International Bio Recovery Corporation (TSX-VEN: IBR) a biotech company with a proprietary technology to convert organic waste into environmentally progressive fertility products, has announced fiscal 2004 second quarter financial results for the three-month and six-month periods ended December 31, 2003.
Second quarter revenue was $11,571 compared to $1,115,429 in the second quarter of fiscal 2003. The decrease in revenue is due to the recognition in the second quarter of fiscal 2003 of $1.1 million in technology fees related to the sale of IBR’s technology rights in China. Since IBR derives the majority of its revenue from large technology license sales, quarterly revenue will be earned in “lumpy” patterns with high numbers posted in those quarters where sales are made.
Revenue for the six-month period ended December 31, 2003 was $29,462 compared to $1,179,522 for the same period in fiscal 2003. IBR’s net loss for the second quarter was $576,719 or $0.02 per share, compared with net income of $588,989 or $0.03 per share, in the second quarter of fiscal 2003 and a net loss of $596,611 or $0.03 per share, in the first quarter of fiscal 2004. The year-over-year reduction is due to the previously mentioned technology license revenue earned in the second quarter of fiscal 2003. Net loss year-to-date is $1,173,300 or $0.05 per share, compared to a net loss of $557,671 or $0.03 per share, in the same period of fiscal 2003.
Management recognizes that anticipated expansion of new business in the second half of fiscal 2004 may require increased expenditures as staff is added and higher demands are placed on management and outside services. In addition, IBR is undertaking sales and marketing initiatives to shorten its sales cycle, while ongoing R&D efforts continue to focus on increasing the efficiency of the technology process and enhancing the fertilizer products. However, higher revenues from technology sales would be expected to offset such increased expenditures.
“We remain focused on building our sales pipeline for new plant licenses and on translating those opportunities into new contracts,” said Elmer Friesen, President and CEO of IBR. A recent high level visit with Mexican government officials, along with other initiatives in North America, China, Indonesia and the Middle East, are further building awareness of IBR’s unique value proposition.
"We appreciate our shareholders’ patience as we move these prospects along the sales pipeline and we believe that in the second half of 2004 sales activity will accelerate and these efforts will be rewarded with contract wins.”
The Company’s period end working capital position was negative $140,757 compared to positive working capital of $477,802 at June 30, 2003. During the second quarter $400,000 was raised through a private placement issue of common shares at $0.50. Complete financial statements have been filed at www.sedar.com and posted to the Company’s website, www.ibrcorp.com
Private Placement Closes
IBR is pleased to announce that further to its press release dated February 12, 2004, it has completed a non-brokered private placement for 1,162,791 common share units at a price of $0.43 per unit for gross proceeds of $500,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at $0.54 for a period of 12 months. Proceeds will be used for general corporate purposes. The securities will be restricted from trading until June 14, 2004.
International Bio Recovery Corporation (IBR) has developed an environmental technology, which processes organic material from municipal solid waste, agricultural manures and surplus organics from food production into innovative, environmentally progressive fertility products. Located in North Vancouver, BC, IBR markets its technology products through the sale of licenses. The Company’s current and medium term focus is to further develop its marketing capacity to enhance technology license sales. The Company is committed to research and development to continue to improve the effectiveness of its technology and the quality of its fertility products. It is further
committed to developing a world wide marketing capability to ensure market acceptance of its fertility products.
For further information: Elmer Friesen, President & CEO, IBR, (604) 924-1023 ext 308 or firstname.lastname@example.org; Henry J. Bow, Manager Corporate Relations, IBR, (604) 924-1023 ext 309, or email@example.com; David Mason, Investor Relations, The Equicom Group Inc., (416) 815-0700 ext. 237 or firstname.lastname@example.org