UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[ X ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended September 30, 1999.
or
[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from __________ to __________.
Commission file number 0-30090
IMAGIS TECHNOLOGIES INC.
----------------------------------------------------------------
(Exact name of Small Business Issuer as Specified in its Charter)
BRITISH COLUMBIA, CANADA NOT APPLICABLE
- ------------------------------- -------------------------------
(State or other jurisdiction of IRS Employer Identification No.
incorporation or organization)
1300-1075 WEST GEORGIA STREET, VANCOUVER, BC V6E 3C9
-------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(604) 684-2449
State the number of shares outstanding of each of the issuer's class of common
equity, as of the latest practicable date:
8,958,214 as of September 30, 1999
Transitional Small Business Disclosure Format (check one):
YES [ ] NO [X]
<PAGE>
IMAGIS TECHNOLOGIES INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets (unaudited) as of
September 30, 1999 and December 31, 1998.......................3
Consolidated Statements of Operations (unaudited) for
The Three and Nine months ended September 30, 1999 and 1998....5
Consolidated Statements of Cash Flows (unaudited) for
The Three and Nine months ended September 30, 1999 and 1998....6
Notes to Consolidated Financial Statements.....................7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings..............................................14
Item 2. Changes in Securities..........................................14
Item 3. Defaults upon Senior Securities................................14
Item 4. Submission of Matters to a Vote of Shareholders................14
Item 5. Other Information..............................................14
Item 6. Exhibits and Reports on Form 8-K...............................14
Signatures.............................................................15
Exhibit Index..........................................................16
Financial Data Schedule................................................17
<PAGE>
PART I. - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited financial statements for the period ended September 30,
1999 are included in response to Item 1 and have been compiled by management.
The financial statements should be read in conjunction with the Management's
Discussion and Analysis or Plan of Operations and other financial information
included elsewhere in this Form 10-QSB.
IMAGIS TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Sep 30 Dec 31
1999 1998
$ $
ASSETS
CURRENT ASSETS
Cash 43,187 38,804
Accounts receivable 327,024 126,163
Inventory - 111,836
---------- ----------
370,211 276,803
CAPITAL ASSETS 99,597 70,124
---------- ----------
469,808 346,927
========== ==========
See accompanying notes to financial statements.
<PAGE>
IMAGIS TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Sep 30 Dec 31
1999 1998
$ $
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities 340,083 644,681
Notes payable - 590,000
Current portion of capital lease 6,667 6,667
---------- ----------
346,750 1,241,348
---------- ----------
OBLIGATION UNDER CAPITAL LEASE 9,445 9,445
---------- ----------
PAYABLE TO PACIFIC CASCADE 397,144 416,572
---------- ----------
SHAREHOLDERS' EQUITY
Share capital 2,595,211 1
Cost of financing (69,292) -
Retained earnings (2,809,450) (1,320,439)
---------- ----------
(283,531) (1,320,438)
---------- ----------
469,808 346,927
========== ==========
See accompanying notes to financial statements.
<PAGE>
IMAGIS TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
(expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Three Months Ended Nine Months Ended
September 30 September 30
1999 1998 1999 1998
$ $ $ $
Revenues 225,400 123,205 589,638 414,030
---------- ---------- ---------- ----------
Operating costs
Purchases of materials 97,827 43,835 242,629 122,602
Sales and marketing 262,426 158,924 601,016 491,761
Technology development 190,244 - 415,778 -
Administration 242,117 429,334 48,686 876,598
Write-off of inventory - - 111,836 -
Amortization 5,477 11,435 19,909 23,335
---------- ---------- ---------- ----------
798,091 643,528 2,239,854 1,514,296
---------- ---------- ---------- ----------
Loss before other (572,691) (520,323) (1,650,216) (1,100,266)
---------- ---------- ---------- ----------
Other revenues
Gain on debt settlement - - 161,205 -
---------- ---------- ---------- ----------
LOSS FOR THE PERIOD (572,691) (520,323) (1,489,011) (1,100,266)
RETAINED EARNINGS - BEG. ========== ========== (1,320,439) -
---------- ----------
RETAINED EARNINGS - END (2,809,450) (1,100,266)
========== ==========
EARNINGS PER COMMON SHARE
- - basic (Canadian GAAP) $ (0.06) $ (0.16) $ (0.22) $ (0.34)
========== ========== ========== ==========
- - weighted average number of common shares
outstanding 8,958,214 3,400,000 7,173,083 3,400,000
========== ========== ========== ==========
- - basic (US GAAP) $ (0.08) $ (0.16) $ (0.25) $ (0.34)
========== ========== ========== ==========
- - weighted average number of common shares
outstanding 8,158,214 3,400,000 6,373,083 3,400,000
========== ========== ========== ==========
See accompanying notes to financial statements.
<PAGE>
IMAGIS TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
(expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Three Months Ended Nine Months Ended
September 30 September 30
1999 1998 1999 1998
$ $ $ $
OPERATING ACTIVITIES
Loss for the period (572,691) (520,323) (1,489,011) (1,100,266)
Amortization 5,477 11,435 19,909 23,335
Changes in non-cash working capital items:
Accounts receivable (185,850) (9,773) (89,025) (67,645)
Inventories - 34,750 - (125,260)
Accounts payable 83,659 215,119 (304,598) 597,565
---------- ---------- ---------- ----------
(669,405) (268,792) (1,862,725) (672,271)
---------- ---------- ---------- ----------
INVESTING ACTIVITIES
Business combination - - (356,790) -
Deferred acquisition costs - 125,492 - -
Fixed assets (14,333) (12,766) (49,382) (104,376)
---------- ---------- ---------- ----------
(14,333) 112,726 (406,172) (104,376)
---------- ---------- ---------- ----------
FINANCING ACTIVITIES
Issuance of common shares - - 2,952,000 -
Cost of financing (69,292) - (69,292) -
Notes payable - - (490,000) -
Loan from PCC (48,544) 17,223 (119,428) 403,475
Loan from Valorinvest Ltd. - 190,000 - 390,000
---------- ---------- ---------- ----------
(117,836) 207,223 2,273,280 793,475
---------- ---------- ---------- ----------
INCREASE IN CASH (801,574) 51,157 4,383 16,828
CASH - BEG. 844,761 (34,329) 38,804 -
---------- ---------- ---------- ----------
CASH - END 43,187 16,828 43,187 16,828
========== ========== ========== ==========
See accompanying notes to financial statements.
<PAGE>
IMAGIS TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Canadian dollars)
(Unaudited - Prepared by Management)
1. BASIS OF PRESENTATION:
The consolidated financial statements of the Company are prepared in accordance
with generally accepted accounting principles in Canada for interim financial
reporting. For information on material differences between Canadian and United
States accounting principles, reference should be made to the annual
consolidated financial statements of Imagis Cascade Technologies Inc. ("Imagis")
which have been filed with the Company's registration statement on Form 10-SB.
The financial information presented in these consolidated financial statements
is unaudited. However, such information reflects all adjustments, consisting
solely of normal recurring adjustments, necessary to a fair statement of the
results for the interim periods presented.
2. SIGNIFICANT ACCOUNTING POLICIES:
Revenue Recognition:
Revenues arise from the sale of the Company's software products and from
consulting services rendered in conjunction with their installation in
complex, multiple-user environments. Each software product is discrete and
self-contained and permits easy customer installation. Consequently, revenue
from sale of software is not dependent on installation or customer acceptance
and is recorded on shipment to the customer. For consulting services,
revenues are only recorded when the service has been fully rendered.
Research and Development Expenditures:
The Company has a number of employees dedicated to on-going technology
development work to expand the Company's product offering. Because this work
is focused toward new product development for which there is no certainty of
market acceptance and consequent recovery of costs, all such expenditures are
expensed as incurred.
3. BUSINESS COMBINATION:
As described more fully in notes 1 and 8(b) to the Company's annual financial
statements filed with the registration statement on Form 10-SB, on February
23, 1999 the Company acquired all of the issued and outstanding common shares
of Imagis for common share and cash consideration. As the former shareholders
of Imagis gained voting control of the Company on the acquisition, this
business combination was accounted for as a reverse take-over transaction under
which Imagis is deemed for accounting purposes to be the acquirer and the
Company the acquired entity. Under these accounting principles, the
consolidated financial statements of the Company present Imagis on a historical
basis consolidated with the results of operations of the Company from the date
of acquisition. The consideration issued was applied to the assets acquired
and liabilities assumed of the Company based on their relative fair values at
the date of acquisition as follows:
<PAGE>
IMAGIS TECHNOLOGIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Canadian dollars)
(Unaudited - Prepared by Management)
3. BASIS OF PRESENTATION CONT'D:
Cash $239,522
Other current assets -
Current liabilities (33,012)
---------
Working capital acquired 206,510
Cash consideration (900,000)
---------
Net deficiency recognized as a
charge to deficit on acquisition
in accordance with accounting
principles for reverse take-overs $(693,490)
=========
Pursuant to the terms of this acquisition, the Company is committed to pay an
additional $400,000 to one of Imagis shareholders if, as and when 400,000
warrants exercisable at $1.25 each that were issued on the offering are
exercised.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward Looking Statements:
Statements in this Quarterly Report on Form 10-QSB, including those concerning
the Company's expectations of future sales revenues, gross profits, technology
development, sales and marketing, and administrative expenses, product
introductions, cash requirements and Year 2000 compliance, include certain
forward-looking statements. As such, actual results may vary materially from
such expectations. Factors which could cause actual results to differ from
expectations include variations in the level of orders which can be affected
by general economic conditions and in the markets served by the Company's
customers, the international economic and political climates, difficulties or
delays in product functionality or performance, the timing of future product
releases, failure to respond adequately to either changes in technology or
customer preferences, changes in pricing by the Company or its competitors,
ability to manage growth, risk of nonpayment of accounts receivable, changes in
budgeted costs, ability to evaluate, identify and correct date recognition
problems in software used by the Company, its customers or suppliers, all of
which constitute significant risks. There can be no assurance that the
Company's results of operations will not be adversely affected by one or more of
these factors.
Overview:
In February, 1999, Imagis Technologies Inc.,(the Company) completed its
acquisition of Imagis-Cascade Technologies Inc. and in the previous quarter,
completed a financing raising approximately Cdn$2.9 million before financing
costs. The acquisition, more fully described in the notes to the financial
statements appended, was accounted for as a reverse take-over whereby the
company acquired is deemed the parent for reporting purposes and the acquirer is
considered to be the acquired entity. This treatment conforms with generally
accepted accounting principles in Canada which are essentially identical to
those applicable in the United States for such transactions.
Prior to the acquisition, Imagis-Cascade Technologies Inc. had developed
software programs directed to the security industry, primarily jails and other
government agencies, and were in the process of developing its current primary
product, CAB's, and other related products for the law enforcement sector. In
addition, due to the lack of funding, the Company's management was focused on
raising additional capital to continue operations. Consequently the period
prior to the acquisition is not comparable to the current period. In addition,
prior to the acquisition, the Company was small and privately held, and
consequently many specific details on individual product sales volumes and
revenues as well as functional costing were not tracked either in the Company's
accounting system or by other means in a meaningful manner. Comparative numbers
reported in the past for some functional costs included significant management
allocations between categories.
Results of Operations for the three months ended September 30, 1999 and 1998:
Revenues:
Revenues were $225,400 for the third quarter, up 83 per cent over the
comparable prior year period of $123,205. Revenues during the three month
period ended September 30, 1999 included $99,477 from sales of the Company's
CAB's software product, enhancements and related support contracts, $90,245
from the sales of other products and for installation services and $56,895 for
sales of various hardware components purchased on behalf of customers. In 1999,
revenues from the sale of older software products were only $3,999 in the
first half and $4,250 in this quarter.
In past periods, the Company has supplied third-party products to its customers.
Management of the Company intends to decrease its practice of supplying third-
party products to its customers. Instead, management plans to develop
strategic alliances with
<PAGE>
third-parties that will supply their products directly to the Company's
customers. As a result of this shift in supply of third-party products,
management expects revenues from hardware sales to decrease in future periods.
In the three month period ended September 30, 1998, of the total revenues of
$123,005, revenues from software products and installation and support services
were approximately $63,000. No sales of the Company's new CAB's product were
made in this prior period. Sales of hardware products in the comparative 1998
period were approximately $60,000 or half of total revenues. During this period,
all sales were made by the Imagis-Cascade Technologies staff directly to
customers, and hardware sales were part of a comprehensive install.
Purchases of materials:
Materials purchases for the three month period ended September 30, 1999
amounted to $97,827, more than twice that purchased in the three month period
ended September 30, 1998 of $43,835. As noted above, the costs of such
purchases, primarily hardware components, are expected to be considerably lower
in future periods as a result of the Company's altered marketing approach
involving partners.
Sales and marketing:
Sales and marketing costs were $262,426 in the current quarter, up from
$209,114 in the previous quarter, reflecting the Company's consistent marketing
efforts to launch its new CAB's product and 65 per cent higher than the 1998
comparative period costs of $158,924. Sales and marketing costs reported
include salaries of $82,473, travel to shows and to establish and support new
partner relationships of $76,189, and materials and other advertising costs of
$103,764. The higher 1999 expenditures were almost completely due to increased
travel by sales staff.
Technology development:
Technology development costs for the quarter ended September 30, 1999 were
$190,244. No costs were recorded to this category of expense in the comparable
three month period in 1998. Costs in 1999 for programmer salaries were
$135,939, representing 71 per cent of the category costs, and were $15,165
higher than the previous quarter, reflecting a further increase in staff from
the previous two quarters. The remaining costs of $54,305 related to software
and other support purchases and some travel for development staff. The additions
to staff represents the Company's focus on new product development and is
expected to increase in future periods. Costs of development in 1998 were not
identified and were included in the Sales and marketing and Administration
categories.
Administration:
Administrative costs of $242,117 were incurred in the three month period ended
September 30, 1999, down significantly from the previous quarter costs of
$472,017 and from the comparable 1998 quarter costs of $429,334. Costs included
salaries and office costs of $167,991, travel amounting to $72,200 and all
other of $1,926. The aggregate costs for the quarter are lower than in the
previous quarter due essentially to lower legal costs. These legal costs were
incurred to complete the financing transactions. The 1998 costs were
significantly higher primarily due to the inclusion of approximately $120,000
of additional professional fees for accounting and legal services and for
approximately $50,000 of additional salary costs, due in part to the allocation
of development salaries to this category in 1998.
Other Costs and Expenses:
Other costs included amortization of $5,477 only. In the prior year,
amortization amounted to $11,435.
<PAGE>
Net Loss for the Period:
The Company experienced a loss in the current three month period ended September
30, 1999 of $572,691 as compared to $520,323 in the comparable period of 1998.
The slightly higher loss in the current period reflects the impact of the
recorded higher costs in Sales and marketing and Technology development only
offset somewhat by the gain in revenues and the much lower administrative
costs. Basic earnings per share was ($0.08) which was lower than for the prior
year due to the dilution resulting from the acquisition and financing issuances
this year. The basic earnings per share for the comparable 1998 period was
($0.16).
Results of Operations for the nine months ended September 30, 1999 and 1998:
Revenues:
Revenues for the year to date were $589,638, 42 per cent higher than the prior y
ear level of $414,030. Revenues included approximately $303,452 or 51 per cent
from sales of the Company's CAB's software product, installation services and
sales of other products of $111,721, and hardware and other supplies sales of
$174,465. As noted previously, prior year sales revenues were for older products
sold into other government segments and for related hardware. Sales of hardware
is estimated to have approximated $170,000 in 1998 with the remaining revenues
derived from sales of older software and services aggregating $244,030.
Purchases of materials:
Purchases of hardware and other materials in the three month period ended
September 30, 1999 aggregated $242,629, virtually double the expenditure of
$122,602 in the three month period ended September 30, 1998. The hardware
required is dependent on individual customer needs dictated to some degree by
the size of the installation. Management expects that hardware sales revenues
and costs will decline due to the involvement of strategic partners and their
ability to directly fulfill this component need, but that software sales will
grow as a result of the contribution of these partners to more than compensate
for the loss of hardware revenue.
Sales and marketing:
Expenditures on sales and marketing for the year to date were $601,016 which is
substantially higher than for the comparable prior year period of $491,761. As
previously indicated, the Company has changed its marketing approach in the year
to engage strategic partners which can provide a far wider geographic reach and
also supplement the technical support requirements of customers. This strategy
expands the sales force through the partners and frees technical staff to focus
more exclusively on product development. The Company spent less on direct
marketing this year and more on development of its partner relationships. Costs
in the current year included salaries of $213,550, travel of $189,426 and other
advertising materials and support costs of $198,040. In 1998, salaries were
approximately $280,000, travel was $84,000 and all other costs amounted to
$127,000. All prior period costs reported include some allocations to sales and
marketing activities from the administrative category as detailed records
separating all costs by function were not maintained. The above 1998 salary and
other costs include costs for some technology development activity also. The
lower travel expenses reflect the Company's limited funds during this period.
Technology development:
The development costs in the current year were $415,778. The technical staff was
more than doubled in size and two new product modules, Evidence ID and ID 2000,
were brought to the beta stage in the previous quarter and released during the
last quarter. Salary costs of $320,454 were the largest cost component at 77 per
cent of the total. Travel and support costs constituted the remaining 23 per
cent or $95,324. Prior year costs for the
<PAGE>
year to date, as previously noted, were not segregated, but included in the
Sales and marketing to some degree but for the most part in the Administrative
costs.
Administrative:
Administrative costs for the current year to date were $848,686, slightly lower
than in the prior year at $876,598. Included in this function are salaries and
other office support costs of $457,913, professional fees, primarily legal, of
$182,981, shareholder and regulatory costs of $52,971 and travel and other of
$154,821. The 1998 comparative administrative costs included salaries and
support costs of $649,000, legal and other professional fees of $131,000 and
travel and other of $96,000. As noted above, some Technology development costs
are included in the 1998 amounts reported in this category and consequently
comparability is affected.
Other Costs and Expenses:
Other costs and expenses include amortization of $19,909, slightly lower than
the previous year amount of $23,335. As well, there was an inventory valuation
adjustment of $111,836, and a one-time gain of $161,205 on debt settlement, both
of which relate to special terms negotiated with the vendors and creditors
associated with the Company prior to the acquisition.
Loss for the Period:
The Company experienced a net loss for the period of $1,489,011 or $0.25 per
share. This is considerably larger than that of the prior year of $1,100,266
or $0.34 per common share. The higher overall loss essentially reflects the
higher Sales and marketing and Technology development costs from year to year.
The current year per share amount, however, is a lessor amount due to the
effect of the common share issuances arising from the acquisition and
financing transactions in the period to date.
Liquidity and Capital Resources:
The Company completed its acquisition of Imagis-Cascade Technologies Inc. in
February issuing approximately 4.0 million common shares in conjunction with the
acquisition, and completed in addition a public offering of 2.4 million common
shares at a per share value of $1.23 for gross proceeds of $2,952,000. These
funds were used to repay cash obligations incurred in the acquisition of
$900,000, subsequently reduced to $750,000 with the conversion of the remaining
$150,000 into common shares, and a bridge loan of $200,000 taken on prior to the
acquisition closing to sustain the Company to the closing of the public
financing. The remainder of the financing was available to support day-to-day
operations of the Company. During the year to September 30, the Company
purchased equipment totaling $49,382. While cash was augmented by collection
of trade receivables amounting to $89,025, trade accounts payable of $304,598
were cleared from the accounts such that an overall draw on cash resources from
operations of $1,862,725 resulted. Further cash was used to reduce other loans
payable by an aggregate of $609,428.
At the period end, the Company had cash resources of $43,187. The Company's
working capitalposition has declined in the quarter to a deficit of $383,128 due
in part to an amount payable to a related party of $397,144 early in year 2000.
Subsequent to the quarter-end, management has arranged for a two-year term
convertible debenture with interest at eight per cent per annum and principal
amount of approximately $600,000 to provide additional working capital.
The Company believes that its working capital is adequate to meet the Company's
current obligations and its ongoing costs associated with operations for the
next 6 months. The Company currently has no commitments for any credit
facilities such as revolving credit agreements or lines of credit that could
provide additional working capital. The Company's capital requirements depend
on several factors, including the success and progress of product development
programs, the resources devoted to developing
<PAGE>
products, the extent to which products achieve market acceptance, and other
factors. The Company expects to devote substantial cash for research and
development. The Company currently intends to undertake an offering of equity
securities in order to satisfy its cash requirements for the next 12 months.
The Company cannot adequately predict the amount and timing of its future cash
requirements. In addition to the currently intended equity security offering,
the Company will consider additional public or private financing (including
the issuance of additional equity securities) to fund all or a part of a
particular program in the future. There can be no assurance, however, that
the currently intended equity security offering will be successful or
that other additional funding will be available or, if available, that it will
be available on terms acceptable to the Company. If adequate funds are not
available, the Company may have to reduce substantially or eliminate
expenditures for research and development, testing, production and marketing
of its proposed products, or obtain funds through arrangements with strategic
partners that require the Company to relinquish rights to certain of its
technologies or products. There can be no assurance that the Company will be
able to raise additional cash if its cash resources are exhausted. The
Company's ability to arrange such financing in the future will depend in part
upon the prevailing capital market conditions as well as the Company's
business performance.
Year 2000:
The Company's current software products have all been developed over the past
two years and consequently are fully compliant with the requirements for year
2000 and beyond. The development staff are technically knowledgeable of the
issues related to the Year 2000 problem, have consciously designed all products
to not be sensitive to the problem and have conducted appropriate testing to
ensure all products perform without difficulty or exception. The staff is
aware that certain customer system software on which the Company's products
operate is not Year 2000 compliant and where reasonably possible, have made
customers aware of this deficiency and their operational risk.
The Company has conducted a review of its internal financial reporting and other
operating systems, completed testing using technically qualified consultants,
identified non-compliant equipment and applications and replaced all non-
compliant items. In addition, the Company has reviewed its dependence on third-
party providers of material and services and to the extent possible, satisfied
itself that all such providers are working diligently and will be able to
provide uninterrupted supply of service in year 2000.
Management has developed alternative plans as a precaution for additional steps
to be taken both before and after the start of the new millennium to ensure
continuous operations throughout the Company are maintained in this transitional
and threatening period.
<PAGE>
PART II. - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
N/A
ITEM 2. CHANGES IN SECURITIES
N/A
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
N/A
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
N/A
ITEM 5. OTHER INFORMATION
On July 26, 1999, Mr. Robert Gordon joined the advisory board of Imagis. Mr.
Gordon is currently the senior vice-president of Oracle Corporation, responsible
for Oracle's operations in the Netherlands, Belgium, Middle East and Africa.
Previously, Mr. Gordon was the President and CEO of Oracle Canada.
On August 16, 1999, Imagis signed contracts with the Royal Canadian Mounted
Police (RCMP)in Moncton, New Brunswick; Sherwood Park, Alberta; and Terrace,
B.C.
ITEM 6. EXHIBITS AND REPORTS FILED ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
None.
<PAGE>
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.
Dated: November 15, 1999
Imagis Technologies Inc.
(Registrant)
By: s IAIN DRUMMOND
----------------------
Iain Drummond
President & CEO
By: s ROSS WILMOT
----------------------
Ross Wilmot
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
EXHIBIT
Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<CURRENCY> CANADIAN
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<EXCHANGE-RATE> 1.50
<CASH> 43,187
<SECURITIES> 0
<RECEIVABLES> 327,024
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 370,211
<PP&E> 153,758
<DEPRECIATION> 54,161
<TOTAL-ASSETS> 469,808
<CURRENT-LIABILITIES> 346,750
<BONDS> 0
0
0
<COMMON> 2,595,211
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 469,808
<SALES> 225,400
<TOTAL-REVENUES> 225,400
<CGS> 0
<TOTAL-COSTS> 798,091
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (572,691)
<INCOME-TAX> 0
<INCOME-CONTINUING> (572,691)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (572,691)
<EPS-BASIC> (0.06)
<EPS-DILUTED> (0.08)
</TABLE>
