Q1-02 US GAAP - MKS

Mortice Kern Systems Inc.
Consolidated Statements of Cash Flows
(Dollar Amounts in US, In Thousands, Unaudited)
US GAAP
Three Months Ended July 31
2001 2000
(Unaudited)
Cash flows from operating activities:
Net loss ............................................................................................ $ (1,407) $ (12,475)
Adjustments to reconcile net loss to net cash
provided by (used for) operating activities:
Deferred income taxes .................................................................. – (549)
Depreciation and amortization of fixed assets................................... 365 314
Amortization of intangibles ............................................................. 64 272
Write down of intangibles .............................................................. – 8,091
Interest on deferred compensation .................................................. 29 30
Change in operating assets and liabilities, net of acquired balances:
Accounts receivable ...................................................................... 795 3,186
Other current assets ..................................................................... (294) 480
Accounts payable, net of deferred compensation ............................. 446 286
Accrued liabilities ......................................................................... (952) (298)
Income taxes payable ................................................................... (35) (439)
Deferred revenue ........................................................................... (716) (1,027)
Net cash used for operating activities .................................................. (1,705) (2,129)
Cash flows from investing activities:
Purchase of fixed assets ................................................................. (76) (471)
Net cash used for investing activities ................................................... (76) (471)
Cash flows from financing activities:
Proceeds on issuance of common shares ......................................... 145 420
Payments of deferred compensation ................................................. (182) –
Net cash provided by (used for) financing activities ................................ (37) 420
Effect of exchange rate changes on cash balances ............................... – 126
Change in cash and cash equivalents .................................................. (1,818) (2,054)
Cash and cash equivalents, beginning of period .................................... 9,005 8,193
Cash and cash equivalents, end of period ............................................ $ 7,187 $ 6,139
Supplemental schedules:
Cash paid for:
Interest .......................................................................................... $ 3 $ 32
Income taxes ................................................................................. $ 35 $ 360
See accompanying Notes to Consolidated Financial Statements prepared in accordance with accounting
principles generally accepted in the United States of America