Skinny Technologies Provides Business Update for Most Recent Quarter
Press release from the issuing company
June 5, 2002 -- Skinny Technologies Management Discussion as provided for Quarter Ended March 31, 2002
1. Description of Business
The Company is engaged in the business of developing, designing, manufacturing, marketing and licensing Internet- based print-related services and software, including Digital Asset Management (DAM), online image management, Print On Demand (POD), and other printing and computer services. Its current products include SkinnyScriptTM SkinnyServerTM and Skinny WebPortal As the final step in the regulatory transition, the Company received CDNX approval in January, 2002 to change its name to Skinny Technologies Inc. and its trading symbol to ``SKI (previously CMV). Skinny Technologies is classified as a communications, media, publishing and printing company for the purpose of the CDNX index.
The Company reached an agreement with software developer Where? Media inc. in January to release an internet based Digital Asset Management (D.A.M.) System for the digital prepress market. Under the terms of the agreement between the two Canadian companies, Skinny Technologies will private-label a customized version of Where?Media's ImagePortalTM internet digital image management software which will entitle Skinny Technologies to sell the product through its sales channels. In March, the Company announced the appointment of Michael Kelly to the position of Executive Vice President, Business Development. In this role, Mr. Kelly will be responsible for further strengthening business relationships with existing clients and strategic partners, taking our business development team to the next level. The Company also announced that it is had concluded a licensing agreement with ClickHouse.com Online Inc. to utilize SkinnyPDFTM files as part of their e-marketing program, a licensing agreement with Interimaging Inc., a private company to utilize SkinnyPDFTM services as part of their North American Imaging program and a licensing agreement with Media-HI, Inc. a Hawaiian custom publishing company. During the quarter, the Company's investor relations activities were handled primarily by Robert Carriere. These duties consist of the issuance of news releases, communications (telephone, fax & e-mail) with shareholders, and participation in trade shows. All personnel for the Company and its subsidiaries are currently remunerated on a contractual basis.
2. Discussion of Operations and Financial Condition
Expenses increase as fees paid to consultants was $95,448, an increase of $33,758 over the previous quarters costs of $61,690. Salaries and remuneration benefits for the period ended March 31, 2002 were $15,000 compared to $27,500 for the prior quarter.
3. Subsequent Events
Material subsequent events between March 31, 2002 and May 30, 2002 included the following items:
* On April 2, 2002, the Company announced the resignations of Mr. Bradford Cooke and Mr. Bob Archer from Skinny Technologies Inc. Board of Directors and the appointments of Mr. David Watson (President and Owner of Ultimate Technographics Inc.) and Mr. Norman Briscoe CGA to the Board of Directors."
* On April 3, 2002 the Company announced a non-brokered private placement consisting of 2,000,000 shares at a price of $0.10 per share. The majority of the proceeds will be allocated to marketing and licensing programs.
4. Financings, Principal Purposes and Milestones
The Company's financing announced on October 5, 2001 closed on February 5, 2002 with the issuance of 1,685,000 units, where each unit comprised one common share at $0.20 and one half-share purchase warrant. One full warrant entitles the holder to purchase one additional common share at $0.30 for a one-year period. Net proceeds from the financing amounted to $337,000. Funds were used to pay down short-term debt, for general working capital, product development and marketing.
5. Liquidity and Solvency
At March 31, 2002 the company had a working capital deficit of $249,164. Management is working towards the development of revenues to allow it to meet its past and ongoing financial obligations. It is likely that the company will attempt, as in the past, to raise funds through the sale of common shares to meet these obligations.
WhatTheyThink is the global printing industry's leading independent media organization with both print and digital offerings, including WhatTheyThink.com, PrintingNews.com and WhatTheyThink magazine versioned with a Printing News and Wide-Format & Signage edition. Our mission is to provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.