FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of
1934
For the period ended February 28, 2002
RTICA Corporation
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(Translation of registrant's name into English)
999 Barton Street, Stoney Creek, Ontario L8E 5H4 Canada
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(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
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RTICA CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Interim Financial statements
(Expressed in Canadian dollars)
Period ended February 28, 2002
UNAUDITED
RTICA CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Interim Consolidated Balance Sheets
(Expressed in Canadian dollars)
February 28, 2002 and May 31, 2001
(Unaudited)
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February 28 May 31
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Assets
Current assets:
Cash and short-term investments $ 82,059 $ 1,394,051
GST and other receivables 67,334 74,301
Prepaid expenses 10,877 8,442
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160,270 1,476,794
Fixed assets (note 2) 350,927 435,236
Deferred development costs 1 1
Goodwill, net of accumulated amortization
of $102,347 (May 31 - $82,574) 6,591 26,364
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$ 517,789 $ 1,938,395
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 772,361 $ 299,369
Due to government (note 4) 445,000 200,694
Shareholders' equity:
Share capital (note 3) 8,907,618 8,743,768
Deficit (9,607,190) (7,305,436)
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(699,572) 1,438,332
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$ 517,789 $ 1,938,395
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See accompanying notes to interim financial statements.
RTICA CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Interim Consolidated Statements of Operations and Deficit
Three month periods ended February 28, 2002 and 2001
(Unaudited)
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2002 2001
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Income:
Interest and other $ 838 $ 19,363
Operating expenses:
Development 486,191 388,313
Sales and marketing 96,219 84,140
Rent and property taxes 44,346 43,874
Consulting 44,272 54,213
Management fees 40,500 37,250
General and administrative 36,593 43,420
Professional fees 33,660 40,779
Amortization of fixed assets 32,788 50,207
Patents 25,859 -
Factory overhead 17,607 22,007
Travel 16,081 21,748
Amortization 6,591 6,591
Interest and bank charges 280 212
Interest on convertible debenture - 10,031
R&D Contributions and capitalized expenditures - (703,290)
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880,987 99,495
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Loss for the period (880,149) (80,132)
Deficit accumulated during development
stage, beginning of period (8,727,041) (5,449,135)
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Deficit accumulated during development
stage, end of period $(9,607,190) $(5,529,267)
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Loss per share $ (0.035) $ (0.004)
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Weighted average number of common shares outstanding,
excluding shares held in escrow (note 3) 24,940,864 22,572,947
================================================================================
See accompanying notes to interim financial statements.
RTICA CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Interim Consolidated Statements of Cash Flows
Three month periods ended February 28, 2002 and 2001
(Unaudited)
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2002 2001
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Cash provided by (used in):
Operating activities:
Loss for the period $ (880,149) $ (80,132)
Items not involving cash:
Interest on convertible debenture - 10,031
Amortization of fixed assets 32,788 50,207
Amortization of goodwill 6,591 6,591
Change in non-cash operating
working capital:
GST and other receivables (17,335) (161,404)
Prepaid expenses (2,435) -
Accounts payable and accrued liabilities 311,701 (4,496)
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(548,839) (179,203)
Financing activities:
Issuance of share capital 163,850 -
Due to government 203,251 -
Issuance of convertible debentures - -
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367,101 -
Investing activities:
Purchase of fixed assets (8,667) (231,430)
Development expenditures - (464,582)
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(8,667) (696,012)
Change in cash and cash equivalents (190,405) (875,215)
Cash and cash equivalents, start of period 272,464 2,867,635
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Cash and cash equivalents, end of period $ 82,059 $ 1,992,420
================================================================================
See accompanying notes to interim financial statements.
RTICA CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Interim Consolidated Statements of Operations and Deficit
Nine month periods ended February 28, 2002 and 2001, and cumulative from
inception
(Unaudited)
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Cumulative
Period from
June 13, 1991
(inception) to
February 28,
2002 2001 2002
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Income:
Interest $ 38,107 $ 83,189 $ 205,631
Fees and licenses - - 622,482
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38,107 83,189 828,113
Operating expenses:
Development 1,161,091 662,271 3,818,391
Sales and marketing 226,057 177,245 609,612
Consulting 212,409 264,624 1,639,597
Professional fees 157,574 220,051 1,066,945
Rent and property taxes 120,856 112,767 344,398
Management fees 113,000 112,250 986,386
General and administrative 111,812 170,301 746,728
Amortization of fixed assets 98,364 118,740 271,617
Factory overhead 52,821 34,262 105,887
Travel 36,763 44,147 393,088
Patents 26,797 - 71,083
Amortization 19,773 19,773 102,347
Interest and bank charges 1,294 711 137,390
Foreign exchange 1,250 - -
Interest on convertible debenture - 37,881 141,834
R&D Contributions and capitalized
expenditures - (703,290) -
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2,339,861 1,271,733 10,435,303
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Loss for the period (2,301,754) (1,188,544) (9,607,190)
Deficit accumulated during development
stage, beginning of period (7,305,436) (4,340,723) -
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Deficit accumulated during development
stage, end of period $ (9,607,190) $ (5,529,267) $ (9,607,190)
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Loss per share $ (0.09) $ (0.06)
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Weighted average number of common shares
outstanding, excluding shares held
In escrow shares (note 3) 24,816,086 21,123,571
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See accompanying notes to interim financial statements.
RTICA CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Interim Consolidated Statements of Cash Flows
Nine month periods ended February 28, 2002 and 2001, and cumulative from
inception
(Unaudited)
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Cumulative
Period from
June 13, 1991
(inception) to
February 28,
2002 2001 2002
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Cash provided by (used in):
Operating activities:
Loss for the period $ (2,301,754) $ (1,188,544) $ (9,607,190)
Items not involving cash:
Interest on convertible debenture - 37,881 115,970
Amortization of fixed assets 98,364 118,740 271,617
Amortization of goodwill 19,773 19,773 102,347
Interest expense on converted loan - - 96,000
Expenses settled by issuance
of common shares - - 431,388
Foreign exchange 1,250 - (25,621)
Change in non-cash operating
working capital:
GST and other receivables 6,967 (88,577) (67,334)
Prepaid expenses (2,435) - (10,877)
Accounts payable and accrued liabilities 472,992 (672,607) 691,015
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(1,704,843) (1,773,334) (8,002,685)
Financing activities:
Due to government 244,306 - 445,000
Issuance of convertible debentures - - 1,860,000
Issuance of common shares 163,850 - 2,436,617
Issuance of special warrants - 2,759,241 2,870,659
Exercise of share purchase warrants - - 553,541
Proceeds from loan payable - - 254,000
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408,156 2,759,241 8,419,817
Investing activities:
Purchase of fixed assets (14,055) (241,630) (622,543)
Deferred development costs - (464,582) (1)
Cash acquired on reverse takeover - - 261,850
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(14,055) (706,212) (360,694)
Foreign exchange gains held on foreign currency (1,250) - 25,621
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Change in cash and cash equivalents (1,311,992) 279,695 82,059
Cash and cash equivalents, start of period 1,394,051 1,712,725 -
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Cash and cash equivalents, end of period $ 82,059 $ 1,992,420 $ 82,059
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See accompanying notes to interim financial statements.
RTICA CORPORATION
(FORMERLY INZECO HOLDINGS INC.)
(A DEVELOPMENT STAGE COMPANY)
Notes to Interim Consolidated Financial Statements
Nine month periods ended February 28, 2002
(Unaudited)
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1. Significant accounting policies:
These interim financial statements have been prepared in accordance with
accounting principles generally accepted in Canada ("Canadian GAAP"), and
include estimates and adjustments which in the opinion of management are
necessary in order to make the financial statements not misleading.
Canadian GAAP differs in certain respects with those principles and
practices that the Company would have followed had its financial statements
been prepared in accordance with accounting principles and practices
generally accepted in the United States. For a full description of
accounting polices which have been applied on a consistent basis in these
interim financial statements, refer to the Company's annual financial
statements.
2. Fixed Assets:
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Accumulated Net Book Net Book
Cost Amortization Value Value
February 28 May 31
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Machinery and equipment $ 530,518 $ 225,190 $ 305,328 $ 388,029
Furniture 11,451 4,799 6,652 7,384
Vehicles 15,848 7,477 8,371 10,306
Computer hardware 63,867 33,291 30,576 29,517
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$ 621,684 $ 270,757 $ 350,927 $ 435,236
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3. Share capital:
As of February 28, 2002, the Company had 34,835,636 common shares and
3,255,750 Company stock options outstanding. In addition, there are 201,667
broker compensation options outstanding exercisable at $0.60 per share and
expiring on June 14, 2002, issued in connection with a private placement in
June 2000. During the quarter ended February 28, 2002, the company granted
225,000 options, exercisable at $0.48 expiring on January 17, 2005. There
where no stock options expiring during the period.
Using the treasury stock method, the weighted average number of common
shares outstanding used in determining basic earnings per share excludes
9,298,939 of escrowed shares.
RTICA CORPORATION
(FORMERLY INZECO HOLDINGS INC.)
(A DEVELOPMENT STAGE COMPANY)
Notes to Interim Consolidated Financial Statements (Cont'd)
Nine month periods ended February 28, 2002
(Unaudited)
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4. Due to government:
The company has signed a contract with the National Research Council of
Canada, whereby the Company is eligible to receive up to $445,000 as a
repayable contribution for various projects carried out by the Company.
Repayment of these contributions begins on January 1, 2004 based on 1% of
the Company's gross revenue up to a maximum of $667,500.
5. Related party transactions:
Amounts expended during the nine month period ended February 28, 2002 were
as follows:
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Type of service Nature of relationship February 28, 2002
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Sales and marketing Shareholder and officer $ 138,328
Management fees Shareholder, director and officer 118,500
Development charges Shareholders and director 172,887
Consulting Shareholder and director 4,950
Professional fees Shareholder, director and officer 31,391
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6. Subsequent Events
On April 18, 2002 the Company secured $340,00 in bridge financing for
general working capital purposes in tranches of $150,000 and $190,000
respectively, both amounts to bear interest at the rate of 15%. The latter
advance is secured by a General Security Agreement over the Company's
assets. A total of 80,000 common shares of the Company were allocated to
the lenders as an inducement to advance the funds. The loans are repayable
in 6 months, or earlier in the event that the Company raises at least
$700,000 in additional equity. The common shares allocated have a hold
period expiring on August 16, 2002.
7. Comparative figures:
Certain comparative figures have been reclassified to conform to
presentation adopted in the current year.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
RTICA Corporation
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(Registrant)
Date May 16, 2002 By: /s/ Warren Arseneau
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*Warren Arseneau,
President
* Print the name and title of the signing officer under his signature.