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 October 10, 2000
Titan Trading Analytics Inc.
---------------------------------------------
(Translation of registrant's name into English)
201 Selby Street, Nanaimo, British Columbia, V9R 2R2
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(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 October 10, 2000 By "Michael B. Paauwe"
Michael B. Paauwe, President
<PAGE>
October 10, 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
October 10, 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
<PAGE>
British Columbia QUARTERLY REPORT
Securities Commission FORM 61
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ISSUER DETAILS | FOR QUARTER ENDED | DATE OF REPORT
NAME OF ISSUER | July 31, 2000 | (Y/M/D)
Titan Trading Analytics Inc | | 00/10/10
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ISSUER'S ADDRESS
3473 Ellis Place
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CITY PROVINCE | POSTAL | ISSUER FAX NO | ISSUER TELEPHONE NO.
| CODE | |
Nanaimo BC | V9T 4Y6 | 250-758-8322 | 250-758-8262
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CONTACT PERSON | CONTACT'S POSITION | CONTACT TELEPHONE NO
Jennifer Gee | Chief Financial Officer | 250-758-1138
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CERTIFICATE
The three schedules required to complete this Quarterly Report
are attached and the disclosure contained therein has been
pproved by the Board of Directors. A copy of this Quarterly
Report will be provided to any shareholder who requests it.
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DIRECTOR'S SIGNATURE | PRINT FULL NAME | DATE SIGNED
"MICHAEL B. PAAUWE" | Michael B. Paauwe | 00/10/10
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DIRECTOR'S SIGNATURE | PRINT FULL NAME | DATE SIGNED
"MICHAEL GOSSLAND" | Michael Gossland | 00/10/10
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<PAGE>
TITAN TRADING ANALYTICS INC.
(Incorporated under the laws of British Columbia)
CONSOLIDATED INTERIM BALANCE SHEET
FOR THE 9 MONTHS ENDED JULY 31, 2000
WITH COMPARATIVES FIGURES AT JULY 31, 1999
(CANADIAN DOLLARS)
ASSETS
Current Assets 2000 1999
----------------------------
Cash and short-term investments $ 772,288 $ 882,226
Accounts receivable 14,573 4,382
Prepaid expenses 25,299 746
-------------------------
812,160 887,354
Software and systems development (net) 394,382 305,212
Capital assets (net) 38,704 55,232
-------------------------
$1,245,246 $1,247,798
-------------------------
LIABILITIES
Current Liabilities
Accounts payable and accrued
Liabilities $ 13,127 $ 7,590
-------------------------
SHAREHOLDERS' EQUITY
Share capital $3,375,938 $2,802,962
Deficit (2,143,819) (1,562,754)
-------------------------
$1,245,246 $1,247,798
-------------------------
Approved by the Directors
(Signed) Michael B. Paauwe Director
--------------------------------------
(Signed) Michael Gosland Director
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See accompanying notes to the consolidated financial statements
PREPARED BY MANAGEMENT WITHOUT AUDIT
<PAGE>
TITAN TRADING ANALYTICS INC.
CONSOLIDATED INTERIM STATEMENT OF OPERATIONS AND DEFICIT
For the 9 months Ended July 31, 2000
WITH COMPARATIVE FIGURES AT JULY 31, 1999
(CANADIAN DOLLARS)
Revenue 2000 1999
-------------------------
Software Sales $ 0 $ 38,921
Subscriptions 18,256 0
Trading Income 124 0
-------------------------
$ 18,380 $ 38,921
-------------------------
Expenses
Advertising, marketing and promotion 38,720 73,135
Amortization 63,140 67,275
Bank charges 2,270 1,400
Corporate Tax 0 500
Directors' fees 5,000 5,000
Foreign exchange loss 0 7,566
Investor relations 3,844 19,338
Management fees 75,724 50,144
Office 6,140 7,881
Professional fees 29,146 68,042
R & D expense 0 47,304
Rent 4,050 3,375
Salaries and benefits 148,566 84,439
System testing 7,011 18,772
Telephone 6,673 4,091
Travel 6,744 7,180
-----------------------
397,030 465,442
Interest and Other Income 10,212 24,165
Net loss for the period $ (368,438) $ (402,356)
Deficit beginning of period (1,775,381) (1,160,398)
-------------------------
Deficit end of period $(2,143,819) $(1,562,754)
-------------------------
See accompanying notes to the consolidated financial statements
PREPARED BY MANAGEMENT WITHOUT AUDIT
<PAGE>
TITAN TRADING ANALYTICS INC.
CONSOLIDATED INTERIM STATEMENT OF CASH FLOW
FOR THE 9 MONTHS ENDED JULY 31, 2000
WITH COMPARATIVE FIGURES AT JULY 31, 1999
(CANADIAN DOLLARS)
2000 1999
--------------------------
Cash from operating activities
Net loss for the period $ (368,438) $ (402,356)
Item not involving cash
Amortization 63,140 67,275
-------------------------
(305,298) (335,081)
Net change in non-cash working
capital balances (44,763) (21,338)
-------------------------
(350,062) (356,419)
Cash used in investing activities
Acquisition of capital assets (3,787) (20,797)
Software & Systems development (207,846) (104,374)
-------------------------
(211,633) (125,171)
Cash from financing activities
Share subscriptions received and
issuance of Common Shares 572,976 0
-------------------------
Increase in cash during the period 11,281 (481,590)
Cash and short-term investments,
beginning of the period 761,007 1,363,816
-------------------------
Cash and short-term investments,
end of period $ 772,288 $ 82,266
See accompanying notes to the consolidated financial statements
PREPARED BY MANAGEMENT WITHOUT AUDIT
<PAGE>
Notes to the Interim Financial Statements Ended July 31, 2000:
-------------------------------------------------------------
Note 1. Interim financial statements:
The unaudited management prepared financial statements of Titan
Trading Analytics Inc. covering the six month period ended July 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 July 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:
July 2000 July 1999
Amortization of software and
systems development $ 63,140 $ 59,321
Delivery 1,262 1,186
Cost of sales $ 64,402 $ 60,507
<PAGE>
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 six month period ended July 31, 2000 the weighted average
number of shares outstanding was 8,967,856. 3,000,000 of that total
are escrow shares. Therefore, under US GAAP, the loss per share for
the six month period ended July 31, 2000 is $(0.04) per share (for
the comparative six months ended April 31,1999, the loss was $(0.05)
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 July 31, 2000 are:
Revenue
Software sales $ 160,390
Subscriptions 18,256
Trading income 41,044
-----------
219,690
Expenses
Advertising, marketing and promotion 402,434
Amortization 520,624
Bank charges 10,528
Capital taxes 11,507
Consulting 30,000
Directors' fees 15,000
Foreign exchange loss 8,057
Investor relations 54,965
Management fees 327,276
Office 77,925
Professional fees 167,094
Rent 37,146
Research and development 266,020
Salaries and benefits 434,898
System testing 60,007
Telephone 31,846
Travel 92,033
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2,547,360
-----------
(2,327,670)
Interest and other income 183,851
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Net loss for the period and deficit
accumulated during the development stage $(2,143,819)
-----------
The Company's cash flows from incorporation on November 30,
1993 to July 31, 2000 are:
Cash flows from (used in) operating activities
Net loss for the period $(2,143,819)
Adjustments for:
Amortization 520,624
Foreign exchange gain 6,247
-----------
(1,616,948)
Net change in non-cash working capital balances
Increase in accounts receivable (14,573)
Increase in prepaid expenses (25,299)
Increase in accounts payable and accrued
Liabilities 13,127
-----------
Cash used in operating activities (1,643,693)
Cash flows used in investing activities
Software and system development (824,413)
Acquisitions of capital assets (121,724)
-----------
Cash used in investing activities (953,711)
Cash flows from (used in) financing activities
Share subscriptions received and issuance of
common shares 3,517,027
Share issue costs (141,089)
-----------
Cash from financing activities 3,375,938
-----------
Foreign exchange gain on cash held
in foreign currency (6,247)
-----------
Net increase in cash during the period $ 772,288
-----------
<PAGE>
TITAN TRADING ANALYTICS INC.
Schedule B
Supplementary Information
For the Third Quarter ended July 31, 2000
1. For the current year to date:
Expenditures to parties not dealing at arm's length:
Management Fees of $170,333 as follows:
Management contracts: 1. Michael B. Paauwe & Associates - $85,833
2. Michael Gossland & Associates - $84,500
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: Nil
3. As at end of quarter:
a) Authorized share capital 100,000,000 common shares
Issued share capital 9,132,966 common shares
Reserved for future issuance 1,329,102 common shares
Fully diluted 10,462,068 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 20,000 $.90 July 2001
---------
825,000
Options Granted January 29, 1999
Name No of Shares Per Shares Expiry Date
Greg Kennedy 72,852 $.85 January 2004
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TITAN TRADING ANALYTICS INC.
Schedule B - Continued
Supplementary Information
For the Third Quarter ended July 31, 2000
Options Granted July 31, 2000:
Name No of Shares Per Shares Expiry Date
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 Shatko 30,000 $1.00 April 30, 2004
John Austin 35,000 $1.00 April 30, 2004
Greg Kennedy 6,250 $1.00 April 30, 2004
Jennifer Gee 10,000 $1.00 April 30, 2004
--------
431,250
Total Options Granted 1,329,102
2) Warrants Outstanding
250,067 warrants $2.55 To May 19, 2001 $3.00 To Sept 19, 2001
c) Escrow shares - TTN Escrow Capital Corp. 3,000,000 common shares
d) Directors: Michael Paauwe
Michael Gossland
Paul Shatzko
Robert Shatzko
<PAGE>
TITAN TRADING ANALYTICS INC.
Schedule C
Management Discussion
For the Third Quarter ended July 31, 2000
The nine month period ended July 30, 2000 reflects fundamental
changes that have taken place in Titan's business plans, as we
began to implement our new Internet web site publication and online
financial subscription service, with the launch of the new web
site at the end of February, 2000.
We remained in a beta test stage on the new web site during this
quarter, testing implementation and delivery of new Nasdaq and
NYSE big cap stock screening services, as well as our new online
credit card e-commerce capabilities. We started testing the new
"Platinum Alert"for big cap stocks and further developed the
planned TitanGold stock screening service for mid cap and smaller
cap stocks. During this quarter we tested and debugged our own
newly installed our own dedicated high speed web and email server,
rather than continue to host our planned services on a third party
server platform. We also installed new data feeds with the iscontinuance
of our primary feed of the past few years. This resulted in the
postponement of certain new site features planned.
An unbrokered private placement of $550,147 to two placees, first
announced on May 1st was approved by the CDNX on May 19th and
completed on June 22, 2000. The collapse of several high profile
Internet dot.com corporations during the period has changed the
landscape on the prospects for new equity financings, causing a
retrenchment of expenditure programs and revisions to current
business plans in an attempt to more effectively compete.
Competition in the financial segment of the Internet has been
much more aggressive as competitors spend the proceeds of large
financings to establish brands in an ever expanding and severely
crowded space. The financial results of most competitors have not
been enviable and we are continuing to focus on the specialized
financial content that we feel differentiates us from the competition.
We have continued to get feedback from subscribers during the
period to enable improvements to our online subscription service.
The accuracy of our short term stock market timing calls and the
real time performance of the new advanced stock screening in the
Platinum Alert service dropped during the current quarter, as the
bear market in US stocks took hold. While our big picture technical
analysis continued to produce accurate market analeptics, the
severity of the bear market and the resulting volatility hurt
short-term market timing results. As a result we decided not to
attempt to convert trial subscribers to paid subscribers until the
performance of that service improves in the short term.
Analysis of financial results for the period:
9 months ended July 30th, 2000 compared to period ended
July 30th 1999:
The loss for the nine months ended July 30, 2000 was $368,438
compared to a loss of $402,356 in the period ended April 30, 1999.
Most of that increase was attributed to a reduction in revenue,
as software sales and trading income ended, and subscription
income started, with the new online subscription service. Revenues
dropped to $18,380 from $38,921 in the previous period. Total
expenses dropped to $397,030 from $465,442 in the comparable 1999 period.
Advertising, marketing and promotion expenses dropped to $38,720,
compared to $73,135 in the comparable period ended April 1999.
Investor relations expense dropped to $3,844 from $19,338 in the
comparable period ended July 1999. Management fees increased to
$75,724 in the period compared to 50,144 reflecting increased
contract rates. Professional fees dropped to $29,146 from $68,042
in the comparable period ended July 1999 attributable to increased
legal and accounting work on NASD and SEC regulatory filings and
applications. Salaries and wages increased to $148,566 from $84,439
in the period ended July 1999 due to increased staffing levels and
increased compensation paid to employees and managers of the company.
$207,846 was expended on software and systems development
expenditures compared to $104,374 in the comparable period
ended July 1999. The increase expenditure relates mainly to
the costs associated with the new web site and e-commerce
software development.
Cash from financing activities totaled $572,976 from the
combination of the private placements announced during the
period and stock options exercised during the period. Cash
and short term investments at the end of the current period
totaled $772,288, compared to $882,266 at the end of July, 1999.
We have made significant progress during the current period to
advance our new business plans. After the quarter's end we
completed and filed all of the documentation requirements to
effect an application for NASD OTC BB listing. We were finally
approved from OTC BB listing during September 2000.
Other planned regulatory filings related to the establishment
of a hedge fund business are now a priority fore the current
period.
The completion of all of the work in the US regulatory area
will position Titan to deliver on its efforts to develop a
more high quality and wide ranging advisory services for brokers,
accredited investors and provide greater emphasis on the
institutional sector of the market, as we shift our focus in
that direction for the future.
After the period end the following News Release was dissemminated:
____________________________________________________________________
NEWS RELEASE September 26th, 2000
TITAN TRADING ANALYTICS INC. COMPLETES OTC BB LISTING
TO LAUNCH NEW WIRELESS TRADING PLATFORM
Titan Trading Analytics Inc. ( TITAF - OTC BB TTA - CDNX )
announces it has completed the first 30 days trading on the OTC
Bulletin Board in the United States. Effective September 26th
2000, market makers in the US, other than the sponsoring market
maker, may now participate in the trading of Titan's securities
in the United States without further regulatory filings.
Marketing and promotion will now be undertaken to introduce
Titan to microcap brokers, investors and financial websites
in the United States.
Titan is a financial software developer and trading system
publisher that has been in a research and development stage
since May 1994. The Company is now a full reporting issuer
in both Canada and the United States. To date Titan has raised
$3 million in equity capital and spent over $2 million developing
its proprietary financial trading software technology. Titan has
developed breakthrough neural network pattern recognition software
technology to accurately classify short term stock market risk.
Similar technology is used by the worldwide banking industry to
monitor and detect credit card fraud on over 300 million credit
cards.
Titan is also developing automated stock screening, market
timing and a new stock portfolio hedging application for
institutional and private traders and as a wholesale content
provider to other financial websites. Initial beta testing
of the stock screening and market timing services has now
been completed.
Titan's strategy is to provide its time-sensitive financial
messaging content to mobile professionals via wireless hand
held devices, including the revolutionary Blackberry pager
from Research in Motion (RIMM), Palm Pilot from Palm Inc.
(PALM), and other web capable devices and services from
companies such as OmniSky (OMNY), Handspring (HAND), AvantGo
and Motorola (MOT). These devices will allow traders and
investors to conveniently access Titan's proprietary time
sensitive trading information without the need for a personal
computer. Titan's goal is to build out a fully integrated
wireless trading platform. The wireless device market is
expected to grow to 1 billion users by 2003.
Titan also plans to exploit its trading technology in new
managed funds to be launched by an affiliate of the Company,
following registration as an Investment Adviser with the US
Securities and Exchange Commission.
For further information please contact Greg Kennedy at
800 665 9117.
This release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
section 21E of the Exchange Act of 1934, as amended and is
subject to the safe harbor created by these sections. Actual
results, performance or achievements could differ materially
from those anticipated in such forward-looking statements due
to uncertainties and risk factors described in the Company's
filings with the US Securities & Exchange Commission.
The Canadian Venture Exchange has not reviewed this news release
and does not accept responsibility for the adequacy or accuracy
of its content.
TITAN TRADING ANALYTICS INC.
Michael B. Paauwe
President
__________________________________________________________________
Disclaimer: Statements contained herein which are not historical
fact may be "forward-looking statements" that are subject to risks
and uncertainties that could cause actual results to differ
materially from those expressed in the forward-looking statements
including, but not limited to, delays in testing and evaluation
of products and other risks detailed from time to time in the
Company's filings in Canada and with the United States Securities
& Exchange Commission.
For more information in connection with this Management Discussion
or the financial statements, please contact Michael Paauwe,
president, at 250-758 8262.
