Common Shares: 50,213,220
Insider Holdings: 23,447,985 or 47% as per the last filed information circular
Q1 2016 - $380,850 - $30,983
Q2 2016 - $473,381 - $46,790
Q3 2016 - $417,460 - $104,183
Total Sales & Profit for 2016- $1,271,693 - $182,138
Earnings per share - $0.0036
Total Sales & Loss for 2015 - $1,092,000 – ($249,200)
Accounts Receivable: $418,924
Work in progress: $17,010
Prepaid Expenses: $16,115
Fixed Assets: $8,074
Intangible Assets: $4,624
Total Assets: $486,960
Accounts Payable: $630,261
Deferred Revenue: $282,214
Loan from company: $75,000
Loan from individual: $9,160
Loan from director: $35,000
Loan from company under common control: $50,000
Total Liabilities: $2,137,846
Alphinat provides online self-service tools and workspaces that make it easy to deal with an organization. Its software suite simplifies, accelerates and improves interactions with all business constituents — resulting in greater cost-effectiveness, customer satisfaction and employee productivity.
During the quarter under review, Alphinat has focused its efforts on nurturing and expanding its distribution channels and on diversifying its offering. The Company has also given particular attention to ensuring high quality delivery of major projects. The projects will be strong showcases of SmartGuide’s capabilities in the public sector, at the Federal as well as State levels.
As at May 31, 2016, the Company had cash and cash equivalence totalling $22,213. This amount includes cash for an amount of $22,213 and a Bank overdraft for an amount of $0. As at August 31, 2015, the Company had cash and cash equivalents totalling $4,588. This amount includes cash for an amount of $4,588 and a Bank overdraft in the amount of $0.
In order to finance its operations, the Company relies on receipts from accounts receivable, loans from shareholders, directors and individuals related to a director, the use of repayable funding through the Business and Regional Growth program of Economic Development Canada that Alphinat was awarded, proceeds resulting from Class A and Class B Debentures the Company announced on August 6, 2013 and future contracts for major license sales and professional services related to these licenses and ongoing projects.
The Company believes that current funds available, loans from shareholders, directors and individuals related to a director, proceeds resulting from Class A and Class B Debentures the Company announced on August 6, 2013, non-claim of repayment of a loan from a company under common control and of a loan from an individual related to a Director, as well as funds it will obtain upon entering into contracts from initiatives under way will enable it to recruit the additional personnel required to ensure its growth and to meet its financial obligations as they become due.
During the quarter ended May 31, 2016, 300,000 options expired. At that date, there were 1,790,000 options outstanding with an average exercise price of $0.12, a weighted contractual life of 24 months. As of the date of this report, there were 1,790,000 options outstanding.
The bank loan amounted to $0 as at May 31, 2016 compared to $20,000 as at August 31, 2105. Since December 2015, the Company does not have a line a credit.
Accounts payable and accrued charges decreased from $911,324 as at August 31, 2015 to $630,261 as at May 31, 2016. This decrease results from payment of accounts payable.
Deferred revenue increased from $211,550 as at August 31, 2015 to $282,214 as at May 31, 2016. This increase is mainly due to the renewal of license maintenance and support contracts that must be recognized over the period of the contract.
The loan from a private company represents advances of $65,000 and $10,000 from a private company, bearing interest at an annual rate of 12%, which are payable monthly, with no maturity date. As at May 31, 2016, subordinated advances from a director and individuals related to a director amounted to $9,160, unchanged as compared to August 31, 2015. This loan does not bear interest.
As at May 31, 2016, loan from a director amounted to $35,000, unchanged as compared to August 31, 2015. This loan bears interest at an annual rate of 12%, which are payable monthly, with no maturity date.
As at May 31, 2016, loan from a company under common control amounted to $50,000 bearing interest at an annual rate of 12%, which are payable monthly, with no maturity date.
Alphinat specializes in the development and marketing of a Cloud-related next generation rapid application development (RAD) platform with a service-oriented architecture (SOA) approach that simplify and accelerate the implementation of applications, sites and portals designed to meet specific user needs while ensuring reuse of computer resources and experience within an organization.
The Company’s products respond to a real need in the market, which is definitely moving toward the deployment of reusable services and the use of organizations’ internal expertise. Market expectations show that 80% of new applications developments will be done through the development of composite applications (i.e. assembly and reuse of existing functionalities) rather than traditional applications development. The Company’s SmartGuide® suite is the result of years of experience with customers who saw the need to customize access to their data and processes based on users’ needs and situation regardless of where the computer systems were located. This capability is crucial for making it easier for citizens and businesses to deal with the government, whose operations lead to many complex procedures.
Alphinat’s unified access layer is part of the Government of Quebec’s new generation of service portals that are currently being deployed. The Company is actively working to build on this added value and to establish an integrated support, training and service delivery plan for its software solution. There is a strong potential for Alphinat’s “turnkey” solution in the public and private sector markets. Indeed, in most large administrations, the number of retirements anticipated over the coming decade, the increasing number of procedures and their increasing complexity, and the reduction of operating budgets, require an improvement in the public and private sector’s productivity while users press for a radical simplification of the administrative burden.