| ||
|
|
| |||||
EnerNorth Industries Inc. |
|
| |||||
Consolidated Balance Sheets |
|
| |||||
(Expressed in Canadian dollars) |
|
| |||||
|
March 31, 2004 |
June 30, 2003 | |||||
|
(unaudited) |
(audited |
) | ||||
|
|
|
|||||
|
|
|
|||||
|
|
|
|||||
ASSETS |
|
|
|||||
Current |
|
|
|||||
Cash and cash equivalents |
$ |
2,615,162 |
$ |
6,729,283 |
|||
Restricted cash |
|
791,746 |
|
1,218,070 |
|||
Marketable securities |
521,039 |
176,804 |
|||||
Receivables |
3,447,938 |
6,503,464 |
|||||
Inventories |
650,136 |
713,835 |
|||||
Unbilled revenue |
590,830 |
1,680,806 |
|||||
Due from co-venturer |
1,388,019 |
461,150 |
|||||
Prepaid expenses |
150,431 |
240,725 |
|||||
Investment |
3,365,000 |
- |
|||||
|
|
|
|||||
Total current assets |
13,520,301 |
17,724,137 |
|||||
|
|
|
|||||
Oil and gas interests (net of accumulated |
|
|
|||||
depletion) |
5,386,218 |
4,444,038 |
|||||
Capital assets (net of accumulated |
|
|
|||||
depreciation and amortization) |
3,096,078 |
3,166,786 |
|||||
Investment |
- |
3,500,000 |
|||||
|
|
|
|||||
|
|
|
|||||
|
$ |
22,002,597 |
$ |
28,834,961 |
|||
|
|
|
|||||
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|||||
Current |
|
|
|||||
Bank indebtedness |
$ |
430,531 |
$ |
2,036,933 |
|||
Accounts payable and accrued liabilities |
3,774,237 |
5,747,414 |
|||||
Due to shareholder (Note 3b) |
- |
402,419 |
|||||
Current portion of long-term debt |
158,309 |
158,309 |
|||||
Deferred revenue |
396,984 |
2,399,086 |
|||||
Future income tax liability |
302,900 |
302,900 |
|||||
Oakwell claim (Note 4) |
8,050,000 |
5,900,000 |
|||||
Total current liabilities |
13,112,961 |
16,947,061 |
|||||
|
|
|
|||||
Long-term debt |
464,067 |
528,020 |
|||||
Site Restoration |
114,274 |
106,274 |
|||||
Total liabilities |
13,691,302 |
17,581,355 |
|||||
|
|
|
|||||
|
|
|
|||||
Shareholders' equity |
|
|
|||||
Capital stock (Note 5) |
43,339,132 |
43,339,132 |
|||||
Deficit |
(35,027,837 |
) |
(32,085,526 |
) | |||
Total shareholders' equity |
$ |
8,311,295 |
$ |
11,253,606 |
|||
|
|
|
|||||
|
|
|
|||||
|
$ |
22,002,597 |
$ |
28,834,961 |
|||
|
|
|
|||||
|
|
|
|||||
|
|
|
|||||
The accompanying notes to the financial statements are an integral part of these financial statements |
|
|
| ||
|
|
|
|
| |||||||||
|
|
|
|
| |||||||||
|
|
|
|
| |||||||||
EnerNorth Industries Inc. |
|
|
|
| |||||||||
Consolidated Statements of Loss and Deficit |
|
|
|
| |||||||||
(Unaudited) |
|
|
|
| |||||||||
(Expressed in Canadian dollars) |
|
|
|
| |||||||||
|
For the nine |
For the three | |||||||||||
|
|
month period |
month period | ||||||||||
|
|
ending March 31 |
ending March 31 | ||||||||||
|
2004 |
2003 |
2004 |
2003 |
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Sales |
$ |
24,554,491 |
$ |
18,007,207 |
$ |
7,731,978 |
$ |
2,983,333 |
|||||
Cost of sales (including |
|
|
|
|
|||||||||
depreciation and depletion of |
|
|
|
|
|||||||||
$472,352; 2003 - $315,088) |
21,348,235 |
15,653,176 |
7,207,910 |
2,573,261 |
|||||||||
|
|
|
|
|
|||||||||
Gross profit |
3,206,256 |
2,354,031 |
524,068 |
410,072 |
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Administrative expenses |
4,054,219 |
3,262,392 |
1,699,729 |
1,255,540 |
|||||||||
Amortization of capital assets |
92,128 |
60,544 |
42,496 |
20,217 |
|||||||||
Interest |
80,353 |
117,056 |
20,449 |
37,417 |
|||||||||
Interest on long-term debt |
36,456 |
36,169 |
11,535 |
10,966 |
|||||||||
|
|
|
|
|
|||||||||
|
4,263,156 |
3,476,161 |
1,774,209 |
1,324,140 |
|||||||||
|
|
|
|
|
|||||||||
Loss before the following |
(1,056,900 |
) |
(1,122,130 |
) |
(1,250,141 |
) |
(914,068 |
) | |||||
|
|
|
|
|
|||||||||
Oakwell claim |
(2,150,000 |
) |
- |
(547,000 |
) |
- |
|||||||
Other income |
264,589 |
144,195 |
36,718 |
42,389 |
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Net loss before tax |
($2,942,311 |
) |
($977,935 |
) |
($1,760,423 |
) |
($871,679 |
) | |||||
|
|
|
|
|
|||||||||
Income taxes |
|
|
|
|
|||||||||
Future |
(160,018 |
) |
- |
(461,101 |
) |
- |
|||||||
Utilization of loss carryforwards |
160,018 |
- |
461,101 |
- |
|||||||||
|
|
|
|
|
|||||||||
- |
- |
- |
- |
||||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Net loss |
($2,942,311 |
) |
($977,935 |
) |
($1,760,423 |
) |
($871,679 |
) | |||||
|
|
|
|
|
|||||||||
Deficit, beginning of period |
(32,085,526 |
) |
(24,038,050 |
) |
(33,267,414 |
) |
(24,144,306 |
) | |||||
|
|
|
|
|
|||||||||
Deficit, end of period |
($35,027,837 |
) |
($25,015,985 |
) |
($35,027,837 |
) |
($25,015,985 |
) | |||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Net loss per Common Share |
|
|
|
|
|||||||||
Net loss per share |
($0.72 |
) |
($0.24 |
) |
($0.43 |
) |
($0.21 |
) | |||||
Weighted average common shares |
|
|
|
|
|||||||||
outstanding (thousands) |
4,059 |
4,059 |
4,059 |
4,059 |
|||||||||
|
|
|
|
|
|||||||||
Fully Diluted net loss per Common Share |
|
|
|
|
|||||||||
Net loss per share |
antidilutive |
antidilutive |
antidilutive |
antidilutive |
|||||||||
|
|
|
|
|
|||||||||
The accompanying notes to the financial statements are an integral part of these financial statements |
|
| ||
|
|
|
|
| |||||||||
|
|
|
|
| |||||||||
|
|
|
|
| |||||||||
EnerNorth Industries Inc. |
|
|
|
| |||||||||
Consolidated Statements of Cash Flows |
|
|
|
| |||||||||
(Unaudited) |
|
|
|
| |||||||||
(Expressed in Canadian dollars) |
|
|
|
| |||||||||
|
|
|
|
| |||||||||
|
For the nine month period |
For the three month period | |||||||||||
|
|
ending March 31 |
ending March 31 | ||||||||||
|
2004 |
2003 |
2004 |
2003 |
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Cash provided by (used in) |
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Operating activities |
|
|
|
|
|||||||||
Net loss |
($2,942,311 |
) |
($977,935 |
) |
($1,760,423 |
) |
($871,679 |
) | |||||
Adjustments to reconcile net loss to |
|
|
|
|
|||||||||
net cash provided by operating activities |
|
|
|
|
|||||||||
Amortization and depletion |
564,480 |
375,632 |
179,692 |
127,116 |
|||||||||
Oakwell claim |
2,150,000 |
- |
547,000 |
- |
|||||||||
Unrealized foreign exchange |
|
|
|
|
|||||||||
loss on investment |
135,000 |
- |
- |
- |
|||||||||
Gain on sale of marketable |
|
|
|
|
|||||||||
securities |
(14,628 |
) |
(61,165 |
) |
- |
(970 |
) | ||||||
|
|
|
|
|
|||||||||
|
(107,459 |
) |
(663,468 |
) |
(1,033,731 |
) |
(745,533 |
) | |||||
Net change in non-cash working capital |
|
|
|
|
|||||||||
Receivables |
3,055,526 |
2,190,001 |
2,302,372 |
3,287,990 |
|||||||||
Inventories and unbilled revenue |
1,153,675 |
1,548,499 |
(102,648 |
) |
38,758 |
||||||||
Prepaid expenses |
90,294 |
(99,404 |
) |
41,748 |
(45,459 |
) | |||||||
Accounts payable and |
|
|
|
|
|||||||||
accrued liabilities |
(1,973,177 |
) |
(2,555,841 |
) |
(70,132 |
) |
(1,930,513 |
) | |||||
Restricted cash |
426,324 |
- |
426,324 |
- |
|||||||||
Deferred revenue |
(2,002,102 |
) |
- |
(1,765,661 |
) |
- |
|||||||
|
|
|
|
|
|||||||||
|
643,081 |
419,787 |
(201,728 |
) |
605,243 |
||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Financing activities |
|
|
|
|
|||||||||
Bank indebtedness |
(1,606,402 |
) |
(311,323 |
) |
(582,890 |
) |
(827,158 |
) | |||||
Repayment of long term debt |
(85,439 |
) |
(142,507 |
) |
858 |
(47,133 |
) | ||||||
Repayment to shareholders |
(402,419 |
) |
(315,927 |
) |
- |
(2,581 |
) | ||||||
Issue of common shares |
- |
1,242,400 |
- |
(745 |
) | ||||||||
|
|
|
|
|
|||||||||
|
(2,094,260 |
) |
472,643 |
(582,032 |
) |
(877,617 |
) | ||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Investing activities |
|
|
|
|
|||||||||
Purchase of capital assets |
(136,867 |
) |
(102,295 |
) |
(82,616 |
) |
(53,285 |
) | |||||
Oil and gas interests |
(1,253,926 |
) |
(204,712 |
) |
(463,705 |
) |
(166,407 |
) | |||||
Due from co-venturer |
(942,542 |
) |
(992,459 |
) |
(329,771 |
) |
(31,356 |
) | |||||
Marketable securities |
(329,607 |
) |
159,854 |
(31,500 |
) |
(17,103 |
) | ||||||
|
|
|
|
|
|||||||||
|
(2,662,942 |
) |
(1,139,612 |
) |
(907,592 |
) |
(268,151 |
) | |||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Increase (decrease) in cash |
(4,114,121 |
) |
(247,182 |
) |
(1,691,352 |
) |
(540,525 |
) | |||||
Cash, beginning of period |
6,729,283 |
5,610,621 |
4,306,514 |
5,903,964 |
|||||||||
|
|
|
|
|
|||||||||
Cash, end of period |
$ |
2,615,162 |
$ |
5,363,439 |
$ |
2,615,162 |
$ |
5,363,439 |
|||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Cash, end of period consists of: |
|
|
|
|
|||||||||
Cash |
$ |
1,359,989 |
$ |
1,624,160 |
$ |
1,359,989 |
$ |
1,624,160 |
|||||
Money market funds |
$ |
1,255,173 |
$ |
3,739,279 |
$ |
1,255,173 |
$ |
3,739,279 |
|||||
|
|
|
|
|
|||||||||
The accompanying notes to the financial statements are an integral part of these financial statements |
|
| ||
|
|
|
|
| |||||||||
For the nine months ending March 31, 2004 |
|
|
|
| |||||||||
|
|
|
|
| |||||||||
|
|
|
|
| |||||||||
|
|
|
|
| |||||||||
Industrial & Offshore |
Oil & Gas |
Corporate |
Total |
||||||||||
|
|
|
|
||||||||||
|
|
|
|
|
|||||||||
Revenue |
24,189,474 |
365,017 |
- |
24,554,491 |
|||||||||
Interest expense |
112,707 |
- |
4,102 |
116,809 |
|||||||||
Amortization and depletion |
244,734 |
319,746 |
- |
564,480 |
|||||||||
Net earnings (loss) |
835,677 |
45,271 |
(3,823,259 |
) |
(2,942,311 |
) | |||||||
Capital assets and |
|
|
|
|
|||||||||
oil and gas interests |
3,096,078 |
5,386,218 |
- |
8,482,296 |
|||||||||
|
|
|
|
|
|||||||||
For the nine months ending March 31, 2003 |
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Industrial & Offshore |
Oil & Gas |
Corporate |
Total |
||||||||||
|
|
|
|
||||||||||
|
|
|
|
|
|||||||||
Revenue |
17,534,660 |
472,547 |
- |
18,007,207 |
|||||||||
Interest expense |
149,505 |
- |
3,720 |
153,225 |
|||||||||
Amortization and depletion |
194,968 |
180,664 |
- |
375,632 |
|||||||||
Net earnings (loss) |
147,947 |
41,759 |
(1,167,641 |
) |
(977,935 |
) | |||||||
Capital assets and |
|
|
|
|
|||||||||
oil and gas interests |
2,766,627 |
4,424,126 |
- |
7,190,753 |
|||||||||
|
|
|
|
|
|||||||||
For the three months ending March 31, 2004 |
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Industrial & Offshore |
Oil & Gas |
Corporate |
Total |
||||||||||
|
|
|
|
||||||||||
|
|
|
|
|
|||||||||
Revenue |
7,624,867 |
107,111 |
- |
7,731,978 |
|||||||||
Interest expense |
31,524 |
- |
460 |
31,984 |
|||||||||
Amortization and depletion |
96,158 |
83,534 |
- |
179,692 |
|||||||||
Net earnings (loss) |
(420,291 |
) |
179,792 |
(1,519,924 |
) |
(1,760,423 |
) | ||||||
|
|
|
|
|
|||||||||
For the three months ending March 31, 2003 |
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Industrial & Offshore |
Oil & Gas |
Corporate |
Total |
||||||||||
|
|
|
|
||||||||||
|
|
|
|
|
|||||||||
Revenue |
2,775,600 |
207,733 |
- |
2,983,333 |
|||||||||
Interest expense |
47,556 |
- |
827 |
48,383 |
|||||||||
Amortization and depletion |
67,123 |
59,993 |
- |
127,116 |
|||||||||
Net earnings (loss) |
(451,465 |
) |
68,416 |
(488,630 |
) |
(871,679 |
) |
| ||
|
# |
Consideration |
|||||
|
|
|
|||||
Balance, as at June 30, 2003 |
4,059,009 |
$ |
43,339,132 |
||||
|
|
|
|||||
|
|
|
|||||
|
|
|
|||||
Balance, as at March 31, 2004 |
4,059,009 |
$ |
43,339,132 |
||||
|
|
|
Exercise |
Expiry |
2004 |
2003 |
Price |
Date |
# |
# |
|
|
| |
|
|
|
|
US$ 1.80 |
December 31, 2004 |
533,332 |
533,332 |
|
|
|
|
|
|
533,332 |
533,332 |
|
|
|
|
Exercise |
Expiry |
|
2004 |
2003 |
Price |
Date |
Holder |
# |
# |
|
|
|
|
|
$12.00 |
June 14, 2005 |
Consultant |
- |
7,000 |
|
|
|
|
|
$18.90 |
January 8, 2006 |
Directors and employees |
- |
91,333 |
|
|
|
|
|
|
|
|
- |
98,333 |
|
|
|
|
|