UrtheCast Reports Second Quarter Financial Results

VANCOUVER, Aug. 13, 2013 /CNW/ - UrtheCast Corp. (TSX:UR) ('UrtheCast') is pleased to announce its financial results for the three and six months ending June 30, 2013. The result of operations for the quarter is based upon the activity within Earth Video Camera Inc. ("EVC") for the full time period and post RTO expenses for UrtheCast Corp. for the time period from June 21 to June 30, 2013.

Highlights Include:

• Closed our reverse takeover ("RTO") and commenced trading on the Toronto Stock Exchange ("TSX") on June 27, 2013 under the ticker "UR".  The RTO was completed as a Plan of Arrangement whereby EVC was acquired by, and became a wholly owned subsidiary of, UrtheCast Corp (formerly Longford Energy Inc.).
• Closed a private placement and in conjunction with the proceeds from the RTO, raised $34.4 million, net of transaction costs and broker commissions, to fund the operations of UrtheCast.
• Completed the initial acceptance testing of the Medium Resolution Camera ("MRC") and shipped the MRC to Moscow for testing and flight certification.  The initial acceptance testing and shipment to Moscow of the High Resolution Camera ("HRC") is scheduled for the fall of 2013.
• Roscomos, the Russian Federal Space Agency, successfully launched the platform to mount the MRC and our HRC to the International Space Station ("ISS").  This platform is scheduled to be installed and operational aboard the ISS in the fall of 2013.
• Accelerated our build out of our staff to prepare us for the installation of the cameras on board the ISS, scheduled to launch in November 2013.  Since the start of 2013, we have grown our staff from 18 employees to approximately 52 employees.  The majority of this increase is in our engineering team, who will focus on contracting a network of global ground stations, building our control, planning and scheduling software to manage the collection of data based on customer requirements, the cloud based storage infrastructure and the development of the products for delivery to our customers. We have been able to hire and retain people with significant expertise from within the earth observation industry. These hires are mainly located in the US and, as such, we will be adding additional offices in St. Louis, Missouri and the Washington, DC area in the third quarter of 2013.
• Signed an additional distributor in Asia, increasing our quota commitments from $18 million to $19 million of annual revenues from our network of global representative within the first year of sales after successful completion of the commission of our cameras.  While these commitments are non-binding, UrtheCast is in the process of converting them into specific agreements for the purchase of imagery.
• Launched an improved website www.urthecast.com which incorporates several new designs and provides more information about the Company.
• Reorganized our executive team, appointing Wade Larson as our President and COO and Scott Larson as the Company's CEO.

During the quarter, the company's loss was $10.5 million (2012 $4.3 million), of which $7.2 million was a deemed non-cash loss on the RTO.  This non-cash loss is the difference of value of the net assets of the acquired company versus the value of shares being issued for these net assets.  Our total operating expenses in the quarter were $3.0 million (2012 $1.0 million), of which $1.0 million (2012 - $0.3 million) was attributable to the non-cash share based payments.  For the 6 months ending June 30, 2013, our net loss was $11.9 million or $4.7 million (2012 - $4.3 million) net of the non-cash loss on RTO.  Our total expenses, net of share based payments for the 3 and 6 months ending June 30, 2013 were $2.0 million and $3.0 million respectively.

 

RESULTS OF OPERATIONS
		3 months ended June 30,								6 months ended June 30,
		2013				2012				2013				2012
General and administrative   expenses	$	1,493,565			$	446,643			$	2,122,564			$	729,637
Research expenditures		506,291				276,624				831,674				708,796
Share-based payments		1,033,364				277,165				1,351,232				2,815,966
Total expenses		3,033,220				1,000,432				4,305,470				4,254,399
Finance costs, foreign exchange   loss and gains/losses on short-   term investments and derivatives		1,693				145				64,305				302
Loss on settlement of   convertible debenture		230,345				-				230,345				-
Non-cash loss on completion of   RTO		7,205,501				-				7,205,501				-
Net loss		(10,470,759)				(1,000,577)				(11,805,621)				(4,254,701)
Other comprehensive loss		(202)				-				(3,987)				-
Comprehensive loss	$	(10,470,961)			$	(1,000,577)			$	(11,809,608)			$	(4,254,701)
Net loss per share	$	(0.29)			$	(0.04)			$	(0.37)			$	(0.19)

Our cash position at June 30, 2013 was $32.8 million.  During the year, net of financing costs, the company has raised $42.2 million.  During this same time period, we spent $4.8 million for operating activities and $5.9 million for investing activities, primarily for the construction of the cameras in the six months ending June 30, 2013.

"The second quarter of 2013 was instrumental in the development of UrtheCast," explains Mr. Scott Larson, UrtheCast's CEO. "Financing the company and listing on the TSX were two significant milestones that allow us to execute on our business strategy as we move forward."

"The quality of staff and experience, in the current market conditions, that we have been able to attract to UrtheCast as a result of our financing has added significantly to our ability to execute to our business plan", stated Wade Larson, UrtheCast's President and COO.

The full financial statements and accompanying MD&A are available on SEDAR and on our website.

About UrtheCast Corp.

UrtheCast Corp. is a Vancouver-based technology company that is developing the world's first near-live HD video feed of Earth, from space. Working with renowned aerospace partners from across the globe, UrtheCast is building, launching, installing, and will operate two cameras on the Russian segment of the International Space Station. Video data captured by the cameras will be downlinked to ground stations across the planet and displayed on the UrtheCast web platform, or distributed directly to exclusive partners and customers. UrtheCast's cameras will provide high-resolution video and imagery of Earth that will allow for monitoring of the environment, humanitarian relief, social events, agricultural land, etc. UrtheCast is in the final stages of completing the assembly of two cameras that are expected to launch into space in late 2013.

Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker UR.

For more information visit UrtheCast.com www.urthecast.com.

Forward Looking Information

This release contains certain information presented constitutes "forward-looking information" within the meaning of applicable Canadian securities laws.  Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions and includes, but is not limited to, statements about the development and production schedule of cameras suitable for mounting on the International Space Station ("ISS"), projected revenues from operations, the completion of data distribution agreements, the expected launch date for UrtheCast's cameras to be delivered to the ISS, plans to operate camera components on, and stream video footage from, the ISS, and proposed image and video product offerings. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of UrtheCast to control or predict, and which may cause the UrtheCast's actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, technology changes, reliance on key personnel, the potential for conflicts of interest among certain officers, directors or promoters with certain other projects, competition, delays in launch schedules, unexpected changes in Russian or Canadian government policies, as well as those factors discussed in the section entitled "Risk Factors" in Appendix "A" of UrtheCast (formerly Longford Energy Inc.) and Earth Video Camera Inc.'s Joint Information Circular (the "Circular") dated May 10, 2013, which is available under UrtheCast's SEDAR profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the Circular, and as otherwise disclosed from time to time on UrtheCast's SEDAR profile.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and UrtheCast undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.

 

SOURCE: UrtheCast Corp.

Contact:

Issa Nakhleh, CFO

[phone] Direct