Company had $1,921,765 in cash and cash equivalents (2010 – $175,035) and a
working capital of $2,019,681 (2010 –$438,215). The Company is not subject to external working capital
requirement and does not have significant capital commitments that it is obligated to make.
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 OTCQB under the
symbol RTNSF.
For further information:
Contact: Jim McGovern, Chief Executive Officer, QAT - 1-416-323-0477, jim@qatinc.com
1
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Forward-Looking Statements Advisory
Certain information included in this press release constitutes forward-looking statements and information
and future-oriented financial information under applicable securities legislation and is provided for the
purpose of expressing management’s current expectations and plans for the future. Readers are
cautioned that reliance on such information may not be appropriate for other purposes, such as making
investment decisions.
More particularly, this press release contains statements concerning QAT’s anticipated: business
development strategy, customer orders, product deliveries, sales, revenue and revenue growth. The
forward-looking statements are based on a number of key expectations and assumptions made by QAT,
including expectations and assumptions concerning achievement of current timetables for development
programs and sales, target market acceptance of QAT's products, current and new product performance,
availability and cost of labor and expertise. Although QAT believes that the expectations and assumptions
used to develop the forward-looking statements are reasonable, undue reliance should not be placed on
the forward-looking statements because QAT can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by their very nature they involve
numerous risks and uncertainties that contribute to the possibility that the projections and forecasts in the
forward-looking statements will not occur and that actual performance or results could differ materially
from those anticipated in the forward-looking statements. These risks and uncertainties include, but are
not limited to, the risks associated with QAT's stage of development, history of losses and lack of
historical product revenues, uncertainty as to product development and sales milestones being met,
product defect and performance risks, competition for capital and market share, uncertainty as to target
markets, dependence upon third parties, uncertainty as to patent and proprietary rights, availability and
retention of management and key personnel, exchange rate and currency fluctuations, uncertainties
relating to potential delays or changes in plans with respect to product development or capital
expenditures and the ability of QAT to access sufficient capital on acceptable terms. This is not an
exhaustive list and additional information on these risks and other factors that could affect QAT’s
operations and financial results are included in reports on file with the Canadian securities regulatory
authorities and can be accessed through the SEDAR website atwww.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof and QAT
undertakes no obligation to update publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise, unless so required by applicable
securities laws.
Additionally, QAT undertakes no obligation to comment on the expectations of, or statements made by,
third parties about QAT.
CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of
this news release.
Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
CONDENSED INTERIM FINANCIAL STATEMENTS
For the three and six months ended June 30, 2011
(Unaudited)
UNAUDITED INTERIM FINANCIAL STATEMENTS
In accordance with National Instrument 51-102 released by the Canadian Securities
Administrators, the Company discloses that its auditors have not reviewed the unaudited
consolidated interim financial statements for the three and six month period ended June
30, 2011.
2
Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
CondensedInterimFinancialStatements
StatementofLossandComprehensiveLoss
For the three and six months ended June 30, 2011 and 2010
(Unaudited, expressed in Canadian dollars)
Three months ended June 30
Six months ended June 30
2011
2010
2011
2010
Expenses
Advertising and promotion
-
28,291
-
50,923
Amortization - Equipment
1,731
473
3,709
4,221
Amortization - Intangible
207,744
103,872
415,488
103,872
Finance costs
1,256
823
23,428
1,062
Foreign exchange (gain)
7,175
-
38,548
-
Management, consulting and administrative
35,550
138,854
95,955
172,454
Office
3,584
14,052
14,551
17,053
Professional fees
89,407
471
154,251
30,679
Rent
16,137
7,500
32,774
20,000
Salary and wages
111,866
-
174,780
–
Share based compensation
515,862
8,681
1,659,135
1,744,745
Travel
2,566
6,461
12,760
7,961
Trust and filing fees
10,496
5,217
21,604
15,022
Loss before the following:
(1,003,375)
(314,695)
(2,646,984)
(2,167,992)
Interest and other income
12,160
21
12,160
33
Loss in write off of oil and gas property
–
(1)
–
(1)
Net loss and comprehensive loss
$ (991,215) $ (314,675) $(2,634,825)
$(2,167,960)
Loss per share, basic
$
(0.00)
$
(0.00) $
(0.01)
$
(0.02)
Loss per share, fully diluted
$
(0.00)
$
(0.00) $
(0.01)
$
(0.02)
Weighted average number of common
shares outstanding, basic
221,494,233
111,779,497 178,897,801
105,632,330
Weighted average number of common
shares outstanding, fully diluted
221,647,202
111,779,497 178,975,135
105,632,330
3
Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
CondensedInterimFinancialStatements
StatementofFinancialPosition
As at,
June 30,
December 31,
January 1
(Unaudited - expressed in Canadian Dollars)
2011
2010
2010
(Note 11)
(Note 11)
Assets
Current assets
Cash and cash equivalents
$ 1,921,765
$
174,530
$ 379,284
Marketable securities
–
–
1,448,800
Other receivables
52,350
28,664
242,744
Prepaid expenses (Note 2)
223,915
216,135
10,000
2,198,031
419,329
2,080,828
Equipment (Note 5)
15,293
7,884
3,940
Intangible (Note 6)
7,374,903
7,790,391
–
Prepaid Expenses - long term (Note 2)
182,292
286,458
–
Mineral property
–
–
67,185
Oil and gas property
–
–
1
$ 9,770,519
$
8,504,062
$ 2,151,954
Liabilities and Shareholders' Equity
Current liabilities
Trade and other payables
$ 178,350
$
115,046
$
75,072
Deposit on private placement
–
250,000
–
Notes payable - current portion (Note 7)
–
358,445
–
178,350
723,491
75,072
Note payable -long term
–
2,095,476
–
178,350
2,818,967
75,072
Shareholders' equity
Share capital and warrants (Note 8)
13,922,243
8,939,599
3,919,865
Contributed surplus
3,965,692
2,406,438
670,374
Accumulated other comprehensive income
–
–
504,770
Deficit
(8,295,767)
(5,660,942)
(3,018,127)
$ 9,770,519
$
8,504,062
$ 2,151,954
Approved by the Audit Committee on behalf of Board of Directors on August 15, 2011
Director
Director
4
Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
CondensedInterimFinancialStatements
StatementofChangesinEquity
For the three and six months ended June 30, 2011 and 2010
(Unaudited, expressed in Canadian dollars)
Share
Accumulated
Capital and Contributed
other
Warrants
Surplus
comprehensive
Deficit
Total
Equity
Income
$
$
$
$
$
As at January 1, 2011
8,939,599
2,406,438
- (5,660,942)
5,685,095
Net loss and comprehensive loss
-
-
- (2,634,825) (2,634,825)
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
Share based compensation (Note 8b)
-
463,779
-
-
463,779
Cancellation of preferred shares (Note 8a)
(4,286)
4,286
-
-
-
As at June 30, 2011
13,922,243
3,965,692
- (8,295,767)
9,592,168
As at January 1, 2010
3,919,865
670,374
504,770 (3,018,127)
2,076,882
Net loss and comprehensive loss
-
-
- (2,167,960) (2,167,960)
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
Issuance - acquisition of RTN Stealth
Software
5,000,000
-
-
-
5,000,000
Issuance - finders fees for ENAJ
acquisition
31,250
-
-
-
31,250
Issuance - management agreement with
Chief Operating officer
625,000
-
-
-
625,000
Issuance - acquisition of ENAJ
software
625,000
-
-
-
625,000
As at June 30, 2010
8,835,129
2,406,438
- (4,681,317)
6,560,250
5
Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
CondensedInterimFinancialStatements
CashFlowStatement
For the three and six months ended June 30, 2011
(Unaudited, expressed in Canadian dollars)
Three months ended June 30
Six months ended June 30
2011
2010
2011
2010
Cash provided by (used in)
Operating activities
Loss for the period
$ (991,215)
$ (314,675)
$ (2,634,825)
$ (2,167,960)
Items not involving cash:
Share based compensation
515,862
8,681
1,659,135
1,744,745
Amortization
209,475
104,345
419,197
108,093
Accrued interest income
–
(21)
–
(33)
Accrued interest on notes payable
–
–
21,631
–
Foreign exchange on notes payable
–
–
11,378
–
(265,878)
(201,670)
(523,484)
(315,155)
Net changes in non-cash working capital
Other receivables
(22,957)
(3,193)
(23,686)
(10,825)
Prepaid expenses
(1,781)
–
(7,781)
10,000
Trade and other payables
31,401
(54,245)
63,304
(64,317)
(259,215)
(259,108)
(491,647)
(380,297)
Investing activities
Purchase of equipment
(11,118)
(4,793)
(11,118)
(11,952)
Short term investments
–
(40,000)
–
(50,000)
(11,118)
(44,793)
(11,118)
(61,952)
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
(270,333)
(303,901)
1,747,235
(204,249)
Cash and cash equivalents, beginning of period
2,192,098
478,936
174,530
379,284
$
Cash and cash equivalents, end of period
1,921,765 $
175,035
$ 1,921,765
$
175,035
Supplementary information:
Cash received from interes
$
–
$
–
$
–
$
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
Common shares issued for management agreement
(Note 2)
$
–
$
625,000
$
–
$
625,000
Common shares issued for the acquisition of software
(Note 2)
$
–
$ 5,806,250
$
–
$
5,806,250
6
