posted
My bet is it goes up to 0.10 to 0.14 then backs off.
SmarTire Reports FQ1 2006 Financial Results PR NEWSWIRE RICHMOND, British Columbia, Dec. 15 /PRNewswire-FirstCall/ -- SmarTire Systems Inc. (OTC Bulletin Board: SMTR) reported today its financial results for its first quarter ended October 31, 2005. SmarTire's consolidated financial statements and all financial information contained in this release are stated in U.S. dollars and are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
SmarTire reported an increase in revenue for the first quarter of fiscal year 2006 to $592,866 from $301,169 in FQ1 '05. Total sales to the original equipment manufacturer (OEM) market for the quarter were $442,882, an increase of approximately $270,398 or 157% from the same quarter of FY '05. Net loss for the quarter totaled $18.2 million ($0.06 per share), compared with a net loss of $2.4 million ($0.02 per share) in FQ1 '05. The substantial increase in the loss in FQ1 '06 was mainly due to non-cash interest and finance charges of $16,696,167 of which approximately $16.1 million related to expenses incurred in connection with SmarTire's $160 million equity line of credit. The charge was taken as there will likely be a delay in SmarTire's registration of its equity line of credit. The FQ1 '06 loss was partially offset by a stock-based compensation recovery of $1,633,975.
Cash used to fund operating activities in FQ1 '06 was $3.1 million, compared to $2.0 million in FQ1 '05. The increase in cash used was mainly due to a $900,000 interest payment on SmarTire's convertible debentures.
SmarTire Chief Financial Officer Jeff Finkelstein said, "As President and CEO Al Kozak stated in our November 9, 2005 announcement, we are beginning to see results from our shift in focus toward value-added systems for the OEM market. We are encouraged by these results. Although they are well below where we expect to be in the coming quarters and years, it is clear we are moving in the right direction."
SmarTire also announced that the annual and special meeting of shareholders was held on December 9, 2005. All resolutions proposed by management for adoption by the shareholders were approved. All incumbent directors were re-elected, and the board re-appointed SmarTire incumbent officers for fiscal year 2006.
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
