TORONTO, April 14, 2004 (PRIMEZONE) -- Thinkpath Inc. (OTCBB:THTHF) today announced financial results for the year ended December 31, 2003.
Revenues for the year ended December 31, 2003 were $10,817,667 compared to $12,283,828 for the year ended December 31, 2002. The decline in revenue is a result of the reduction in sales force as part of the company's cost-cutting initiatives undertaken in the later part of 2002. Gross profit for the year ended December 31, 2003 was 32%, which is consistent with 2002.
For the year ended December 31, 2003, the company recorded an operating loss from continuing operations of $1,267,714 compared to an operating loss of $4,013,235 in 2002. Included in the loss for the year ended December 31, 2003 are non-cash items including depreciation expense of $665,143 and the expensing of common stock and warrants issued for services in the amount of $226,500.
For the year ended December 31, 2003, the company recorded a net loss of $9,033,628 or (0.01) per share compared to a net loss of $8,146,652 or (0.29) per share in 2002. Included in the net loss for the year ended December 31, 2003 is interest expense of $7,247,145 related to the beneficial conversion feature on the 12% Senior Secured Convertible Debentures issued in 2003 pursuant to a financing arrangement entered into on December 5, 2002.
At December 31, 2003, the company had a cash flow deficiency from operations of $169,577 compared to a deficiency of $331,793 at December 31, 2002.
At December 31, 2003, the company had a working capital deficiency of $2,756,405 and stockholder's equity of $2,260,892 compared to a working capital deficiency of $3,718,118 and stockholder's equity of $1,323,430 at December 31, 2002.
On March 25, 2004, the company entered into a financing arrangement for the issuance and sale of additional debentures of up to $1,000,000. The first debenture of $350,000 was purchased together with 924,000,000 warrants on closing.
Further information about the company may be found at www.thinkpath.com.
Forward-Looking Statement
This press release contains forward-looking statements regarding Thinkpath Inc., its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause Thinkpath's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by Thinkpath in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Thinkpath's business.