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VersaPay Announces 2010 First Quarter Results

^{Published on 2010-05-28 06:11:14 - Market Wire}
 

 - Increased total gross transaction value processed 83% to $132 million from $72 million in Q1 2009 - Monthly gross transaction value processed was $58 million for March 2010 - Listed on the TSX Venture Exchange - Completed $3.5 million equity financing - Signed partnership agreement with the Business Improvements Areas of British Columbia - Subsequent to quarter end, entered into agreement to sell 75% ownership position in Positive Inc. Q1 2010 Financial Summary(1) ------------------------------------------------------------------------- Q1 2010 Q1 2009 ------------------------------------------------------------------------- Recurring revenue(2) $2.5M $1.5M ------------------------------------------------------------------------- Non-recurring revenue(3) $0.1M $0.1M ------------------------------------------------------------------------- TOTAL REVENUE $2.6M $1.6M ------------------------------------------------------------------------- Expenses $3.5M $1.7M ------------------------------------------------------------------------- Adjusted EBITDA(4) $(0.5)M $(0.1)M ------------------------------------------------------------------------- Net income $(0.8)M $(0.1)M ------------------------------------------------------------------------- Net income per share $(0.08) $(0.26) ------------------------------------------------------------------------- Cash and cash equivalents $1.4M $0.2M ------------------------------------------------------------------------- 

 (1) A complete set of financial statements and notes and MD&A for the three-month period ended March 31, 2010 will be available on the Company's website at [ www.versapay.com ] and on SEDAR. (2) Defined as Transaction processing fees + VersaCard/EFT fees (3) Defined as Product sales (point-of-sale devices) and other (4) Adjusted EBITDA defined as Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-based compensation. See table A. Table A ------------------------------------------------------------------------- Q1 2010 Q1 2009 ------------------------------------------------------------------------- Adjusted EBITDA $(524,654) $(71,648) ------------------------------------------------------------------------- Interest expense $14,438 $(13,251) ------------------------------------------------------------------------- Amortization $(25,739) $(10,534) ------------------------------------------------------------------------- Stock-based compensation $(290,949) - ------------------------------------------------------------------------- Net Earnings $(826,904) $(95,433) ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- VERSAPAY CORPORATION (Formerly JG Capital Corp) ------------------------------------------------------------------------- UNAUDITED CONSOLIDATED BALANCE SHEETS ------------------------------------------------------------------------- As at As at March 31 December 31 --------------------------- 2010 2009 $ $ --------------------------- ASSETS Current Cash and cash equivalents 1,405,508 206,763 Funds held for merchants 435,384 365,518 Receivables 427,825 307,675 Prepaid expenses 17,126 17,133 Current assets of discontinued operations 44,510 29,133 --------------------------- 2,330,353 926,222 Share Issue Costs - 425,536 Equipment 356,252 318,735 Intangible Asset 136,352 101,592 Non-Current assets of discontinued operations 152,258 161,012 --------------------------- 2,975,215 1,933,097 ------------------------------------------------------------------------- LIABILITIES Current Accounts payable and accrued liabilities 632,628 1,259,384 Funds due to merchants 435,384 365,518 Deferred revenue 8,479 9,688 JG Capital Loan - 225,000 Current portion of obligation under capital lease 37,160 36,819 Current liabilities of discontinued operations 74,620 76,728 --------------------------- 1,188,271 1,973,137 Obligation under Capital Lease, net of current portion 85,475 97,546 --------------------------- 1,273,746 2,070,683 --------------------------- Non-Controlling Interest in Positive Inc. 11,806 7,569 --------------------------- SHAREHOLDERS' EQUITY (DEFICIENCY) Share Capital 7,018,805 4,872,073 Shares Subscriptions Received - 288,958 Contributed Surplus 1,460,487 618,955 Deficit (6,789,629) (5,925,141) --------------------------- 1,689,663 (145,155) --------------------------- 2,975,215 1,933,097 ------------------------------------------------------------------------- ------------------------------------------------------------------------- VERSAPAY CORPORATION (formerly JG Capital Corp) ------------------------------------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF LOSS, COMPREHENSIVE LOSS AND DEFICIT ------------------------------------------------------------------------- 3 months ended March 31 2010 2009 $ $ --------------------------- Revenue Transaction processing fees 2,447,262 1,395,605 Product sales and other 145,376 126,029 VersaCard/EFT fees 44,853 55,490 --------------------------- 2,637,491 1,577,125 --------------------------- Expenses Cost of services 1,609,696 916,283 Cost of products sold and other 370,507 247,493 VersaCard/EFT costs 11,561 26,111 Amortization 25,739 10,534 Bad debts 1,178 - Bank charges and interest (14,438) 13,251 Consulting fees 92,084 140,512 General and administrative 126,886 27,541 Marketing and promotion 31,439 13,270 Professional fees 88,323 20,192 Rent and occupancy 67,494 39,970 Salaries and benefits 600,209 172,125 Stock-based compensation 290,949 - Telecom & wireless connection fees 122,177 29,746 Travel 40,591 15,529 --------------------------- 3,464,395 1,672,557 --------------------------- Loss from Continuing Operations (826,904) (95,433) Results from Discontinued Operations 8,717 (39,500) Non Controlling Interest (4,237) 10,473 --------------------------- Net Loss and Comprehensive Loss for the Period (822,424) (124,460) Deficit, beginning of period (5,925,141) (4,583,892) Charges on share purchase warrant modification (42,064) - --------------------------- Deficit, end of period (6,789,629) (4,708,352) --------------------------- --------------------------- Loss per Share - basic and fully diluted $ (0.08) $ (0.26) Weighted average number of common shares outstanding 10,603,511 8,523,159 ------------------------------------------------------------------------- VERSAPAY CORPORATION (formerly JG Capital Corp) ------------------------------------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOW ------------------------------------------------------------------------- March 31, 2010 --------------------------- 3 months ended March 31 2010 2009 $ $ --------------------------- Cash Provided By (Used In) Operating Activities Net loss for the period (822,424) (124,460) Items not affecting cash: - amortization capital assets 25,739 10,534 - cancellation of JG Capital loan interest 14,271 - - stock-based compensation 290,949 - - non-controlling interest 4,237 (10,473) - discontinued operations (8,717) 13,977 Change in non-cash working capital items receivables (104,732) 233,474 prepaid expenses - (3,391) accounts payable and accrued liabilities (626,756) 118,740 deferred revenue (1,209) 1,417 --------------------------- (1,228,642) 239,818 --------------------------- Cash Provided by (Used In) Financing Activities issuance of common shares, net of issuance costs 2,537,131 6,092 capital lease payments (11,730) (2,729) --------------------------- 2,525,401 3,363 --------------------------- Cash Used in Investing Activities acquisition of equipment (63,255) (5,015) developed technology (34,760) --------------------------- (98,015) (5,015) --------------------------- Increase in Cash 1,198,745 238,166 Cash, beginning of period 206,763 325,175 --------------------------- Cash, end of period 1,405,508 563,341 --------------------------- Supplementary Cash Flow Information: Interest paid - 13,251