EIGER TECHNOLOGY, INC. |
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
As at March 31, 2007 |
with |
Comparative figures as at September 30, 2006 |
and |
For the six months ended March 31, 2007 and 2006 |
Unaudited, prepared by Management |
(Stated in Canadian Dollars) |
The unaudited interim consolidated financial statements of Eiger Technology, Inc. (the "Company") have |
not been reviewed by the auditors of the Company. This notice is being provided in accordance with |
section 4.3(3)(a) of the National Instrument 51-102 Continuous Disclosure Obligations. |
EIGER TECHNOLOGY, INC.
Consolidated Balance Sheet
March 31 | September 30 | |||||
2007 | 2006 | |||||
(Unaudited) | (Unaudited) | |||||
$ | $ | |||||
Assets | ||||||
Current | ||||||
Cash and Marketable Securities | 177,000 | 102,000 | ||||
Accounts Receivable | 322,000 | 262,000 | ||||
Prepaid Expenses | 11,000 | 34,000 | ||||
Income Tax Recovery | - | 7,000 | ||||
510,000 | 405,000 | |||||
Equity Investment | 2,666,000 | 3,372,000 | ||||
Property and Equipment | 56,000 | 62,000 | ||||
Advance to Corporations | 2,046,000 | 2,079,000 | ||||
Licensing Rights | 1,479,000 | 1,479,000 | ||||
6,757,000 | 7,397,000 | |||||
Liabilities and Shareholders' Deficit | ||||||
Current | ||||||
Accounts Payable and Accrued Charges | 633,000 | 1,077,000 | ||||
Non-Controlling Interests in Subsidiaries | 7,468,000 | 6,789,000 | ||||
Shareholders' Deficit | ||||||
Share Capital (Note 4) | 43,839,000 | 43,839,000 | ||||
Stock-Based Compensation | 1,264,000 | 1,264,000 | ||||
Accumulated Deficit | (46,447,000) | (45,572,000) | ||||
(1,344,000) | (469,000) | |||||
6,757,000 | 7,397,000 | |||||
On Behalf of the Board: | ||||||
"John Simmonds" | Director | |||||
John Simmonds | ||||||
"Jason Moretto" | Director | |||||
Jason Moretto | ||||||
EIGER TECHNOLOGY, INC.
Consolidated Statement of Operations and Deficit
For the period ended March 31 | 2007 | 2007 | 2006 | 2006 | ||||
Current Quarter | Year-to-Date | Current Quarter | Year-to-Date | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
$ | $ | $ | $ | |||||
Revenues | - | - | - | - | ||||
Cost of Revenues | - | - | - | - | ||||
Gross Profit | - | - | - | - | ||||
Expenses | ||||||||
Selling, General and Administrative | 206,000 | 399,000 | 167,000 | 334,000 | ||||
Amortization of Property and Equipment | 3,000 | 6,000 | 4,000 | 8,000 | ||||
Interest and Bank Charges | 1,000 | 1,000 | 1,000 | 1,000 | ||||
210,000 | 406,000 | 172,000 | 343,000 | |||||
Income (Loss) from Operations | (210,000) | (406,000) | (172,000) | (343,000) | ||||
Other Income | ||||||||
Interest income (expense) | - | - | - | - | ||||
Earnings (Loss) from Equity Investments | 74,000 | 74,000 | - | - | ||||
Gain (Loss) on Sale of Investment in Subsidiary | (569,000) | (569,000) | - | - | ||||
(495,000) | (495,000) | - | - | |||||
Earnings (Loss) from Continuing Operations | ||||||||
Before Income Taxes | (705,000) | (901,000) | (172,000) | (343,000) | ||||
Provision (Recovery) of Income Taxes | 5,000 | 5,000 | - | - | ||||
Earnings (Loss) from Continuing Operations | (710,000) | (906,000) | (172,000) | (343,000) | ||||
Stock-Based Compensation | - | - | - | 9,000 | ||||
Non-Controlling Interests | 5,000 | 31,000 | 24,000 | (32,000) | ||||
Net Earnings (Loss) | (705,000) | (875,000) | (148,000) | (320,000) | ||||
Retained Earnings (Deficit), Beginning of Period | (45,742,000) | (45,572,000) | (44,978,000) | (44,806,000) | ||||
Retained Earnings (Deficit), End of Period | (46,447,000) | (46,447,000) | (45,126,000) | (45,126,000) | ||||
Earnings (Loss) Per Weighted Average Number of Shares Outstanding - Basic and Diluted: | ||||||||
Continuing Operations | (0.02) | (0.02) | 0.00 | (0.01) | ||||
Net Earnings (Loss) | (0.02) | (0.02) | 0.00 | (0.01) | ||||
Weighted Average Number of Shares Outstanding - Basic and Diluted: | ||||||||
38,819,054 | 38,819,054 | 38,819,054 | 38,819,054 | |||||
EIGER TECHNOLOGY, INC.
Consolidated Statement of Cash Flows
For the period ended March 31 | 2007 | 2007 | 2006 | 2006 | ||||
Current Quarter | Year-to-Date | Current Quarter | Year-to-Date | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
$ | $ | $ | $ | |||||
Cash Flows from Operating Activities: | ||||||||
Net Earnings (Loss) for the Period | (705,000) | (875,000) | (148,000) | (320,000) | ||||
Adjustments for: | ||||||||
Stock-Based Compensation | (441,000) | (441,000) | - | 9,000 | ||||
Amortization | 3,000 | 6,000 | 4,000 | 8,000 | ||||
(1,143,000) | (1,310,000) | (144,000) | (303,000) | |||||
Changes in Non-Cash Working Capital: | ||||||||
Accounts Receivable | (112,000) | (60,000) | (96,000) | 169,000 | ||||
Prepaid Expenses | 21,000 | 23,000 | (100,000) | (154,000) | ||||
Income Tax Recovery | 12,000 | 7,000 | - | - | ||||
Advances to Corporations | (2,015,000) | 33,000 | - | - | ||||
Accounts Payable | (423,000) | (444,000) | (95,000) | (476,000) | ||||
Other Payable | (587,000) | (699,000) | 18,000 | 36,000 | ||||
Deferred Revenue | (700,000) | (458,000) | 10,000 | 401,000 | ||||
(4,947,000) | (2,908,000) | (407,000) | (327,000) | |||||
Cash Flows from Investment Activities: | ||||||||
Equity Investments | (2,666,000) | 706,000 | - | - | ||||
Sale (Purchase) of Property and Equipment | 863,000 | 924,000 | (50,000) | (23,000) | ||||
Goodwill and Other Assets | - | - | 20,000 | 20,000 | ||||
(1,803,000) | 1,630,000 | (30,000) | (3,000) | |||||
Cash Flows from Financing Activities: | ||||||||
Long-Term Debt | - | - | (26,000) | (82,000) | ||||
Non-Controlling Interests | 6,847,000 | 1,353,000 | 771,000 | 733,000 | ||||
6,847,000 | 1,353,000 | 745,000 | 651,000 | |||||
Net Increase (Decrease) in Cash | 97,000 | 75,000 | 308,000 | 321,000 | ||||
Cash and Cash Equivalents - Beginning of Period | 80,000 | 102,000 | 46,000 | 33,000 | ||||
Cash and Cash Equivalents - End of Period | 177,000 | 177,000 | 354,000 | 354,000 | ||||
EIGER TECHNOLOGY, INC. |
Notes to the Consolidated Financial Statements |
For the six months ended March 31, 2007 |
1. Organization and Nature of Business: |
Eiger Technology, Inc. (the "Company" or "Eiger") was originally incorporated as Alexa Ventures Inc. |
on September 8, 1986 under the laws of British Columbia. Currently, the Company is in good standing, |
operating under the laws of Ontario. The Company is listed as an issuer on the TSX. |
2. Significant Accounting Policies: |
These interim financial statements have been prepared using the same accounting principles and the |
same methods of application as were used in the preparation of the Company's annual financial |
statements for the year ended September 30, 2006. However, Eiger's interest in Newlook decreased from |
85% to 42% during the quarter, resulting in Eiger changing its accounting for Newlook from |
consolidation to equity accounting. As such, figures including September 30, 2006 balance sheet amounts |
have been revised for comparative purposes. These interim financial statements may not contain all of |
the disclosures necessary to be fully in accordance with Canadian generally accepted accounting principles, |
and should, therefore, be read in conjunction with the annual financial statements for the year ended |
September 30, 2006. |
3. Going Concern: |
The accompanying consolidated financial statements have been prepared on a going concern basis, which |
assumes that the Company will continue in operation for the foreseeable future and will be able to realize |
its assets and discharge its liabilities and contingencies in the normal course of operations. The |
Company's ability to continue as a going concern is dependent upon the Company's ability to raise |
additional capital, to increase sales and sustain profitable operations. Should the Company be unable to |
continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its |
liabilities as they become due. The Company believes that future shares issuance and certain sales related |
efforts will provide sufficient cash flow for it to continue as a going concern in its present form, |
however, there can be no assurances that the Company will achieve such results. Accordingly, the |
consolidated financial statements do not include any adjustments related to the recoverability and |
classification of recorded asset amounts or the amount and classification of liabilities or any other |
adjustments that might be necessary should the Company be unable to continue as a going concern. |
4. Share Capital: |
Authorized: 100,000,000 Common Shares without par value. |
Issued: 38,819,054 Common Shares. |
Stock Options Issued: 3,556,000 Options. |