QUANTITATIVE ALPHA TRADING INC. REPORTS 1ST QUARTER 2011 FINANCIAL RESULTS

TORONTO, June 30, 2011 /CNW/ - Quantitative Alpha Trading Inc. (CNSX: QAT)(OTCBB: RTNSF) (the "Company" or "QAT"), announced today the release of its financial statements for the period ending March 31, 2011, together with the management's discussion & analysis in respect of the Company's financial results and performance. The results are issued for the first time under the International Financial Reporting Standards (IFRS) which replaced Canadian Generally Accepted Accounting Principles (GAAP) effective January 1, 2011 for all publicly accountable enterprises in Canada.

The Company reported a net loss of $1,643,609 ($0.01 per share) for the three months ended March 31, 2011 as compared to a net loss of $1,853,285 ($0.02 per share) for the three months ended March 31, 2010. The change was mainly due to a decrease in advertising and promotion and stock based compensation offset by an increase in software amortization, bank charges and interest, foreign exchange, management consulting and administrative, professional fees and salary and wages.

"The first quarter was primarily a transitional quarter for the Company," said James McGovern, Chief Executive Officer of QAT.  "The Company underwent a number of significant changes in the first quarter including a restructuring of its capital, involving the retirement of certain debt in exchange for shares, the completion of a private placement to raise additional working capital and a significant recomposition of the Board and senior management.  We expect these changes will assist the Company in achieving its business objectives going forward.  For the foreseeable future, those objectives will be focussed upon continuing to actively market the Company's proprietary software to institutional investment managers and hedge funds."

At March 31, 2011, the Company had $2,192,098 in cash and cash equivalents (2010 - $478,936) and a working capital of $2,296,677 (2010 -$423,948).

On January 19, 2011, the Company successfully completed a non-brokered private placement for gross proceeds of $500,000.  Pursuant to the private placement, the Company issued 9,523,809 units at a purchase price of $0.0525 per unit. Each unit consists of one common share and four common share purchase warrants. All of these warrants were exercised resulting in additional gross proceeds of approximately $2,000,000.

About QAT

For more than a decade, QAT has been researching, developing and maintaining proprietary algorithmic securities trading systems that operate across numerous financial markets. Relying on behavioural science patterns, the Company's proprietary systems use a linked series of computer programs to analyze securities market data in real-time and directly execute buy or sell orders over the electronic securities exchanges while monitoring the status of every trade within a given portfolio without human intervention. The Company trades on CNSX under the symbol QAT.

Except for historic information, the matters discussed in this document contain certain forward-looking statements. These statements involve known and unknown risks, delays, uncertainties and other factors not under the Corporation's control that may cause actual results, levels of activity, performance or achievements to be materially different from the results, levels of activity, performance, achievements or expectations expressed or implied by these forward-looking statements.

CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Quantitative Alpha Trading Inc. (Formerly known as RTN Stealth Software Inc.)

CONDENSED INTERIM FINANCIAL STATEMENTS
For the three months ended March 31, 2011
(Unaudited)

UNAUDITED INTERIM FINANCIAL STATEMENTS

In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed the unaudited consolidated interim financial statements for the three month period ended March 31, 2011.

Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
Condensed Interim Financial Statements
Statement of Loss and Comprehensive Loss
For the three months ended March 31, 2011 and 2010
(Unaudited, expressed in Canadian dollars)

         

Expenses
 
March 31,
2011
March 31,
2010
  Advertising and promotion    
-
 
 22,632
  Amortization - Equipment     1,978   3,748
  Amortization - Intangible  
 207,744
-
  Finance costs     22,173   239
  Foreign exchange (gain)  
31,373
-
  Management, consulting and administrative     60,405   33,600
  Office  
10,967
3,001
  Professional fees  
64,844
30,208
  Rent  
16,637
12,500
  Salary and wages  
 2,914
  Share based compensation  
1,143,272
1,736,064
  Travel  
10,194
1,500
  Trust and filing fees  
11,108
9,805
Loss before the following:     (1,643,609)   (1,853,297)
  Interest and other income     -   12
           

   
   
Net loss and comprehensive loss   $
(1,643,609)  $
  (1,853,285) 

Loss per share, basic
 
(0.01)
(0.02)

Loss per share, fully diluted
 
(0.01)  
(0.02)

 
 
 
 

Weighted average number of common shares outstanding, basic
 
135,344,145
99,416,860

Weighted average number of common shares outstanding, fully diluted
 
135,500,552
99,416,860

 

Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
Condensed Interim Financial Statements
Statement of Financial Position

             

As at,
(Unaudited - expressed in Canadian Dollars)

 

March 31
2011

 

 

December 31
2010

 

 

January 1
2010
 
 
 
 
(Note 11)
 
(Note 11)

Assets

 

 

 

 

 

 
     
      

Current assets

 

 

 

 

 

 

Cash and cash equivalents   $ 2,192,098   $ 174,530   $ 379,284

Marketable securities       1,448,800

Other receivables   29,393   28,664   242,744
  Prepaid expenses (Note 2)   222,135   216,135   10,000
  2,443,626   419,329   2,080,828

 

 

 

 

 

 

 
Equipment (Note 5)   5,906   7,884   3,940
Intangible (Note 6)   7,582,647   7,790,391   -
Prepaid Expenses - long term (Note 2)
  234,375   286,458   -
Mineral property
  -
  -
  67,185
Oil and gas property
  -   -   1

 

 

 $ 10,266,554

 

 $ 8,504,062

 

 $ 2,151,954

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 
  Trade and other payables   $ 146,949   $ 115,046   $ 75,072
               
  Deposit on private placement   -   250,000   -
  Notes payable - current portion (Note 7)   -   358,445  

 

 

146,949

 

723,491

 

75,072

Note payable -long term
 


 

2,095,476

 


 

 

146,949

 

2,818,967

 

75,072

Shareholders' equity

 

 

 

 

 

 
  Share capital and warrants (Note 8)   13,926,529   8,939,599   3,919,865
  Contributed surplus   3,497,627   2,406,438   670,374
  Accumulated other comprehensive income   -   -   504,770
  Deficit   (7,304,551)   (5,660,942)   (3,018,127)

 

 

 $ 10,266,554

 

 $ 8,504,062

 

 $ 2,151,954

 Approved by the Audit Committee on behalf of Board of Directors on June 29, 2011

Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
Condensed Interim Financial Statements
Statement of Changes in Equity
For the three months ended March 31, 2011 and 2010
(Unaudited, expressed in Canadian dollars)

               

 

Share Capital
and Warrants

Contributed
Surplus

Accumulated
other
comprehensive
Income
 
Deficit
 
Total Equity

 
$ $ $   $   $

 

 

 

 
 
 

As at January 1, 2011

8,939,599

2,406,438

-
 
(5,660,942)
 
5,685,095

Loss from continuing operations attributable to owners of the Company

-

-

-
 
(1,643,609)


(1,643,609)

Issuance - private placement (Note 8a)

500,000

-

-
 
-
 
500,000

Issuance - conversion of notes payable (Note 7)

2,486,930

-

-
 
-
 
2,486,930

Issuance - warrant exercise (Note 8a)

2,000,000

-

-
 
-
 
2,000,000

Share based compensation (Note 8b)

-

1,091,189

-
 
-
 
1,091,189

As at March 31, 2011

13,926,529

3,497,627

-
 
(7,304,551)
 
10,119,605

 

 

 

 
 
 
 
 

As at January 1, 2010

3,919,865

670,374

504,770
 
(3,018,127)
 
2,076,882

Loss from continuing operations attributable to owners of the Company

-

-

-
 
(1,853,285)
 
(1,853,285)

Issuance - Arrangement Agreement

-

-

-
 
-
 
-

Redemption of Class A preferred shares

(1,515,986)

-

(504,770)
 
504,770
 
(1,515,986)

Share based compensation

-

1,736,064

-
 
-
 
1,736,064

Issuance-acquisition of software license

150,000

-

-
 
-
 
150,000

As at March 31, 2010

2,553,879

2,406,438

-
 
(4,366,642)
 
593,675

 

Quantitative Alpha Trading Inc.
(Formerly known as RTN Stealth Software Inc.)
Condensed Interim Financial Statements
Cash Flow Statement
For the three months ended March 31, 2011
(Unaudited, expressed in Canadian dollars)

       
 
March 31,
2011
March 31,
2010

Cash provided by (used in)

 
 

Operating activities
 
 

 
  Loss for the period
 $
(1,643,609)
$
(1,853,285)
  Items not involving cash:
 
 
    Share based compensation   1,143,272   1,736,064

  Amortization   209,722

3,748
  Accrued interest income   -   (12)
    Accrued interest on notes payable   21,631   -
    Foreign exchange on notes payable   11,378   -

 

(257,606)
(113,485)
Net changes in non-cash working capital
   
 

  Other receivables
(729)
(7,632)

  Prepaid expenses
(6,000)
10,000

  Trade and other payables
31,903
(10,072)

 

(232,432)
(121,189)

Investing activities
 
 

 

  Purchase of equipment
-  
(7,159)

  Short term investments
-
(10,000)

 

-
(17,159)

Financing activities
 
 

 

  Common shares issued
2,500,000

  Share subscription receivable  

238,000

  Deposit on private placement
(250,000)
 
2,250,000
238,000

Increase in cash and cash equivalents

2,017,568
99,652

Cash and cash equivalents, beginning of period
 
174,530

379,284

 
 
 
 
 

Cash and cash equivalents, end of period

 $
2,192,098
 $
 478,936

Supplementary information:
 
 
 
 
Cash received from interest $ - $ 12
Non-cash transactions:        
Conversion of notes payable $ 2,486,930  $  -
Shares distributed as part of corporate restructuring $ -  $ 1,515,986
Acquisiton of Software License $ - $ 150,000

 


 

SOURCE QUANTITATIVE ALPHA TRADING INC.

For further information:

Jim McGovern, Chief Executive Officer, QAT - 1-416-323-0477 jim@qatinc.com

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QUANTITATIVE ALPHA TRADING INC.

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