2013
ANNUAL REPORT
Intermap Technologies Corporation
President’s Message
Financial information as discussed herein is in U.S. dollars unless otherwise noted.
1
During 2013, Intermap’s primary focus was on the development of our Orion Platform™ - a software-driven
spatial data platform that derives answers for customers and provides a recurring software revenue stream
to Intermap.
The Orion Platform’s four key elements include:
1. 3D Business Intelligence (3DBI): Analytics based software as a service (SaaS) applications for both GIS
and non-GIS users
2. Infrastructure: Server based software delivered in both platform as a service (PaaS) and traditional local
licenses
3. Foundation Data: Seamless, off-the-shelf, high-resolution elevation data
4. Geospatial Services: Auditing, custom data collection, and data aggregation services
Our Orion Platform embodies our solutions selling approach that provides our customers with the ability
to analyze tera-bytes of different data types and deliver targeted information that is unique to a specific
industry – for example: flood analysis in the insurance markets. The Orion platform allows businesses
and governments to geospatially align everything in their environment. It also allows them to distribute
complicated geospatial transformations in an easy to use browser format for both office and mobile users.
At the end of the year, we were able to increase investment in our software development capabilities in
order to accelerate the introduction of our applications. For most of 2013, our rate of development was
based on internally generated cash flows. Some of the larger cash generating spatial data infrastructure
(SDI) contracts that we had expected in 2013 have now moved into 2014. These opportunities are alive and
well, with continued progress towards closing. The effect of the delays was a reduction in our expected
operating cash flows during the year. These reduced cash flows created an increase in our software design
cycles and delays in certain of our software product launches into 2014. The latest $5.0 million round of
financing, which was announced in February 2014, will provide us with the necessary working capital to
bring these products to market sooner in the coming year. We currently have new software applications in
beta version with lead customers that will be introduced in the first half of 2014. Further, our AdPro software
application for the outdoor advertising space is gaining momentum in the market, and is currently being
enhanced to include additional key industry specific analytics.
With the increasing availability of data from satellite vendors around the world, we see that our customers
are finding it more and more difficult to convert their imagery into useful outputs that can address
their specific needs. Our software infrastructure capabilities support hundreds of different data streams
simultaneously, and this is done in both a static and real-time environment. This capability allows for fit-
for-purpose applications such as how current rain conditions impact a specific flood zone. Integration in
this manner can assist in saving both lives and propery all over the world. Further, many of our customer’s
applications require updated spatial data, and our infrastructure has the ability to facilitate the latest and
greatest information possible.
A key metric that we use to measure the progress of our business is positive adjusted EBITDA. We were
successful in this metric during 2013 and we expect to see an improvement in this key indicator during
the coming year. Our identified sales opportunities have grown for this coming year, driven by commercial
applications including data management, advertising, and risk management - as well as new SDI
opportunities both domestically and internationally. We are working to close new Orion Platform based
SDI contracts in the coming months from our growing list of identified opportunities. The delays previously
mentioned in some of our larger opportunities were due to political unrest and contracting delays in the
regions of interest. We continue to work closely with our customers in these regions as the dynamics evolve
and we progress towards closure.
2
Our net loss for the year was $14.9 million. This amount included a $9.2 million impairment charge and
$4.6 million of amortization on our data library. Absent these two related non-cash expense items, our
net loss for the year would have been $1.1 million. As we move into 2014, we’re pleased that the expenses
associated with the capitalization of only a portion of our data library are now behind us. With the absence
of these non-cash charges in future periods, our path to sustained profitability is attainable. Additionally, we
will now be able to report what we believe to be a more meaningful expression of the true operating results
of the Company as reflected in the net income amount.
As we have pointed out many times, Intermap’s financial dynamics are best evaluated on an annual basis,
rather than on a quarterly basis. As we increase the software revenue portion of our business, the need for
larger projects will begin to diminish. However, these larger projects will still contribute nicely to our bottom
line.
We are now in our third year of Intermap’s turnaround of converting from primarily a data delivery company,
to a software based company. Our software products are about one quarter behind where we had originally
planned, but the need for these applications has not diminished in the least. As we deliver our SaaS, PaaS,
and traditional software with maintenance products in the coming periods, a change in revenue will begin
to occur so that revenue will become recurring in nature. Additionally, in the coming year, we will continue
to expand our partner network to help enhance our go-to-market plans for these products.
The year 2013 was a good year to position the new Intermap. 2014 will be the year that we move through
the inflection point of just developing software products, but actually selling them. While there will
be challenges ahead, we are seeing a number of positive signs in the marketplace including (i) the U.S.
government finally has a budget, (ii) our software products work at both the enterprise and government
levels, and (iii) the number of perils that have hurt business and governments is at an all time high.
And finally, we would like to thank our investors for their continued support throughout the year. We’re
excited about the developments that are taking place at Intermap today and we look forward to revenue
growth for 2014.
(Signed) Todd A. Oseth
Todd A. Oseth, President and Chief Executive Officer
Intermap Technologies
Management’s Discussion and Analysis
3
For the year ended December 31, 2013
For purposes of this discussion, “Intermap®” or the “Company” refers to Intermap Technologies® Corporation
and its subsidiaries.
This management’s discussion and analysis (MD&A) is provided as of March 12, 2014, and should be
read together with the Company’s audited Consolidated Financial Statements and the accompanying
notes for the years ended December 31, 2013 and 2012. The results reported herein have been prepared
in accordance with International Financial Reporting Standards (IFRS) and, unless otherwise noted, are
expressed in United States dollars.
Additional information relating to the Company, including the Company’s Annual Information Form (AIF),
can be found on the Company’s Web site at www.intermap.com and on SEDAR at www.sedar.com.
FORWARD-LOOKING STATEMENTS
In the interest of providing the shareholders and potential investors of Intermap with information
about the Company and its subsidiaries, including Management’s assessment of Intermap’s future plans
and operations, certain information provided in this MD&A constitutes forward-looking statements or
information (collectively, “forward-looking statements”). Forward-looking statements are typically identified
by words such as “may,” “will,” “should,” “could,” “anticipate,” “expect,” “project,” “estimate,” “forecast,” “plan,”
“intend,” “target,” “believe,” and similar words suggesting future outcomes or statements regarding an
outlook. Although Intermap believes that these forward-looking statements are based upon assumptions
that Intermap believes to be reasonable based on the information available on the date such statements
are made, such statements are not guarantees of future performance, and readers are cautioned against
placing undue reliance on forward-looking statements. By their nature, these statements involve a variety
of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual
results, levels of activity, and achievements to differ materially from those expressed or implied by such
statements. The forward-looking information contained in this MD&A is based on certain assumptions
and analysis by management of the Company in light of its experience and perception of historical trends,
current conditions, and expected future developments and other factors that it believes are appropriate.
The material factors and assumptions used to develop the forward-looking statements herein include, but
are not limited to, the following: (i) there will be adequate liquidity available to the Company to carry out
its operations; (ii) the Company will continue to maintain sufficient and effective production capabilities to
compete on the cost of its products; (iii) there will be no significant reduction in the availability of qualified
and cost-effective human resources; (iv) the continued sales success of Intermap’s products and services;
(v) the continued success of business development activities; (vi) the continued existence and productivity
of subsidiary operations; (vii) there will be no significant delays in the development and commercialization
of the Company’s products; (viii) new products and services will continue to be added to the Company’s
portfolio in a timely manner; (ix) demand for geospatial related products and services will continue to
grow in the foreseeable future; (x) there will be no significant barriers to the integration of the Company’s
products and services into customers’ applications; and (xi) the Company will be able to maintain
compliance with applicable contractual and regulatory obligations and requirements, and (xii) superior
geospatial related technologies / products do not develop that would render the Company’s current
product offerings obsolete.
Intermap’s forward-looking statements are subject to risks and uncertainties pertaining to, among other
things, cash available to fund operations, availability of capital, revenue fluctuations, nature of government
contracts, economic conditions, loss of key customers, retention and availability of executive talent,
competing technologies, common share price volatility, loss of proprietary information, information
technology security, breakdown of strategic alliances, and international and political considerations,
including but not limited to those risks and uncertainties discussed under the heading “Risk Factors” in this
MD&A, the Company’s most recently filed AIF and the Company’s other filings with securities regulators. The
impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable
4
with certainty as these are interdependent, and the Company’s future course of action depends on
Management’s assessment of all information available at the relevant time. Except to the extent required
by law, the Company assumes no obligation to publicly update or revise any forward-looking statements
made in this MD&A, whether as a result of new information, future events, or otherwise. All subsequent
forward-looking statements, whether written or oral, attributable to the Company or persons acting on the
Company’s behalf, are expressly qualified in their entirety by these cautionary statements.
BUSINESS OVERVIEW
Intermap is a global location-based information company, creating a wide variety of geospatial solutions
and analytics from its NEXTMap® database. The Company uses its NEXTMap 3D digital models, together
with aggregated third party data, to create geospatial solutions for its customers. These geospatial solutions
can be used in a wide range of applications including, but not limited to, location-based information,
geographic information systems (GIS), engineering, utilities, global positioning systems (GPS) maps,
geospatial risk assessment, oil and gas, renewable energy, hydrology, environmental planning, wireless
communications, transportation, advertising, and 3D visualization. The NEXTMap data can also be used to
improve the positional accuracy of airborne and satellite images.
Intermap has the ability to create its own digital 3D geospatial data using its proprietary IFSAR radar
technology mounted in a Learjet aircraft. The Company has two IFSAR-equipped aircraft, which provide
operational flexibility related to geographical location of data collection. Intermap’s radar-based technology
allows it to collect data at any time of the day, including under conditions such as cloud cover or darkness,
which are conditions that limit most competitive technologies. The IFSAR radar technology also enables
data to be collected over larger areas, at higher collection speeds, and at accuracy levels that are difficult to
achieve with competitive systems. Once the raw digital data is collected, it is then processed to create three
different geospatial datasets: digital surface models, digital terrain models, and orthorectified radar images.
These datasets can then be further processed and/or augmented with additional data to create value-
added products.
The Company has been actively transitioning its NEXTMap program from primarily an internally created
IFSAR radar-only dataset to an aggregated dataset of IFSAR-derived data and third-party data collected by
multiple sensor technologies, including light detection and ranging (LiDAR), photogrammetry, satellite, and
other available sources. The NEXTMap database also includes information such as 3D city models, census
data, real-time traffic, outdoor advertising assets, weather related hazards, points of interest, cellular towers,
flood models and wildfire models. The Company has many years of experience aggregating data derived
from a number of different sensor technologies and data sources. In addition, the Company is combining its
mapping services capability and NEXTMap database, together with its software application development
capability and system integration expertise, to create entire spatial data infrastructure (SDI) environments
for its customers.
The Company believes the value of its NEXTMap data lies primarily in web-based application solutions for
specific vertical markets, and not solely in the data as a standalone product. These web services offer a suite
of hosted tools that gives even those unfamiliar with GIS the ability to quickly and easily perform terrain
analysis based on an area of interest such as a land development site, county, or an entire state. Subscribers
to the Company’s web-services can access NEXTMap information using their current web browsers and
through popular desktop GIS software applications.
Unlike other geospatial companies, Intermap typically retains ownership of its data and licenses the use
of its products and services to its customers. Intermap currently has 3D geospatial data commercially
available for 17 countries in Western Europe, the contiguous United States and Hawaii, portions of Alaska,
and significant areas in Southeast Asia. Intermap also has a 30-meter product of the entire world, called
NEXTMap World 30™.
2013 Annual Report | Management’s Discussion and Analysis 5
NEXTMap
The NEXTMap database was built from the acquisition, processing and aggregation of terrain elevation
data, geometric images and other geospatial information such as demographics, view sheds, outdoor
advertising artifacts, flood models, and wildfire models, to name a few. The Company uses these diversified
geospatial elements to enhance the value of the NEXTMap database.
The data library amounts shown on the Company’s consolidated balance sheet include only elevation
related data and imagery from the Company’s original NEXTMap USA and NEXTMap Europe radar mapping
programs. All other geospatial data and information included in the NEXTMap database was expensed as
acquired.
The original NEXTMap USA dataset covered an area of nearly 8.0 million square kilometers of the
contiguous United States and Hawaii. The original NEXTMap Europe dataset represented 2.5 million square
kilometers of area and included the 17 countries of Austria, Belgium, Czech Republic, Denmark, England,
France, Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern Ireland, Portugal, Spain, Scotland,
Switzerland, and Wales.
In December 2013, a review of the Company’s approach to licensing raw data from its NEXTMap USA and
NEXTMap Europe datasets was undertaken. Upon completion of the review, it was determined that the
historical approach of licensing raw data from these two datasets was no longer a priority for the Company
as the focus for future periods will be primarily on the licensing of Orion™ based 3DBI software applications.
These 3DBI software applications deliver specific answers to the end user, rather than raw data.
The Company will continue to license raw data from its NEXTMap USA and NEXTMap Europe datasets,
however, the estimated amount and timing of such licenses is subject to estimation uncertainty.
Additionally, as a result of the Company’s focus on its Orion based 3DBI software applications, the
investment in the resources necessary to fully exploit the sale of raw data from the NEXTMap USA and
NEXTMap Europe datasets will be limited. These changes, coupled with the continued decline in licensing
revenue from these two datasets, led the Company to perform an asset impairment review to determine
if the carrying value of the NEXTMap USA and NEXTMap Europe dataset assets (cash generating units)
were recoverable. The Company determined that the future expected cash flows from the two assets was
insufficient to recover the carrying value of the assets, resulting in a pre-tax asset impairment charge of $9.2
million (the remaining net book value of the combined assets at December 31, 2013).
The Company believes there is a large selection of high quality geospatial information that is available in
the USA and Western Europe that users of geospatial information in Southeast Asia do not have access to.
As a result, the Company believes the immediate opportunity to sell its products and services in Southeast
Asia and other underdeveloped regions are greater than in the USA and Western Europe. The Company is,
however, currently developing new low cost, market-specific cloud-based software applications that may
utilize the entire NEXTMap dataset to address customer specific geospatial needs.
2013 Annual Report | Management’s Discussion and Analysis 6
FINANCIAL INFORMATION
FINANCIAL INFORMATION
The following table sets forth selected financial information for the periods indicated.
The following table sets forth selected financial information for the periods indicated.
Selected Annual Information
Selected Annual Information
U.S. $ millions, except per share data
2013
2012
2011
Revenue:
Contract services
Data licenses
Total revenue
$
19.1
5.3
$
11.9
15.9
$
10.8
13.3
$
24.4
$
27.8
$
24.1
Net loss before data library impairment
$
(5.7)
$
(2.9)
$
(13.6)
Data library impairment
Net loss
EPS basic and diluted
Adjusted EBITDA
Assets:
(9.2)
-
-
$
(14.9)
$
(2.9)
$
(13.6)
$
(0.18)
$
(0.04)
$
(0.19)
$
1.2
$
5.0
$
(4.5)
Cash,amounts receivable, and unbilled revenue
$
9.0
$
10.5
$
7.0
Data library
Total assets
Total long-term liabilities (including finance
lease obligations)
$
-
$
13.8
$
18.4
$
12.9
$
28.9
$
31.6
$
0.4
$
1.3
$
2.6
Revenue
Revenue
Consolidated revenue for the year ended December 31, 2013 totaled $24.4 million, compared to
Consolidated revenue for the year ended December 31, 2013 totaled $24.4 million, compared to $27.8
million for the same period in 2012, representing a 12% decrease. As of December 31, 2013, there remained
$27.8 million for the same period in 2012, representing a 12% decrease. As of December 31, 2013,
$2.1 million in revenue from existing contracts ($1.6 million in contract services and $0.5 million in data
there remained $2.1 million in revenue from existing contracts ($1.6 million in contract services
licensing contracts) to be recognized in future periods.
and $0.5 million in data licensing contracts) to be recognized in future periods.
Contract services revenue for the year ended December 31, 2013 was $19.1 million, an increase of 61%
over the same period in 2012 which totaled $11.9 million. During the year ended December 31, 2013, the
Company recognized revenue of $13.4 million on a contract in Southeast Asia and $3.5 million on a contract
in North America. For the same period in 2012, revenue was recognized primarily from the culmination of
a contract in Southeast Asia in the amount of $3.9 million and a project in North America in the amount of
$5.7 million.
5
Data licenses revenue for the years ended December 31, 2013 and 2012 totaled $5.3 million and $15.9
million, respectively. The decrease was primarily the result of two significant sales during the year ended
December 31, 2012 from the Company’s NEXTMap Asia dataset in the amounts of $8.1 million and $2.7
million, respectively. There were no significant data licensing contracts that generated similar amounts of
revenue during the year ended December 31, 2013.
2013 Annual Report | Management’s Discussion and Analysis
Contract services revenue for the year ended December 31, 2013 was $19.1 million, an increase of
61% over the same period in 2012 which totaled $11.9 million. During the year ended December
31, 2013, the Company recognized revenue of $13.4 million on a contract in Southeast Asia and
$3.5 million on a contract in North America. For the same period in 2012, revenue was recognized
primarily from the culmination of a contract in Southeast Asia in the amount of $3.9 million and a
project in North America in the amount of $5.7 million.
Data licenses revenue for the years ended December 31, 2013 and 2012 totaled $5.3 million and
$15.9 million, respectively. The decrease was primarily the result of two significant sales during the
year ended December 31, 2012 from the Company’s NEXTMap Asia dataset in the amounts of $8.1
7
million and $2.7 million, respectively. There were no significant data licensing contracts that
generated similar amounts of revenue during the year ended December 31, 2013.
Classification of Operating Costs
Classification of Operating Costs
The composition of the operating costs classification on the Consolidated Statements of Profit or Loss and
The composition of the operating costs classification on the Consolidated Statements of Profit or Loss
Other Comprehensive Income is as follows:
and Other Comprehensive Income is as follows:
U.S. $ thousands
2013
2012
Personnel
Purchased services & materials
Travel
Facilities and other expenses
$
$
12,430
7,784
1,577
1,306
23,097
12,936
7,358
1,152
1,947
23,393
$
$
Personnel
Personnel
Personnel expense includes direct labor, employee compensation, employee benefits, and
Personnel expense includes direct labor, employee compensation, employee benefits, and commissions.
commissions.
Personnel expense for the years ended December 31, 2013 and 2012, totaled $12.4 million and $12.9
Personnel expense for the years ended December 31, 2013 and 2012, totaled $12.4 million and
million, respectively. The 4% year-over-year decrease in personnel expense is primarily due to a change
$12.9 million, respectively. The 4% year-over-year decrease in personnel expense is primarily due
in the mix of wage earners, even though headcount increased slightly on a year-over-year basis. There
to a change in the mix of wage earners, even though headcount increased slightly on a year-over-
was also a decrease in non-cash compensation expense during 2013 as compared to 2012 as there were a
greater number of stock awards granted to non-employees in 2012 than in 2013, as well as the completion
year basis. There was also a decrease in non-cash compensation expense during 2013 as compared
of the amortization of the balance of restricted shares during the first quarter of 2013. Consolidated active
to 2012 as there were a greater number of stock awards granted to non-employees in 2012 than in
employee headcount was 202 (including 97 in Jakarta, Indonesia) at December 31, 2013, a 9% increase from
2013, as well as the completion of the amortization of the balance of restricted shares during the
185 (including 88 in Jakarta, Indonesia) at December 31, 2012. The increase in personnel on a year-over-year
first quarter of 2013. Consolidated active employee headcount was 202 (including 97 in Jakarta,
basis was the result of increases in (i) sales and marketing 17%, or 4 personnel; (ii) operations 17%, or 13
personnel; and (iii) engineering, research and development 9%, or 5 personnel. These increases were offset
Indonesia) at December 31, 2013, a 9% increase from 185 (including 88 in Jakarta, Indonesia) at
by reductions in administrative 15%, or 5 personnel.
December 31, 2012. The increase in personnel on a year-over-year basis was the result of increases
in (i) sales and marketing 17%, or 4 personnel; (ii) operations 17%, or 13 personnel; and (iii)
Non-cash compensation expense is included in operating costs and relates to share options and shares
engineering, research and development 9%, or 5 personnel. These increases were offset by
granted to employees and non-employees. Non-cash share-based compensation for the years ended
December 31, 2013 and 2012, totaled $0.5 million and $0.7 million, respectively. The year-over-year
reductions in administrative 15%, or 5 personnel.
decrease of $0.2 million was primarily due to (i) the expiration, forfeiture and full vesting of share options
Non-cash compensation expense is included in operating costs and relates to share options and
issued in prior periods; and (ii) Board of Directors related compensation paid in cash during the current year
where such compensation was paid in common shares during the prior year.
shares granted to employees and non-employees. Non-cash share-based compensation for the years
ended December 31, 2013 and 2012, totaled $0.5 million and $0.7 million, respectively. The year-
Purchased Services and Materials
Purchased services and materials (PS&M) includes (i) aircraft and radar related costs, including jet fuel; (ii)
professional and consulting costs; (iii) third-party support services related to the collection, processing and
editing of the Company’s airborne radar data collection activities; and (iv) third party software expenses
(including maintenance and support).
6
For the years ended December 31, 2013 and 2012, PS&M expense was $7.8 million and $7.4 million,
respectively. The increase in this category of expense is primarily due to increases in subcontractor expenses
associated with the airborne radar collection portion of a project in Southeast Asia and third party LiDAR
acquisition services on a contract in North America. The increase is offset partially by cost efficiencies
achieved in airborne data collection efforts and differences in specific logistical requirements associated
with contract locations. The stage of progress on each radar data collection contract and the individual
requirements and logistics associated with the Company’s airborne radar collection efforts can create
significant expense variations between reporting periods.
2013 Annual Report | Management’s Discussion and Analysis
8
Travel
For the years ended December 31, 2013 and 2012, travel expense was $1.6 million and $1.2 million,
respectively. The increase during the year ended December 31, 2013 compared to the same period in 2012
is primarily due to increased travel associated with a major mapping services contract in Southeast Asia, and
secondarily to an increase in travel for sales and marketing related personnel to train channel partners on
the Company’s new product offerings.
Facilities and Other Expenses
For the years ended December 31, 2013 and 2012, facilities and other expenses were $1.3 million and $1.9
million, respectively. The decrease for the year ended December 31, 2013, compared to the same period in
2012 is primarily due to the reversal of a facility provision of $0.7 million (net of deposits) during 2013.
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) is not a
recognized performance measure under IFRS. The term EBITDA consists of net income (loss) and excludes
interest, taxes, depreciation and amortization. Adjusted EBITDA also excludes restructuring costs, share-
based compensation, gain or loss on the disposal of equipment, impairment losses or reversals, and gain
or loss on foreign currency translation. Adjusted EBITDA is included as a supplemental disclosure because
Management believes that such measurement provides a better assessment of the Company’s operations
certain non-cash charges and charges or gains that are nonrecurring. The most directly comparable
on a continuing basis by eliminating certain non-cash charges and charges or gains that are nonrecurring.
measure to adjusted EBITDA calculated in accordance with IFRS is net income (loss). The
The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net income
(loss). The following is a reconciliation of the Company’s net income (loss) to adjusted EBITDA.
following is a reconciliation of the Company’s net income (loss) to adjusted EBITDA.
U.S. $ millions
Net income (loss)
Interest expense
Depreciation of property and equipment
Amortization of data library
Amortization of intangible assets
Income tax expense
EBITDA
Restructuring costs recovery
Share-based compensation
Gain on disposal of equipment
Loss on foreign currency translation
Impairment of data library
Adjusted EBITDA
2013
2012
$
(14.9)
0.5
1.4
4.6
0.1
0.1
$
(2.9)
0.5
1.8
4.6
0.2
-
$
(8.2)
$
4.2
(0.7)
0.5
(0.1)
0.5
9.2
(0.1)
0.7
-
0.2
-
$
1.2
$
5.0
Adjusted EBITDA for the year ended December 31, 2013 was $1.2 million, compared to $5.0
Adjusted EBITDA for the year ended December 31, 2013 was $1.2 million, compared to $5.0 million for the
million for the same period in 2012. The decrease in adjusted EBITDA on a year-over-year basis is
same period in 2012. The decrease in adjusted EBITDA on a year-over-year basis is primarily attributable to
primarily attributable to a decrease in revenue of $3.4 million and an increase in operating expenses
a decrease in revenue of $3.4 million and an increase in operating expenses of $0.4 million, excluding the
restructuring costs recovery.
of $0.4 million, excluding the restructuring costs recovery.
Depreciation of Property and Equipment
Depreciation expense for the year ended December 31, 2013 totaled $1.4 million, compared to $1.8 million
for the same period in 2012. The decrease in depreciation expense is primarily the result of certain assets
Depreciation of Property and Equipment
dedicated to the Company’s NEXTMap database development reaching the end of their useful lives, without
Depreciation expense for the year ended December 31, 2013 totaled $1.4 million, compared to $1.8
the addition of comparable replacement assets.
million for the same period in 2012. The decrease in depreciation expense is primarily the result of
certain assets dedicated to the Company’s NEXTMap database development reaching the end of
their useful lives, without the addition of comparable replacement assets.
Amortization of Data Library
For the years ended December 31, 2013 and 2012, amortization expense relating to the data library
was $4.6 million in each year. The asset was amortized on a straight-line basis, and no additions
were made to the asset during the periods presented.
Impairment of Data Library
An impairment review was performed to determine if the carrying value of the NEXTMap USA
and NEXTMap Europe dataset assets were recoverable. The Company determined that the
recoverable amount of the datasets was insufficient to recover the carrying value of the assets,
resulting in a pre-tax impairment of $9.2 million (see “NEXTMap”).
Financing Costs
8
2013 Annual Report | Management’s Discussion and Analysis
9
Amortization of Data Library
For the years ended December 31, 2013 and 2012, amortization expense relating to the data library was
$4.6 million in each year. The asset was amortized on a straight-line basis, and no additions were made to
the asset during the periods presented.
Impairment of Data Library
An impairment review was performed to determine if the carrying value of the NEXTMap USA and
NEXTMap Europe dataset assets were recoverable. The Company determined that the recoverable amount
of the datasets was insufficient to recover the carrying value of the assets, resulting in a pre-tax impairment
of $9.2 million (see “NEXTMap”).
Financing Costs
Financing costs for the year ended December 31, 2013 totaled $512 thousand, compared to $523 thousand
for the same period in 2012. The decrease in financing costs is attributable to interest on a convertible
note that was issued in June 2012 and converted to share capital in June 2013. These financing costs were
further decreased by interest on long-term debt due to the reduction of principal resulting from recurring
payments.
Gain on Disposal of Equipment
During 2013, the Company sold fully depreciated assets and recognized a gain of $163 thousand on the sale
of the assets. The assets sold consisted of spare radar parts, a transmitter, critical spares, and miscellaneous
computer equipment.
Gain (Loss) on Foreign Currency Translation
The Company continuously monitors the level of foreign currency assets and liabilities carried on its
consolidated balance sheet in an effort to minimize as much of the foreign currency translation exposure
as possible. Steps taken to minimize translation effects have included the movement of cash and cash
equivalents between Canadian dollar, Euro and United States dollar currencies. The result is a partial natural
currency hedge for the Company.
The difference between any amounts billed in United States dollars and paid in a foreign currency is
recognized as a gain or loss in the period it is settled. During the year ended December 31, 2013, a foreign
currency translation loss of $506 thousand was recorded, compared to a loss of $233 thousand for the
same period in 2012. The increase from the year ago period is primarily the result of the strengthening of
the United States dollar against certain foreign currencies where mapping services contracts are being
performed.
Income Tax
Current income tax expense of $28 thousand was incurred during the year ended December 31, 2013,
compared to a recovery of $20 thousand during the same period in 2012. The expense for the year ended
December 31, 2013 relates to taxable income generated from the Company’s Czech Republic subsidiary.
The recovery for the year ended December 31, 2012 is due to tax deposits made for the Company’s German
subsidiary.
Amounts Receivable and Unbilled Revenue
Work is performed on contracts that provide invoicing upon the completion of identified contract
milestones. Revenue on certain of these contracts is recognized using the percentage-of-completion
method of accounting based on the ratio of costs incurred to date over the estimated total costs to
2013 Annual Report | Management’s Discussion and Analysis 10
complete the contract. While an effort is made to schedule payments on contracts in accordance with work
performed, the completion of milestones does not always coincide with the costs incurred on a contract,
resulting in revenue being recognized in excess of billings. These amounts are recorded in the consolidated
balance sheet as unbilled revenue.
Amounts receivable and unbilled revenue decreased from $8.4 million at December 31, 2012, to $6.6 million
compared to 42 days sales at December 31, 2012, and reflect specific project billing milestones on
at December 31, 2013. These amounts represent 142 days’ sales at December 31, 2013, compared to 42
current contracts that were in progress on those dates. The increase is days’ sales outstanding
days sales at December 31, 2012, and reflect specific project billing milestones on current contracts that
primarily relates to a large amounts receivable balance outstanding greater than 90 days from a
were in progress on those dates. The increase is days’ sales outstanding primarily relates to a large amounts
historically slow paying customer. The balance is considered collectible as the customer continues
receivable balance outstanding greater than 90 days from a historically slow paying customer. The balance
to make regular payments.
is considered collectible as the customer continues to make regular payments.
Accounts Payable and Accrued Liabilities
Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities generally include trade payables, project-related accruals
Accounts payable and accrued liabilities generally include trade payables, project-related accruals and
and personnel-related costs. Accounts payable and accrued liabilities decreased from $4.7 million at
personnel-related costs. Accounts payable and accrued liabilities decreased from $4.7 million at December
December 31, 2012, to $4.0 million at December 31, 2013. This decrease is due primarily to the
31, 2012, to $4.0 million at December 31, 2013. This decrease is due primarily to the timing of payments
timing of payments against the Company’s trade accounts payable, a decrease in interest due to
against the Company’s trade accounts payable, a decrease in interest due to conversion of the convertible
note, and the payment of accrued compensation during 2013.
conversion of the convertible note, and the payment of accrued compensation during 2013.
U.S. $ thousands
Accounts payable
Accrued liablities
Other taxes payable
2013
2012
$
$
1,997
1,936
20
3,953
2,152
2,572
23
4,747
$
$
Provisions
Provisions
Provisions decreased to $Nil at December 31, 2013 from $0.7 million at December 31, 2012 as an
Provisions decreased to $Nil at December 31, 2013 from $0.7 million at December 31, 2012 as an excess
excess facility provision was determined not to be payable during the year ended December 31,
facility provision was determined not to be payable during the year ended December 31, 2013.
2013.
Notes Payable
Notes Payable
The notes payable balance decreased from $1.8 million at December 31, 2012, to $1.2 million at December
The notes payable balance decreased from $1.8 million at December 31, 2012, to $1.2 million at
31, 2013. The decrease is due to payments on a promissory note to a service provider for an outstanding
December 31, 2013. The decrease is due to payments on a promissory note to a service provider for
balance. The balance due to the service provider at December 31, 2013 is $1.1 million. Payment of the
an outstanding balance. The balance due to the service provider at December 31, 2013 is $1.1
principal began in December 2012 and the promissory note matures in November 2014.
million. Payment of the principal began in December 2012 and the promissory note matures in
The additional $0.1 million in notes payable at December 31, 2013 relates to reimbursable project
November 2014.
development funds from the Canadian government received by the Company. Such funds are repayable
The additional $0.1 million in notes payable at December 31, 2013 relates to reimbursable project
upon the completion of development efforts on specifically identified technology and the first sale of the
resulting developed products. The repayment of the note began during the third quarter of 2013.
development funds from the Canadian government received by the Company. Such funds are
repayable upon the completion of development efforts on specifically identified technology and the
Convertible Note
first sale of the resulting developed products. The repayment of the note began during the third
The convertible note balance of $2.4 million at December 31, 2012 was due to a private placement
quarter of 2013.
convertible debt financing that closed June 27, 2012. The principal balance of the note was $2.5 million,
Convertible Note
and the discount of $0.2 million was recognized over the twelve month term of the note using the effective
The convertible note balance of $2.4 million at December 31, 2012 was due to a private placement
interest method. Simple interest was payable at maturity at an annual rate of 21%. Under the terms of the
note, the accrued interest payable on any converted principal balance would be waived at the time of
convertible debt financing that closed June 27, 2012. The principal balance of the note was $2.5
conversion.
million, and the discount of $0.2 million was recognized over the twelve month term of the note
using the effective interest method. Simple interest was payable at maturity at an annual rate of
On June 26, 2013, the holder issued a conversion notice for the full balance of the convertible note payable.
On June 27, 2013, the Company issued 7,515,476 Class A common shares to the note holder, and on
10
2013 Annual Report | Management’s Discussion and Analysis
11
August 28, 2013, the Company issued the remaining 5,000,000 Class A common shares to the note holder
representing the full conversion of the note.
Unearned Revenue and Deposits
The unearned revenue balance at December 31, 2013 decreased to $110 thousand from $145 thousand at
December 31, 2012. This balance consists of payments received from customers on revenue contracts for
which the Company has not yet fulfilled its obligations, or which the necessary revenue recognition criteria
has not been met.
Finance Lease Obligations
Finance lease obligations at December 31, 2013 remained the same at $0.3 million from December 31,
2012. A finance lease obligation existing at December 31, 2012 reached the end of its term in September
2013 and was offset by a new finance lease for the purchase of $0.3 million of data storage equipment and
software in December 2013.
QUARTERLY FINANCIAL INFORMATION
Selected Quarterly Information
The following table sets forth selected quarterly financial information for Intermap’s eight most recent fiscal
quarters. This information is unaudited, but reflects all adjustments of a normal, recurring nature that are,
Intermap’s consolidated results of operations for the periods presented. Quarter-to-quarter
in the opinion of Management, necessary to present a fair statement of Intermap’s consolidated results of
comparisons of Intermap’s financial results are not necessarily meaningful and should not be relied
operations for the periods presented. Quarter-to-quarter comparisons of Intermap’s financial results are not
on as an indication of future performance.
necessarily meaningful and should not be relied on as an indication of future performance.
U.S. $ millions, except per
share data
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Revenue:
Contract services
Data licenses
$
3.3
$
1.6
$
4.1
$
2.9
$
4.0
$
7.8
$
5.4
$
1.9
0.9
6.4
3.9
4.7
1.1
1.1
0.9
2.2
Total revenue
$
4.2
$
8.0
$
8.0
$
7.6
$
5.1
$
8.9
$
6.3
$
4.1
Depreciation and amortization
$
1.8
$
1.6
$
1.6
$
1.6
$
1.6
$
1.5
$
1.5
$
1.4
Net income (loss) before data
library impairment
$
(5.1)
$
0.8
$
0.4
$
1.0
$
(2.0)
$
0.2
$
(0.5)
$
(3.4)
Data library impairment
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
(9.2)
Net income (loss)
$
(5.1)
$
0.8
$
0.4
$
1.0
$
(2.0)
$
0.2
$
(0.5)
$
(12.6)
Net income (loss) per share
- basic and diluted
$
(0.06)
$
0.01
$
0.01
$
0.01
$
(0.03)
$
-
$
(0.01)
$
(0.14)
Adjusted EBITDA
$
(2.9)
$
2.7
$
2.5
$
2.7
$
(0.1)
$
2.2
$
0.6
$
(1.5)
Revenue
Revenue
Consolidated revenue for the fourth quarter of 2013 totaled $4.1 million, compared to $7.6 million
Consolidated revenue for the fourth quarter of 2013 totaled $4.1 million, compared to $7.6 million for the
for the same period in 2012, representing a 46% decrease. Contract services revenue for the fourth
same period in 2012, representing a 46% decrease. Contract services revenue for the fourth quarter of 2013
quarter of 2013 decreased to $1.9 million, a 34% decrease from the $2.9 million recorded during the
decreased to $1.9 million, a 34% decrease from the $2.9 million recorded during the same period in 2012.
same period in 2012. The decrease was primarily the result of differences in the quantity of work
The decrease was primarily the result of differences in the quantity of work performed (airborne collection,
performed (airborne collection, data processing and data editing) on outstanding contracts during
data processing and data editing) on outstanding contracts during the respective periods where revenue
the respective periods where revenue is recognized on a percentage of completion basis. Data
is recognized on a percentage of completion basis. Data licenses revenue for the fourth quarter of 2013
licenses revenue for the fourth quarter of 2013 totaled $2.2 million, compared to $4.7 million for
totaled $2.2 million, compared to $4.7 million for the same period in 2012, representing a 53% decrease. The
decrease was primarily the result of revenue recognized during the fourth quarter of 2012 on a $2.3 million
the same period in 2012, representing a 53% decrease. The decrease was primarily the result of
contract that was announced in November 2012 for the licensing of data from the Company’s Southeast
revenue recognized during the fourth quarter of 2012 on a $2.3 million contract that was
Asia database.
announced in November 2012 for the licensing of data from the Company’s Southeast Asia
database.
Personnel
Personnel expense for the three-month periods ended December 31, 2013 and 2012 totaled $2.9
million in each period. Headcount increased on a year-over-year basis, but was offset by a change
in the mix of wage earners.
Non-cash share-based compensation for the fourth quarter of 2013 was $0.2 million, compared to
$0.1 million for the same period in 2012. The increase is due to an issuance of stock options to the
Board of Directors that vested at the time of grant.
Purchased Services and Materials
12
2013 Annual Report | Management’s Discussion and Analysis
12
Personnel
Personnel expense for the three-month periods ended December 31, 2013 and 2012 totaled $2.9 million in
each period. Headcount increased on a year-over-year basis, but was offset by a change in the mix of wage
earners.
Non-cash share-based compensation for the fourth quarter of 2013 was $0.2 million, compared to $0.1
million for the same period in 2012. The increase is due to an issuance of stock options to the Board of
Directors that vested at the time of grant.
For the three-month periods ended December 31, 2013 and 2012, PS&M expense was $2.1 million
Purchased Services and Materials
and $1.3 million, respectively. The increase in this category of expense is primarily due to increases
For the three-month periods ended December 31, 2013 and 2012, PS&M expense was $2.1 million and $1.3
in subcontractor expenses associated with the airborne radar collection portion of a project in
million, respectively. The increase in this category of expense is primarily due to increases in subcontractor
Southeast Asia and third party LiDAR acquisition services on a contract in North America.
expenses associated with the airborne radar collection portion of a project in Southeast Asia and third party
LiDAR acquisition services on a contract in North America.
Travel
For the three-month periods ended December 31, 2013 and 2012, travel expense was $0.2 million
Travel
and $0.3 million, respectively. The decrease during the three-month period ended December 31,
For the three-month periods ended December 31, 2013 and 2012, travel expense was $0.2 million and $0.3
2013 compared to the same period in 2012 is primarily the result of decreased travel by operations
million, respectively. The decrease during the three-month period ended December 31, 2013 compared to
personnel associated with the stage of progress on an outstanding mapping service contracts in
the same period in 2012 is primarily the result of decreased travel by operations personnel associated with
place during the period.
the stage of progress on an outstanding mapping service contracts in place during the period.
Facilities and Other Expenses
Facilities and Other Expenses
For the three-month periods ended December 31, 2013 and 2012, facilities and other expenses were
For the three-month periods ended December 31, 2013 and 2012, facilities and other expenses were $0.5
$0.5 million.
million.
CONTRACTUAL OBLIGATIONS
CONTRACTUAL OBLIGATIONS
Contractual obligations include (i) operating leases on office locations; (ii) notes payable; and (iii)
Contractual obligations include (i) operating leases on office locations; (ii) notes payable; and (iii) finance
finance leases on computer equipment and software. Principal and interest repayments of these
leases on computer equipment and software. Principal and interest repayments of these obligations are as
obligations are as follows:
follows:
Payments due by Period (US $ thousands)
Contractual obligations
Operating leases
Notes payable
Finance leases
Total
Total
$
1,783
1,208
354
3,345
$
Less than 1 year
$
866
1,208
142
2,216
$
$
1 - 3 years
917
-
212
1,129
$
4 - 5 years After 5 years
$
-
-
-
$
-
$
-
-
-
$
-
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES
Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to
Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to fund
fund the business. Net cash flow is affected by the following items: (i) operating activities, including
the business. Net cash flow is affected by the following items: (i) operating activities, including the level
of amounts receivable, unbilled receivables, accounts payable, accrued liabilities and unearned revenue
the level of amounts receivable, unbilled receivables, accounts payable, accrued liabilities and
and deposits; (ii) investing activities, including the purchase of property and equipment; and (iii) financing
unearned revenue and deposits; (ii) investing activities, including the purchase of property and
activities, including debt financing and the issuance of capital stock.
equipment; and (iii) financing activities, including debt financing and the issuance of capital stock.
Cash generated from operations during the year ended December 31, 2013 totaled $1.9 million, compared
Cash generated from operations during the year ended December 31, 2013 totaled $1.9 million,
to $0.3 million during the same period in 2012. The improvement of $1.6 million is due primarily to the
compared to $0.3 million during the same period in 2012. The improvement of $1.6 million is due
change in working capital balances.
primarily to the change in working capital balances.
Net cash used in investing activities totaled $0.6 million for the year ended December 31, 2013,
compared to $0.4 million during the same period in 2012. Net cash used in investing activities for
the year ended December 31, 2013 was primarily for the purchase of property and equipment of
$780 thousand, offset by proceeds from the sale of property and equipment of $163 thousand. Cash
13
2013 Annual Report | Management’s Discussion and Analysis
13
Net cash used in investing activities totaled $0.6 million for the year ended December 31, 2013, compared
to $0.4 million during the same period in 2012. Net cash used in investing activities for the year ended
December 31, 2013 was primarily for the purchase of property and equipment of $780 thousand, offset
by proceeds from the sale of property and equipment of $163 thousand. Cash used in investing activities
during the same period in 2012 was for the purchase of property and equipment of $288 thousand and
the development of intangible assets (the Company’s NEXTMap WebStore™) of $113 thousand, offset by
proceeds from the sale of property and equipment of $41 thousand.
Net cash used in financing activities totaled $0.9 million during the year ended December 31, 2013,
compared to net cash generated by financing activities totaling $1.5 million during the same period in
2012. The net cash used in financing activities during the year ended December 31, 2013 was due to the
repayment of a promissory note and capital leases of $0.9 million. The net cash generated from financing
activities during the same period in 2012 was due to the closing of a convertible note debt financing
totaling $2.5 million, offset by $0.1 of issuance costs and repayment of long-term debt and capital leases of
$1.0 million.
The cash position of the Company at December 31, 2013 (cash and cash equivalents) was $2.4 million,
compared to $2.1 million at December 31, 2012. Working capital improved to $3.9 million as of December
31, 2013 from $1.9 million as of December 31, 2012 due to (i) decrease in accounts payable and accrued
liabilities of $0.8 million; (ii) decrease in convertible note payable of $2.4 million; and (iii) decrease in
provisions of $0.7 million. These amounts were partially offset by a decrease in accounts receivable and
unbilled revenue of $1.9 million.
During the year ended December 31, 2013, the Company generated a net loss of $14.9 million, had positive
adjusted EBITDA of $1.2 million, and positive cash flow from operations of $1.9 million. In addition, the
Company has an accumulated deficit of $201.1 million. Although the Company has made significant
financial progress during its most recent fiscal year, its continuing operations are dependent on its ability
to produce future profitable operations and generate positive cash flows from operations. If these activities
are not adequate to fund the Company’s ongoing operations, the Company may be required to explore
additional financing alternatives, if available. Failure to achieve one or more of these requirements could
have a material adverse effect on the Company’s financial condition and / or results of operations in future
periods.
The above factors in the aggregate raise significant doubt about the Company’s ability to continue as a
going concern. Management has taken actions to address these issues including a shift in organizational
wide focus from the historical approach of licensing raw data to the licensing of the Company’s Orion based
3DBI software applications, and has obtained additional financing. The Company’s ability to continue as a
going concern is dependent on management’s ability to successfully generate a profit from operations, sell
assets, or obtain additional financing, if required. These actions have begun to make a positive impact on
the performance of the Company, however, the Company cannot be certain that its future cash generated
from operations will be sufficient to satisfy its liquidity requirements on a go forward basis.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Revenue Recognition
Revenue is recognized when (i) persuasive evidence of an arrangement exists; (ii) the significant risks and
rewards of ownership, including managerial involvement, have been transferred to the buyer; (iii) the
amount of revenue can be measured reliably; and (iv) costs incurred or to be incurred can be measured
reliably. Billings in excess of revenue are recorded as unearned revenue. Revenue recognized in excess of
billings is recorded as unbilled revenue.
2013 Annual Report | Management’s Discussion and Analysis 14
Goods Sold
Revenue from the sale of data licenses in the ordinary course is measured at the fair value of the
consideration received or receivable.
Subscriptions
Revenue from data sold on a subscription basis is recognized straight-line over the term of the agreement.
Fixed-price Contracts
Revenue from fixed-price contracts is recognized using the percentage-of-completion method, based
on the ratio of costs incurred to estimated final contract costs. The use of the percentage of completion
method requires estimates to determine the cost to complete each contract. These estimates are reviewed
monthly and adjusted as necessary. Provisions for estimated losses, if any, are recognized in the period in
which the loss is determined. Contract losses are measured in the amount by which the estimated costs of
the related project exceed the estimated total revenue for the project.
Multiple Component Arrangements
When a single sales transaction requires the delivery of more than one product or service (multiple
components), the revenue recognition criteria are applied separately to identifiable components. A
component is considered to be separately identifiable if the product or service delivered has stand-alone
value to that customer and the fair value associated with the product or service can be measured reliably.
The amount recognized as revenue for each component is the fair value of the element in relation to the fair
value of the arrangement as a whole.
Data Library (NEXTMap)
The Company maintains a data library, which results from the acquisition and processing of digital map
data. Ownership rights to this data are retained by the Company and the data is licensed to customers.
Historically, the direct costs of acquiring and processing the data were capitalized as an investment in
the data library when it could be shown that such costs create material future value to the Company.
Capitalized costs included direct overhead associated with the acquisition and processing of the data and
the depreciation of the property and equipment used in the production of the data.
Data library capitalized costs were amortized on a straight-line basis over five years.
The carrying value of the data library is reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. The Company has determined
that the original NEXTMap USA and NEXTMap Europe datasets represent separate cash generating units for
impairment testing purposes. An impairment review was performed to determine if the carrying value of
the NEXTMap USA and NEXTMap Europe dataset assets were recoverable. The Company determined that
the recoverable amount of the datasets was insufficient to recover the carrying value of the assets, resulting
in a pre-tax impairment of $9.2 million (see “NEXTMap”).
Use of Estimates
Preparing financial statements in conformity with IFRS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenue and expenses during the period. Actual results could differ from these
estimates.
2013 Annual Report | Management’s Discussion and Analysis 15
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment within the next financial year include the following:
Impairment of Data Library
In order to determine if the carrying value of the NEXTMap USA and NEXTMap Europe dataset assets are
recoverable, management is required to estimate future net cash flow for the CGUs to determine the value
in use of the assets.
Depreciation and amortization rates
In calculating the depreciation and amortization expense, management is required to make estimates of
the expected useful lives of property and equipment and intangible assets.
Amounts receivable
The Company uses historical trends and performs specific account assessments when determining the
allowance for doubtful accounts. These accounting estimates are in respect to the amounts receivable line
item in the Company’s consolidated balance sheet. At December 31, 2013, amounts receivable represented
50% of total assets.
The estimate of the Company’s allowance for doubtful accounts could change from period to period due to
the allowance being a function of the balance and composition of amounts receivable.
Share-based compensation
The Company uses the Black-Scholes option-pricing model to determine the grant date fair value of share-
based compensation. The following assumptions are used in the model: dividend yield; expected volatility;
risk-free interest rate; expected option life; and fair value.
Changes to assumptions used to determine the grant date fair value of share-based compensation awards
can affect the amounts recognized in the consolidated financial statements.
Provisions
A provision is recognized, if as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the future settlement were to adversely differ from management’s
expectations, the Company could incur either an additional expense or reversal of the expense previously
recorded.
Revenue
Changes to the assumptions used to measure revenue could impact the amount of revenue recognized in
the consolidated financial statements.
FUTURE CHANGES IN ACCOUNTING POLICIES
Financial Instruments
The International Accounting Standards Board (IASB) issued IFRS 9, Financial Instruments, which replaces
International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement, and
establishes principles for the financial reporting of financial assets and financial liabilities that will present
relevant and useful information to users of financial statements for their assessment of the amounts,
timing and uncertainty of an entity’s hedge accounting standard which will align hedge accounting more
closely with risk management. It does not fundamentally change the types of hedging relationships or the
requirement to measure and recognize ineffectiveness, however it will provide more hedging strategies
that are used for risk management to qualify for hedge accounting and introduce more judgment to assess
2013 Annual Report | Management’s Discussion and Analysis 16
the effectiveness of a hedging relationship. The IASB has not yet communicated the mandatory effective
date of the IFRS 9. The Company does not intend to adopt IFRS 9 at this time, but continues to monitor
the individual phases of this IASB project. The extent of the impact of adoption of IFRS 9 has not yet been
determined.
Financial Instruments: Presentation
The IASB amended IAS 32, Financial Instruments: Presentation to clarify the meaning of when an entity has
a current legally enforceable right of set-off. The amendments are effective for annual periods beginning on
or after January 1, 2014 and are required to be applied retrospectively. The Company does not expect the
amendment to have a material impact on the Consolidated Financial Statements.
Annual Improvements
In December 2013, the IASB published annual Improvements to IFRS. These amendments were made to
clarify the following in their respective standards:
• Definition of “vesting condition” in IFRS 2, Share-based payment;
• Classification and measurement of contingent consideration; and scope exclusion for the formation of
joint arrangements in IFRS 3, Business Combinations;
• Disclosures on the aggregation of operating segments in IFRS 8, Operating segments;
• Measurement of short-term receivables and payables; and scope of portfolio exception in IFRS 13, Fair
Value Measurement;
• Restatement of accumulated depreciation (amortization) on revaluation in IAS 16, Property, Plant and
Equipment and IAS 38, Intangible Assets;
• Definition of “related party” in IAS 24, Related Party Disclosures; and
•
Inter-relationship of IFRS 3 and IAS 40 in IAS 40, Investment Property.
Special transitional requirements have been set for amendments to IFRS 2, IAS 16, IAS 38 and IAS 40.
The Company intends to adopt these amendments in its Consolidated Financial Statements for the annual
period beginning January 1, 2014. The Company does not expect the amendments to have a material
impact on the Consolidated Financial Statements.
OUTSTANDING SHARE DATA
The Company’s authorized capital consists of an unlimited number of Class A common shares without par
value and an unlimited number of Class A participating preferred shares without par value. At the close of
business on March 12, 2014, 92,139,499 Class A common shares were issued and outstanding. There are no
preferred shares currently issued and outstanding.
As of March 12, 2014, potential dilutive securities include (i) 6,019,470 outstanding share options in the
Company’s share option plan with a weighted average exercise price of C$0.52; and (ii) 22,141,572 warrants
outstanding with a weighted average exercise price of C$0.47 and each warrant entitles the holder to
purchase one Class A common share.
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS
Disclosure Control Risks
Disclosure controls and procedures have been designed to provide reasonable assurance that information
required to be disclosed is accumulated and communicated to Management as appropriate to allow timely
decisions regarding required disclosure. Pursuant to Multilateral Instrument 52-109, the Chief Executive
2013 Annual Report | Management’s Discussion and Analysis 17
Officer and Chief Financial Officer have concluded, based on their evaluation of the effectiveness of the
disclosure controls and procedures as at December 31, 2013, that disclosure controls and procedures
provide reasonable assurance that material information is made known to them by others within the
Company.
Internal Control Risks
Internal controls over financial reporting have been designed to provide reasonable assurance regarding
the reliability of financial reporting. Management, including the Chief Executive Officer and Chief Financial
Officer, reviewed and evaluated the design and operating effectiveness of the internal controls over
financial reporting (as defined by Multilateral Instrument 52-109) and concluded that sufficient controls
exist at December 31, 2013, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with IFRS. There have been
no significant changes in the design of internal controls over financial reporting that occurred during the
year ended December 31, 2013, that have materially affected, or are reasonably likely to materially affect,
the Company’s internal control over financial reporting.
RISKS AND UNCERTAINTIES
The risks and uncertainties described below are not exhaustive. Additional risks not presently known
currently deemed immaterial may also impair the Company’s business operation. If any of the events
described in the following business risks actually occur, overall business, operating results, and the financial
condition of the Company could be materially adversely affected.
Availability of Capital
The Company cannot be certain that cash generated from its operations will be sufficient to satisfy its
liquidity requirements and it may need to raise capital by selling additional equity and or by securing credit
facilities. The Company’s future capital requirements will depend on many factors, including, but not limited
to, the market acceptance of its products and services. No assurance can be given that any such additional
funding will be available or that, if available, it can be obtained on terms favorable to the Company.
The Company currently has no commitments for additional working capital funding and therefore its ability
to meet any unexpected liquidity needs is uncertain. If additional funds are raised through the issuance of
equity securities, the Company’s shareholders may experience significant dilution. Furthermore, if additional
financing is not available when required, or is not available on acceptable terms, the Company may be
unable to develop or market its products, take advantage of business opportunities, or may be required to
significantly curtail its business operations.
The Company is uncertain what impact the current volatility in worldwide credit and equity markets may
have on its ability to obtain future financing. In the past several years, there has been unprecedented
turmoil in equity and credit markets. Because of the severity of these market events and because the
markets currently remain volatile, the Company cannot predict what effect these events will have on its
ability to obtain financing in the future, if required.
Revenue Fluctuations
Intermap’s revenue has fluctuated over the years. Mapping services projects, the purchase of archived
data, and the purchase of geospatial solutions by the Company’s customers are all scheduled according to
customer requirements and the timing of regulatory and / or budgetary decisions. The commencement
or completion of mapping projects within a particular quarter or year, the timing of regulatory approvals,
operating decisions of clients, and the fixed-cost nature of Intermap’s business, among other factors, may
cause the Company’s results to vary significantly between fiscal years and between quarters in the same
fiscal year.
2013 Annual Report | Management’s Discussion and Analysis 18
Nature of Government Contracts
Intermap conducts a significant portion of its business either directly or in cooperation with the United
States government, other governments around the world, and international funding agencies. In many
cases, the terms of these contracts provide for cancellation at the option of the government or agency
at any time. In addition, many of Intermap’s products and services require government appropriations
and regulatory licenses, permits, and approvals, the timing and receipt of which are not within Intermap’s
control. Any of these factors could have an effect on Intermap’s revenue, earnings, and cash flow.
General Economic Trends
The worldwide economic slowdown and tightening of credit in the financial markets may impact the
business of our customers, which could have an adverse effect on Intermap’s business, financial condition,
or results of operations. Adverse changes in general economic or political conditions in any of the major
countries in which the Company does business could also adversely affect Intermap’s operating results.
Key Customers
During 2013, the Company had two key customers that accounted for 74% of total revenue. In 2012, the
Company had three key customers that accounted for 66% of total revenue. To the extent that significant
customers cancel or delay orders, Intermap’s revenue, earnings, and cash flow could be materially and
adversely affected.
Executive Talent
Intermap is in a repositioning phase in its markets. This repositioning, coupled with the development of
new product lines, Web services, and developing software applications, requires the retention of executive
talent. The Company will continue to invest in training and leadership development in response to the
changes within the Company to retain talent. Although Intermap has a talented team of experienced
executives, it may not be able to further develop executive talent internally or attract and retain enough
executive talent to effectively manage the anticipated growth and changes within the Company.
New Competing Technologies
It is possible that commercially available satellite images could, in the future, match or come close to
the image resolution offered by the Company’s radar technology. However, the Company believes that
the technology to perform 3D radar imaging from space at 1-meter resolution with postings every 5
meters is considered to be two or more years away, and may never be achievable. In any event, Intermap
continues to evaluate its data collection capabilities and look for improvements to the performance of
its radar technology. Although there are only a few direct Intermap competitors currently, the industry
is characterized by rapid technological progress. Intermap’s ability to continue to develop and introduce
new products and services, or incorporate enhancements to existing products and services, may require
significant additional research and development expenditures and investments in support infrastructure.
Another approach to production of digital elevation models is the use of auto correlation software to
analyze common points in two or more optical images of the same area taken from different viewing
angles. Essentially this is the same principle that is used by technicians as they extract elevation points
using stereo photogrammetric techniques, but in this case it is automated using computer software image
matching algorithms. This process is well known and has been used with limited success over small areas.
Advances in computing power, coupled with massive storage solutions, may make this technology useful
over larger areas in the future, and if so, could represent a significant competing technology.
Any required additional financing needed by the Company to remain competitive with these other
technologies may not be available or, if available, may not be on terms satisfactory to the Company.
2013 Annual Report | Management’s Discussion and Analysis 19
Common Share Price Volatility
The market price of the Company’s common shares has fluctuated widely in recent periods and is likely
to continue to be volatile. A number of factors can affect the market price of Intermap’s common stock
including (i) actual or anticipated variations in operating results, (ii) the announcement of material
contract(s), (iii) the low daily trading volume of the Company’s stock, (iv) announcement of technological
innovations or new products by the Company or its competitors, (v) competition, including pricing
pressures and the potential impact of competitors products on sales, (vi) changing conditions in the digital
mapping and related industries, (vii) unexpected production difficulties, (viii) changes in financial estimates
or recommendations by stock market analysts regarding Intermap or its competitors, (ix) announcements
by Intermap or its competitors of acquisitions, strategic partnerships, or joint ventures, (x) additions or
departures of senior management, and (xi) changes in economic or political conditions.
Additionally, in recent years, the stock market in general and shares of technology companies in particular,
have experienced extreme price and volume fluctuations. These fluctuations have often been unrelated or
disproportionate to the operating performance of these technology companies. These broad market and
industry fluctuations may harm the market price of Intermap’s common stock, regardless of its operating
results.
Loss of Proprietary Information
Intermap does not currently hold patents on the technology used in its operations and relies principally
on trade secrets, know-how, expertise, experience, and the marketing ability of its personnel to remain
competitive. Although Intermap requires all employees, consultants, and third parties to agree to keep its
proprietary information confidential, no assurance can be given that the steps taken by Intermap will be
effective in deterring misappropriation of its technologies. Additionally, no assurance can be given that
employees or consultants will not challenge the legitimacy or scope of their confidentiality obligations, or
that third parties, in time, could not independently develop and deploy equivalent or superior technologies.
Information Technology Security
The Company has accumulated a significant amount of data that is part of the NEXTMap database. While
Intermap has invested in database management, information technology security, firewalls, and offsite
duplicate storage, there is a risk of a loss of data through unauthorized access or a customer violating the
terms of the Company’s end user licensing agreements and distributing unauthorized copies of its data.
Intermap has, and will continue to invest, in both legal resources to strengthen its licensing agreements
with its customers and in overall information technology protection.
Breakdown of Strategic Alliances
Intermap has fostered a number of key alliances over the past several years and intends to enter into new
alliances in the future. The Company believes these new alliances will help enable access to significant
scalable markets that would not otherwise be accessible in a timely manner. The breakdown or termination
of some or all of those alliances could have a material impact on the Company. At this time, the Company is
not aware of any material issues in its strategic relationships. Should any one of these companies be unable
to continue its alliance with Intermap, or otherwise choose to dissolve the relationship, the Company would
seek to replace the connection with other entities, but there is no guarantee such replacement would occur.
Exporting Products – Political Considerations
Intermap’s data collection systems contain technology that is classified as a defense article under the
International Traffic and Arms Regulations. All mapping efforts undertaken outside the United States,
therefore, constitute a temporary export of a defense article, requiring prior written approval by the United
States Department of State for each country within which mapping operations are to be performed.
2013 Annual Report | Management’s Discussion and Analysis 20
The Company does not currently anticipate that requirements for export permits will have a material impact
on the Company’s operations, although either government policy or government relations with select
foreign countries may change to the point of affecting the Company’s operational opportunities. The data
produced by Intermap’s airborne radar system falls under Department of Commerce regulations and is
virtually unrestricted.
Foreign Operations
A significant portion of Intermap’s revenue is expected to come from customers outside of the United
States and is therefore subject to additional risks, including foreign currency exchange rate fluctuations,
agreements that may be difficult to enforce, receivables difficult to collect through a foreign country’s
legal system, and the imposition of foreign-country-imposed withholding taxes or other foreign taxes.
Intermap relies on contract prepayments or letters of credit to secure payment from certain of its customers
when deemed necessary. The Company has in the past secured export credit insurance on certain of its
international receivables, which greatly reduces the commercial and political risks of operating outside of
North America.
Political Instability
Intermap understands that not every region enjoys the political stability that is taken for granted in
North America. Developments in recent years in the Middle East and Asia illustrate this clearly. Political or
significant instability in a region where Intermap is conducting data collection activities, or where Intermap
has clients, could adversely impact Intermap’s business.
Regulatory Approvals
The development and application of certain of the Company’s products requires the approval of applicable
regulatory authorities. A failure to obtain such approval on a timely basis, or material conditions imposed by
such authority in connection with the approval, would materially affect the prospects of the Company.
Aircraft / Radar Lost or Damaged
Although the Company believes that the probability of one of the Company’s aircraft or radar sustaining
significant damage or being lost in its entirety is extremely low, such damage or loss could occur. The
Company expects to have available to it, for data collection purposes, one additional aircraft at any given
time. The risk to the Company of loss from the damage of an aircraft is therefore considered to be minimal.
In the event that a radar mapping system is lost in its entirety through the destruction of the aircraft, it
would take the Company approximately six to nine months to replace the lost equipment, if required.
Global Positioning System (GPS) Failure
GPS satellites have been available to the commercial market for many years. The continued unrestricted
access to the signals produced by these GPS satellites is a requirement in the collection of the Company’s
radar data. A loss of GPS would have such a global impact that it is believed that controlling authorities
would almost certainly make another system available to GPS receivers in relatively short order.
Information Openly Available to the Public
The Company accesses information available to the public via the Internet and may incorporate portions
of such information into its products. If a source of public information determined that the Company was
profiting from free information, there is risk it could seek compensation.
2013 Annual Report | Management’s Discussion and Analysis 21
Force Majeure
The Company’s projects may be adversely affected by risks outside the control of the Company including
labor unrest, civil disorder, war, subversive activities or sabotage, fires, floods, explosions or other
catastrophes, epidemics, or quarantine restrictions.
Additional Information
Additional risk factors may be detailed in the Company’s Annual Information Form, which can be found on
the Company’s Web site at www.intermap.com and on SEDAR at www.sedar.com.
2013 Annual Report | Management’s Discussion and Analysis
22
THIS PAGE INTENTIONALLY LEFT BLANK.
Management’s Report
23
The accompanying financial statements of Intermap Technologies Corporation and all the information
in this annual report are the responsibility of the Company‘s management. The consolidated financial
statements have been prepared by management in accordance with International Financial Reporting
Standards, as issued by the International Accounting Standards Board, using best estimates and
judgements, where appropriate. Management has prepared the financial information presented elsewhere
in this annual report and has ensured that it is consistent with the financial statements.
Management maintains appropriate systems of internal control that provide reasonable assurance that
assets are adequately safeguarded and that the financial reports are sufficiently well-maintained for the
timely preparation of the consolidated financial statements.
The Audit Committee members, all of whom are non-management directors, are appointed by the Board of
Directors. The Committee has reviewed these statements with the Auditors and management. The Board of
Directors has approved the financial statements of the Company, which are contained in this report.
(Signed) Todd Oseth
(Signed) Richard L. Mohr
Todd A. Oseth
President and Chief Executive Officer
Richard L. Mohr
Senior Vice President and Chief Financial Officer
24
Independent Auditors’ Report to the Shareholders
To the Shareholders of Intermap Technologies Corporation,
We have audited the accompanying consolidated financial statements of Intermap Technologies
Corporation, which comprise the consolidated balance sheets as at December 31, 2013 and December
31, 2012, the consolidated statements of profit and loss and other comprehensive income, changes in
equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting
policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with International Financial Reporting Standards, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We
conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform the audits to obtain reasonable
assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on our judgment, including
the assessment of the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error. In making those risk assessments, we consider internal control relevant to the
entity’s preparation and fair presentation of the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide
a basis for our audit opinion.
Opinion
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
consolidated financial position of Intermap Technologies Corporation as at December 31, 2010 and
December 31, 2009, and its consolidated results of operations and its consolidated cash flows for the
years then ended in accordance with Canadian generally accepted accounting principles.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
financial position of Intermap Technologies Corporation as at December 31, 2013 and December 31, 2012,
and its consolidated financial performance and its consolidated cash flows for the years then ended in
accordance with International Financial Reporting Standards.
Emphasis of Matter
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 1 to the consolidated financial statements
which describes that for the year ended December 31, 2010 the Company incurred a net loss of
$96,872,000, had negative cash flow from operations of $8,160,000 and as at December 31, 2010 has an
accumulated deficit of $175,377,000. These conditions, along with other matters described in Note 1,
indicate the existence of a material uncertainty which may cast significant doubt on the Company’s ability
to continue as a going concern.
Without modifying our opinion, we draw attention to Note 2(a) in the consolidated financial statements which
indicates that Intermap Technologies Corporation incurred a net loss of $14,907,000 for the year and as at
December 31, 2013 had a deficit of $201,105,000. These conditions, along with other matters as set forth in
Note 2(a) in the consolidated financial statements, indicate the existence of a material uncertainty that may cast
significant doubt about Intermap Technologies Corporation’s ability to continue as a going concern.
Chartered Accountants, Licensed Public Accountants
Chartered Professional Accountants, Licensed Public Accountants
March 12, 2014
Ottawa, Canada
March 3, 2010
Ottawa, Canada
Consolidated Financial Statements
25
INTERMAP TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
Consolidated Balance Sheets
(In thousands of United States dollars)
(In thousands of United States dollars)
Assets
Current assets:
Cash and cash equivalents
Amounts receivable
Unbilled revenue
Work in process
Prepaid expenses
Property and equipment (Note 5)
Data library (Note 6)
Intangible assets
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 7)
Convertible note (Note 11(b))
Current portion of notes payable (Note 8)
Current portion of deferred lease inducements
Unearned revenue and deposits
Income taxes payable
Obligations under finance leases (Note 9)
Provisions
Long-term notes payable (Note 8)
Deferred lease inducements
Obligations under finance leases (Note 9)
Shareholders' equity:
Share capital (Note 11(b))
Accumulated other comprehensive income
Contributed surplus (Note 11(c))
Deficit
Going concern (Note 2(a))
Commitments (Note 13)
Subsequent event (Note 17)
December 31,
2013
December 31,
2012
$
2,420
6,434
151
33
407
9,445
$
2,055
5,735
2,709
10
625
11,134
3,378
-
116
12,939
$
3,703
13,829
235
28,901
$
$
3,953
-
1,188
188
110
12
115
-
5,566
$
4,747
2,357
892
97
145
10
262
720
9,230
-
202
192
5,960
197,376
37
10,671
(201,105)
6,979
923
390
-
10,543
194,144
58
10,354
(186,198)
18,358
$
12,939
$
28,901
See accompanying notes to consolidated financial statements.
On behalf of the Board:
See accompanying notes to consolidated financial statements.
(Signed) Larry G. Garberding
Larry G. Garberding
Director
(Signed) Donald R. Gardner
Donald R. Gardner
Director
26
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Profit and Loss and Other Comprehensive Income
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
For the years ended December 31,
2013
2012
Revenue:
Contract services
Data licenses
Expenses:
Operating costs (Note 10)
Depreciation of property and equipment
Amortization of data library
Impairment of data library (Note 6)
Amortization of intangible assets
Operating loss
Gain on disposal of equipment
Financing costs (Note 10)
Loss on foreign currency translation
Loss before income taxes
Income tax (expense) recovery:
Current
Deferred
$
19,076
5,366
24,442
$
11,902
15,851
27,753
23,097
1,421
4,610
9,219
119
38,466
(14,024)
163
(512)
(506)
(14,879)
(28)
-
(28)
23,393
1,851
4,610
-
168
30,022
(2,269)
34
(523)
(233)
(2,991)
20
45
65
Net loss for the period
$
(14,907)
$
(2,926)
Other comprehensive income (loss):
Foreign currency translation differences
Comprehensive loss for the period
Basic and diluted loss per share
Weighted average number of Class A
common shares - basic and diluted (Note 11(d))
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
(21)
12
$
(14,928)
$
(2,914)
$
(0.18)
$
(0.04)
84,566,288
78,700,809
2013 Annual Report | Consolidated Financial Statements
27
INTERMAP TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Consolidated Statements of Changes in Equity
(In thousands of United States dollars)
(In thousands of United States dollars)
Share
Capital
Contributed
Surplus
Cumulative
Translation
Adjustments
Deficit
Total
Balance at January 1, 2012
$
193,992
$
9,663
$
46
$
(183,272)
$
20,429
Comprehensive profit (loss) for the period
Share-based compensation
Warrant component of convertible note
Conversion option of convertible note
Issuance costs
Deferred tax effect of convertible note
-
138
19
-
(1)
(4)
-
592
-
136
(4)
(33)
12
-
-
-
-
-
(2,926)
-
-
-
-
-
(2,914)
730
19
136
(5)
(37)
Balance at December 31, 2012
$
194,144
$
10,354
$
58
$
(186,198)
$
18,358
Comprehensive loss for the period
Share-based compensation
Convertible note conversion
Conversion option of convertible note
Issuance costs
-
81
3,025
136
(10)
-
449
-
(136)
4
(21)
-
-
-
-
(14,907)
-
-
-
-
(14,928)
530
3,025
-
(6)
Balance at December 31, 2013
$
197,376
$
10,671
$
37
$
(201,105)
$
6,979
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
2013 Annual Report | Consolidated Financial Statements
28
INTERMAP TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Consolidated Statements of Cash Flows
(In thousands of United States dollars)
(In thousands of United States dollars)
For the Years Ended December 31,
2013
2012
Cash flows provided by:
Operating activities:
Net loss for the period
Adjusted for the following non-cash items:
Depreciation of property and equipment
Amortization of data library
Impairment of data library
Amortization of intangible assets
Share-based compensation expense
Gain on disposal of equipment
Amortization of deferred lease inducements
Extinguishment of facility closure provision
Deferred taxes
Financing costs
Current income tax expense
Interest paid
Income tax paid
Changes in working capital, net of investing activities:
Amounts receivable, net
Work in process and other assets
Accounts payable
Accrued liabilities
Unearned revenue and deposits
Gain on foreign currency translation
Investing activities:
Purchase of property and equipment
Investment in intangible assets
Proceeds from sale of equipment
Financing activities:
Proceeds from issuance of convertible note
Financing costs of convertible note
Issuance costs of convertible note and shares issued upon conversion
Proceeds from reimbursable project funding
Repayment of obligations under finance lease
Repayment of long-term debt and notes payable
Effect of foreign exchange on cash
Increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
$
(14,907)
$
(2,926)
1,421
4,610
9,219
119
530
(163)
(97)
(720)
-
512
28
(72)
(60)
(699)
2,755
(114)
(401)
(35)
(12)
1,914
(780)
-
162
(618)
-
-
(6)
-
(271)
(636)
(913)
(18)
365
2,055
1,851
4,610
-
168
673
(34)
74
-
(46)
523
(19)
(131)
(107)
(223)
(1,837)
13
(880)
(1,399)
(44)
266
(288)
(113)
41
(360)
2,500
(70)
(5)
151
(323)
(712)
1,541
11
1,458
597
Cash and cash equivalents, end of period
$
2,420
$
2,055
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
(In thousands of United States dollars)
For the Years Ended December 31,
2013
2012
Cash flows provided by:
Operating activities:
Net loss for the period
Adjusted for the following non-cash items:
Depreciation of property and equipment
Amortization of data library
Impairment of data library
Amortization of intangible assets
Share-based compensation expense
Gain on disposal of equipment
Amortization of deferred lease inducements
Extinguishment of facility closure provision
Changes in working capital, net of investing activities:
Deferred taxes
Financing costs
Interest paid
Income tax paid
Current income tax expense
Amounts receivable, net
Work in process and other assets
Accounts payable
Accrued liabilities
Unearned revenue and deposits
Gain on foreign currency translation
Investing activities:
Purchase of property and equipment
Investment in intangible assets
Proceeds from sale of equipment
Financing activities:
Proceeds from issuance of convertible note
Financing costs of convertible note
Issuance costs of convertible note and shares issued upon conversion
Proceeds from reimbursable project funding
Repayment of obligations under finance lease
Repayment of long-term debt and notes payable
Effect of foreign exchange on cash
Increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
$
2,420
$
2,055
$
(14,907)
$
(2,926)
1,421
4,610
9,219
119
530
(163)
(97)
(720)
-
512
28
(72)
(60)
(699)
2,755
(114)
(401)
(35)
(12)
1,914
(780)
162
(618)
(6)
(271)
(636)
(913)
(18)
365
2,055
-
-
-
-
1,851
4,610
168
673
(34)
74
-
-
(46)
523
(19)
(131)
(107)
(223)
(1,837)
13
(880)
(1,399)
(44)
266
(288)
(113)
41
(360)
2,500
(70)
(5)
151
(323)
(712)
1,541
11
1,458
597
Notes to Consolidated Financial Statements
29
(In thousands of United States dollars, except per share information)
1. Reporting entity:
Intermap Technologies® Corporation (the Company) is incorporated under the laws of Alberta, Canada.
The head office of Intermap is located at 8310 South Valley Highway, Suite 400, Englewood, Colorado, USA
80112. Its registered office is located at Suite 1600, 421 – 7th Avenue, Calgary, Alberta, Canada, T2P 4K9.
Intermap is a global location-based information company, creating a wide variety of geospatial solutions
and analytics from its NEXTMap® database. The Company uses its NEXTMap 3D digital models, together
with aggregated third party data, to create geospatial solutions for its customers. These geospatial solutions
can be used in a wide range of applications including, but not limited to, location-based information,
geographic information systems, engineering, utilities, global positioning systems maps, geospatial risk
assessment, oil and gas, renewable energy, hydrology, environmental planning, wireless communications,
transportation, advertising, and 3D visualization.
2. Basis of preparation:
a. Going concern:
These financial statements have been prepared assuming the Company will continue as a going
concern. The going concern basis of presentation assumes the Company will continue in operation for
the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in
the normal course of business. During the year ended December 31, 2013, the Company incurred a net
loss of $14,907. In addition, the Company has a deficit of $201,105.
The above factors in the aggregate raise significant doubt about the Company’s ability to continue
as a going concern. Management has taken actions to address these issues including a shift in
organizational wide focus from the historical approach of licensing raw data, to providing complete
geospatial solutions with a focus on software applications. In addition, the Company has recently
obtained additional financing (Note 17) to help further the development of new product offerings.
The Company’s ability to continue as a going concern is dependent on management’s ability to
successfully generate a profit from operations, sell assets, or obtain additional financing, if required.
Failure to achieve one or more of these requirements could have a material adverse effect on the
Company’s financial condition and / or results of operations.
The Company cannot be certain that cash generated from its operations will be sufficient to satisfy its
liquidity requirements, and it may need to continue to raise capital by selling additional equity and / or
by securing credit facilities. The Company’s future capital requirements will depend on many factors,
including, but not limited to, the market acceptance of its products and services. No assurance can be
given that any such additional funding will be available or that, if available, it can be obtained on terms
favorable to the Company.
The financial statements do not reflect adjustments that would be necessary if the going concern
assumption was not appropriate. If the going concern basis was not appropriate for these financial
statements, then adjustments would be necessary to the carrying value of assets and liabilities, the
reported revenues and expenses, and the balance sheet classifications used.
See accompanying notes to consolidated financial statements.
b. Statement of compliance:
These consolidated financial statements have been prepared in accordance with International Financial
Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The significant
accounting policies are summarized in Note 3.
The policies applied in these consolidated financial statements are based on IFRS issued and effective
as of March 12, 2014, the date the Board of Directors approved the consolidated financial statements.
30
c. Measurement basis:
The financial statements have been prepared mainly on the historical costs basis. Other measurement
bases used are described in the applicable notes.
d. Use of estimates:
Preparing financial statements in conformity with IFRS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenue and expenses during the period. Actual results could
differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting
estimates are recognized in the period in which the estimates are reviewed and in any future periods
affected.
Information about critical judgments in applying accounting policies that have the most significant
effect on the amounts recognized in the consolidated financial statements is included in Note 3(g) –
leases, Note 3(k) – Impairment, Note 6 – Data library.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in
a material adjustment within the next financial year include the following:
Impairment of Data Library: Note 6
i. Depreciation and amortization rates:
In calculating the depreciation and amortization expense, management is required to make
estimates of the expected useful lives of property and equipment and intangible assets.
ii. Amounts receivable:
The Company uses historical trends and performs specific account assessments when
determining the allowance for doubtful accounts. These accounting estimates are in respect to
the amounts receivable line item in the Company’s consolidated balance sheet. At December 31,
2013, amounts receivable represented 50% of total assets.
The estimate of the Company’s allowance for doubtful accounts could change from period
to period due to the allowance being a function of the balance and composition of amounts
receivable.
iii. Share-based compensation:
The Company uses the Black-Scholes option-pricing model to determine the grant date fair value
of share-based compensation. The following assumptions are used in the model: dividend yield;
expected volatility; risk-free interest rate; expected option life; and fair value.
Changes to assumptions used to determine the grant date fair value of share-based compensation
awards can affect the amounts recognized in the consolidated financial statements.
iv. Provisions:
A provision is recognized, if as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the future settlement were to
adversely differ from management’s expectations, the Company could incur either an additional
expense or reversal of the expense previously recorded. (see Note 3(h)).
2013 Annual Report | Consolidated Financial Statements 31
v. Revenue:
Changes to the assumptions used to measure revenue could impact the amount of revenue
recognized in the consolidated financial statements. (see Note 3(l)).
e. Functional and presentation currency:
These consolidated financial statements are presented in United States dollars, which is the Company’s
functional currency. All financial information presented in United States dollars has been rounded to
the nearest thousand.
f.
Foreign currency translation:
Items included in the financial statements of each of the Company’s subsidiaries are measured using
the currency of the primary economic environment in which the entity operates (the functional
currency). Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transaction. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation of monetary assets and liabilities not
denominated in the functional currency of an entity are recognized in net loss for the period.
Assets and liabilities of entities with functional currencies other than United States dollars are
translated at the period end rates of exchange, and the results of their operations are translated
at exchange rates prevailing at the dates of transactions. The resulting translation adjustments are
included in accumulated other comprehensive income in shareholders’ equity.
3. Summary of significant accounting policies:
a. Consolidation:
The accompanying consolidated financial statements include the accounts of the Company and its
wholly owned subsidiaries, Intermap Technologies Inc. and Intermap Federal Services Inc. (both U.S.
corporations); Intermap Technologies GmbH (a German corporation); Intermap Technologies UK
Limited (a U.K. corporation); Intermap Technologies PTY Ltd (an Australian corporation); Intermap
Technologies s.r.o. (a Czech Republic corporation); and a 90% owned subsidiary, PT ExsaMap Asia (an
Indonesian corporation).
Inter-company balances and transactions, and any unrealized income and expenses arising from intra-
group transactions, are eliminated in preparing the consolidated financial statements. The accounting
policies of all subsidiaries are consistent with the Company’s policies.
b. Cash and cash equivalents:
Cash and cash equivalents include unrestricted cash balances and highly liquid marketable securities
with maturity at the date of purchase of 30 days or less.
c. Work in process:
Work in process is measured at the lower of cost or net realizable value. When work in process is sold,
the carrying amount of the work in process is recognized as an expense in the period in which the
related revenue is recognized. Net realizable value is the estimated selling price in the ordinary course
of business, less the estimated costs of completing and selling expenses. The amount of any write-
down of work in process to net realizable value is recognized as an expense in the period in which the
write-down or loss occurs.
d. Property and equipment:
Property and equipment are measured at cost less accumulated depreciation. Cost includes
expenditures that are directly attributable to the acquisition of the asset. The cost of aircraft overhauls
2013 Annual Report | Consolidated Financial Statements INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 5
net realizable value is recognized as an expense in the period in which the write-down
or loss occurs.
32
(d) Property and equipment:
Property and equipment are measured at cost less accumulated depreciation. Cost
includes expenditures that are directly attributable to the acquisition of the asset. The
cost of aircraft overhauls are capitalized and depreciated over the period until the next
are capitalized and depreciated over the period until the next overhaul. When parts of an item
overhaul. When parts of an item of property and equipment have different useful lives,
of property and equipment have different useful lives, they are accounted for as separate items.
they are accounted for as separate items. Depreciation is calculated over the
Depreciation is calculated over the depreciable amount which is the cost of an asset, less its residual
depreciable amount which is the cost of an asset, less its residual value. Depreciation is
value. Depreciation is provided on the straight-line basis over the following useful lives of the assets:
provided on the straight-line basis over the following useful lives of the assets:
Assets
Years
Aircraft
Aircraft engines
Mapping equipment and software
Radar equipment
Furniture and fixtures
Leasehold improvements
10
7
3
5
5
Shorter of useful life or term of lease
Depreciation methods, useful lives and residual values are reviewed at each financial
Depreciation methods, useful lives and residual values are reviewed at each financial year end and
year end and adjusted, if appropriate.
adjusted, if appropriate.
Assets under construction are not depreciated until available for use by the Company.
Assets under construction are not depreciated until available for use by the Company. Expenditures for
Expenditures for maintenance and repairs are expensed when incurred.
maintenance and repairs are expensed when incurred.
The cost of replacing an item of property and equipment is recognized in the carrying
The cost of replacing an item of property and equipment is recognized in the carrying amount of
amount of the item if it is probable that the future economic benefits embodied within
the item if it is probable that the future economic benefits embodied within the part will flow to
the part will flow to the Company, and its cost can be measured reliably. The carrying
the Company, and its cost can be measured reliably. The carrying amount of the replaced part is
amount of the replaced part is derecognized. The costs of the day-to-day servicing of
derecognized. The costs of the day-to-day servicing of property and equipment are recognized in profit
property and equipment are recognized in profit or loss as incurred.
or loss as incurred.
Gains and losses on disposal of property and equipment are determined by comparing
the proceeds from disposal with the carrying amount, and are recognized net of costs
Gains and losses on disposal of property and equipment are determined by comparing the proceeds
associated with the disposal within other income in net loss for the period.
from disposal with the carrying amount, and are recognized net of costs associated with the disposal
within other income in net loss for the period.
(e) Data library:
e. Data library:
The Company maintains an extensive world-wide data library, which results from the
acquisition and processing of IFSAR-derived data and third-party data collected by
The Company maintains an extensive world-wide data library, which results from the acquisition and
multiple sensor technologies, including light detection and ranging (LiDAR),
processing of IFSAR-derived data and third-party data collected by multiple sensor technologies,
photogrammetry, satellite, and other available sources. The NEXTMap database also
including light detection and ranging (LiDAR), photogrammetry, satellite, and other available sources.
includes information such as 3D city models, census data, real-time traffic, outdoor
The NEXTMap database also includes information such as 3D city models, census data, real-time
advertising assets, weather related hazards, points of interest, cellular towers, and
traffic, outdoor advertising assets, weather related hazards, points of interest, cellular towers, and
flood models. In general, all ownership rights to this data are retained by the Company,
flood models. In general, all ownership rights to this data are retained by the Company, and the data is
licensed to customers on a non-transferable basis. All related expenditures are expensed as incurred.
The data library amounts shown on the Company’s consolidated balance sheet included only elevation
related data and imagery from the Company’s original NEXTMap USA and NEXTMap Europe radar
mapping programs. Historically, the Company had capitalized costs associated with its NEXTMap USA
and NEXTMap Europe datasets. Capitalized costs included direct costs of acquiring and processing
the digital map data, direct overhead associated with the acquisition and processing of the data
and depreciation of the property and equipment used in the production of the data. Data library
capitalized costs were amortized on a straight-line basis over five years. The data library capitalized
costs were reviewed for impairment during the year (Notes 3(k) and 6).
f.
Intangible assets:
Identifiable intangible assets represent assets acquired in a business combination, and internally
developed assets. Upon acquisition, identifiable intangible assets are recorded at fair value and are
carried at cost less accumulated amortization. These intangible assets held by the Company are
amortized on a straight-line basis, based on the estimated useful life of the asset.
2013 Annual Report | Consolidated Financial Statements
33
The intangible assets acquired in a business combination represent technology, customer relationships
and contracts and are amortized over a period of five years.
The intangible assets internally developed represent Web site development costs, which are amortized
over a period of three years. The amortization method, estimate of the useful life, and residual values of
intangible assets are reviewed annually.
g. Leases:
Leases are classified as either finance or operating in nature. Management exercises judgment
to determine whether substantially all the risks and rewards incidental to ownership have been
transferred to the Company.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Payments under an operating lease (net of any incentives received
from the lessor) are recognized in net loss on a straight-line basis over the period of the lease.
Finance leases are those that substantially transfer the benefits and risks of ownership to the lessee.
Assets acquired under finance leases are measured at the lower of the present value of the minimum
lease payments or the fair value of the leased asset at the inception of the lease. Subsequent to
initial recognition, the asset is accounted for in accordance with the accounting policy applicable to
that asset. Obligations recorded under finance leases are reduced by the principal portion of lease
payments. The imputed interest portion of lease payments is charged to finance costs.
h. Provisions:
A provision is recognized, if as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects the current market assessments of the time value of money and the
risks specific to the liability. The unwinding of the discount is recognized as finance cost.
i.
Restructuring:
A provision for restructuring is recognized when the Company has approved a detailed and formal
restructuring plan, and the restructuring either has commenced or has been announced publicly.
Future operating losses are not provided for.
ii. Onerous Contracts:
A provision for onerous contracts is recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable cost of meeting its obligations under
the contract. The provision is measured at the present value of the lower of the expected cost
of terminating the contract and the expected net cost of continuing with the contract. Before a
provision is established, the Company recognizes any impairment loss on the assets associated
with the contract.
i. Deferred lease inducements:
Deferred lease inducements represent the unamortized cost of lease inducements on certain of the
Company’s leased commercial office space. Amortization is provided on the straight-line basis over the
term of the lease and recognized as a reduction in rent expense.
j.
Income taxes:
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in
profit or loss except to the extent that it relates to a business combination, or items recognized directly
in equity or in other comprehensive income.
2013 Annual Report | Consolidated Financial Statements 34
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using
tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in
respect of previous years.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognized for the following temporary differences: the initial recognition of assets
or liabilities in a transaction that is not a business combination and that affects neither accounting
nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled
entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition,
deferred tax is not recognized for taxable temporary differences arising on the initial recognition
of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted by
the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority
on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities
and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred
tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the
extent that it is probable that future taxable profits will be available against which they can be utilized.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realized.
k.
Impairment:
The carrying values of all property and equipment, data library and intangible assets are reviewed for
impairment whenever events or changes in circumstances indicate that their carrying amounts may
not be recoverable.
The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair
value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot
be tested individually are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows of other assets or groups
of assets (the cash-generating unit, or CGU).
Management exercises judgement to determine whether there are factors that would indicate that
an asset or a CGU is impaired. The determination of CGUs is also based on management’s judgement
and is an assessment of the smallest group of assets that generate cash inflows independently of
other assets. Factors considered include whether an active market exists for the output produced by
the asset or group of assets as well as how management monitors and makes decisions about the
Company’s operations.
An impairment loss is recorded when the recoverable amount of an asset or its CGU is less than its
carrying amounts. Impairment losses are evaluated for potential reversals when events or changes in
circumstances warrant such consideration.
l.
Revenue recognition:
Revenue is recognized when (i) persuasive evidence of an arrangement exists; (ii) the significant risks
and rewards of ownership have been transferred to the buyer; (iii) the amount of revenue can be
measured reliably; and (iv) costs incurred or to be incurred can be measured reliably. Billings in excess
2013 Annual Report | Consolidated Financial Statements 35
of revenue are recorded as unearned revenue. Revenue recognized in excess of billings is recorded as
unbilled revenue.
i. Goods Sold:
Revenue from the sale of data in the ordinary course is measured at the fair value of the
consideration received or receivable.
ii. Subscriptions:
Revenue from data sold on a subscription basis is recognized straight-line over the term of the
agreement.
iii. Fixed-price Contracts:
Revenue from fixed-price contracts is recognized using the percentage-of-completion method,
based on the ratio of costs incurred to estimated final costs. The use of the percentage of
completion method requires estimates to determine the cost to complete each contract. The
stage of completion is determined by costs incurred and labor hours worked in comparison to
total expected costs and hours. These estimates are reviewed monthly and adjusted as necessary.
Provisions for estimated losses, if any, are recognized in the period in which the loss is determined.
Contract losses are measured in the amount by which the estimated costs of the related project
exceed the estimated total revenue for the project.
iv. Multiple Component Arrangements:
When a single sales transaction requires the delivery of more than one product or service
(multiple components), the revenue recognition criteria are applied separately to identifiable
components. A component is considered to be separately identifiable if the product or service
delivered has stand-alone value to that customer. The consideration is allocated to deliverables
based on their relative fair values. The fair value of each component is determined using vendor
specific objective evidence, third party evidence of selling price, or estimated selling price.
m. Research and development:
Research costs are expensed as incurred. Development costs are expensed in the year incurred unless
management believes a development project meets the specified criteria for deferral and amortization.
n. Share-based compensation:
The grant date fair value of share-based payment awards granted to employees is recognized as
an employee expense, with a corresponding increase in equity, over the period the employees
unconditionally become entitled to the awards. The amount recognized as an expense is adjusted
to reflect the number of awards for which the related service and non-market vesting conditions
are expected to be met, such that the amount ultimately recognized as an expense is based on the
number of awards that do meet the related service and non-market performance conditions at the
vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of
the share-based payment is measured to reflect such conditions and there is no true-up for differences
between expected and actual outcomes.
Share-based payment arrangements in which the Company receives goods or services as consideration
for its own equity instruments are accounted for as equity-settled share-based payment transactions,
regardless of how the equity instruments are obtained by the company.
2013 Annual Report | Consolidated Financial Statements 36
o. Earnings per share:
The basic earnings per share is computed by dividing net earnings (loss) by the weighted average
number of common shares outstanding during the reporting period. Diluted earnings per share is
computed similar to basic earnings per share, except the weighted average number of common shares
outstanding are increased to include additional shares from the assumed exercise of share options and
warrants, if dilutive.
p. Financial instruments:
i. Non-derivative financial assets:
The Company initially recognizes loans and receivables on the date that they are originated. All
other financial assets are recognized initially on the date at which the Company becomes a party
to the contractual provisions of the instrument.
The Company derecognizes a financial asset when the contractual rights to the cash flows from
the asset expire, or it transfers the rights to receive the contractual cash flows on the financial
asset in a transaction in which substantially all the risks and rewards of ownership of the financial
asset are transferred. Any interest in transferred financial assets that is created or retained by the
Company is recognized as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the consolidated
balance sheet when, and only when, the Company has a legal right to offset the amounts and
intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to
determine whether there is objective evidence that it is impaired.
The Company has loans and receivables and other liabilities.
ii. Loans and receivables:
Loans and receivables are financial assets with fixed or determinable payments that are not
quoted in an active market. Such assets are recognized initially at fair value plus any directly
attributable transaction costs. Subsequent to initial recognition, loans and receivables are
measured at amortized cost using the effective interest method, less any impairment losses.
iii. Other liabilities:
The Company initially recognizes debt liabilities on the date that they are originated. All other
financial liabilities are recognized initially on the date at which the Company becomes a party to
the contractual provisions of the instrument.
The Company derecognizes a financial liability when its contractual obligations are discharged,
cancelled or expire.
Such financial liabilities are recognized initially at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, these financial liabilities are measured at
amortized cost using the effective interest method.
2013 Annual Report | Consolidated Financial Statements INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 11
Other liabilities:
The Company initially recognizes debt liabilities on the date that they are originated.
All other financial liabilities are recognized initially on the date at which the Company
becomes a party to the contractual provisions of the instrument.
The Company derecognizes a financial liability when its contractual obligations are
discharged, cancelled or expire.
Such financial liabilities are recognized initially at fair value plus any directly
attributable transaction costs. Subsequent to initial recognition, these financial
liabilities are measured at amortized cost using the effective interest method.
37
The following is a summary of the classification the Company has applied to each of its significant
The following is a summary of the classification the Company has applied to each of its
significant categories of financial instruments outstanding:
categories of financial instruments outstanding:
Financial instrument:
Cash and cash equivalents
Amounts receivable
Unbilled revenue
Accounts payable and accrued liabilities
Obligations under finance leases
Convertible note
Notes payable
Classification:
Loans and receivables
Loans and receivables
Loans and receivables
Other liabilities
Other liabilities
Other liabilities
Other liabilities
iv. Share capital:
Share capital:
Ordinary shares are classified as equity. Incremental costs directly attributable to the
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
issue of ordinary shares are recognized as a deduction from equity, net of any tax
ordinary shares are recognized as a deduction from equity, net of any tax effects.
effects.
v. Compound financial instruments:
Compound financial instruments:
Compound financial instruments issued by the Company comprise convertible notes
Compound financial instruments issued by the Company comprise convertible notes
denominated in United States dollars that can be converted to share capital at the
denominated in United States dollars that can be converted to share capital at the option of the
option of the holder.
holder.
The liability component of a compound financial instrument is recognized initially at
The liability component of a compound financial instrument is recognized initially at the fair value
the fair value of a similar liability that does not have an equity conversion option. The
of a similar liability that does not have an equity conversion option. The equity component is
equity component is recognized initially at the difference between the fair value of the
recognized initially at the difference between the fair value of the compound financial instrument
compound financial instrument as a whole and the fair value of the liability
as a whole and the fair value of the liability component. Any directly attributable transaction costs
component. Any directly attributable transaction costs are allocated to the liability and
are allocated to the liability and equity components in proportion to their initial carrying amounts.
equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument
Subsequent to initial recognition, the liability component of a compound financial
is measured at amortized cost using the effective interest method. The equity component of a
instrument is measured at amortized cost using the effective interest method. The
compound financial instrument is not remeasured subsequent to initial recognition.
equity component of a compound financial instrument is not remeasured subsequent
Interest related to the financial liability is recognized in profit or loss. On conversion, the financial
to initial recognition.
liability is reclassified to equity and no gain or loss is recognized.
q. Segments:
The operations of the Company are in one industry segment: digital mapping and related services.
4. New standards and interpretations:
The Company adopted the following new accounting standards and amendments which are effective for
the Company’s interim and annual consolidated financial statements commencing January 1, 2013.
•
•
•
•
IFRS 10, Consolidated Financial Statements
IFRS 11, Joint Arrangements
IFRS 12, Disclosure of Interest in Other Entities
IAS 1, Presentation of Items of Other Comprehensive Income
The adoption of the above standards did not result in any material changes to the consolidated financial
statements.
On January 1, 2013, the Company adopted IFRS 13, Fair Value Measurement, which provides a single source
of guidance on how fair value is measured, replacing the fair value measurement guidance contained in
individual IFRSs. The standard defines fair value and establishes a framework for measuring fair value.
2013 Annual Report | Consolidated Financial Statements
38
It does not introduce new fair value measurements, nor does it eliminate the practicability exceptions to
fair value measurements that currently exist in certain standards. Disclosures required under IFRS 13 for
consolidated financial statements have been included in Note 15.
Amendments to IAS 36 - Recoverable Amount Disclosures for Non-Financial Assets (IAS 36) - The Company
has decided to adopt early the amendment to IAS 36. In May 2013, the IASB issued Recoverable Amount
Disclosures for Non-Financial Assets (Amendments to IAS 36). The IASB has issued amendments to reverse
the unintended requirement in IFRS 13, Fair Value Measurement, to disclose the recoverable amount of
every CGU to which significant goodwill or indefinite-lived intangible assets have been allocated. Under
the amendments, recoverable amount is required to be disclosed only when an impairment loss has
been recognized or reversed. The amendments impact certain disclosure requirements only, and the
amendments did not have a material impact on the Consolidated Financial Statements.
a. Future pronouncements:
The IASB and International Financial Reporting Interpretations Committee (IFRIC) issued the following
standards that have not been applied in preparing these Consolidated Financial Statements, as their
effective dates fall within annual periods beginning subsequent to the current reporting period.
•
•
•
IFRS 9, Financial Instruments (IFRS 9) – The IASB issued IFRS 9, which replaces IAS 39, Financial
Instruments: Recognition and Measurement, and establishes principles for the financial reporting
of financial assets and financial liabilities that will present relevant and useful information to users
of financial statements for their assessment of the amounts, timing and uncertainty of an entity’s
hedge accounting standard which will align hedge accounting more closely with risk management.
It does not fundamentally change the types of hedging relationships or the requirement to measure
and recognize ineffectiveness, however it will provide more hedging strategies that are used for
risk management to qualify for hedge accounting and introduce more judgment to assess the
effectiveness of a hedging relationship. The IASB has not yet communicated the mandatory effective
date of the IFRS 9. The Company does not intend to adopt IFRS 9 at this time, but continues to monitor
the individual phases of this IASB project. The extent of the impact of adoption of IFRS 9 has not yet
been determined.
IAS 32, Financial Instruments: Presentation (IAS 32) – In December 2011, the IASB amended IAS
32 to clarify the meaning of when an entity has a current legally enforceable right of set-off. The
amendments are effective for annual periods beginning on or after January 1, 2014 and are required to
be applied retrospectively. The Company does not expect the amendment to have a material impact
on the Consolidated Financial Statements.
IFRIC 21, Levies – In May 2013, the IASB issued IFRIC 21, Levies which provides guidance on
accounting for levies in accordance with the requirements of IAS 37, Provisions, Contingent Liabilities
and Contingent Assets. The interpretation defines a levy as an outflow from an entity imposed by
a government in accordance with legislation. It also notes that levies do not arise from executor
contracts of other contractual arrangements. The interpretation also confirms that an entity recognizes
a liability for a levy only when the triggering event specified in the legislation occurs. This IFRIC is
effective for annual periods beginning on or after January 1, 2014 and is required to be applied
retrospectively. The Company does not expect the amendment to have a material impact on the
Consolidated Financial Statements.
In December 2013, the IASB published annual Improvements to IFRS. These amendments were made to
clarify the following in their respective standards:
• Definition of “vesting condition” in IFRS 2, Share-based payment;
• Classification and measurement of contingent consideration; and scope exclusion for the formation of
joint arrangements in IFRS 3, Business Combinations;
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 15
Balance at January 1, 2012
$
18,439
6. Data library:
Data library
Balance at December 31, 2012
Amortization
Amortization
Impairment
(4,610)
13,829
(4,610)
(9,219)
Balance at December 31, 2013
$
-
In December 2013, a strategic review of the Company’s organizational structure and
approach to selling the data library assets was undertaken by executive management of the
Company. Upon completion of that review, it was determined that the historical approach
of licensing raw data was no longer a priority for the Company as the focus in future
periods will be primarily on the licensing of Orion™ based 3DBI software applications. As
a result, an impairment review was performed to determine if the carrying value of the
NEXTMap USA and NEXTMap Europe assets, being the only datasets capitalized to the
data library asset, were recoverable.
The Company reviewed its cash-generating units which represent the smallest group of
assets that generate cash in-flows from continuing use that are largely independent of the
cash flows of other assets. The Company determined the cash-generating units to be the
NEXTMap Europe dataset, NEXTMap USA dataset, NEXTMap Asia, the software
applications associated with the Orion Platform and contract services. NEXTMap USA
and NEXTMap Europe were also determined to be individual cash generating units at the
time the last impairment test was performed as at December 31, 2010. There is significant
judgement involved in the determination of CGUs and the assessment of indicators of
impairment.
The recoverable amount of the NEXTMap USA and NEXTMap Europe datasets was
determined using the value in use of each of the cash-generating units. Value in use was
determined by discounting the future cash flows generated from continuing use of the unit.
The calculation of value in use was based on the following key assumptions for all units:
Cash flows were projected based on past experience, actual operating results, and
the business plans of the Company for NEXTMap raw data sales.
Cash flows were projected for the two years remaining in the minimum expected
useful life of the capitalized NEXTMap assets.
The revenues were based on historical experience and management expectations.
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
• Disclosures on the aggregation of operating segments in IFRS 8, Operating segments;
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
• Measurement of short-term receivables and payables; and scope of portfolio exception in IFRS 13, Fair
Value Measurement;
39
Years ended December 31, 2013 and 2012
• Restatement of accumulated depreciation (amortization) on revaluation in IAS 16, Property, Plant and
Page 14
Equipment and IAS 38, Intangible Assets;
Definition of "related party" in IAS 24, Related Party Disclosures; and
•
Inter-relationship of IFRS 3 and IAS 40 in IAS 40, Investment Property.
• Definition of “related party” in IAS 24, Related Party Disclosures; and
Inter-relationship of IFRS 3 and IAS 40 in IAS 40, Investment Property.
Special transitional requirements have been set for amendments to IFRS 2, IAS 16, IAS 38
and IAS 40.
Special transitional requirements have been set for amendments to IFRS 2, IAS 16, IAS 38 and IAS 40.
The Company intends to adopt these amendments in its Consolidated Financial
The Company intends to adopt these amendments in its Consolidated Financial Statements for the annual
Statements for the annual period beginning January 1, 2014. The Company does not
period beginning January 1, 2014. The Company does not expect the amendments to have a material
expect the amendments to have a material impact on the Consolidated Financial
impact on the Consolidated Financial Statements.
Statements.
5. Property and equipment:
5. Property and equipment:
Property and equipment
Aircraft
Mapping
equipment
Furniture,
fixtures &
auto
Under
construction
Leases
Total
Balance at January 1, 2012
$
2,968
$
1,984
$
31
$
290
$
-
$
5,273
Additions
Disposals
Depreciation
217
-
(568)
51
-
(1,162)
Balance at December 31, 2012
2,617
Additions
Finance Lease
Depreciation
Transfer from under construction
39
-
(650)
95
873
384
316
(654)
256
-
(7)
(18)
-
-
(103)
6
187
-
-
-
(6)
26
-
(111)
-
20
-
-
20
331
-
-
(351)
288
(7)
(1,851)
3,703
780
316
(1,421)
-
$
3,378
$
1,175
$
$
-
Balance at December 31, 2013
2,101
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
The gross amount of property and equipment at December 31, 2013 was $40,696 (December 31, 2012 –
The gross amount of property and equipment at December 31, 2013 was $40,696
$40,669). The accumulated depreciation at December 31, 2013 was $37,318 (December 31, 2012 – $36,966).
(December 31, 2012 – $40,669). The accumulated depreciation at December 31, 2013 was
During the year ended December 31, 2013, the Company disposed of fully depreciated assets of $1,069, and
$37,318 (December 31, 2012 – $36,966). During the year ended December 31, 2013, the
recognized a gain of $163 on the sale of the assets.
Company disposed of fully depreciated assets of $1,069, and recognized a gain of $163 on
6. Data library:
6. Data library:
the sale of the assets.
Data library
Years ended December 31, 2013 and 2012
Page 15
$
-
$
102
Balance at January 1, 2012
Amortization
Balance at December 31, 2012
Amortization
Impairment
$
18,439
(4,610)
13,829
(4,610)
(9,219)
Balance at December 31, 2013
$
-
In December 2013, a strategic review of the Company’s organizational structure and approach to selling the
In December 2013, a strategic review of the Company’s organizational structure and
data library assets was undertaken by executive management of the Company. Upon completion of that
approach to selling the data library assets was undertaken by executive management of the
review, it was determined that the historical approach of licensing raw data was no longer a priority for the
Company. Upon completion of that review, it was determined that the historical approach
Company as the focus in future periods will be primarily on the licensing of Orion™ based 3DBI software
of licensing raw data was no longer a priority for the Company as the focus in future
periods will be primarily on the licensing of Orion™ based 3DBI software applications. As
a result, an impairment review was performed to determine if the carrying value of the
NEXTMap USA and NEXTMap Europe assets, being the only datasets capitalized to the
data library asset, were recoverable.
The Company reviewed its cash-generating units which represent the smallest group of
assets that generate cash in-flows from continuing use that are largely independent of the
cash flows of other assets. The Company determined the cash-generating units to be the
NEXTMap Europe dataset, NEXTMap USA dataset, NEXTMap Asia, the software
applications associated with the Orion Platform and contract services. NEXTMap USA
and NEXTMap Europe were also determined to be individual cash generating units at the
time the last impairment test was performed as at December 31, 2010. There is significant
judgement involved in the determination of CGUs and the assessment of indicators of
impairment.
The recoverable amount of the NEXTMap USA and NEXTMap Europe datasets was
determined using the value in use of each of the cash-generating units. Value in use was
determined by discounting the future cash flows generated from continuing use of the unit.
The calculation of value in use was based on the following key assumptions for all units:
Cash flows were projected based on past experience, actual operating results, and
the business plans of the Company for NEXTMap raw data sales.
Cash flows were projected for the two years remaining in the minimum expected
useful life of the capitalized NEXTMap assets.
The revenues were based on historical experience and management expectations.
2013 Annual Report | Consolidated Financial Statements
40
applications. As a result, an impairment review was performed to determine if the carrying value of the
NEXTMap USA and NEXTMap Europe assets, being the only datasets capitalized to the data library asset,
were recoverable.
The Company reviewed its cash-generating units which represent the smallest group of assets that
generate cash in-flows from continuing use that are largely independent of the cash flows of other assets.
The Company determined the cash-generating units to be the NEXTMap Europe dataset, NEXTMap USA
dataset, NEXTMap Asia, the software applications associated with the Orion Platform and contract services.
NEXTMap USA and NEXTMap Europe were also determined to be individual cash generating units at the
time the last impairment test was performed as at December 31, 2010. There is significant judgement
involved in the determination of CGUs and the assessment of indicators of impairment.
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
The recoverable amount of the NEXTMap USA and NEXTMap Europe datasets was determined using the
value in use of each of the cash-generating units. Value in use was determined by discounting the future
cash flows generated from continuing use of the unit. The calculation of value in use was based on the
following key assumptions for all units:
Years ended December 31, 2013 and 2012
Page 16
• Cash flows were projected based on past experience, actual operating results, and the business plans
Costs have been estimated based on the Company’s strategic plans and estimated
of the Company for NEXTMap raw data sales.
• Cash flows were projected for the two years remaining in the minimum expected useful life of the
effort involved in achieving the forecasted revenues.
•
•
achieving the forecasted revenues.
capitalized NEXTMap assets.
The cash flows were discounted at a risk-free rate which was determined to be
The revenues were based on historical experience and management expectations.
commensurate with the risk associated with the value in use expected cash flows
analysis. A pre-tax discount rate of 9% was applied in determining the previous estimate
of value in use of the NEXTMap USA and NEXTMap Europe datasets, which was done as
part of the impairment analysis conducted as at December 31, 2010.
• Costs have been estimated based on the Company’s strategic plans and estimated effort involved in
The cash flows were discounted at a risk-free rate which was determined to be commensurate with
the risk associated with the value in use expected cash flows analysis. A pre-tax discount rate of 9%
The values assigned to the key assumptions represent management’s assessment of
was applied in determining the previous estimate of value in use of the NEXTMap USA and NEXTMap
expected future trends in the business, and are based on external and internal sources.
Europe datasets, which was done as part of the impairment analysis conducted as at December 31,
Developing the estimated value in use is subject to a significant degree of estimation
2010.
uncertainty and the judgement of management.
The values assigned to the key assumptions represent management’s assessment of expected future trends
The Company determined that the future estimated cash flows of the NEXTMap USA and
in the business, and are based on external and internal sources. Developing the estimated value in use is
NEXTMap Europe datasets were insufficient to recover the carrying value of the assets,
subject to a significant degree of estimation uncertainty and the judgement of management.
resulting in a pre-tax asset impairment charge of $9,219. The impairment loss is included
The Company determined that the future estimated cash flows of the NEXTMap USA and NEXTMap Europe
in impairment of data library on the Consolidated Statement of Profit and Loss and Other
datasets were insufficient to recover the carrying value of the assets, resulting in a pre-tax asset impairment
Comprehensive Income.
charge of $9,219. The impairment loss is included in impairment of data library on the Consolidated
Statement of Profit and Loss and Other Comprehensive Income.
The gross amount of the data library at December 31, 2013, and December 31, 2012, was
$120,330. Asset impairment charges of $55,362 and $9,219 were recorded in 2010 and
The gross amount of the data library at December 31, 2013, and December 31, 2012, was $120,330. Asset
2013, respectively. The accumulated amortization at December 31, 2013, was $55,749
impairment charges of $55,362 and $9,219 were recorded in 2010 and 2013, respectively. The accumulated
(December 31, 2012 - $51,139).
amortization at December 31, 2013, was $55,749 (December 31, 2012 - $51,139).
7. Accounts payable and accrued liabilities:
7. Accounts payable and accrued liabilities:
December 31,
2013
December 31,
2012
Accounts payable
Accrued liablities
Other taxes payable
8. Notes payable:
$
$
1,997
1,936
20
3,953
2,152
2,572
23
4,747
$
$
Notes payable includes a promissory note with a service provider. The note bears interest
at 5% per annum and is secured by a lien on an aircraft owned by the Company. The
repayment terms of the note payable are thirty-six months ending November 2014.
Additionally, the notes payable balance includes reimbursable project development funds
provided by a corporation designed to enable the development and commercialization of
geomatics solutions in Canada. The funding is repayable upon the completion of
development and the first sale of any developed product(s). Repayment is to be made in
quarterly installments equal to 25% of the prior quarter sales.
2013 Annual Report | Consolidated Financial Statements
8. Notes payable:
41
Notes payable includes a promissory note with a service provider. The note bears interest at 5% per annum
and is secured by a lien on an aircraft owned by the Company. The repayment terms of the note payable are
thirty-six months ending November 2014.
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Additionally, the notes payable balance includes reimbursable project development funds provided by
a corporation designed to enable the development and commercialization of geomatics solutions in
Canada. The funding is repayable upon the completion of development and the first sale of any developed
product(s). Repayment is to be made in quarterly installments equal to 25% of the prior quarter sales.
Page 17
Page 17
Promissory note payable
Promissory note payable
Reimbursable project funding
Reimbursable project funding
Less current portion
Less current portion
December 31,
2012
December 31,
2013
December 31,
2013
$
1,120
68
1,120
$
68
December 31,
2012
$
1,664
151
$
1,664
151
1,815
1,188
1,188
1,815
(1,188)
(1,188)
(892)
(892)
$
-
$
-
$
923
$
923
9. Finance lease liabilities:
9. Finance lease liabilities:
9. Finance lease liabilities:
Finance lease liabilities are payable as follows:
Finance lease liabilities are payable as follows:
Finance lease liabilities are payable as follows:
December 31, 2013
December 31, 2013
December 31, 2012
December 31, 2012
Future
Future
minimum
minimum
lease
lease
payments
payments
Present
value of
minimum
lease
payments
Present
value of
minimum
lease
payments
Future
minimum
lease
payments
Future
minimum
lease
payments
Present
value of
minimum
lease
payments
Present
value of
minimum
lease
payments
Interest (1)
Interest (1)
Interest (2)
Interest (2)
Less than one year
Less than one year
(current portion)
(current portion)
Between one and five years
Between one and five years
(long-term portion)
(long-term portion)
$
142
$
142
$
$
27
$
115
$
27
$
276
$
115
$
276
14
$
14
$
262
$
262
212
354
$
$
212
354
$
$
20
47
$
192
307
$
192
307
20
47
$
-
276
$
-
-
-
$
$
14
$
14
276
-
262
$
-
262
(1)
Interest rate of 8.20%.
(1) Interest rate of 8.20%.
(1)
Interest rate of 8.20%.
(2)
Interest rate of 12.93%.
(2) Interest rate of 12.93%.
(2)
Interest rate of 12.93%.
In December 2013, the Company entered into a finance lease to purchase $382 of data storage equipment
In December 2013, the Company entered into a finance lease to purchase $382 of data
In December 2013, the Company entered into a finance lease to purchase $382 of data
and software (mapping equipment). The lease bears interest at an implicit rate of 8.20% and is secured by
storage equipment and software (mapping equipment). The lease bears interest at an
storage equipment and software (mapping equipment). The lease bears interest at an
the underlying assets. The lease matures in June 2016.
implicit rate of 8.20% and is secured by the underlying assets. The lease matures in June
implicit rate of 8.20% and is secured by the underlying assets. The lease matures in June
2016.
In September 2011, the Company entered into a finance lease to purchase $614 of data storage equipment
2016.
In September 2011, the Company entered into a finance lease to purchase $614 of data
and software. The lease bears interest at an implicit rate of 12.93% and was secured by the underlying
In September 2011, the Company entered into a finance lease to purchase $614 of data
storage equipment and software. The lease bears interest at an implicit rate of 12.93% and
assets. The lease matured in September 2013.
was secured by the underlying assets. The lease matured in September 2013.
storage equipment and software. The lease bears interest at an implicit rate of 12.93% and
was secured by the underlying assets. The lease matured in September 2013.
10. Operating and finance costs:
10. Operating and finance costs:
Details of operating costs are as follows:
Details of operating costs are as follows:
For the twelve months ended December 31,
2013
2012
For the twelve months ended December 31,
Personnel
Purchased services & materials (1)
Personnel
12,936
Travel
Purchased services & materials (1)
7,358
Facilities and other expenses (2)
Travel
1,152
Facilities and other expenses (2)
1,947
(1) Purchased services and materials include aircraft costs, project costs, professional and
23,393
2013
12,430
7,784
$
1,577
1,306
23,097
12,936
7,358
$
1,152
1,947
23,393
12,430
7,784
1,577
1,306
23,097
$
$
$
$
$
$
2012
consulting fees, and selling and marketing costs.
(1) Purchased services and materials include aircraft costs, project costs, professional and
consulting fees, and selling and marketing costs.
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 17
Promissory note payable
Reimbursable project funding
Less current portion
9. Finance lease liabilities:
Finance lease liabilities are payable as follows:
December 31,
December 31,
$
1,120
$
1,664
2013
68
1,188
(1,188)
2012
151
1,815
(892)
$
-
$
923
December 31, 2013
December 31, 2012
Future
minimum
lease
payments
Present
value of
Future
minimum
minimum
lease
lease
payments
payments
Interest (1)
Interest (2)
Present
value of
minimum
lease
payments
$
142
$
27
$
115
$
276
$
14
$
262
212
20
192
-
-
-
$
354
$
47
$
307
$
276
$
14
$
262
Less than one year
(current portion)
Between one and five years
(long-term portion)
(1)
(2)
Interest rate of 8.20%.
Interest rate of 12.93%.
In December 2013, the Company entered into a finance lease to purchase $382 of data
storage equipment and software (mapping equipment). The lease bears interest at an
implicit rate of 8.20% and is secured by the underlying assets. The lease matures in June
2016.
42
In September 2011, the Company entered into a finance lease to purchase $614 of data
storage equipment and software. The lease bears interest at an implicit rate of 12.93% and
was secured by the underlying assets. The lease matured in September 2013.
10. Operating and finance costs:
10. Operating and finance costs:
Details of operating costs are as follows:
Details of operating costs are as follows:
For the twelve months ended December 31,
2013
2012
Years ended December 31, 2013 and 2012
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
12,936
Personnel
12,430
7,358
Purchased services & materials (1)
7,784
1,152
Travel
1,577
INTERMAP TECHNOLOGIES CORPORATION
1,947
Facilities and other expenses (2)
1,306
Notes to Consolidated Financial Statements
23,393
23,097
Page 18
(In thousands of United States dollars, except per share information)
(1) Purchased services and materials include aircraft costs, project costs, professional and consulting fees, and selling and
(1) Purchased services and materials include aircraft costs, project costs, professional and
marketing costs.
(2) Includes a facility closure provision reversal of $678 during the twelve months ended
Years ended December 31, 2013 and 2012
consulting fees, and selling and marketing costs.
(2) Includes a facility closure provision reversal of $678 during the twelve months ended December 31, 2013 and $90 during the
December 31, 2013 and $90 during the twelve months ended December 31, 2012.
(2) Includes a facility closure provision reversal of $678 during the twelve months ended
twelve months ended December 31, 2012.
December 31, 2013 and $90 during the twelve months ended December 31, 2012.
Page 18
$
$
$
$
Details of finance costs are as follows:
Details of finance costs are as follows:
Year ended December 31,
Details of finance costs are as follows:
2013
2012
Year ended December 31,
Convertible note
Notes payable
Finance lease
Long-term debt
Convertible note
Notes payable
Finance lease
Long-term debt
2012
$
2013
$
$
400
64
48
$
$
-
512
400
64
$
48
-
512
$
349
85
66
23
523
$
349
85
66
23
523
11. Share capital:
11. Share capital:
11. Share capital:
a. Authorized:
(a) Authorized:
(a) Authorized:
The authorized share capital of the Company consists of an unlimited number of Class A common
The authorized share capital of the Company consists of an unlimited number of Class A
The authorized share capital of the Company consists of an unlimited number of Class A
shares and an unlimited number of Class A participating preferred shares. There are no Class A
common shares and an unlimited number of Class A participating preferred shares. There
common shares and an unlimited number of Class A participating preferred shares. There
participating preferred shares outstanding.
are no Class A participating preferred shares outstanding.
are no Class A participating preferred shares outstanding.
(b) Issued:
b.
Issued:
(b) Issued:
December 31, 2013
December 31, 2012
Class A common shares
Class A common shares
Balance, beginning of period:
Unrestricted shares
Restricted shares held in escrow
Balance, beginning of period:
Unrestricted shares
Share-based compensation
Restricted shares held in escrow
Restricted shares issued into
(released from) escrow
Share-based compensation
Issuance of common shares for
Restricted shares issued into
conversion of convertible note
(released from) escrow
Warrant component of convertible note
Issuance of common shares for
Convertible note issuance costs
Deferred tax effect of convertible note
conversion of convertible note
Securities issuance costs
Warrant component of convertible note
Balance, end of period:
Convertible note issuance costs
Deferred tax effect of convertible note
Components of issued shares:
Securities issuance costs
Unrestricted shares
Balance, end of period:
Restricted shares held in escrow
Number of
December 31, 2013
Shares
Amount
Number of
Shares
Amount
Number of
December 31, 2012
Shares
Number of
Amount
78,887,915
526,098
78,887,915
210,010
526,098
$
194,144
-
78,405,534
582,700
$
194,144
81
-
78,405,534
582,700
482,381
193,992
-
Amount
Shares
$
193,992
-
$
138
-
210,010
-
81
(56,602)
482,381
-
-
12,515,476
-
-
-
-
92,139,499
12,515,476
-
$
-
-
-
$
92,139,499
-
3,157
-
-
-
3,157
(6)
-
197,376
-
-
(6)
197,376
(56,602)
-
-
-
-
-
79,414,013
-
19
(1)
(4)
-
-
-
194,144
-
-
-
$
194,144
79,414,013
526,098 -
$
194,144
78,887,915
79,414,013
$
$
91,613,401
197,376
$
526,098 -
197,376
92,139,499
$
138
-
-
19
(1)
(4)
-
194,144
Components of issued shares:
$
91,613,401
On August 28, 2013, 5,000,000 Class A common shares were issued upon conversion to the holder
On August 28, 2013, 5,000,000 Class A common shares were issued upon conversion to
78,887,915
Unrestricted shares
of a convertible promissory note. The value attributed to the conversion was $1,261 and includes
Restricted shares held in escrow
the holder of a convertible promissory note. The value attributed to the conversion was
79,414,013
92,139,499
the accrued interest of $209 attributable to the principal balance converted of $999, and $53 for the
$1,261 and includes the accrued interest of $209 attributable to the principal balance
proportionate share of the conversion option of the convertible note originally classified in contributed
converted of $999, and $53 for the proportionate share of the conversion option of the
surplus (see Note 11(c)).
convertible note originally classified in contributed surplus (see Note 11(c)).
197,376
526,098 -
197,376
On August 28, 2013, 5,000,000 Class A common shares were issued upon conversion to
the holder of a convertible promissory note. The value attributed to the conversion was
$1,261 and includes the accrued interest of $209 attributable to the principal balance
converted of $999, and $53 for the proportionate share of the conversion option of the
194,144
526,098 -
194,144
$
$
$
convertible note originally classified in contributed surplus (see Note 11(c)).
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
43
Years ended December 31, 2013 and 2012
Page 19
On June 27, 2013, 7,515,476 Class A common shares were issued upon conversion to the holder of
On June 27, 2013, 7,515,476 Class A common shares were issued upon conversion to the
a convertible promissory note. The value attributed to the conversion was $1,896 and includes the
holder of a convertible promissory note. The value attributed to the conversion was $1,896
accrued interest of $316 attributable to the principal balance converted of $1,501, and $79 for the
and includes the accrued interest of $316 attributable to the principal balance converted of
proportionate share of the conversion option of the convertible note originally classified in contributed
$1,501, and $79 for the proportionate share of the conversion option of the convertible
surplus (see Note 11(c)).
note originally classified in contributed surplus (see Note 11(c)).
On June 13, 2013, 210,010 Class A common shares were issued to directors of the Company as
On June 13, 2013, 210,010 Class A common shares were issued to directors of the
compensation for services. Compensation expense of $81 for these Class A common shares is included
Company as compensation for services. Compensation expense of $81 for these Class A
in operating costs (see Note 11(e)).
common shares is included in operating costs (see Note 11(e)).
On June 26, 2012, the Company received proceeds from a convertible promissory note. The value
On June 26, 2012, the Company received proceeds from a convertible promissory note.
attributable to the warrants and included in share capital at inception of the note was $14, net of
The value attributable to the warrants and included in share capital at inception of the note
issuance costs of $1 and future tax benefit of $4.
was $14, net of issuance costs of $1 and future tax benefit of $4.
On June 25, 2012, 349,680 Class A common shares were issued to directors of the
On June 25, 2012, 349,680 Class A common shares were issued to directors of the Company as
Company as compensation for services. Compensation expense of $81 for these Class A
compensation for services. Compensation expense of $81 for these Class A common shares is included
common shares is included in operating costs (see Note 11(e)).
in operating costs (see Note 11(e)).
On March 28, 2012, 61,005 Class A common shares were issued to directors of the
On March 28, 2012, 61,005 Class A common shares were issued to directors of the Company as
Company as compensation for services. Compensation expense of $27 for these Class A
compensation for services. Compensation expense of $27 for these Class A common shares is included
common shares is included in operating costs (see Note 11(e)).
in operating costs (see Note 11(e)).
On January 17, 2012, 71,696 Class A common shares, of which 56,602 were released from
On January 17, 2012, 71,696 Class A common shares, of which 56,602 were released from escrow, were
escrow, were issued to employees of the Company as compensation for services.
issued to employees of the Company as compensation for services. Compensation expense of $30 for
Compensation expense of $30 for these Class A common shares is included in operating
these Class A common shares is included in operating costs (see Note 11(f)).
costs (see Note 11(f)).
c. Contributed surplus:
(c) Contributed surplus:
Balance, beginning of period
Share-based compensation
Conversion option of convertible note
Issuance costs of convertible note
Deferred tax effect of convertible note
Balance, end of period
December 31,
2013
December 31,
2012
$
10,354
449
(136)
4
-
$
9,663
592
136
(4)
(33)
$
10,671
$
10,354
d. Earnings (loss) per share:
(d) Earnings (loss) per share:
The calculation of earnings (loss) per share is based on the weighted average number of Class A
The calculation of earnings (loss) per share is based on the weighted average number of
common shares outstanding. Where the impact of the exercise of options or warrants is anti-dilutive,
Class A common shares outstanding. Where the impact of the exercise of options or
they are not included in the calculation of diluted loss per share. The Company has incurred a net loss
warrants is anti-dilutive, they are not included in the calculation of diluted loss per share.
for each period presented and the inclusion of the outstanding options and warrants in the loss per
The Company has incurred a net loss for each period presented and the inclusion of the
share calculation are considered to be anti-dilutive and are therefore not included in the calculation.
outstanding options and warrants in the loss per share calculation are considered to be
anti-dilutive and are therefore not included in the calculation.
The underlying Class A common shares pertaining to 6,287,320 outstanding share options and
19,050,000 outstanding warrants could potentially dilute earnings.
e. Director’s share compensation plan:
The Company has a director’s share compensation plan which originally allowed for the issuance
of up to 400,000 shares of the Company’s Class A common shares to non-employee directors of the
Company as part of their annual compensation and was amended in 2011 to 1,400,000 shares. At the
Annual General and Special Meeting of the Shareholders on August 9, 2012, an amendment to the
share compensation plan was approved to increase the maximum number of Class A common shares
of the Corporation issuable thereunder from 1,400,000 to 2,400,000. As of December 31, 2013, 896,403
2013 Annual Report | Consolidated Financial Statements
44
Class A common shares remain available under the plan. Compensation expense for issued shares is
included in operating costs.
f.
Employee share compensation plan:
The Company established an employee share compensation plan to compensate employees for
services performed. The plan was approved by the shareholders of the Company at the Annual General
Meeting on May 12, 2009. The plan originally allowed for the issuance of up to 1,500,000 shares of the
Company’s Class A common shares to employees. At the Annual General and Special Meeting of the
Shareholders on August 3, 2011, an amendment to the share compensation plan was approved to
increase the maximum number of Class A common shares of the Corporation issuable thereunder from
1,500,000 to 4,000,000. As of December 31, 2013, 2,794,812 Class A common shares remain available
for issuance under the plan. Compensation expense for issued shares is included in operating costs.
g. Share option plan:
The Company established a share option plan to provide long-term incentives to attract, motivate, and
retain certain key employees, officers, directors, and consultants providing services to the Company.
The plan permits the granting of options to purchase up to 10% of the outstanding Class A common
shares of the Company. As of December 31, 2013, 9,213,950 Class A common shares were authorized
under the plan, of which 6,287,320 share options are issued and outstanding and 2,926,630 options
remain available for future issuance. Under the plan, no one individual shall be granted an option
resulting in cumulative grants in excess of 5% of the issued and outstanding Class A common shares of
the Company. In addition, the exercise price of each option shall not be less than the market price of the
Company’s Class A common shares on the date of grant. The options are exercisable for a period of not
greater than six years, and generally vest over a period of one to four years. Options granted to directors
generally vest on the date of the grant and expire on the fifth anniversary of the date of such grant.
Page 21
The following table summarizes information regarding share options outstanding:
The following table summarizes information regarding share options outstanding:
The following table summarizes information regarding share options outstanding:
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
December 31, 2012
Page 21
December 31, 2013
Options outstanding,
beginning of period
Options outstanding,
Granted
beginning of period
Expired
Granted
Forfeitures
Expired
Options outstanding, end of period
Forfeitures
Options outstanding, end of period
Options exercisable, end of period
December 31, 2013
December 31, 2012
Number of
shares
Number of
under option
shares
under option
4,846,320
1,930,000
4,846,320
(373,625)
1,930,000
(115,375)
(373,625)
6,287,320
(115,375)
6,287,320
3,850,154
$
Weighted
average
Weighted
exercise
average
price (CDN)
exercise
price (CDN)
0.82
0.40
0.82
3.18
0.40
0.56
3.18
0.55
0.56
0.55
0.62
$
$
$
$
Number of
shares
Number of
under option
shares
under option
5,489,220
345,000
5,489,220
(845,550)
345,000
(142,350)
(845,550)
4,846,320
(142,350)
4,846,320
2,917,362
$
Weighted
average
Weighted
exercise
average
price (CDN)
exercise
price (CDN)
1.49
0.43
1.49
5.08
0.43
0.50
5.08
0.82
0.50
0.82
1.01
$
$
$
$
Options exercisable, end of period
3,850,154
$
0.62
2,917,362
$
1.01
Exercise
Price
Exercise
(CDN$)
Price
(CDN$)
0.25
0.27
0.25
0.33
0.27
0.38
0.33
0.43
0.38
0.44
0.43
0.46
0.44
0.48
0.46
0.50
0.48
0.66
0.50
1.49
0.66
1.60
1.49
1.84
1.60
2.98
1.84
4.16
2.98
4.16
Options
outstanding
Options
outstanding
20,000
20,000
20,000
700,000
20,000
40,000
700,000
1,333,440
40,000
1,585,000
1,333,440
887,980
1,585,000
450,000
887,980
450,000
450,000
300,000
450,000
119,000
300,000
69,750
119,000
290,150
69,750
12,000
290,150
10,000
12,000
6,287,320
10,000
6,287,320
Weighted average
remaining
Weighted average
contractual life
remaining
contractual life
3.68 years
4.36 years
3.68 years
4.84 years
4.36 years
5.37 years
4.84 years
3.25 years
5.37 years
4.79 years
3.25 years
3.96 years
4.79 years
3.01 years
3.96 years
2.93 years
3.01 years
2.81 years
2.93 years
0.95 years
2.81 years
2.03 years
0.95 years
1.99 years
2.03 years
0.69 years
1.99 years
0.69 years
0.69 years
3.75 years
0.69 years
3.75 years
Options
exercisable
Options
exercisable
-
10,000
5,000
10,000
500,000
5,000
-
500,000
1,310,640
325,000
1,310,640
458,864
325,000
225,000
458,864
337,500
225,000
187,500
337,500
119,000
187,500
59,500
119,000
290,150
59,500
12,000
290,150
10,000
12,000
3,850,154
10,000
3,850,154
During the twelve months ended December 31, 2013, 1,930,000 (year ended December 31,
2012 – 345,000) options were granted at a weighted-average fair value of C$0.31 per share
During the twelve months ended December 31, 2013, 1,930,000 (year ended December 31,
(year ended December 31, 2012 – C$0.32), determined using the Black-Scholes option
2012 – 345,000) options were granted at a weighted-average fair value of C$0.31 per share
pricing model on the date of grant with the following assumptions: expected dividend yield
(year ended December 31, 2012 – C$0.32), determined using the Black-Scholes option
0% (year ended December 31, 2012 – 0%), risk-free interest rate ranging from 1.41% to
pricing model on the date of grant with the following assumptions: expected dividend yield
2.13% (year ended December 31, 2012 – 1.32% to 1.91%), volatilities ranging from 94.6% to
0% (year ended December 31, 2012 – 0%), risk-free interest rate ranging from 1.41% to
103.0% (year ended December 31, 2012 – 80.43% to 85.9%), and expected lives of five to
2.13% (year ended December 31, 2012 – 1.32% to 1.91%), volatilities ranging from 94.6% to
six years. The estimated forfeiture rate was 5.43% (year ended December 31, 2012 – 5.43%).
103.0% (year ended December 31, 2012 – 80.43% to 85.9%), and expected lives of five to
six years. The estimated forfeiture rate was 5.43% (year ended December 31, 2012 – 5.43%).
(h) Share-based compensation expense:
(h) Share-based compensation expense:
Non-cash compensation expense has been included in operating costs with respect to share
options and shares granted to employees and non-employees as follows:
Non-cash compensation expense has been included in operating costs with respect to share
options and shares granted to employees and non-employees as follows:
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Page 22
Page 22
(i) Class A common share purchase warrants:
(i) Class A common share purchase warrants:
A summary of the status of Class A common share purchase warrants is as follows:
A summary of the status of Class A common share purchase warrants is as follows:
$
$
353
353
$
$
497
497
2013
2013
177
177
2012
2012
176
176
$
$
530
530
$
$
673
673
December 31,
December 31,
December 31,
December 31,
2013
2013
2012
2012
19,050,000 17,375,000
19,050,000 17,375,000
- 1,700,000
- 1,700,000
- (25,000)
- (25,000)
19,050,000 19,050,000
19,050,000 19,050,000
Employees
Employees
Non-employees
Non-employees
Non-cash compensation
Non-cash compensation
Balance, beginning of period
Balance, beginning of period
Issued
Issued
Expired
Expired
Balance, end of period
Balance, end of period
Each warrant entitles its holder to one Class A common share upon payment of an exercise
Each warrant entitles its holder to one Class A common share upon payment of an exercise
price ranging from C$0.31 to C$0.48, with a weighted average exercise price of C$0.46. Of
price ranging from C$0.31 to C$0.48, with a weighted average exercise price of C$0.46. Of
the warrants outstanding at the beginning of the period, 17,350,000 expire on April 28,
the warrants outstanding at the beginning of the period, 17,350,000 expire on April 28,
2014 and 1,700,000 expire on June 26, 2015.
2014 and 1,700,000 expire on June 26, 2015.
(j) Restricted shares:
(j) Restricted shares:
In connection with the five year employment agreement dated December 3, 2010, entered
In connection with the five year employment agreement dated December 3, 2010, entered
into with the Company’s CEO, the Company issued 450,000 Class A common shares to
into with the Company’s CEO, the Company issued 450,000 Class A common shares to
him during the quarter ended June 30, 2011, and such shares are held by a third party
him during the quarter ended June 30, 2011, and such shares are held by a third party
agent pursuant to an Escrow Agreement. The Escrow Agreement provides that up to
agent pursuant to an Escrow Agreement. The Escrow Agreement provides that up to
450,000 shares are to be released only upon the achievement of certain market
450,000 shares are to be released only upon the achievement of certain market
performance conditions based on the operating performance of the Company. The grant
performance conditions based on the operating performance of the Company. The grant
date fair value of the restricted shares was $118 and was charged to non-cash
date fair value of the restricted shares was $118 and was charged to non-cash
compensation expense over the vesting period, which was determined to be 28 months. As
compensation expense over the vesting period, which was determined to be 28 months. As
of December 31, 2013, the restricted shares remained in escrow.
of December 31, 2013, the restricted shares remained in escrow.
12. Income Taxes:
12. Income Taxes:
(a) Current tax (expense) recovery:
(a) Current tax (expense) recovery:
December 31
December 31
Current period
Current period
Adjustment for prior periods
Adjustment for prior periods
(b) Deferred tax recovery:
(b) Deferred tax recovery:
December 31
December 31
$
$
(28)
(28)
$
$
(78)
(78)
2013
2013
-
-
2012
2012
98
98
$
$
(28)
(28)
$
$
20
20
2013
2013
2012
2012
Origination and reversal of temporary differences
Origination and reversal of temporary differences
$
$
-
-
$
$
45
45
2013 Annual Report | Consolidated Financial Statements
45
During the twelve months ended December 31, 2013, 1,930,000 (year ended December 31, 2012
– 345,000) options were granted at a weighted-average fair value of C$0.31 per share (year ended
December 31, 2012 – C$0.32), determined using the Black-Scholes option pricing model on the date
of grant with the following assumptions: expected dividend yield 0% (year ended December 31, 2012
– 0%), risk-free interest rate ranging from 1.41% to 2.13% (year ended December 31, 2012 – 1.32% to
1.91%), volatilities ranging from 94.6% to 103.0% (year ended December 31, 2012 – 80.43% to 85.9%),
and expected lives of five to six years. The estimated forfeiture rate was 5.43% (year ended December
31, 2012 – 5.43%).
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
h. Share-based compensation expense:
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Non-cash compensation expense has been included in operating costs with respect to share options
Page 22
and shares granted to employees and non-employees as follows:
Page 22
Page 22
i.
j.
Employees
Employees
Employees
Non-employees
Non-employees
Non-employees
Non-cash compensation
Non-cash compensation
Non-cash compensation
(i) Class A common share purchase warrants:
Class A common share purchase warrants:
(i) Class A common share purchase warrants:
(i) Class A common share purchase warrants:
A summary of the status of Class A common share purchase warrants is as follows:
A summary of the status of Class A common share purchase warrants is as follows:
A summary of the status of Class A common share purchase warrants is as follows:
A summary of the status of Class A common share purchase warrants is as follows:
December 31,
December 31,
December 31,
2013
2013
2013
$
$
$
$
$
$
$
$
$
$
$
$
December 31,
December 31,
December 31,
2012
2012
2012
2013
2013
2013
353
353
353
177
177
177
530
530
530
2012
2012
2012
497
497
497
176
176
176
673
673
673
19,050,000 17,375,000
19,050,000 17,375,000
19,050,000 17,375,000
- 1,700,000
- 1,700,000
- 1,700,000
- (25,000)
- (25,000)
- (25,000)
19,050,000 19,050,000
19,050,000 19,050,000
19,050,000 19,050,000
Balance, beginning of period
Balance, beginning of period
Balance, beginning of period
Issued
Issued
Issued
Expired
Expired
Expired
Balance, end of period
Balance, end of period
Balance, end of period
Each warrant entitles its holder to one Class A common share upon payment of an exercise
Each warrant entitles its holder to one Class A common share upon payment of an exercise
Each warrant entitles its holder to one Class A common share upon payment of an exercise
price ranging from C$0.31 to C$0.48, with a weighted average exercise price of C$0.46. Of
Each warrant entitles its holder to one Class A common share upon payment of an exercise price
price ranging from C$0.31 to C$0.48, with a weighted average exercise price of C$0.46. Of
price ranging from C$0.31 to C$0.48, with a weighted average exercise price of C$0.46. Of
the warrants outstanding at the beginning of the period, 17,350,000 expire on April 28,
ranging from C$0.31 to C$0.48, with a weighted average exercise price of C$0.46. Of the warrants
the warrants outstanding at the beginning of the period, 17,350,000 expire on April 28,
the warrants outstanding at the beginning of the period, 17,350,000 expire on April 28,
2014 and 1,700,000 expire on June 26, 2015.
outstanding at the beginning of the period, 17,350,000 expire on April 28, 2014 and 1,700,000 expire
2014 and 1,700,000 expire on June 26, 2015.
2014 and 1,700,000 expire on June 26, 2015.
on June 26, 2015.
(j) Restricted shares:
(j) Restricted shares:
(j) Restricted shares:
In connection with the five year employment agreement dated December 3, 2010, entered
Restricted shares:
In connection with the five year employment agreement dated December 3, 2010, entered
In connection with the five year employment agreement dated December 3, 2010, entered
into with the Company’s CEO, the Company issued 450,000 Class A common shares to
In connection with the five year employment agreement dated December 3, 2010, entered into
into with the Company’s CEO, the Company issued 450,000 Class A common shares to
into with the Company’s CEO, the Company issued 450,000 Class A common shares to
him during the quarter ended June 30, 2011, and such shares are held by a third party
with the Company’s CEO, the Company issued 450,000 Class A common shares to him during the
him during the quarter ended June 30, 2011, and such shares are held by a third party
him during the quarter ended June 30, 2011, and such shares are held by a third party
agent pursuant to an Escrow Agreement. The Escrow Agreement provides that up to
quarter ended June 30, 2011, and such shares are held by a third party agent pursuant to an Escrow
agent pursuant to an Escrow Agreement. The Escrow Agreement provides that up to
agent pursuant to an Escrow Agreement. The Escrow Agreement provides that up to
450,000 shares are to be released only upon the achievement of certain market
Agreement. The Escrow Agreement provides that up to 450,000 shares are to be released only upon
450,000 shares are to be released only upon the achievement of certain market
450,000 shares are to be released only upon the achievement of certain market
performance conditions based on the operating performance of the Company. The grant
the achievement of certain market performance conditions based on the operating performance of
performance conditions based on the operating performance of the Company. The grant
performance conditions based on the operating performance of the Company. The grant
date fair value of the restricted shares was $118 and was charged to non-cash
the Company. The grant date fair value of the restricted shares was $118 and was charged to non-
date fair value of the restricted shares was $118 and was charged to non-cash
date fair value of the restricted shares was $118 and was charged to non-cash
compensation expense over the vesting period, which was determined to be 28 months. As
cash compensation expense over the vesting period, which was determined to be 28 months. As of
compensation expense over the vesting period, which was determined to be 28 months. As
compensation expense over the vesting period, which was determined to be 28 months. As
of December 31, 2013, the restricted shares remained in escrow.
December 31, 2013, the restricted shares remained in escrow.
of December 31, 2013, the restricted shares remained in escrow.
of December 31, 2013, the restricted shares remained in escrow.
12. Income Taxes:
12. Income Taxes:
12. Income Taxes:
(a) Current tax (expense) recovery:
(a) Current tax (expense) recovery:
(a) Current tax (expense) recovery:
December 31
December 31
December 31
Current period
Current period
Current period
Adjustment for prior periods
Adjustment for prior periods
Adjustment for prior periods
$
$
$
2013
2013
2013
$
(28)
$
(28)
$
(28)
-
-
-
$
(28)
$
(28)
$
(28)
2012
2012
2012
(78)
(78)
(78)
98
98
98
$
20
$
20
$
20
(b) Deferred tax recovery:
(b) Deferred tax recovery:
(b) Deferred tax recovery:
December 31
December 31
December 31
Origination and reversal of temporary differences
Origination and reversal of temporary differences
Origination and reversal of temporary differences
2013
2013
2013
$
-
$
-
$
-
2012
2012
2012
45
$
$
45
$
45
12. Income Taxes:
a. Current tax (expense) recovery:
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
(i) Class A common share purchase warrants:
A summary of the status of Class A common share purchase warrants is as follows:
Page 22
2012
176
2013
177
$
353
$
497
$
530
$
673
December 31,
December 31,
2013
2012
19,050,000 17,375,000
- 1,700,000
- (25,000)
19,050,000 19,050,000
Employees
Non-employees
Non-cash compensation
Balance, beginning of period
Issued
Expired
Balance, end of period
Each warrant entitles its holder to one Class A common share upon payment of an exercise
price ranging from C$0.31 to C$0.48, with a weighted average exercise price of C$0.46. Of
the warrants outstanding at the beginning of the period, 17,350,000 expire on April 28,
2014 and 1,700,000 expire on June 26, 2015.
(j) Restricted shares:
In connection with the five year employment agreement dated December 3, 2010, entered
into with the Company’s CEO, the Company issued 450,000 Class A common shares to
him during the quarter ended June 30, 2011, and such shares are held by a third party
agent pursuant to an Escrow Agreement. The Escrow Agreement provides that up to
450,000 shares are to be released only upon the achievement of certain market
performance conditions based on the operating performance of the Company. The grant
date fair value of the restricted shares was $118 and was charged to non-cash
compensation expense over the vesting period, which was determined to be 28 months. As
of December 31, 2013, the restricted shares remained in escrow.
12. Income Taxes:
(a) Current tax (expense) recovery:
46
December 31
Current period
Adjustment for prior periods
2013
2012
(28)
$
-
$
(78)
98
$
(28)
$
20
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
(b) Deferred tax recovery:
INTERMAP TECHNOLOGIES CORPORATION
b. Deferred tax recovery:
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Origination and reversal of temporary differences
December 31
$
-
2013
2012
Page 23
$
Page 23
Page 23
45
c. Reconciliation of effective tax rate:
During 2013, the Company recognized nil (2012 - $37) in deferred tax expense related to
During 2013, the Company recognized nil (2012 - $37) in deferred tax expense related to
During 2013, the Company recognized nil (2012 - $37) in deferred tax expense related to the
During 2013, the Company recognized nil (2012 - $37) in deferred tax expense related to
the convertible note directly in equity.
the convertible note directly in equity.
convertible note directly in equity.
the convertible note directly in equity.
(c) Reconciliation of effective tax rate:
(c) Reconciliation of effective tax rate:
(c) Reconciliation of effective tax rate:
Income tax expense varies from the amount that would be computed by applying the basic
Income tax expense varies from the amount that would be computed by applying the basic
Income tax expense varies from the amount that would be computed by applying the basic federal
Income tax expense varies from the amount that would be computed by applying the basic
federal and provincial income tax rates to the net loss before taxes as follows:
federal and provincial income tax rates to the net loss before taxes as follows:
and provincial income tax rates to the net loss before taxes as follows:
federal and provincial income tax rates to the net loss before taxes as follows:
December 31,
December 31,
2013
2013
2012
2012
December 31,
Losses, excluding income tax
Losses, excluding income tax
Losses, excluding income tax
Tax rate
Tax rate
Tax rate
Expected Canadian income tax recovery
Expected Canadian income tax recovery
Expected Canadian income tax recovery
Decrease resulting from:
Decrease resulting from:
Decrease resulting from:
Change in unrecognized temporary differences
Change in unrecognized temporary differences
Difference between Canadian statutory rate and those
Difference between Canadian statutory rate and those
Change in unrecognized temporary differences
applicable to U.S. and other foreign subsidiaries
applicable to U.S. and other foreign subsidiaries
Difference between Canadian statutory rate and those
Non-deductible expenses and non-taxable income
Non-deductible expenses and non-taxable income
applicable to U.S. and other foreign subsidiaries
Adjustment for prior years income tax matters
Adjustment for prior years income tax matters
Non-deductible expenses and non-taxable income
Other
Other
Adjustment for prior years income tax matters
Other
$
$
$
$
$
$
$
$
$
$
$
$
2013
(14,879)
(14,879)
(14,879)
25.0%
25.0%
25.0%
3,720
3,720
3,720
(5,291)
(5,291)
(5,291)
1,752
1,752
(207)
(207)
1,752
(4)
(4)
(207)
2
2
(4)
(28)
(28)
2
(28)
$
$
$
$
$
$
2012
(2,991)
(2,991)
(2,991)
25.0%
25.0%
25.0%
748
748
748
(619)
(619)
(619)
257
257
(128)
(128)
257
(145)
(145)
(128)
(48)
(48)
(145)
65
65
(48)
65
d. Recognized deferred tax assets and liabilities:
(d) Recognized deferred tax assets and liabilities:
(d) Recognized deferred tax assets and liabilities:
(d) Recognized deferred tax assets and liabilities:
Deferred income taxes reflect the impact of temporary differences between amounts of
Deferred income taxes reflect the impact of temporary differences between amounts of
Deferred income taxes reflect the impact of temporary differences between amounts of
assets and liabilities for financial reporting purposes and such amounts as measured by tax
assets and liabilities for financial reporting purposes and such amounts as measured by tax
Deferred income taxes reflect the impact of temporary differences between amounts of assets and
assets and liabilities for financial reporting purposes and such amounts as measured by tax
laws. Deferred tax assets and liabilities recognized at December 31, 2013 and 2012, are as
laws. Deferred tax assets and liabilities recognized at December 31, 2013 and 2012, are as
liabilities for financial reporting purposes and such amounts as measured by tax laws. Deferred tax
laws. Deferred tax assets and liabilities recognized at December 31, 2013 and 2012, are as
follows:
follows:
assets and liabilities recognized at December 31, 2013 and 2012, are as follows:
follows:
Assets
Assets
Assets
Liabilities
Liabilities
Liabilities
Net
Net
Net
2013
2013
2013
2012
2012
2012
2013
2013
2013
$
$
$
$
$
$
356
356
19
19
356
19
$
677
$
677
-
-
$
677
-
2012
2012
2012
$
-
$
-
-
-
$
-
(375)
(375)
-
(375)
(375)
(375)
(375)
375
375
$
-
$
-
375
-
$
December 31,
December 31,
2013
2013
December 31,
2013
Property and equipment
Property and equipment
$
-
$
-
Convertible note
Convertible note
-
-
Property and equipment
$
-
Tax loss carryforwards
Tax loss carryforwards
(677)
(677)
Convertible note
-
Tax loss carryforwards
(677)
Tax (assets) liabilities
Tax (assets) liabilities
(677)
(677)
Tax (assets) liabilities
(677)
Set off of tax
Set off of tax
677
677
Net tax (assets) liabilities
Net tax (assets) liabilities
$
-
$
-
Set off of tax
677
Net tax (assets) liabilities
-
$
(e) Unrecognized deferred tax assets:
(e) Unrecognized deferred tax assets:
(e) Unrecognized deferred tax assets:
Deferred tax assets have not been recognized in respect of the following items:
Deferred tax assets have not been recognized in respect of the following items:
Deferred tax assets have not been recognized in respect of the following items:
Deferred tax assets have not been recognized in respect of the following items:
December 31
December 31
December 31
Deductible temporary differences
Deductible temporary differences
Tax loss carryforwards
Tax loss carryforwards
Deductible temporary differences
Tax loss carryforwards
677
677
677
(677)
(677)
$
-
$
-
(677)
$
-
375
375
375
(375)
(375)
$
-
$
-
(375)
-
$
$
677
$
677
-
-
$
677
(677)
(677)
-
(677)
$
-
$
-
-
$
-
-
$
-
$
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
$
e. Unrecognized deferred tax assets:
2012
2012
2012
$
$
$
356
356
19
19
356
(375)
(375)
19
(375)
$
-
$
-
-
$
-
-
$
-
$
-
-
$
-
2013
2013
2013
19,222
19,222
194,237
194,237
19,222
194,237
213,459
213,459
213,459
2012
2012
2012
64,032
64,032
135,033
135,033
64,032
135,033
199,065
199,065
199,065
$
$
$
$
$
$
$
$
$
The deferred tax asset is recognized when it is probable that future taxable profit will be available to
utilize the benefits. The Company has not recognized deferred tax assets with respect to these items
due to the uncertainty of future Company earnings.
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 24
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
The deferred tax asset is recognized when it is probable that future taxable profit will be
Page 24
Page 24
available to utilize the benefits. The Company has not recognized deferred tax assets with
The deferred tax asset is recognized when it is probable that future taxable profit will be
The deferred tax asset is recognized when it is probable that future taxable profit will be
respect to these items due to the uncertainty of future Company earnings.
available to utilize the benefits. The Company has not recognized deferred tax assets with
available to utilize the benefits. The Company has not recognized deferred tax assets with
respect to these items due to the uncertainty of future Company earnings.
respect to these items due to the uncertainty of future Company earnings.
Loss carry forwards:
At December 31, 2013 approximately $196,018 of loss carry forwards and $1,967 of tax
Loss carry forwards:
Loss carry forwards:
credits were available in various jurisdictions. A summary of losses by year of expiry are as
At December 31, 2013 approximately $196,018 of loss carry forwards and $1,967 of tax
At December 31, 2013 approximately $196,018 of loss carry forwards and $1,967 of tax
credits were available in various jurisdictions. A summary of losses by year of expiry are as
credits were available in various jurisdictions. A summary of losses by year of expiry are as
Twelve months ended December 31,
Twelve months ended December 31,
Twelve months ended December 31,
follows:
follows:
follows:
2014
2015
2018
2014
2014
2015
2015
2018
2018
2020-2033
2020-2033
2020-2033
1,614
1,614
1,614
2,816
2,816
2,816
3,135
3,135
3,135
188,453
188,453
188,453
196,018
196,018
196,018
$
$
$
$
917
$
$
917
917
546
546
546
370
370
370
1,833
$
$
$
1,833
1,833
(f) Movement in deferred tax balances during the year:
(f) Movement in deferred tax balances during the year:
(f) Movement in deferred tax balances during the year:
Balance at
Balance at
Balance at
Recognized in
Recognized in
Recognized in
Recognized
Recognized
Recognized
Balance at
Balance at
Balance at
December 31, 2012
December 31, 2012
December 31, 2012
Profit and Loss
Profit and Loss
Profit and Loss
in Equity
in Equity
in Equity
December 31, 2013
December 31, 2013
December 31, 2013
Property and equipment
Property and equipment
Property and equipment
$
$
$
356
356
356
$
$
$
321
321
321
$
$
$
-
-
-
$
$
$
677
677
677
Convertible note
Convertible note
Convertible note
Tax loss carryforwards
Tax loss carryforwards
Tax loss carryforwards
19
19
19
(375)
(375)
(375)
(19)
(19)
(19)
(302)
(302)
(302)
-
-
-
-
-
-
-
-
-
(677)
(677)
(677)
Net tax (assets) liabilities
Net tax (assets) liabilities
Net tax (assets) liabilities
$
$
$
$
$
$
-
-
-
-
-
-
$
$
$
-
-
-
$
$
$
-
-
-
13. Commitments:
13. Commitments:
13. Commitments:
The Company has commitments related to operating leases for office space and equipment
The Company has commitments related to operating leases for office space and equipment
The Company has commitments related to operating leases for office space and equipment
which require the following payments for each year ending December 31:
which require the following payments for each year ending December 31:
which require the following payments for each year ending December 31:
2014
2015
2016
2014
2015
2016
2014
2015
2016
During the twelve months ended December 31, 2013, the Company recognized $413
During the twelve months ended December 31, 2013, the Company recognized $413
During the twelve months ended December 31, 2013, the Company recognized $413
(December 31, 2012 - $976) in operating lease expense for office space, which included a
(December 31, 2012 - $976) in operating lease expense for office space, which included a
(December 31, 2012 - $976) in operating lease expense for office space, which included a
facility closure provision reversal of $678, net of deposits of $42.
facility closure provision reversal of $678, net of deposits of $42.
facility closure provision reversal of $678, net of deposits of $42.
14. Segmented information:
14. Segmented information:
14. Segmented information:
The operations of the Company are in one industry segment: digital mapping and related
The operations of the Company are in one industry segment: digital mapping and related
The operations of the Company are in one industry segment: digital mapping and related
services.
services.
services.
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
During 2013, the Company recognized nil (2012 - $37) in deferred tax expense related to
During 2013, the Company recognized nil (2012 - $37) in deferred tax expense related to
During 2013, the Company recognized nil (2012 - $37) in deferred tax expense related to
the convertible note directly in equity.
the convertible note directly in equity.
the convertible note directly in equity.
(c) Reconciliation of effective tax rate:
(c) Reconciliation of effective tax rate:
(c) Reconciliation of effective tax rate:
Income tax expense varies from the amount that would be computed by applying the basic
Income tax expense varies from the amount that would be computed by applying the basic
Income tax expense varies from the amount that would be computed by applying the basic
federal and provincial income tax rates to the net loss before taxes as follows:
federal and provincial income tax rates to the net loss before taxes as follows:
federal and provincial income tax rates to the net loss before taxes as follows:
Page 23
Page 23
Page 23
December 31,
December 31,
December 31,
Losses, excluding income tax
Losses, excluding income tax
Losses, excluding income tax
Tax rate
Tax rate
Tax rate
Expected Canadian income tax recovery
Expected Canadian income tax recovery
Expected Canadian income tax recovery
Decrease resulting from:
Decrease resulting from:
Change in unrecognized temporary differences
Change in unrecognized temporary differences
Decrease resulting from:
Difference between Canadian statutory rate and those
Difference between Canadian statutory rate and those
Change in unrecognized temporary differences
applicable to U.S. and other foreign subsidiaries
applicable to U.S. and other foreign subsidiaries
Difference between Canadian statutory rate and those
Non-deductible expenses and non-taxable income
Non-deductible expenses and non-taxable income
applicable to U.S. and other foreign subsidiaries
Adjustment for prior years income tax matters
Adjustment for prior years income tax matters
Non-deductible expenses and non-taxable income
Adjustment for prior years income tax matters
Other
Other
Other
2013
2013
2012
2012
$
$
2013
(14,879)
(14,879)
$
$
2012
(2,991)
(2,991)
$
(14,879)
25.0%
25.0%
$
(2,991)
25.0%
25.0%
$
$
25.0%
3,720
3,720
$
$
25.0%
748
748
$
3,720
$
748
(5,291)
(5,291)
(5,291)
1,752
1,752
(207)
(207)
1,752
(4)
(4)
(207)
2
2
(4)
2
(619)
(619)
(619)
257
257
(128)
(128)
257
(145)
(145)
(128)
(48)
(48)
(145)
65
65
(48)
$
$
(28)
(28)
$
$
$
(28)
$
65
(d) Recognized deferred tax assets and liabilities:
(d) Recognized deferred tax assets and liabilities:
(d) Recognized deferred tax assets and liabilities:
Deferred income taxes reflect the impact of temporary differences between amounts of
Deferred income taxes reflect the impact of temporary differences between amounts of
Deferred income taxes reflect the impact of temporary differences between amounts of
assets and liabilities for financial reporting purposes and such amounts as measured by tax
assets and liabilities for financial reporting purposes and such amounts as measured by tax
assets and liabilities for financial reporting purposes and such amounts as measured by tax
laws. Deferred tax assets and liabilities recognized at December 31, 2013 and 2012, are as
laws. Deferred tax assets and liabilities recognized at December 31, 2013 and 2012, are as
laws. Deferred tax assets and liabilities recognized at December 31, 2013 and 2012, are as
follows:
follows:
follows:
December 31,
December 31,
December 31,
Property and equipment
Property and equipment
Convertible note
Convertible note
Property and equipment
Tax loss carryforwards
Tax loss carryforwards
Convertible note
Tax loss carryforwards
Tax (assets) liabilities
Tax (assets) liabilities
Tax (assets) liabilities
Set off of tax
Set off of tax
Net tax (assets) liabilities
Net tax (assets) liabilities
Set off of tax
Net tax (assets) liabilities
Assets
Assets
Liabilities
Liabilities
2013
2013
Assets
2012
2012
2013
2013
Liabilities
2012
2012
2013
$
$
-
-
$
-
-
-
2012
$
$
-
-
$
-
-
-
2013
$
$
677
677
$
-
-
677
2012
$
$
356
356
$
356
19
19
(677)
(677)
-
(375)
(375)
-
-
19
Net
Net
Net
2013
2013
2013
$
$
677
677
$
-
-
677
2012
2012
2012
$
$
356
356
$
356
19
19
(677)
(677)
-
(677)
(375)
(375)
19
(375)
$
$
(677)
(677)
(677)
$
(677)
677
677
$
$
-
-
677
$
-
$
$
(375)
(375)
(375)
$
(375)
375
375
$
$
-
-
375
$
-
$
$
677
677
$
$
375
375
$
677
(677)
(677)
$
$
(677)
-
-
$
375
(375)
(375)
$
$
(375)
-
-
$
-
$
-
$
$
-
-
$
-
-
-
$
$
-
-
-
$
-
$
$
-
-
$
-
-
-
$
$
-
-
-
$
-
(e) Unrecognized deferred tax assets:
(e) Unrecognized deferred tax assets:
(e) Unrecognized deferred tax assets:
Deferred tax assets have not been recognized in respect of the following items:
Deferred tax assets have not been recognized in respect of the following items:
Deferred tax assets have not been recognized in respect of the following items:
December 31
December 31
December 31
Deductible temporary differences
Deductible temporary differences
Tax loss carryforwards
Tax loss carryforwards
Deductible temporary differences
Tax loss carryforwards
2013
2013
2013
2012
2012
2012
$
$
19,222
19,222
$
194,237
194,237
19,222
$
$
194,237
213,459
213,459
$
213,459
$
$
64,032
64,032
$
135,033
135,033
64,032
$
$
135,033
199,065
199,065
$
199,065
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
(In thousands of United States dollars, except per share information)
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 24
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Page 24
Page 24
The deferred tax asset is recognized when it is probable that future taxable profit will be
The deferred tax asset is recognized when it is probable that future taxable profit will be
available to utilize the benefits. The Company has not recognized deferred tax assets with
The deferred tax asset is recognized when it is probable that future taxable profit will be
available to utilize the benefits. The Company has not recognized deferred tax assets with
respect to these items due to the uncertainty of future Company earnings.
available to utilize the benefits. The Company has not recognized deferred tax assets with
respect to these items due to the uncertainty of future Company earnings.
respect to these items due to the uncertainty of future Company earnings.
Loss carry forwards:
Loss carry forwards:
Loss carry forwards:
At December 31, 2013 approximately $196,018 of loss carry forwards and $1,967 of tax
i.
Loss carry forwards:
At December 31, 2013 approximately $196,018 of loss carry forwards and $1,967 of tax
At December 31, 2013 approximately $196,018 of loss carry forwards and $1,967 of tax
credits were available in various jurisdictions. A summary of losses by year of expiry are as
credits were available in various jurisdictions. A summary of losses by year of expiry are as
At December 31, 2013 approximately $196,018 of loss carry forwards and $1,967 of tax credits
credits were available in various jurisdictions. A summary of losses by year of expiry are as
follows:
follows:
were available in various jurisdictions. A summary of losses by year of expiry are as follows:
follows:
47
Twelve months ended December 31,
Twelve months ended December 31,
Twelve months ended December 31,
2014
2015
2018
2020-2033
2014
2014
2015
2015
2018
2018
2020-2033
2020-2033
(f) Movement in deferred tax balances during the year:
f. Movement in deferred tax balances during the year:
(f) Movement in deferred tax balances during the year:
(f) Movement in deferred tax balances during the year:
Balance at
Balance at
December 31, 2012
December 31, 2012
Balance at
December 31, 2012
Recognized in
Profit and Loss
Recognized in
Profit and Loss
Recognized in
Profit and Loss
Recognized
Recognized
Recognized
in Equity
in Equity
in Equity
Property and equipment
Property and equipment
Property and equipment
Convertible note
Convertible note
Convertible note
Tax loss carryforwards
Tax loss carryforwards
Tax loss carryforwards
$
356
$
19
(375)
356
$
$
356
19
19
(375)
(375)
-
$
$
-
$
321
321
$
(19)
(19)
(302)
(302)
-
$
$
-
$
-
321
$
-
$
-
(19)
-
-
(302)
-
-
-
$
-
-
$
-
$
-
$
-
Net tax (assets) liabilities
Net tax (assets) liabilities
Net tax (assets) liabilities
$
-
1,614
1,614
1,614
2,816
2,816
2,816
3,135
3,135
3,135
188,453
188,453
188,453
196,018
196,018
196,018
$
$
$
Balance at
Balance at
Balance at
December 31, 2013
December 31, 2013
December 31, 2013
$
677
$
677
677
$
-
-
-
(677)
(677)
(677)
-
$
$
-
$
-
13. Commitments:
13. Commitments:
13. Commitments:
13. Commitments:
The Company has commitments related to operating leases for office space and equipment
The Company has commitments related to operating leases for office space and equipment which require
The Company has commitments related to operating leases for office space and equipment
The Company has commitments related to operating leases for office space and equipment
which require the following payments for each year ending December 31:
the following payments for each year ending December 31:
which require the following payments for each year ending December 31:
which require the following payments for each year ending December 31:
2014
2015
2016
2014
2015
2016
2014
2015
2016
$
$
$
917
917
917
546
546
546
370
370
370
1,833
1,833
1,833
$
$
$
During the twelve months ended December 31, 2013, the Company recognized $413
During the twelve months ended December 31, 2013, the Company recognized $413
During the twelve months ended December 31, 2013, the Company recognized $413
(December 31, 2012 - $976) in operating lease expense for office space, which included a
During the twelve months ended December 31, 2013, the Company recognized $413 (December 31, 2012
(December 31, 2012 - $976) in operating lease expense for office space, which included a
(December 31, 2012 - $976) in operating lease expense for office space, which included a
facility closure provision reversal of $678, net of deposits of $42.
- $976) in operating lease expense for office space, which included a facility closure provision reversal of
INTERMAP TECHNOLOGIES CORPORATION
facility closure provision reversal of $678, net of deposits of $42.
INTERMAP TECHNOLOGIES CORPORATION
facility closure provision reversal of $678, net of deposits of $42.
$678, net of deposits of $42.
14. Segmented information:
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
14. Segmented information:
The operations of the Company are in one industry segment: digital mapping and related
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
14. Segmented information:
The operations of the Company are in one industry segment: digital mapping and related
services.
The operations of the Company are in one industry segment: digital mapping and related
The operations of the Company are in one industry segment: digital mapping and related services.
services.
Page 25
services.
Geographic segments of revenue are as follows:
Geographic segments of revenue are as follows:
Geographic segments of revenue are as follows:
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
14. Segmented information:
Page 25
Year ended December 31,
Year ended December 31,
United States
United States
Asia/Pacific
Asia/Pacific
Europe
Europe
Contract
Contract
Services
Services
2013
2013
Data
Data
Licenses
Licenses
2013
2013
Contract
Contract
Services
Services
2012
2012
Data
Data
Licenses
Licenses
2012
2012
$
$
$
$
$
$
5,435
5,435
13,598
13,598
43
43
19,076
19,076
1,882
1,946
1,538
5,366
1,882
1,946
1,538
5,366
$
6,564
6,564
5,338
5,338
-
-
$
11,902
11,902
1,909
$
11,489
2,453
15,851
$
1,909
11,489
2,453
15,851
$
$
$
$
$
$
2013
$
Property and equipment of the Company are located as follows:
Property and equipment of the Company are located as follows:
Property and equipment of the Company are located as follows:
December 31,
December 31,
168
Canada
168
Canada
3,447
United States
3,447
United States
83
Asia/Pacific
83
Asia/Pacific
Europe
5
3,703
5
Europe
$
3,703
The data library was located in the United States; the intangible assets are located in the
The data library was located in the United States; the intangible assets are located in the
Czech Republic and the United States.
Czech Republic and the United States.
A summary of sales to major customers that exceeded 10% of total sales during each period
A summary of sales to major customers that exceeded 10% of total sales during each period
are as follows:
are as follows:
Year ended December 31,
$
96
96
3,263
3,263
9
9
10
$
3,378
10
3,378
$
$
$
$
2012
2013
2012
2013
2012
2012
2013
$
1,119
5,993
$
$
13,453
4,580
13,453
134
1,119
5,993
$
4,165
Year ended December 31,
Customer A
Customer B
Customer A
Customer C
Customer B
Customer D
Customer C
Customer D
15. Financial risk management:
$
18,167
$
19,333
4,580
-
134
-
8,056
4,165
8,056
$
18,167
$
19,333
The Company has exposure to the following risks from its use of financial instruments:
15. Financial risk management:
credit risk, market risk, liquidity risk, and capital risk. Management, the Board of
The Company has exposure to the following risks from its use of financial instruments:
Directors, and the Audit Committee monitor risk management activities and review the
credit risk, market risk, liquidity risk, and capital risk. Management, the Board of
adequacy of such activities. This note presents information about the Company’s exposure
Directors, and the Audit Committee monitor risk management activities and review the
to each of the risks as well as the objectives, policies and processes for measuring and
adequacy of such activities. This note presents information about the Company’s exposure
managing those risks.
to each of the risks as well as the objectives, policies and processes for measuring and
The Company’s risk management policies are established to identify and analyze the risks
managing those risks.
faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
The Company’s risk management policies are established to identify and analyze the risks
adherence to limits. Risk management policies and systems are reviewed regularly to
faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
reflect changes in market conditions and the Company’s activities. The Company, through
adherence to limits. Risk management policies and systems are reviewed regularly to
its training and management standards and procedures, aims to develop a disciplined and
reflect changes in market conditions and the Company’s activities. The Company, through
constructive control environment in which all employees understand their roles and
its training and management standards and procedures, aims to develop a disciplined and
obligations.
constructive control environment in which all employees understand their roles and
obligations.
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 25
Geographic segments of revenue are as follows:
Year ended December 31,
United States
Asia/Pacific
Europe
Contract
Services
2013
13,598
43
Data
Licenses
2013
1,946
1,538
Contract
Services
2012
5,338
-
Data
Licenses
2012
11,489
2,453
$
5,435
$
1,882
$
6,564
$
1,909
$
19,076
$
5,366
$
11,902
$
15,851
Property and equipment of the Company are located as follows:
48
December 31,
Canada
United States
Asia/Pacific
Europe
2013
2012
$
$
96
3,263
9
10
3,378
168
3,447
83
5
3,703
$
$
The data library was located in the United States; the intangible assets are located in the
The data library was located in the United States; the intangible assets are located in the Czech Republic and
Czech Republic and the United States.
the United States.
A summary of sales to major customers that exceeded 10% of total sales during each period
A summary of sales to major customers that exceeded 10% of total sales during each period are as follows:
are as follows:
Year ended December 31,
2013
2012
Customer A
Customer B
Customer C
Customer D
$
$
13,453
4,580
134
-
18,167
1,119
5,993
4,165
8,056
19,333
$
$
15. Financial risk management:
15. Financial risk management:
The Company has exposure to the following risks from its use of financial instruments:
The Company has exposure to the following risks from its use of financial instruments: credit risk, market
credit risk, market risk, liquidity risk, and capital risk. Management, the Board of
risk, liquidity risk, and capital risk. Management, the Board of Directors, and the Audit Committee monitor
Directors, and the Audit Committee monitor risk management activities and review the
risk management activities and review the adequacy of such activities. This note presents information about
adequacy of such activities. This note presents information about the Company’s exposure
the Company’s exposure to each of the risks as well as the objectives, policies and processes for measuring
to each of the risks as well as the objectives, policies and processes for measuring and
and managing those risks.
managing those risks.
The Company’s risk management policies are established to identify and analyze the risks faced by the
The Company’s risk management policies are established to identify and analyze the risks
Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
management policies and systems are reviewed regularly to reflect changes in market conditions and the
adherence to limits. Risk management policies and systems are reviewed regularly to
Company’s activities. The Company, through its training and management standards and procedures, aims
reflect changes in market conditions and the Company’s activities. The Company, through
to develop a disciplined and constructive control environment in which all employees understand their
its training and management standards and procedures, aims to develop a disciplined and
roles and obligations.
constructive control environment in which all employees understand their roles and
a. Credit risk
obligations.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. Such risks arise principally from certain financial
assets held by the Company consisting of outstanding trade receivables and investment securities.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the demographics of the Company’s customer base,
including the default risk of the industry and country in which customers operate, as these factors may
have an influence on credit risk.
Approximately 74 percent of the Company’s revenue is attributable to transactions with two key
customers (year ended December 31, 2012 - 26 percent of the revenue was attributable to the same
two key customers), and approximately 76 percent of the Company’s trade amounts receivable at
year end are attributable to customers located in Asia/Pacific (December 31, 2012 – approximately 60
percent).
The Company has established a credit policy under which each new customer is analyzed individually
for creditworthiness before the Company’s standard payment and delivery terms and conditions are
offered.
A significant portion of the Company’s customers have transacted with the Company in the past or are
reputable large Companies and losses have occurred infrequently.
Market risk is the risk that changes in market prices, such as foreign exchange rates and
Market risk is the risk that changes in market prices, such as foreign exchange rates and
interest rates, will affect the Company’s income or the value of its holding of financial
interest rates, will affect the Company’s income or the value of its holding of financial
The maximum exposure to credit risk of the Company at period end is the carrying value of these
financial assets.
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 26
(a) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations. Such risks arise principally
from certain financial assets held by the Company consisting of outstanding trade
receivables and investment securities.
The Company’s exposure to credit risk is influenced mainly by the individual
characteristics of each customer. However, management also considers the demographics
of the Company’s customer base, including the default risk of the industry and country in
which customers operate, as these factors may have an influence on credit risk.
Approximately 74 percent of the Company’s revenue is attributable to transactions with
two key customers (year ended December 31, 2012 - 26 percent of the revenue was
attributable to the same two key customers), and approximately 76 percent of the
Company’s trade amounts receivable at year end are attributable to customers located in
Asia/Pacific (December 31, 2012 – approximately 60 percent).
The Company has established a credit policy under which each new customer is analyzed
individually for creditworthiness before the Company’s standard payment and delivery
terms and conditions are offered.
A significant portion of the Company’s customers have transacted with the Company in the
past or are reputable large Companies and losses have occurred infrequently.
The maximum exposure to credit risk of the Company at period end is the carrying value of
these financial assets.
i. Trade receivables
Provisions for doubtful accounts are made on a customer-by-customer basis. All write
downs against receivables are recorded within sales, general and administrative
expense in the statement of operations. The Company is exposed to credit-related
losses on sales to customers outside North America due to potentially higher risks of
collectability.
Amounts receivable as of December 31, 2013, and December 31, 2012, consist of:
December 31, December 31,
2013
2012
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Trade amounts receivable
$
6,245
$
5,487
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
Employee receivables
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Other miscellaneous receivables
9
180
16
232
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
$
6,434
$
5,735
Page 27
Page 27
Trade amounts receivable by geography consist of:
Trade amounts receivable by geography consist of:
An aging of the Company’s trade amounts receivable are as follows:
An aging of the Company’s trade amounts receivable are as follows:
United States
United States
Canada
Canada
Asia/Pacific
Asia/Pacific
Europe
Europe
Current
Current
31-60 days
31-60 days
61-90 days
61-90 days
Over 91 days
Over 91 days
December 31, December 31,
December 31, December 31,
2013
2013
2012
2012
$
$
414
414
$
$
1,795
1,795
214
214
4,765
4,765
852
852
15
15
3,286
3,286
391
391
$
$
6,245
6,245
$
$
5,487
5,487
December 31, December 31,
December 31, December 31,
2013
2013
2012
2012
$
$
4,782
4,782
$
$
4,253
4,253
88
88
104
104
1,271
1,271
870
870
130
130
234
234
$
$
6,245
6,245
$
$
5,487
5,487
As of December 31, 2013, $1,375 of trade amounts receivable (year ended December 31,
As of December 31, 2013, $1,375 of trade amounts receivable (year ended December 31,
2012 - $364) were past due. The balance of the past due amounts relate to reoccurring,
2012 - $364) were past due. The balance of the past due amounts relate to reoccurring,
and historically slow paying customers and are considered collectible.
and historically slow paying customers and are considered collectible.
ii. Investments in securities
ii. Investments in securities
The Company manages its credit risk surrounding cash and cash equivalents by
The Company manages its credit risk surrounding cash and cash equivalents by
dealing solely with what management believes to be reputable banks and financial
dealing solely with what management believes to be reputable banks and financial
institutions, and limiting the allocation of excess funds into financial instruments that
institutions, and limiting the allocation of excess funds into financial instruments that
management believes to be highly liquid, low risk investments. The balance at
management believes to be highly liquid, low risk investments. The balance at
December 31, 2013, is held in cash at banks within the United States, Canada, Europe,
December 31, 2013, is held in cash at banks within the United States, Canada, Europe,
Asia, and Australia to facilitate the payment of operations in those jurisdictions.
Asia, and Australia to facilitate the payment of operations in those jurisdictions.
(b) Market risk
(b) Market risk
instruments.
instruments.
i.
i.
Foreign exchange risk
Foreign exchange risk
The Company operates internationally and is exposed to foreign exchange risk from
The Company operates internationally and is exposed to foreign exchange risk from
various currencies, primarily the Canadian dollar, Euro, British pound, Indonesian
various currencies, primarily the Canadian dollar, Euro, British pound, Indonesian
rupiah, Czech Republic koruna, Philippines peso and Malaysian ringgit. Foreign
rupiah, Czech Republic koruna, Philippines peso and Malaysian ringgit. Foreign
exchange risk arises from sales and purchase transactions as well as recognized
exchange risk arises from sales and purchase transactions as well as recognized
financial assets and liabilities that are denominated in a currency other than the
financial assets and liabilities that are denominated in a currency other than the
United States dollar, which is the functional currency of the Company and the majority
United States dollar, which is the functional currency of the Company and the majority
of its subsidiaries.
of its subsidiaries.
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 25
Geographic segments of revenue are as follows:
Year ended December 31,
United States
Asia/Pacific
Europe
Contract
Services
2013
13,598
43
Data
Licenses
2013
1,946
1,538
Contract
Services
2012
5,338
-
Data
Licenses
2012
11,489
2,453
$
5,435
$
1,882
$
6,564
$
1,909
$
19,076
$
5,366
$
11,902
$
15,851
Property and equipment of the Company are located as follows:
The data library was located in the United States; the intangible assets are located in the
Czech Republic and the United States.
A summary of sales to major customers that exceeded 10% of total sales during each period
December 31,
Canada
United States
Asia/Pacific
Europe
are as follows:
Year ended December 31,
Customer A
Customer B
Customer C
Customer D
$
96
$
168
2013
3,263
9
10
2012
3,447
83
5
$
3,378
$
3,703
$
13,453
$
1,119
2013
4,580
134
-
2012
5,993
4,165
8,056
$
18,167
$
19,333
15. Financial risk management:
The Company has exposure to the following risks from its use of financial instruments:
credit risk, market risk, liquidity risk, and capital risk. Management, the Board of
Directors, and the Audit Committee monitor risk management activities and review the
adequacy of such activities. This note presents information about the Company’s exposure
to each of the risks as well as the objectives, policies and processes for measuring and
managing those risks.
The Company’s risk management policies are established to identify and analyze the risks
faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Company’s activities. The Company, through
its training and management standards and procedures, aims to develop a disciplined and
constructive control environment in which all employees understand their roles and
obligations.
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Page 26
(a) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations. Such risks arise principally
from certain financial assets held by the Company consisting of outstanding trade
receivables and investment securities.
The Company’s exposure to credit risk is influenced mainly by the individual
characteristics of each customer. However, management also considers the demographics
of the Company’s customer base, including the default risk of the industry and country in
which customers operate, as these factors may have an influence on credit risk.
Approximately 74 percent of the Company’s revenue is attributable to transactions with
two key customers (year ended December 31, 2012 - 26 percent of the revenue was
attributable to the same two key customers), and approximately 76 percent of the
Company’s trade amounts receivable at year end are attributable to customers located in
Asia/Pacific (December 31, 2012 – approximately 60 percent).
The Company has established a credit policy under which each new customer is analyzed
individually for creditworthiness before the Company’s standard payment and delivery
terms and conditions are offered.
A significant portion of the Company’s customers have transacted with the Company in the
past or are reputable large Companies and losses have occurred infrequently.
The maximum exposure to credit risk of the Company at period end is the carrying value of
these financial assets.
49
i. Trade receivables
i.
Trade receivables
Provisions for doubtful accounts are made on a customer-by-customer basis. All write
Provisions for doubtful accounts are made on a customer-by-customer basis. All write downs
downs against receivables are recorded within sales, general and administrative
against receivables are recorded within sales, general and administrative expense in the
expense in the statement of operations. The Company is exposed to credit-related
statement of operations. The Company is exposed to credit-related losses on sales to customers
losses on sales to customers outside North America due to potentially higher risks of
outside North America due to potentially higher risks of collectability.
collectability.
Amounts receivable as of December 31, 2013, and December 31, 2012, consist of:
Amounts receivable as of December 31, 2013, and December 31, 2012, consist of:
December 31, December 31,
2012
2013
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Trade amounts receivable
Notes to Consolidated Financial Statements
Employee receivables
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Other miscellaneous receivables
(In thousands of United States dollars, except per share information)
6,245
9
180
$
$
5,487
16
232
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Trade amounts receivable by geography consist of:
Trade amounts receivable by geography consist of:
Trade amounts receivable by geography consist of:
$
6,434
$
5,735
Page 27
Page 27
December 31, December 31,
December 31, December 31,
2012
2012
2013
2013
United States
United States
Canada
Canada
Asia/Pacific
Asia/Pacific
Europe
Europe
Current
Current
31-60 days
31-60 days
61-90 days
61-90 days
Over 91 days
Over 91 days
An aging of the Company’s trade amounts receivable are as follows:
An aging of the Company’s trade amounts receivable are as follows:
An aging of the Company’s trade amounts receivable are as follows:
December 31, December 31,
December 31, December 31,
2012
2012
2013
2013
$
$
$
$
$
$
$
$
414
414
214
214
4,765
4,765
852
852
6,245
6,245
4,782
4,782
88
88
104
104
1,271
1,271
6,245
6,245
1,795
1,795
15
15
3,286
3,286
391
391
5,487
5,487
4,253
4,253
870
870
130
130
234
234
5,487
5,487
$
$
$
$
$
$
$
$
As of December 31, 2013, $1,375 of trade amounts receivable (year ended December 31,
As of December 31, 2013, $1,375 of trade amounts receivable (year ended December 31,
2012 - $364) were past due. The balance of the past due amounts relate to reoccurring,
As of December 31, 2013, $1,375 of trade amounts receivable (year ended December 31, 2012 -
2012 - $364) were past due. The balance of the past due amounts relate to reoccurring,
$364) were past due. The balance of the past due amounts relate to reoccurring, and historically
and historically slow paying customers and are considered collectible.
and historically slow paying customers and are considered collectible.
slow paying customers and are considered collectible.
ii. Investments in securities
ii. Investments in securities
ii.
Investments in securities
The Company manages its credit risk surrounding cash and cash equivalents by
The Company manages its credit risk surrounding cash and cash equivalents by
dealing solely with what management believes to be reputable banks and financial
The Company manages its credit risk surrounding cash and cash equivalents by dealing solely
dealing solely with what management believes to be reputable banks and financial
institutions, and limiting the allocation of excess funds into financial instruments that
with what management believes to be reputable banks and financial institutions, and limiting
institutions, and limiting the allocation of excess funds into financial instruments that
management believes to be highly liquid, low risk investments. The balance at
the allocation of excess funds into financial instruments that management believes to be highly
management believes to be highly liquid, low risk investments. The balance at
liquid, low risk investments. The balance at December 31, 2013, is held in cash at banks within the
December 31, 2013, is held in cash at banks within the United States, Canada, Europe,
December 31, 2013, is held in cash at banks within the United States, Canada, Europe,
United States, Canada, Europe, Asia, and Australia to facilitate the payment of operations in those
Asia, and Australia to facilitate the payment of operations in those jurisdictions.
Asia, and Australia to facilitate the payment of operations in those jurisdictions.
jurisdictions.
(b) Market risk
(b) Market risk
b. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and
Market risk is the risk that changes in market prices, such as foreign exchange rates and
interest rates, will affect the Company’s income or the value of its holding of financial
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates,
interest rates, will affect the Company’s income or the value of its holding of financial
will affect the Company’s income or the value of its holding of financial instruments.
instruments.
instruments.
i.
i.
Foreign exchange risk
Foreign exchange risk
The Company operates internationally and is exposed to foreign exchange risk from
The Company operates internationally and is exposed to foreign exchange risk from
various currencies, primarily the Canadian dollar, Euro, British pound, Indonesian
various currencies, primarily the Canadian dollar, Euro, British pound, Indonesian
rupiah, Czech Republic koruna, Philippines peso and Malaysian ringgit. Foreign
rupiah, Czech Republic koruna, Philippines peso and Malaysian ringgit. Foreign
exchange risk arises from sales and purchase transactions as well as recognized
exchange risk arises from sales and purchase transactions as well as recognized
financial assets and liabilities that are denominated in a currency other than the
financial assets and liabilities that are denominated in a currency other than the
United States dollar, which is the functional currency of the Company and the majority
United States dollar, which is the functional currency of the Company and the majority
of its subsidiaries.
of its subsidiaries.
2013 Annual Report | Consolidated Financial Statements
50
i.
Foreign exchange risk
The Company operates internationally and is exposed to foreign exchange risk from various
currencies, primarily the Canadian dollar, Euro, British pound, Indonesian rupiah, Czech Republic
koruna, Philippines peso and Malaysian ringgit. Foreign exchange risk arises from sales and
purchase transactions as well as recognized financial assets and liabilities that are denominated
in a currency other than the United States dollar, which is the functional currency of the Company
and the majority of its subsidiaries.
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Page 28
Page 28
Page 28
The Company’s primary objective in managing its foreign exchange risk is to preserve
The Company’s primary objective in managing its foreign exchange risk is to preserve
The Company’s primary objective in managing its foreign exchange risk is to preserve sales values
The Company’s primary objective in managing its foreign exchange risk is to preserve
sales values and cash flows and reduce variations in performance. Although
sales values and cash flows and reduce variations in performance. Although
and cash flows and reduce variations in performance. Although management monitors exposure
sales values and cash flows and reduce variations in performance. Although
management monitors exposure to such fluctuations, it does not employ any external
management monitors exposure to such fluctuations, it does not employ any external
to such fluctuations, it does not employ any external hedging strategies to counteract the foreign
management monitors exposure to such fluctuations, it does not employ any external
hedging strategies to counteract the foreign currency fluctuations.
hedging strategies to counteract the foreign currency fluctuations.
currency fluctuations.
hedging strategies to counteract the foreign currency fluctuations.
The balances in foreign currencies at December 31, 2013, are as follows:
The balances in foreign currencies at December 31, 2013, are as follows:
The balances in foreign currencies at December 31, 2013, are as follows:
The balances in foreign currencies at December 31, 2013, are as follows:
(in USD)
(in USD)
(in USD)
Cash and
Cash and
Cash and
cash equivalents
cash equivalents
cash equivalents
Amounts receivable
Amounts receivable
Amounts receivable
Accounts payable and
Accounts payable and
Accounts payable and
accrued liabilities
accrued liabilities
accrued liabilities
Philippines
Philippines
Philippines
Peso
Peso
Peso
Canadian
Canadian
Canadian
Dollar
Dollar
Dollar
Euro
Euro
Euro
British
British
British
Pound
Pound
Pound
Indonesian
Indonesian
Indonesian
Rupiah
Rupiah
Rupiah
$
-
$
-
-
$
2,743
2,743
2,743
-
-
-
2,743
2,743
2,743
$
$
$
$
7
$
7
7
$
144
144
144
(413)
(413)
(413)
(262)
(262)
(262)
$
$
$
$
$
$
24
24
24
47
47
47
(354)
(354)
(354)
(283)
(283)
(283)
$
-
$
-
-
$
43
43
43
(665)
(665)
(665)
(622)
(622)
(622)
$
$
$
$
$
$
17
17
17
4
4
4
(189)
(189)
(189)
(168)
(168)
(168)
$
$
$
$
$
$
$
$
$
$
$
$
Czech
Czech
Czech
Republic
Republic
Republic
Koruna
Koruna
Koruna
Malaysian
Malaysian
Malaysian
Ringgit
Ringgit
Ringgit
$
-
$
-
-
$
390
390
390
-
-
-
$
390
$
390
$
390
15
15
15
159
159
159
(177)
(177)
(177)
(3)
(3)
(3)
The balances in foreign currencies at December 31, 2012, are as follows:
The balances in foreign currencies at December 31, 2012, are as follows:
The balances in foreign currencies at December 31, 2012, are as follows:
The balances in foreign currencies at December 31, 2012, are as follows:
Philippines
Philippines
Philippines
Peso
Peso
Peso
Canadian
Canadian
Canadian
Dollar
Dollar
Dollar
Euro
Euro
Euro
British
British
British
Pound
Pound
Pound
Indonesian
Indonesian
Indonesian
Rupiah
Rupiah
Rupiah
Czech
Czech
Czech
Republic
Republic
Republic
Koruna
Koruna
Koruna
Malaysian
Malaysian
Malaysian
Ringgit
Ringgit
Ringgit
(in USD)
(in USD)
(in USD)
Cash and
Cash and
Cash and
cash equivalents
cash equivalents
cash equivalents
Amounts receivable
Amounts receivable
Amounts receivable
Accounts payable and
Accounts payable and
Accounts payable and
accrued liabilities
accrued liabilities
accrued liabilities
83
83
83
$
$
$
$
$
$
$
$
$
$
-
$
-
$
-
$
$
$
$
$
$
-
-
-
$
$
$
101
101
101
149
149
149
(1,368)
(1,368)
(1,368)
(1,118)
(1,118)
(1,118)
$
-
39
$
-
39
-
$
39
-
167
-
167
-
167
-
(432)
-
(432)
-
(432)
$
-
$
(226)
$
-
(226)
$
$
$
-
(226)
Based on the net exposures at December 31, 2013 and 2012, and assuming that all other variables
Based on the net exposures at December 31, 2013 and 2012, and assuming that all
Based on the net exposures at December 31, 2013 and 2012, and assuming that all
Based on the net exposures at December 31, 2013 and 2012, and assuming that all
other variables remain constant, a 10% depreciation or appreciation of the United
remain constant, a 10% depreciation or appreciation of the United States dollar against the
other variables remain constant, a 10% depreciation or appreciation of the United
other variables remain constant, a 10% depreciation or appreciation of the United
States dollar against the following currencies would result in an increase / (decrease)
following currencies would result in an increase / (decrease) in net earnings by the amounts
States dollar against the following currencies would result in an increase / (decrease)
INTERMAP TECHNOLOGIES CORPORATION
States dollar against the following currencies would result in an increase / (decrease)
in net earnings by the amounts shown below:
shown below:
in net earnings by the amounts shown below:
Notes to Consolidated Financial Statements
in net earnings by the amounts shown below:
(In thousands of United States dollars, except per share information)
December 31, 2013
December 31, 2013
December 31, 2013
307
307
307
197
197
197
(221)
(221)
(221)
283
283
283
13
13
13
7
7
7
(191)
(191)
(191)
(171)
(171)
(171)
22
22
22
106
106
106
(636)
(636)
(636)
(508)
(508)
(508)
$
$
$
$
$
$
$
$
$
$
$
$
83
83
83
Years ended December 31, 2013 and 2012
Philippines
Philippines
Philippines
Peso
Peso
Peso
Canadian
Canadian
Canadian
Dollar
Dollar
Dollar
Euro
Euro
Euro
British
British
British
Pound
Pound
Pound
Indonesian
Indonesian
Indonesian
Rupiah
Rupiah
Rupiah
Philippines
$
(274)
$
(274)
(274)
$
Peso
274
274
274
$
$
$
Canadian
26
26
26
Dollar
(26)
(26)
(26)
$
$
$
28
28
28
Euro
(28)
(28)
(28)
$
$
$
British
62
62
62
Pound
(62)
(62)
(62)
Indonesian
$
17
$
17
17
$
Rupiah
(17)
(17)
(17)
Page 29
Czech
Czech
Czech
Republic
Republic
Republic
Koruna
Koruna
Koruna
Czech
Republic
-
$
$
-
-
$
Koruna
-
-
-
Malaysian
Malaysian
Malaysian
Ringgit
Ringgit
Ringgit
Malaysian
$
39
$
39
39
$
Ringgit
(39)
(39)
(39)
(in USD)
(in USD)
December 31, 2012
(in USD)
United States dollar:
United States dollar:
United States dollar:
Depreciates 10%
Depreciates 10%
Depreciates 10%
(in USD)
Appreciates 10%
Appreciates 10%
Appreciates 10%
United States dollar:
Depreciates 10%
Appreciates 10%
$
(8)
8
$
112
(112)
$
23
(23)
$
51
(51)
$
17
(17)
$
(28)
28
$
-
-
ii.
ii.
Interest rate risk
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
Interest rate risk is the risk that the fair value or future cash flows of a financial
fluctuate because of changes in market interest rates.
instrument will fluctuate because of changes in market interest rates.
Financial assets and financial liabilities with variable interest rates expose the
Company to cash flow interest rate risk. The Company’s cash and cash equivalents
include short-term highly liquid investments that earn interest at market rates. The
Company does not have any debt instruments outstanding with variable interest rates
at December 31, 2013, or December 31, 2012.
Financial liabilities that bear interest at fixed rates are subject to fair value interest rate
risk. No currency hedging relationships have been established for the related monthly
interest and principle payments.
The Company manages its interest rate risk by minimizing financing costs on its
borrowings and maximizing interest income earned on excess funds while maintaining
the liquidity necessary to conduct operations on a day-to-day basis.
(c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its obligations as they
become due. The Company’s approach to managing capital is to ensure, as far as possible,
that it will have sufficient liquidity to meets its obligations.
The Company manages its liquidity risk by evaluating working capital availability and
forecasting cash flows from operations and anticipated investing and financing activities.
At December 31, 2013, the Company has a cash and cash equivalent balance of $2,420
(year ended December 31, 2012 – $2,055) and working capital of $3,955 (year ended
December 31, 2012 – $1,904). All of the Company’s financial liabilities, other than notes
payable and obligations under finance leases, have a contractual maturity of less than 45
days.
The following are the contractual maturities of the undiscounted cash flows of financial
liabilities as of December 31, 2013:
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Page 30
Page 30
Payment due:
Payment due:
Between
Between
Between
Between
Between
Between
Between
Between
In less than 3
In less than 3
3 months and 6
3 months and 6
6 months and 1
6 months and 1
1 year and 2
1 year and 2
2 years and 5
2 years and 5
months
months
months
months
year
year
years
years
years
years
Accounts payable
Accounts payable
Convertible Note
Convertible Note
Note payable
Note payable
Provisions
Provisions
Obligations under
Obligations under
finance leases
finance leases
and accrued liabilities
and accrued liabilities
$
$
2,962
2,962
$
$
200
200
$
$
791
791
$
$
$
$
-
-
-
-
600
600
-
-
-
-
35
35
228
228
-
-
-
-
35
35
380
380
-
-
-
-
71
71
-
-
-
-
-
-
142
142
-
-
-
-
-
-
71
71
$
$
3,597
3,597
$
$
463
463
$
$
1,242
1,242
$
$
142
$
$
71
142
71
The following are the contractual maturities of the undiscounted cash flows of financial
The following are the contractual maturities of the undiscounted cash flows of financial
liabilities as of December 31, 2012:
liabilities as of December 31, 2012:
Payment due:
Payment due:
Between
Between
In less than 3
In less than 3
months
months
3 months and 6
Between
3 months and 6
months
6 months and 1
Between
6 months and 1
year
Between
1 year and 2
1 year and 2
years
2 years and 5
Between
2 years and 5
years
months
year
years
years
Between
Between
$
3,066
$
667
$
1,014
$
-
$
-
$
3,066
-
$
2,757
667
$
1,014
$
-
$
-
228
228
-
-
-
95
95
2,757
234
234
-
93
-
93
-
-
494
720
494
720
88
88
912
912
-
-
-
-
-
-
31
-
-
-
31
-
-
-
$
3,389
$
3,751
$
2,316
$
912
$
31
$
3,389
$
3,751
$
2,316
$
912
$
31
Accounts payable
Accounts payable
and accrued liabilities
and accrued liabilities
Convertible Note
Convertible Note
Note payable
Note payable
Provisions
Provisions
Obligations under
Obligations under
finance leases
finance leases
(d) Capital risk
(d) Capital risk
The Company’s objectives when managing its capital risk is to safeguard its assets, while at
The Company’s objectives when managing its capital risk is to safeguard its assets, while at
the same time maintaining investor, creditor, and market confidence, and to sustain future
the same time maintaining investor, creditor, and market confidence, and to sustain future
development of the business and ultimately protect shareholder value. The Company
development of the business and ultimately protect shareholder value. The Company
manages its risks and exposures by implementing the strategies below.
manages its risks and exposures by implementing the strategies below.
The Company includes shareholders’ equity, long-term notes payable and long-term
portion of obligations under finance leases in the definition of capital. Total capital at
The Company includes shareholders’ equity, long-term notes payable and long-term
December 31, 2013, was $7,141 (December 31, 2012 - $19,281). To maintain or adjust the
portion of obligations under finance leases in the definition of capital. Total capital at
capital structure, the Company may issue new shares, issue new debt with different
December 31, 2013, was $7,141 (December 31, 2012 - $19,281). To maintain or adjust the
characteristics, acquire or dispose of assets, or adjust the amount of cash and short-term
capital structure, the Company may issue new shares, issue new debt with different
investment balances held.
characteristics, acquire or dispose of assets, or adjust the amount of cash and short-term
investment balances held.
The Company has established a budgeting and planning process with a focus on cash,
working capital, and operational expenditures and continuously assesses its capital
The Company has established a budgeting and planning process with a focus on cash,
structure in light of current economic conditions and changes in the Company’s short-term
working capital, and operational expenditures and continuously assesses its capital
and long-term plans. Neither the Company nor any of its subsidiaries are subject to
structure in light of current economic conditions and changes in the Company’s short-term
externally imposed capital requirements.
and long-term plans. Neither the Company nor any of its subsidiaries are subject to
externally imposed capital requirements.
2013 Annual Report | Consolidated Financial Statements
51
Financial assets and financial liabilities with variable interest rates expose the Company to cash
flow interest rate risk. The Company’s cash and cash equivalents include short-term highly liquid
investments that earn interest at market rates. The Company does not have any debt instruments
outstanding with variable interest rates at December 31, 2013, or December 31, 2012.
Financial liabilities that bear interest at fixed rates are subject to fair value interest rate risk. No
currency hedging relationships have been established for the related monthly interest and
principle payments.
The Company manages its interest rate risk by minimizing financing costs on its borrowings and
maximizing interest income earned on excess funds while maintaining the liquidity necessary to
conduct operations on a day-to-day basis.
c.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due.
The Company’s approach to managing capital is to ensure, as far as possible, that it will have sufficient
liquidity to meets its obligations.
The Company manages its liquidity risk by evaluating working capital availability and forecasting cash
flows from operations and anticipated investing and financing activities. At December 31, 2013, the
Company has a cash and cash equivalent balance of $2,420 (year ended December 31, 2012 – $2,055)
and working capital of $3,955 (year ended December 31, 2012 – $1,904). All of the Company’s financial
liabilities, other than notes payable and obligations under finance leases, have a contractual maturity
of less than 45 days.
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
The following are the contractual maturities of the undiscounted cash flows of financial liabilities as of
December 31, 2013:
Page 30
Page 30
Payment due:
Payment due:
In less than 3
In less than 3
months
months
Between
3 months and 6
months
Between
3 months and 6
months
Between
Between
6 months and 1
6 months and 1
year
year
Between
Between
1 year and 2
1 year and 2
years
years
Between
Between
2 years and 5
2 years and 5
years
years
Accounts payable
Accounts payable
and accrued liabilities
and accrued liabilities
Convertible Note
Convertible Note
Note payable
Note payable
Provisions
Provisions
Obligations under
Obligations under
finance leases
finance leases
$
$
2,962
2,962
-
-
600
600
-
-
$
$
200
200
$
-
-
228
228
-
-
-
$
791
791
$
-
-
-
-
380
380
-
-
-
-
$
-
$
-
-
-
-
-
-
-
$
-
-
-
35
35
35
35
71
71
142
142
71
71
$
$
3,597
3,597
$
463
$
463
$
$
1,242
1,242
$
142
$
$
$
71
142
71
The following are the contractual maturities of the undiscounted cash flows of financial
The following are the contractual maturities of the undiscounted cash flows of financial liabilities as of
The following are the contractual maturities of the undiscounted cash flows of financial
liabilities as of December 31, 2012:
December 31, 2012:
liabilities as of December 31, 2012:
and accrued liabilities
and accrued liabilities
Accounts payable
Accounts payable
Convertible Note
Convertible Note
Note payable
Note payable
Provisions
Provisions
Obligations under
Obligations under
finance leases
finance leases
$
$
In less than 3
In less than 3
months
months
3,066
3,066
-
-
228
228
-
-
Between
3 months and 6
months
Between
3 months and 6
months
667
$
667
2,757
2,757
234
234
-
-
$
Payment due:
Payment due:
Between
6 months and 1
year
Between
6 months and 1
year
$
$
1,014
1,014
-
-
494
494
720
720
Between
Between
Between
Between
1 year and 2
2 years and 5
1 year and 2
2 years and 5
years
years
years
years
-
$
-
$
-
$
-
-
-
31
912
912
-
-
-
$
-
-
31
-
95
93
88
-
-
$
$
95
93
3,389
$
3,751
$
2,316
3,389
$
3,751
$
2,316
88
$
912
$
-
$
31
-
912
$
31
(d) Capital risk
(d) Capital risk
The Company’s objectives when managing its capital risk is to safeguard its assets, while at
The Company’s objectives when managing its capital risk is to safeguard its assets, while at
the same time maintaining investor, creditor, and market confidence, and to sustain future
the same time maintaining investor, creditor, and market confidence, and to sustain future
development of the business and ultimately protect shareholder value. The Company
development of the business and ultimately protect shareholder value. The Company
manages its risks and exposures by implementing the strategies below.
manages its risks and exposures by implementing the strategies below.
The Company includes shareholders’ equity, long-term notes payable and long-term
portion of obligations under finance leases in the definition of capital. Total capital at
The Company includes shareholders’ equity, long-term notes payable and long-term
December 31, 2013, was $7,141 (December 31, 2012 - $19,281). To maintain or adjust the
portion of obligations under finance leases in the definition of capital. Total capital at
capital structure, the Company may issue new shares, issue new debt with different
December 31, 2013, was $7,141 (December 31, 2012 - $19,281). To maintain or adjust the
characteristics, acquire or dispose of assets, or adjust the amount of cash and short-term
capital structure, the Company may issue new shares, issue new debt with different
investment balances held.
characteristics, acquire or dispose of assets, or adjust the amount of cash and short-term
investment balances held.
The Company has established a budgeting and planning process with a focus on cash,
working capital, and operational expenditures and continuously assesses its capital
The Company has established a budgeting and planning process with a focus on cash,
structure in light of current economic conditions and changes in the Company’s short-term
working capital, and operational expenditures and continuously assesses its capital
and long-term plans. Neither the Company nor any of its subsidiaries are subject to
structure in light of current economic conditions and changes in the Company’s short-term
externally imposed capital requirements.
and long-term plans. Neither the Company nor any of its subsidiaries are subject to
externally imposed capital requirements.
2013 Annual Report | Consolidated Financial Statements
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
Page 32
Page 32
The following summarizes key management personnel and directors compensation for the
The following summarizes key management personnel and directors compensation for the
years ended December 31, 2013 and 2012:
years ended December 31, 2013 and 2012:
Year ended December 31,
Year ended December 31,
Short-term employee benefits
Share-based payments
Short-term employee benefits
Share-based payments
$
$
$
$
$
$
2013
2013
1,658
323
1,658
1,981
323
2012
2012
1,527
381
1,527
1,908
381
The following summarizes key management personnel and directors share ownership of
$
$
1,981
1,908
The following summarizes key management personnel and directors share ownership of
the Company as of December 31, 2013 and 2012:
the Company as of December 31, 2013 and 2012:
December 31,
December 31,
Number of Class A Common shares held
Percentage of total Class A Common shares issued
Number of Class A Common shares held
Percentage of total Class A Common shares issued
2013
1,854,652
2013
2.01%
1,854,652
2.01%
2012
1,750,642
2012
2.20%
1,750,642
2.20%
17. Subsequent Event:
17. Subsequent Event:
On February 7, 2014, the Company closed a convertible promissory note for $5,000.
On February 7, 2014, the Company closed a convertible promissory note for $5,000.
Simple interest is payable at maturity at an annual rate of 16%. The note is convertible into
Simple interest is payable at maturity at an annual rate of 16%. The note is convertible into
12,486,577 common shares of the Company, at any time at the option of the holders, and
12,486,577 common shares of the Company, at any time at the option of the holders, and
includes 3,091,572 detachable warrants to purchase Class A common shares at a per share
includes 3,091,572 detachable warrants to purchase Class A common shares at a per share
price of $0.56 CDN that expire in three years. The unconverted balance is payable at
price of $0.56 CDN that expire in three years. The unconverted balance is payable at
maturity, twelve months from the date of issuance.
maturity, twelve months from the date of issuance.
The Company has the option, after six months from the closing date of the note and upon
The Company has the option, after six months from the closing date of the note and upon
sixty days notice, to repay the note at 116% of the outstanding principal balance.
sixty days notice, to repay the note at 116% of the outstanding principal balance.
52
d. Capital risk
The Company’s objectives when managing its capital risk is to safeguard its assets, while at the same
time maintaining investor, creditor, and market confidence, and to sustain future development of the
business and ultimately protect shareholder value. The Company manages its risks and exposures by
implementing the strategies below.
The Company includes shareholders’ equity, long-term notes payable and long-term portion of
obligations under finance leases in the definition of capital. Total capital at December 31, 2013, was
$7,141 (December 31, 2012 - $19,281). To maintain or adjust the capital structure, the Company may
issue new shares, issue new debt with different characteristics, acquire or dispose of assets, or adjust
the amount of cash and short-term investment balances held.
The Company has established a budgeting and planning process with a focus on cash, working
capital, and operational expenditures and continuously assesses its capital structure in light of current
economic conditions and changes in the Company’s short-term and long-term plans. Neither the
Company nor any of its subsidiaries are subject to externally imposed capital requirements.
e. Fair values
The carrying values of cash and cash equivalents, amounts receivable, unbilled revenue, accounts
payable, accrued liabilities, obligations under finance leases, convertible note and other long-term
liabilities approximate their fair value given their relatively short period to maturity. The carrying value
of long-term notes payable and obligations under finance leases approximates their fair value, as
current market rates available to the Company are similar to those on the long-term notes payable and
obligations under finance leases.
Financial instruments recorded at fair value on the Consolidated Balance Sheet are classified using a
fair value hierarchy that reflects the significance of the inputs used in making the measurements. The
fair value hierarchy has the following levels:
Level 1 – valuations based on quoted prices (unadjusted) in active markets for identical assets or
liabilities;
Level 2 – valuation techniques based on inputs other than quoted prices included in Level 1 that
are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from
prices;
Level 3 – valuation techniques using inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A
financial instrument is classified to the lowest level of the hierarchy for which a significant input has
been considered in measuring fair value.
There are no financial instruments measured at fair value. During the year, there have been no transfers
of amounts between any categories. There are no items classified in Level 2 or Level 3 as of December
31, 2013.
16. Key management personnel and director compensation:
The Company’s compensation program specifically provides for total compensation for executive officers,
which is a combination of base salary, performance-based incentives and benefit programs that reflect
aggregated competitive pay in light of business achievement, fulfillment of individual objectives and overall
job performance. Executive officers participate in the Company’s share compensation and share option
plans (Note 11).
2013 Annual Report | Consolidated Financial Statements
53
As of December 31, 2013, the Chief Executive Officer and Chief Financial Officer are each entitled an amount
equal to one year’s annual base salary in the event the Company were to terminate their employment
agreement, other than due to a material breach of the employment agreement or in the event the
Company becomes insolvent.
INTERMAP TECHNOLOGIES CORPORATION
INTERMAP TECHNOLOGIES CORPORATION
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Notes to Consolidated Financial Statements
(In thousands of United States dollars, except per share information)
Years ended December 31, 2013 and 2012
Years ended December 31, 2013 and 2012
The compensation of non-employee directors consists of a cash component and a share component.
Directors participate in the Company’s share option plan and director’s share compensation plan (Note 11).
Page 32
Page 32
The following summarizes key management personnel and directors compensation for the years ended
The following summarizes key management personnel and directors compensation for the
The following summarizes key management personnel and directors compensation for the
December 31, 2013 and 2012:
years ended December 31, 2013 and 2012:
years ended December 31, 2013 and 2012:
Year ended December 31,
2013
2012
Year ended December 31,
Short-term employee benefits
Share-based payments
Short-term employee benefits
Share-based payments
The following summarizes key management personnel and directors share ownership of
The following summarizes key management personnel and directors share ownership of the Company as of
The following summarizes key management personnel and directors share ownership of
the Company as of December 31, 2013 and 2012:
December 31, 2013 and 2012:
the Company as of December 31, 2013 and 2012:
December 31,
2013
1,658
323
1,658
1,981
323
1,981
$
$
$
$
2012
1,527
381
1,527
1,908
381
1,908
$
$
$
$
2013
2012
December 31,
Number of Class A Common shares held
Percentage of total Class A Common shares issued
Number of Class A Common shares held
Percentage of total Class A Common shares issued
2013
1,854,652
2.01%
1,854,652
2.01%
2012
1,750,642
2.20%
1,750,642
2.20%
17. Subsequent event:
17. Subsequent Event:
17. Subsequent Event:
On February 7, 2014, the Company closed a convertible promissory note for $5,000.
On February 7, 2014, the Company closed a convertible promissory note for $5,000. Simple interest is
On February 7, 2014, the Company closed a convertible promissory note for $5,000.
Simple interest is payable at maturity at an annual rate of 16%. The note is convertible into
payable at maturity at an annual rate of 16%. The note is convertible into 12,486,577 common shares of the
Simple interest is payable at maturity at an annual rate of 16%. The note is convertible into
12,486,577 common shares of the Company, at any time at the option of the holders, and
Company, at any time at the option of the holders, and includes 3,091,572 detachable warrants to purchase
12,486,577 common shares of the Company, at any time at the option of the holders, and
includes 3,091,572 detachable warrants to purchase Class A common shares at a per share
Class A common shares at a per share price of $0.56 CDN that expire in three years. The unconverted
includes 3,091,572 detachable warrants to purchase Class A common shares at a per share
price of $0.56 CDN that expire in three years. The unconverted balance is payable at
balance is payable at maturity, twelve months from the date of issuance.
price of $0.56 CDN that expire in three years. The unconverted balance is payable at
maturity, twelve months from the date of issuance.
The Company has the option, after six months from the closing date of the note and upon sixty days notice,
maturity, twelve months from the date of issuance.
The Company has the option, after six months from the closing date of the note and upon
to repay the note at 116% of the outstanding principal balance.
The Company has the option, after six months from the closing date of the note and upon
sixty days notice, to repay the note at 116% of the outstanding principal balance.
sixty days notice, to repay the note at 116% of the outstanding principal balance.
2013 Annual Report | Consolidated Financial Statements
54
Corporate Information
OFFICES
Canadian Corporate Office
Intermap Technologies Corp.
840–6th Avenue SW
Suite 200
Calgary, AB T2P 3E5
Canada
Phone: (403) 266-0900
Fax: (403) 265-0499
Denver Worldwide Headquarters
Intermap Technologies, Inc.
8310 South Valley Highway
Suite 400
Englewood, CO 80112-5809
United States
Phone: (303) 708-0955
Fax: (303) 708-0952
TRANSFER AGENT
Computershare Trust
Company of Canada
600, 530 - 8th Avenue S.W.
Calgary, Alberta T2P 3S8
Canada
AUDITORS
KPMG LLP
160 Elgin Street
Suite 2000
Ottawa, ON K2P 3S8
Canada
P.T. ExsaMap Asia
Plaza City View - 2nd Floor
Jl. Kemang Timur No.22
Pejaten Barat, Jakarta
Selatan 12510
Phone: +62 21 719 3808
Fax: +62 21 719 3818
Intermap Technologies s.r.o.
Novodvorska 1010/14
142 00 Prague 4
Czech Republic
Phone: +420 261 341 411
Fax +420 261 341 414
STOCK EXCHANGE
INTERMAP STOCK IS LISTED
ON THE TORONTO STOCK
EXCHANGE UNDER THE
SYMBOL “IMP.”
OFFICERS AND KEY PERSONNEL
Todd A. Oseth
President and CEO
Richard L. Mohr
Senior Vice President and CFO
BOARD OF DIRECTORS
Todd A. Oseth
President and CEO
Intermap Technologies
Colorado, USA
Larry G. Garberding
Chairman
Retired – Executive Vice President and CFO
DTE Energy Company
Donald R. Gardner
Corporate Director
Alberta, Canada
Dr. John C. Curlander
President and CEO
Pindrop, Inc.
Colorado, USA
Intermap Technologies
8310 South Valley Highway, Suite 400
Englewood, Colorado 80112-5809
United States
Phone: +1 (303) 708-0955
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