Icoworks

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21.11.03 16:41

4719 Postings, 6640 Tage leobmwIcoworks

bin jetzt mal bei Icoworks eingestiegen - kann noch etwas dauern aber sieht gut aus !

Ein paar Info zum Kurs :

       ariva.de


Tue Oct 28, 2003
PREMIER'S FALL CONSIGNMENT SALE GENERATES 20% MORE IN GROSS AUCTION SALES THAN EXPECTED

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 Gross Auction Sales of Over USD $3 Million

Oklahoma City, Oklahoma, October 28, 2003 - Icoworks Inc.'s (OTCBB:ICOW) (FRANKFURT:ICOW.F) wholly owned subsidiary, Premier Auctioneers International, Inc., is pleased to announce that its 17th Annual Fall Consignment Sale of oilfield equipment and rolling stock attracted strong participation from local and foreign buyers resulting in a 20% increase in gross auction sales. Additionally, the largest single item sale came from an internet bidder and 20% of the total revenue came from online sales.

"This is the first major auction Premier has conducted under Icoworks' ownership and we were extremely pleased with the efficiency of the auction, the international bidder participation and the solid prices during this two-day event," stated Mr. Graham Douglas, President of Icoworks Holdings Inc. "The success of this auction can be directly attributed to the dedication and talent of the Premier team."

The Premier team is getting geared-up for the next oilfield equipment, drilling, well service and rolling stock auction to be held in Odessa, Texas on December 6th and 7th. The next Oklahoma City auction will be held on January 20th and 21st, 2004 and a featured rig is already in transport to the sales yard.

About Icoworks Inc.
Icoworks Inc. has acquired a 56% interest in Icoworks Holdings Inc. (www.icoworks.com) an integrated Commercial/Industrial Auction company. In November of 2002 Icoworks Inc. announced its intent to merge with Icoworks Holdings. Icoworks Inc. plans to acquire the remaining 44% interest in Icoworks Holdings by issuing two shares of its common stock for each remaining share of Icoworks Holdings. The Icoworks merger remains subject to approval by the shareholders. The shareholder meeting will be held once requisite regulatory documents have been prepared and filed.

Icoworks, through its subsidiaries, offers a complete array of industrial, oilfield and commercial appraisal, liquidation and auction services. Every Icoworks auction or liquidation benefits from many years of experience in the industry, and a corresponding network of almost 200,000 proven purchasers. Icoworks Holdings has a 25-year history of profitability, qualified experienced management, excellent industry contacts, and a high-quality reputation for finding qualified buyers for their sellers.


News Releases
 Tue Nov 4, 2003
Icoworks Purchases Plant Equipment And Hardwood Flooring Inventory Of Janus Flooring For Liquidation

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 Total Gross Sales Estimated at CDN $3.2 Million

Toronto, Ontario, November 4, 2003, Icoworks Inc.'s (OTCBB:ICOW) (FRANKFURT:ICOW.F) wholly owned subsidiary, Icoworks Eastern Limited ("Icoworks"), is pleased to announce that it has acquired the hardwood flooring inventories of Janus Flooring Corporation, as well as the equipment and other contents of its hardwood flooring manufacturing plant, and anticipates liquidating the inventory for total gross sales of approximately CDN $3.2 Million.

"This is our first major liquidation in the Metro Toronto area, and we anticipate an active liquidation of this fine hardwood flooring as we approach the Christmas buying season," stated Mr. Graham Douglas, President of Icoworks Holdings Inc.

Icoworks will be liquidating the hardwood flooring which includes red and white oak, maple, birch, ash, bamboo, exotics and parquet flooring, as well as auctioning all manufacturing equipment including moulds, saws and dust collectors. The liquidation will be held at 1, Laird Drive, Toronto, Ontario at 8:00 AM EST on November 30, 2003. To preview these items please visit our website at www.icoworks.com or contact Ron Krause at (403) 680-7742.

About Icoworks Inc.
Icoworks Inc. has acquired a 56% interest in Icoworks Holdings Inc. (www.icoworks.com) an integrated Commercial/Industrial Auction company. In November of 2002 Icoworks Inc. announced its intent to merge with Icoworks Holdings. Icoworks Inc. plans to acquire the remaining 44% interest in Icoworks Holdings by issuing two shares of its common stock for each remaining share of Icoworks Holdings. The Icoworks merger remains subject to approval by the shareholders. The shareholder meeting will be held once requisite regulatory documents have been prepared and filed.

Icoworks, through its subsidiaries, offers a complete array of industrial, oilfield and commercial appraisal, liquidation and auction services. Every Icoworks auction or liquidation benefits from many years of experience in the industry, and a corresponding network of almost 200,000 proven purchasers. Icoworks Holdings has a 25-year history of profitability, qualified experienced management, excellent industry contacts, and a high-quality reputation for finding qualified buyers for their sellers.

- 30 -






       

21.11.03 17:31

4719 Postings, 6640 Tage leobmwheute noch für 0,26 Euro zu haben !! o. T.

21.11.03 19:28

4719 Postings, 6640 Tage leobmwreiner Zock ?

Umsätze ziehen an - neue Meldung liegt in der Luft - und im Moment auf Tiefstkurs !!

Was will man mehr !

Gruß
leo  

21.11.03 21:51

4719 Postings, 6640 Tage leobmwMontag !! o. T.

24.11.03 13:04

4719 Postings, 6640 Tage leobmwInfo .

10QSB: ICOWORKS INC  
 
(EDGAR Online via COMTEX) -- Item 2. Managements Discussion and Analysis or Plan of Operations


FORWARD LOOKING STATEMENTS

The information in this discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding our capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks outlined below, and, from time to time, in other reports we file with the SEC including our Annual Report on Form 10-KSB for the three months ended September 30, 2003. These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements, or disclose any difference between our actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.


OVERVIEW

Icoworks Inc. (formerly Paragon Polaris Strategies.com Inc.) (We, Icoworks or the Company) is engaged in the auction and asset realization business through our investment in 56% of the outstanding stock of Icoworks Holdings, Inc., a Nevada corporation (Icoworks Holdings).

Icoworks Holdings is engaged in the asset realization business and is a provider of a full and comprehensive range of auction, liquidation and appraisal services to the industrial, oilfield, commercial and office markets. Icoworks Holdings business operations have historically been based in Calgary, Alberta, Canada and have recently been expanded to include a subsidiary operation in Oakville, Ontario, Canada and, subsequent to the end of our fiscal year, Premier Auctions based in Texas and Oklahoma. Icoworks Holdings plans to expand its business, both through the expansion of its traditional auction, liquidation and appraisal services and through the acquisition of other businesses engaged in the asset realization business that complement Icoworks Holdings growth strategy. Icoworks Holdings also plans to enhance its traditional services by the use of technology, including the use of live internet auctions, online internet auctions and technology-assisted auctions, in order to expand the scope of potential purchasers for its asset realization business and to facilitate auction transactions.

Icoworks Holdings recently completed the acquisition of Premier Auctions, a Texas and Oklahoma based auction business specializing in the oil and gas industry on August 29, 2003. Icoworks Holdings has also entered into an agreement to acquire Santiago Classic Car Auctions, a New Mexico based auction business specializing in classic automobiles.

We do not have any business or subsidiaries other than our 56% interest in Icoworks Holdings.


PRESENTATION OF FINANCIAL INFORMATION

We completed the acquisition of our 56% interest in Icoworks Holdings effective February 20, 2003. Under United States generally accepted accounting principles, our financial statements have been prepared using reverse-acquisition accounting principles, which result in Icoworks Holdings acquiring Icoworks for accounting purposes. Accordingly, Icoworks Holdings is treated as the acquirer for accounting purposes, even though Icoworks is the legal acquirer. Under United States generally accepted accounting principles, comparative figures for prior periods are based on the operating results of Icoworks Holdings, but the type of share capital and number of issued and outstanding shares continue to reflect those of Icoworks. Therefore, our consolidated financial statements include the accounts of Icoworks Holdings and its legal subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation. Comparative figures reported in our financial statements for the three months ended September 30, 2002 are for Icoworks Holdings only. Further adjustments were also required as outlined in the notes to the financial statements. We have adopted the June 30 year end of Icoworks Holdings to reflect the accounting treatment of the acquisition, rather than proceeding with our previous December

31 year end. Due to the fact that we own less than 100% of Icoworks Holdings, our financial statements account for the minority interest in Icoworks Holdings that we do not own.

We acquired the business of Premier Auctions effective August 29, 2003. The results of operations of Premier Auctions for the period from August 29, 2003 to September 30, 2003 are included in our statements of operations and our statement of cash flows for the periods ended September 30, 2003. Our balance sheet at September 30, 2003 accounts for the acquisition of Premier Auctions.


RESULTS OF OPERATIONS

Revenues

We earn revenues from two principal activities, namely auction revenues and held for sale revenues. Auction revenues are comprised of buyers premiums, being premiums over and above the purchase prices of items sold, and commissions paid by consigners of items for auctions. Held-for-sale revenues are comprised of revenues from items purchased and held for sale and/or liquidation. Revenue is recognized once the auction or sales are completed and collections reasonably assured. Other commissions are earned by us when we provide guarantees on the gross proceeds to be received from sale to a consigner. We conduct our sales where we temporarily acquire title to goods pending sale. We also enter into joint venture agreements through our subsidiary, Icoworks Joint Ventures, whereby goods are purchased for resale on a joint venture basis. When these activities are conducted on a joint venture basis, the profits are divided between us and the joint venture party on a negotiated basis. If the actual proceeds are less than cost, or less than the guaranteed price, then we may be required to fund any shortfall. The structure of sales varies from sector to sector as do the amounts of commissions and buyers premiums and accordingly, the nature of our revenues in any period will depend on the mix of sales which are conducted during the period.

We also earn fees charged for appraisals. Revenue from appraisals is recognized when work is completed and collection is reasonably assured.

Our revenues increased to $3,246,873 for the three months ended September 30, 2003, compared to $580,442 for the three months ended September 30, 2002. Our increase in revenues is attributable to the following factors:

1. We have expanded the operations of Icoworks Holdings through


the establishment of Icoworks Eastern in the Province of
Ontario and the opening of a branch office in Surrey, British
Columbia in our fiscal year ended June 30, 2003 and the
acquisition of Premier Auctions in our fiscal quarter ended
September 30, 2003. Our results of operations for the three
months ended September 30, 2002 included only the results of
operations of Icoworks Services, whereas results of
operations for the three months ended September 30, 2003
include the results of operations of Icoworks Services,
Icoworks Eastern (a 75% subsidiary of Icoworks Holdings) and
Premier Auctions (for the period from August 29, 2003 to
September 30, 2003).


2. We have expanded the revenue generating operations carried
out by Icoworks Holdings. Our revenues for the three months
ended September 30, 2002 were comprised primarily of auction
revenues attributable to the operations of Icoworks Services,
whereas revenues for the three months ended September 30,
2003 include auction revenues attributable to the operations
of Icoworks Services and Premier Auctions (for the period
from August 29, 2003 to September 30, 2003) and held-for-sale
revenues attributable to bought-deal sales conducted by
Icoworks Eastern.


3. The held-for-sale revenues attributable to bought-deal sales
conducted by Icoworks Eastern increased substantially in our


first quarter due to ongoing auctions of wood products and
associated equipment and books that had been acquired as
inventory in our fiscal year ended June 30, 2002. Revenues
from Icoworks Eastern comprised approximately $2,632,000 of
our revenues for the three months ended September 30, 2003
compared to nil for the three months ended September 30,
2002.


4. The acquisition of Premier Auctions contributed revenue of
approximately $188,000 for the three months ended September
30, 2003.

Revenues from Icoworks Services declined to approximately $426,000 for the three months ended September 30, 2003 from $580,422 for the three months ended September 30, 2002. Variations in our operating results on a quarter by quarter basis may in part be explained due to the nature of the auction business. Our auction business involves large sales of items through auctions. The scheduling of these large auction sales will impact on the timing of revenues earned and will result in quarter by quarter variations in revenues and consequent operating results.

Cost of Sales

Our cost of sales increased to $2,794,133 for the three months ended September 30, 2003 from $130,207 for the three months ended September 30, 2002. The increase in our costs of sales during our first quarter was primarily attributable to costs of sales in the approximate amount of $2,397,000 attributable to bought deal sales conducted by Icoworks Eastern during our first quarter. Cost of sales attributable to Icoworks Services increased to approximately $323,000 for the three months ended September 30, 2003 from $130,207 for the three months ended September 30, 2002. Costs of sales attributable to Premier Auctions was approximately $73,000.

Net Auction Revenue

Our net auction revenue was $452,740 for the three months ended September 30, 2003, compared to $450,235 for the three months ended September 30, 2002. Net auction revenue as a percentage of sales decreased to 14.0% for the three months ended September 30, 2003, compared to 77.6% for the three months ended September 30, 2002. The decrease in net auction revenue was in part attributable to the shift in our revenues from auction revenues to held for sale revenues. We experienced lower net auction revenues with respect to held for sale revenues due to the cost of acquisition of the inventory that is sold in held for sale revenues.

Other Revenue

Other revenue is comprised of revenues earned from appraisal services. Other revenues increased to $47,709 for the three months ended September 30, 2003 from $36,413 for the three months ended September 30, 2002. Other revenues for the three months ended September 30, 2003 included $41,751 of appraisal fees attributable to Premier Auctions. Other revenues attributable to DM International Appraisals, a wholly-owned subsidiary of Icoworks Holdings, decreased from $36,413 for the three months ended September 30, 2002 to $5,957 for the three months ended September 30, 2003. We expect that Premier Auctions will continue to contribute to increased appraisal revenue in the future as our previous appraisal revenues were limited to our Alberta operations.

Expenses

Our operating expenses increased to $1,245,077 for the three months ended September 30, 2003, compared to $664,071 for the three months ended September 30, 2002. The large increase in operating expenses is attributable to the following factors:

1. The expansion of our operations into Ontario, Canada and British


Columbia, Canada, from our initial base in Calgary, Alberta
during our fiscal year ended June 30, 2003. As a result of this
expansion, salaries and wages increased to $324,425 for the
three months ended September 30, 2003 from $255,148 for the
three months ended September 30, 2002. In addition, rent
increased to $124,245 for the three months ended September 30,
2003 from $nil for the three months ended September 30, 2002;


2. Our acquisition of Premier Auctions during our fiscal quarter
ended September 30, 2003. Accordingly, our expenses for the
three months ended September 30, 2003 include expenses
attributable to the operations of Premier Auctions from August
29, 2003 to September 30, 2003;


3. Our professional fees increased to $147,049 for the three months
ended September 30, 2003 from $30,402 for the three months ended


September 30, 2002 as a result of our becoming a reporting
company under the Securities Exchange Act of 1934;


4. We incurred financing fees in the amount of $149,250
during the quarter ended September 30, 2003, compared to
nil for the three months ended September 30, 2003, as a
consequence of our arranging financing for the acquisition
of Premier Auctions.

We anticipate that our operating expenses will continue to increase as the operations of Premier Auctions are fully incorporated into our operating results and as we continue our expansion strategy.

Net Loss

Our net loss increased to $677,906 for the three months ended September 30, 2003, compared to $99,357 for the three months ended September 30, 2002. Our increased loss is primarily attributable to the increases to our operating expenses that were not off-set by increases in net revenues.


LIQUIDITY AND FINANCIAL CONDITION

Cash and Working Capital

We had cash of $1,503,260 as at September 30, 2003 compared to cash of $448,404 as at June 30, 2003. We had a working capital deficiency of $3,621,837 as at September 30, 2003 compared to a working capital deficiency of $1,562,863 as at June 30, 2003. Our working capital deficiency is the result of a number of factors including the expansion of operations and continuing losses. We anticipate that we will require additional funding in order to achieve profitable operations and to implement our plan of operations.

Financial Arrangements and Guarantees Used to Acquire Inventory

The amount of financial arrangements and guarantees used to acquire inventory outstanding was $4,453,715 as at September 30, 2003, compared to $2,449,626 as at June 30, 2003. This amount as at September 30, 2003 included a liability to the participants in the Icoworks Joint Venture bought deal fund, as discussed below, that was outstanding in the amount of $1,372.922 at September 30, 2003 and a liability in the amount of $2,000,000 owed in respect of the Icoworks US JV bridge loan facility that was obtained to enable Icoworks Holdings to acquire Premier Auctions. The balance of $1,080,793 was comprised of amounts that we had guaranteed to receivers and consignors with respect to goods to be auctioned by us where we have guaranteed a minimum sales price to the receivers and consignors. In these arrangements, we are at risk as to the ultimate sales price of the goods to be sold. Accordingly, the goods that are the subject of these arrangements are recorded by us as inventory.

Cash From Operating Activities

Cash provided by operating activities was $3,074,738 during the three months ended September 30, 2003, compared to cash used in operating activities in the amount of $120,169 during the three months ended September 30, 2002. We experienced a decrease in inventory in the amount of $1,219,871 during this quarter which included an amount of $728,288 in respect of a guarantee assumed in respect of acquisition of inventory.

Financing Activities

Cash provided by financing activities was $1,392,334 for the three months ended September 30, 2003 compared to cash provided by financing activities in the amount of $161,197 for the three months ended September 30, 2002. Cash provided by financing activities included proceeds of $2,000,000 from the Icoworks US JV bridge loan facility. Cash provided by financing activities included an offset in respect of the repayment of guarantees in the amount of $904,104 and an offset in respect of repayments to the Icoworks Joint Venture financial arrangement in the amount of $814,573.

We have access to a fund of capital in the amount of $2,295,616 through the Icoworks Joint Venture financial arrangement which we anticipate will be used to finance the acquisition of inventory and assets for resale on a project by project basis. These joint ventures financial arrangements and our obligations thereunder are described below under Icoworks Joint Ventures.

We anticipate that we will require additional financing in the amount of $500,000 over the next twelve months in order to fund our shortfall in cash used in operating activities. See discussion below under Financing Requirements.

Icoworks Joint Ventures

Icoworks Holdings has incorporated a subsidiary, Icoworks Joint Ventures Inc. (Icoworks Joint Ventures), for the purpose of acting as a bare trustee for participants who advance funds for the purpose of financing and selling bought deals. Icoworks Holdings and Icoworks Joint Ventures have entered into joint venture agreements with several initial participants. The purpose of the joint venture formed pursuant to the joint venture agreement is to provide a financing arrangement that will provide funding to enable us to purchase and resell various types of assets being liquidated in receiverships and bankruptcy on a bought deal basis. Assets purchased will be resold using the services of Icoworks Holdings. The joint venture will plan to generate profit by selling these assets at a higher price than the original purchase cost plus costs of sale. Under the joint venture agreements, Icoworks Holdings will carry out the purchase and sale of assets for each bought deal. Icoworks Joint Ventures has agreed to pay to Icoworks Holdings 3.5% of the gross sale price of the assets to compensate Icoworks Holdings for sale costs relating to the marketing, promotion and resale of the purchased assets. The gross profit, being the sale price of each completed sale, less acquisition costs, sale costs and any additional costs, will be distributed as follows:

(1) 65% to Icoworks Holdings, and (2) 35% to be divided proportionately to each of the joint venture participants.

Icoworks Holdings has guaranteed a return to each joint venture investor of 15% per annum. The terms of the joint venture agreements are for a minimum of one year and a maximum of three years. Icoworks Holdings will report quarterly to the joint venture participants and distributions will be made on a quarterly basis of cash available for distribution. The joint venture participants will have the option to convert their investments in Icoworks Joint Ventures into shares of our common stock at any time within one year of their initial investment by the exercise of warrants granted to the participants at an amended exercise price of $0.54 per share. To date, a total of $2,295,616 has been made available by participants of which $1,372,922 was outstanding as of September 30, 2003. As at September 30, 2003, we would be liable for $344,342 in each of the twelve month periods ended June 30, 2004 and 2005 if we are required to pay the participants based on our guarantee obligation.

Icoworks Joint Ventures was formed during the fourth quarter of fiscal 2003 and participated in four bought deals during the fourth quarter. Funds advanced by the joint venture participants are held in trust by Icoworks Joint Ventures for the joint venture participants until such time as funds are advanced to fund a bought-deal acquisition.

Bridge Loan Facility - Icoworks US JV Inc.

Icoworks Holdings incorporated Icoworks US JV Inc. in the United States for the purpose of arranging for bridge loan financing to enable it to acquire the assets of Premier Auctions and Santiago Classic Car Sales. Icoworks US JV Inc. was incorporated for the purpose of acting as a bare trustee for the investors who advanced the bridge loan. The borrower under the bridge loan was Icoworks Services US and the bridge loan has been guaranteed by Icoworks Holdings. The bridge loan facility is for a principal amount of $2,000,000. Advances under the bridge loan facility accrue interest at the rate of 3% per month from the date of advance. Interest accrued on the bridge loan is repayable on November 15, 2003 or thereafter at the demand of the lender. The principal amount of the bridge loan and accrued interest is repayable on or before February 28, 2004. The bridge loan facility is secured by a promissory note, an assignment of proceeds from the exercise of warrants issued to the participants in the Icoworks Joint Venture, a guarantee and postponement of claims by Icoworks Holdings, a pledge of the shares of any corporation acquired and, at the request of the lender, a mortgage of any lands acquired. The full amount of the principal advanced under the bridge loan facility is convertible into shares of Icoworks at a price of $0.35 per share of common stock.

A total of $2,000,000 was advanced under the bridge loan facility during the three months ended September 30, 2003. Of the amount advanced, $1,500,000 was used to acquire the assets of Premier Auctions, $250,000 is planned to be used to acquire Santiago Classic Car Sales and the balance has been applied to working capital.

Completion of Merger with Icoworks Holdings

We plan to complete the merger with Icoworks Holdings in order to acquire the remaining 44% interest in Icoworks Holdings that we do not currently own. We anticipate that the completion of this acquisition will take approximately six months and will cost approximately $100,000 due to the fact that we must file a registration statement with the United States Securities and Exchange Commission to register the shares to be issued to the remaining shareholders of Icoworks Holdings.

Financing Requirements

We will require additional financing over the next twelve months. We anticipate that we will require financing in the amount of approximately $500,000 to fund the shortfall in cash used in operating activities. In addition, we will require financing in the amount of $2,000,000 plus accrued interest in order to repay the bridge loan facility obtained through Icoworks US JV. This loan must be repaid on or before February 28, 2004. We also plan to pursue our acquisition strategy and anticipate that any future acquisitions will be completed using new financings that will have to be negotiated and obtained on a transactional basis.

Our financing requirements are in excess of our current financial resources. We plan to pursue equity financings involving sales of our common stock or convertible preferred stock in order to raise financing to fund our ongoing capital requirements. It is contemplated that funds we raise would be advanced by us to Icoworks Holdings as a loan pending the completion of the merger with Icoworks Holdings. We do not have any arrangements for financing currently in place. There is no assurance that we will be successful in raising the necessary financing to meet our financing requirements.

We have announced a private placement of up to 2,000,000 units at a price of $0.35 per unit. Each unit is to be comprised of one share of our common stock and one share purchase warrant. No sales of units have been completed to date and there is no assurance that this private placement will complete.

In the event that we are successful in achieving financing, we anticipate advancing funds to Icoworks Holdings to fund bought deals and the acquisition strategy of Icoworks Holdings as a loan pending the completion of the merger of Icoworks Holdings. These loans may be advanced as secured or unsecured loans. In the event that we advance funds to Icoworks Holdings, there will be no assurance that these funds will be repaid by Icoworks Holdings. If the business of Icoworks Holdings is not successful in generating sufficient funds to repay these loans, then our financial condition will be adversely affected. In addition, there is a risk that we will advance substantial funds to Icoworks Holdings and the merger of Icoworks Holdings will not proceed. In the event that we are unable to raise additional financing under acceptable terms, then we may not be able to proceed with our plan of operations or we may be required to scale back our plan of operations. We also anticipate that we will continue to incur losses until such time as we are able to generate profits from the business of Icoworks Holdings and its expansion strategy.


CRITICAL ACCOUNTING POLICIES

Revenue Recognition

Revenues mainly consist of auction revenues and held-for-sale revenues. Auction revenues are comprised of buyers premiums, being premiums over and above the purchase prices of items sold, and commissions paid by consignors of items for auction. Held for sale revenues are comprised of revenues from items purchased and held-for-sale and or liquidation. Revenue is recognized once the auction or sales are completed and collection is reasonably assured. Other commissions are earned when we provide guarantees on the gross proceeds to be received from sale to the consignor.

We conduct these sales where we, or in joint venture with others, temporarily acquire title to the goods. When

these activities are conducted, the profits are divided between us and the joint venture partners on a negotiated basis. If the actual proceeds are less than cost, or less than the guaranteed price, we may be required to fund the shortfall, as discussed above.

Revenue is also earned from fees charged for appraisals and is recognized when the work is completed and collection is reasonably assured.

Foreign Currency Translation

We have determined that the functional currency of certain of our wholly-owned and partially-owned subsidiaries is the local currency, the Canadian dollar. Assets and liabilities denominated in foreign currency are translated into U.S. dollars at the period end exchange rates. Revenue and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings. Related exchange gains and losses are included in a separate component of shareholders' equity under other comprehensive income. Exchange gains and losses resulting from foreign currency transactions are included in income for the period.

Inventory

Inventory is stated at the lower of cost or market. Cost is generally determined on the first-in, first-out basis.

Intangible Assets

The carrying value of intangible assets is re-evaluated for potential permanent impairment on an ongoing basis at the reporting unit level. In order to determine whether permanent impairment exists, management considers the Companys and its subsidiaries financial condition as well as expected pre-tax earnings, discounted cash flows or market related values. If the carrying value of intangible assets of a reporting unit exceeds the fair value of the reporting unit, the carrying value of intangible assets must be written down to fair value in the year the impairment is recognized.


 

07.01.04 21:59

4719 Postings, 6640 Tage leobmwbin wieder drin - und Ihr ? o. T.

07.01.04 22:00

5952 Postings, 7524 Tage grenkelol o. T.

07.01.04 22:04

4719 Postings, 6640 Tage leobmwna dann !! o. T.

07.01.04 22:05

5952 Postings, 7524 Tage grenkethanks leo, dein tipp, danke o. T.

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