SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of January 31, 2000
Titan Trading Analytics Inc.
- ---------------------------------------------
(Translation of registrant's name into English)
201 Selby Street, Nanaimo, British Columbia, V9R 2R2
- --------------------------------------------------
(Address of principal executive offices)
[indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]
Form 20-F X Form 40-F______
[indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.]
Yes_____ No X
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Titan Trading Analytics Inc.
(Registrant)
Date March 31, 2000 By "Michael B. Paauwe"
Michael B. Paauwe, President
March 31, 2000
To: Alberta Securities Commission
British Columbia Securities Commission
Canadian Venture Exchange
Dear Sirs:
Re: Titan Trading Analytics Inc. (the "Company")
We confirm that the attached revised Form 61, together with Schedules A,
B and C thereto, was mailed by pre-paid mail on March 31, 2000 to all of
the registered shareholders of the common shares of the Company and all
persons on the supplemental mailing list.We are providing this material
to you in compliance with regulations made under the Securities Act.
Sincerely yours,
TITAN TRADING ANALYTICS INC.
"JENNIFER GEE"
PER:
Ms. Jennifer Gee, Chief Financial Officer
Tel: (250) 758-1138
Fax: (250) 758-1189
British Columbia
Securities Commission, QUARTERLY REPORT
FORM 61
ISSUER DETAILS FOR QUARTER ENDED DATE OF REPORT
NAME OF ISSUER January 31, 2000 (Y/M/D)
Titan Trading Analytics Inc 00/03/31
ISSUER'S ADDRESS
3473 Ellis Place
CITY PROVINCE POSTAL ISSUER. ISSUER TELEPHONE
CODE FAX NO NO.
Nanaimo BC V9T 4Y6 250-758-8322 250-758-8262
CONTACT PERSON CONTACT'S POSITION CONTACT TELEPHONE NO
Jennifer Gee Chief Financial Officer 250-758-1138
CERTIFICATE
The three schedules required to complete this Quarterly Report are attached and
the disclosure contained therein has been approved by the Board of Directors.
A copy of this Quarterly Report will be provided to any shareholder who
requests it.
DIRECTOR'S SIGNATURE PRINT FULL NAME DATE SIGNED
"MICHAEL B. PAAUWE" Michael B. Paauwe 00/03/31
DIRECTOR'S SIGNATURE PRINT FULL NAME DATE SIGNED
"MICHAEL GOSSLAND" Michael Gossland 00/03/31
TITAN TRADING ANALYTICS INC.
(Incorporated under the laws of British Columbia)
CONSOLIDATED INTERIM BALANCE SHEET
JANUARY 31, 2000 WITH COMPARATIVE FIGURES AT JANUARY 31, 1999
ASSETS
Current Assets 2000 1999
Cash and short-term investments $ 614,138 $ 1,276,379
Accounts receivable 4,969 5,663
Prepaid expenses 746 788
619,853 1,282,830
Software and systems development (net) 261,734 281,954
Capital assets (net) 44,052 55,801
$ 925,639 $ 1,620,585
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 18,543 $ 26,105
SHAREHOLDERS' EQUITY
Share capital $ 2,802,962 $ 2,802,962
Deficit (1,895,866) (1,208,482)
$ 925,639 $ 1,620,585
Approved by the Directors
"MICHAEL PAAUWE" Director
"MICHAEL GOSSLAND" Director
See accompanying notes to the consolidated financial statements
PREPARED BY MANAGEMENT WITHOUT AUDIT
TITAN TRADING ANALYTICS INC.
CONSOLIDATED INTERIM STATEMENT OF OPERATIONS AND DEFICIT
FOR THE PERIOD FROM NOVEMBER 1, 1999 TO JANUARY 31, 2000
WITH COMPARATIVE FIGURES FOR THE PERIOD FROM NOVEMBER 1, 1998
TO JANUARY 31,1999
Revenue
2000 1999
Software Sales $ 0 $ 7,899
Trading Income 124 78,386
$ 124 $ 86,285
Expenses
Advertising, marketing and promotion 4,373 19,920
Amortization 21,047 22,425
Bank charges 252 569
System testing 0 10,940
Directors fees 5,000 5,000
Foreign Exchange loss 7,147 0
Investor relations 3,844 13,218
Management fees 17,046 16,951
Office 2,343 3,453
Professional fees 9,895 12,786
Rent 1,325 1,125
Salaries and benefits 41,951 34,487
Telephone 1,884 830
Travel 6,468 791
122,575 142,495
Interest and Other Income 1,966 8,126
Net loss for the period $ (102,485) $ (48,084)
Deficit beginning of period (1,775,381) (1,160,398)
Deficit end of period $(1,895,866) $ (1,208,482)
See accompanying notes to the consolidated financial statements
PREPARED BY MANAGEMENT WITHOUT AUDIT
TITAN TRADING ANALYTICS INC.
CONSOLIDATED INTERIM STATEMENT OF CASH FLOW
FOR THE PERIOD FROM NOVEMBER 1, 1999 TO JANUARY 31, 2000
WITH COMPARATIVE FIGURES FOR THE PERIOD FROM NOVEMBER 1, 1998
TO JANUARY 31,1999
2000 1999
Cash from operating activities
Net loss for the period $ (120,485) $ (48,084)
Item not involving cash
Amortization 21,047 22,425
(99,438) (25,659)
Net change in non-cash working
capital balances (5,190) (4,145)
(104,628) (29,804)
Cash used in investing activities
Acquisition of capital assets (3,144) (15,389)
Software & Systems development (39,097) (42,244)
(42,241) (57,633)
Cash from financing activities
Share subscriptions received and
issuance of Common Shares 0 0
Increase in cash during the period (146,869) (87,437)
Cash and short-term investments,
beginning of the period 761,007 1,363,816
Cash and short-term investments,
end of period $ 614,138 $ 1,276,379
See accompanying notes to the consolidated financial statements
PREPARED BY MANAGEMENT WITHOUT AUDIT
Note to the Interim financial statements dated January 31, 2000:
Note 1. Interim financial statements:
The unaudited management prepared financial statements of Titan Trading
Analytics Inc. covering the three month period ended January 31, 2000 reflect
all adjustments which are necessary to a fair statement of results for the
interim period presented, on a basis consistent with prior periods reported.
Note 2. United States accounting principles:
This note summarizes the material variations in the accounting principles;
practices and methods between Canadian and United States generally accepted
accounting principles (GAAP) and how these variations impact the financial
statements.
a) Balance sheet
There are no differences between United States generally accepted accounting
principles and Canadian generally accepted accounting principles that would
result in material changes to the balance sheet.
b) Short-term investments
Under United States generally accepted accounting principles, short-term
investments are recorded at market value. At January 31, 2000 there were no
differences between the cost and the market value of the short-term investments.
c) Escrow shares
Under United States generally accepted accounting principles, the 3,000,000
common shares of the Company held in escrow are considered contingent shares
because the conditions for issuance are not currently met and will not be met
by the mere passage of time. If these shares are ever released from escrow,
to the extent their fair market value exceeds their issuance price,
compensation expense would be recognized at that time by the Company.
d) Cost of sales
Under United States generally accepted accounting principles costs of sales are
required to be separately disclosed. The cost of sales for software sales and
trading income in the current and comparable prior interim three month period
is comprised of:
Jan 2000 Jan 1999
Amortization of software
and systems development $ 21,047 $ 22,425
Delivery 421 449
Cost of sales $ 68,690 $ 58,002
e) Foreign currency translation
The application of the temporal method of foreign currency translation used by
the Company under Canadian generally accepted accounting principles does not
result in material differences from United States generally accepted accounting
principles.
f) Loss per share
Under United States generally accepted accounting principles (US GAAP), the
loss per share is calculated on the basis that the weighted average number of
shares outstanding during the year excludes shares that are considered
contingent shares. This means the 3,000,000 escrow shares are excluded from the
calculation under US generally accepted accounting principles. On that basis,
calculation of the loss per share for the current reporting period under US
generally accepted accounting principles is as follows.
During the nine month period ended January 31, 2000 the weighted average
number of shares outstanding was 8,857,001 (January 31,1999 - 8,857,001).
3,000,000 of that total are escrow shares. Therefore, under US GAAP, the loss
per share for the three month period ended January 31, 2000 is 2.1 cents per
share ( for the comparative three months ended January 31,1999 the loss was
0.8 cents per share).
g) Development stage enterprise
Under United States generally accepted accounting principles the Company is
considered to be a development stage enterprise and all revenues and expenses
and cash flows from inception to the reporting date are to be reported.
The Company's consolidated revenue and expenses from incorporation on
November 30, 1993 to January 31, 2000 are:
Revenue
Software sales $160,390
Trading income 41,044
201,434
Expenses
Advertising, marketing and promotion 368,087
Amortization 78,531
Bank charges 8,509
Capital taxes 11,507
Consulting 30,000
Directors' fees 15,000
Investor relations 54,965
Management fees 268,598
Office 74,128
Professional fees 147,843
Rent 34,421
Research and development 266,020
Salaries and benefits 328,283
System testing 68,201
Telephone 27,057
Travel 91,755
2,272,905
(2,071,471)
Interest and other income 175,605
Net loss for the period and deficit
accumulated during the development stage $(1,895,866)
h) Development stage enterprise - continued
The Company's cash flows from incorporation on November 30, 1993 to January
31, 2000 are:
Cash flows from (used in) operating activities
Net loss for the period $(1,895,866)
Adjustments for:
Amortization 478,531
Foreign exchange gain (8,957)
(1,426,292)
Net change in non-cash working capital balances
Increase in accounts receivable (4,969)
Increase in prepaid expenses (747)
Increase in accounts payable and
accrued liabilities 18,543
Cash used in operating activities (1,413,464)
Cash flows used in investing activities
Software and system development (655,662)
Acquisitions of capital assets (128,655)
Cash used in investing activities (784,317)
Cash flows from (used in) financing activities
Share subscriptions received and issuance of
common shares 2,944,051
Share issue costs (141,089)
Cash from financing activities 2,802,962
Foreign exchange gain on cash held
in foreign currency 8,957
Net increase in cash during the period $614,138
TITAN TRADING ANALYTICS INC.
SCHEDULE B
SUPPLEMENTARY INFORMATION
PERIOD ENDED JANUARY 31, 2000
TITAN TRADING ANALYTICS INC.
Form 61 - Schedule B - Supplementary Information
For the Third Quarter ended JANUARY 31, 2000
1. For the current year to date:
Expenditures to parties not dealing at arm's length:
Management Fees of $35,123 as follows:
Management contracts: 1. Michael B. Paauwe & Associates - $10,623
2. Michael Gossland & Associates - $24,500
These amounts, which include management bonuses, are included in management
fees, as well as in capitalized amounts of software and systems during the
period, reflected under capital expenditures and subject to amortization.
Outside Directors' Fees: 1. Paul Shatzko $2,500
2. Robert Shatzko $2,500
2. Securities issued for the quarter under review: NONE
3. As at end of quarter:
a) Authorized share capital 100,000,000 common shares
Issued share capital 8,857,001 common shares
Reserved for future issuance 1,355,000 common shares
Fully diluted 10,212,001 common shares
b) Summary of options and warrants
1) Options granted February 1, 1997
Name No of Shares Per Shares Expiry Date
Michael B. Paauwe 195,000 $.90 July 2001
Michael Gossland 195,000 $.90 July 2001
Paul Shatzko 240,000 $.90 July 2001
Robert Shatzko 100,000 $.90 July 2001
John Austin 75,000 $.90 July 2001
Jennifer Gee 25,000 $.90 July 2001
830,000
Options Granted January 29, 1999
Greg Kennedy 90,000 $.85 January 2004
Options Granted January 31, 2000:
Michael B. Paauwe 150,000 $1.00 April 30, 2004
Michael Gossland 150,000 $1.00 April 30, 2004
Paul Shatzko 50,000 $1.00 April 30, 2004
Robert Shatzko 30,000 $1.00 April 30, 2004
John Austin 35,000 $1.00 April 30, 2004
Greg Kennedy 10,000 $1.00 April 30,2004
Jennifer Gee 10,000 $1.00 April 30, 2004
435,000
c) Escrow shares - TTN Escrow Capital Corp. 3,000,000 common shares
d) Directors: Michael Paauwe
Michael Gossland
Paul Shatzko
Robert Shatzko
TITAN TRADING ANALYTICS INC.
SCHEDULE C
MANAGEMENT DISCUSSION
PERIOD ENDED JANUARY 31, 2000
TITAN TRADING ANALYTICS INC.
MANAGEMENT DISCUSSION - QUARTER ENDED
JANUARY 31, 2000
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This Form 10-KSB contains forward-looking statements. In some
cases, you can identify forward-looking statements by terminology
such as "may", "will", "should", "could", "expects", "plans",
"intends", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of such terms and other
comparable terminology. Our forward-looking statements include,
without limitation, statements about our market opportunity, our
strategies, competition, expected activities and expenditures as we
pursue our business plan, and the adequacy of our available cash
resources. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or
achievements. The information set forth under the headings
"Description of Business" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations",
identify important additional factors that could materially
adversely affect our actual results and performance. All forward-
looking statements attributable to us are expressly qualified in
their entirety by the foregoing cautionary statement. Moreover,
neither we nor anyone else assumes responsibility for the accuracy
and completeness of such statements. We undertake no obligation
to publicly update any forward-looking statements for any reason,
even if new information becomes available or other events occur
in the future.
- --------------------------------------------------------------------------
One of the highlights of our 1999 Annual Report was the
announced completion of the beta test version of our new Internet
based financial services business. The new site features our new
online stock trading solution, with full e-commerce capability for
online transaction processing on secure servers. This development
proved much more difficult to complete than first expected and
took many months longer than we first expected. The site finally
went online in late February 2000. The new web site at
www.titantrading.com contains our new Platinum Alert stock
screening and stock market timing solution for brokers, clients and
private e-traders.
The new site will soon also feature a new, lower cost TitanGold
stock screening service on mid cap and small cap stocks, expected
to provide a much wider scope trading solution intended to meet a
much wider range of Internet based stock trader needs.
A significant feature of the new site is the section providing
written testimonials from long time users of the previous Titan
site. The receipt of these high quality testimonials proves the
value of what we have created and points to the long term potential
to the Company. The ability to now publish these testimonials on
the Titan site provides an important and valuable resource in our
planned marketing, sales and promotion plans.
Our new Internet marketing and product strategy was implemented
in response to existing customer feedback received during 1999 to
the existing stock market timing service that we provided for the
past three years. Under our new strategy, we are making a
transition to a paid subscriber based online financial services
company, servicing the needs of the US full service stock
brokerage community, as well as the private online stock trading
community. The private trader market is now estimated to have
grown to 10,000,000 potential traders worldwide.
The focus of the present business plan is to publish and market our
online paid monthly subscription services as noted below.
Following the marketing launch, certain high traffic sections of the
Titan web site are expected to be supported by sponsor's
advertising revenues. There are several components of our planned
subscription services, as follows:
1. the stock market timing indicator service, by email, wireless
and website.
2. the Platinum Alert stock screening of big caps Nasdaq and
NYSE stocks.
3. the TitanGold stock screening of mid cap and small cap US
stocks.
4. special situation trading alerts by email.
5. core stock portfolio analysis for long term buy and hold
investing.
6. the market timing service for investor covered call writing
strategies.
Each of these planned separate services will target specific
segments of the marketplace and exploit different aspects of
Titan's unique trading technology, offering subscriber's better
choices, greater value, and more cost effective trading solutions to
exploit.
The timing of our planned business expenditures during the next
few quarters is conditional upon additional equity placements of
our securities being made during the next 12 months. We are
presently in negotiations to secure additional sources of equity
capital to fully fund our marketing plans and expect to announce
progress in that area very soon.
We expect to make the following planned expenditures in our
business over the next 12 to 18 months:
1. $500,000 on television, radio and Internet advertising.
2. $100,000 on Internet servers & communications equipment.
3. $750,000 for additional staffing of the marketing launch of the
subscription service.
4. $145,000 in software and systems research and development for
12 months.
The net loss for the current quarter was $102,485, compared to a
loss of $48,084 in the same period last year. The increased loss is
the result of the significant change in our business plans, new
product offerings and marketing and distribution strategy. There
was a sharp drop in software sales and trading revenues compared
to the same period last year, as both of these aspects of our
business have now been discontinued, to accommodate the new
subscription service and our new Internet marketing strategy. This
resulted from the shift in the focus of all our developmental efforts
during the past several months toward preparation for the service
providing high quality online stock trading solutions. Active
selling efforts on VirtualTrader software ended as we cancelled
marketing and sales efforts on that product, which is no longer
compatible with the new version of TradeStation.
Expenses during this quarter dropped to $122,575 compared to
$142,495 in the same peiod last year, resulting mainly from the
drop in marketing and promotion expenses. A foreign exchange
loss was incurred in the amount of $7,147 on closing out and
converting US dollar denominated inactive trading account
balances. System testing expenses for this period were $NIL,
compared to $10,940 in the same period last year. Other than those
two items, all other expenses were at similar levels to the same
period last year.
During the quarter we invested $39,097 in software and systems
development, compared to $42,244 in the same period last year
and invested $3,144 in new computer equipment, compared to
$15,389 in the same quarter last year.
During the next quarter we expect to have all aspects of our new
online financial services business fully operational and ready to
handle the increases in volume we expect to result from a much
more active and aggressive marketing and sales program for the
new service.
Titan now expects to file the application for NASD OTC bulletin
board listing in April 2000.
On behalf of the Board,
Michael Paauwe, president
March 31, 2000
