Intermap Technologies Reports Fourth Quarter and Year-End 2008

Intermap Technologies Reports Fourth Quarter and Year-End 2008 Financial Results

INTERMAP TECHNOLOGIES CORPORATION Consolidated Statements of Operations, Comprehensive Loss and Deficit (In thousands of United States dollars)

	2008			2007

Revenue:
Contract services	$	26,212		$	28,211
Multi-client data licenses		10,812			5,576
		37,024			33,787
Operating costs:
Operations		8,245			11,620
Research and development		3,953			3,689
Sales, general and administrative		25,907			20,994
Depreciation of property and equipment		4,437			4,846
Amortization of multi-client data library		6,846			4,518
Amortization of intangible assets		422			353
Loss on disposal of property and equipment		683			35
		50,493			46,055

Loss before interest, foreign exchange and income taxes		(13,469	)		(12,268	)

Interest expense		(289	)		(145	)
Interest income		1,022			2,279
Gain (loss) on foreign currency translation		(1,108	)		920
Non-controlling interest		-			(7	)

Loss before income taxes		(13,844	)		(9,221	)

Income tax expense (recovery)
Current		105			80
Future		(3	)		(390	)
		102			(310	)

Net loss and comprehensive loss		(13,946	)		(8,911	)

Deficit, beginning of year		(38,719	)		(29,711	)
Redemption of shares		-			(97	)

Deficit, end of year	$	(52,665	)	$	(38,719	)

Basic and diluted loss per share	$	(0.30	)	$	(0.22	)

Weighted average number of Class A common shares - basic and diluted		46,158,017			40,417,408

INTERMAP TECHNOLOGIES CORPORATION Consolidated Balance Sheet (In thousands of United States dollars)

		December 31,			December 31,
		2008			2007

Assets

Current assets:
	Cash and cash equivalents	$	27,247		$	56,835
	Amounts receivable		9,862			4,957
	Unbilled revenue		1,750			11,741
	Prepaid expenses		1,635			1,429
			40,494			74,962

Property and equipment			20,782			23,372
Multi-client data library			81,156			55,113
Intangible assets			1,331			1,753
Future income taxes			230			329
		$	143,993		$	155,529

Liabilities and Shareholders' Equity

Current liabilities:
	Accounts payable and accrued liabilities	$	7,858		$	8,404
	Current portion of deferred lease inducements		205			219
	Deferred revenue		1,177			340
	Income taxes payable		12			19
	Current portion of obligations under capital lease		344			231
	Current portion of long-term debt		856			748
			10,452			9,961

Deferred lease inducements			172			393
Obligations under capital lease			357			229
Long-term debt			2,286			3,016
Future income tax liability			319			421
			13,586			14,020

Shareholders' equity:
	Share capital		172,288			171,621
	Contributed surplus		4,590			2,413
	Deficit		(52,665	)		(38,719	)
	Accumulated other comprehensive income		6,194			6,194
			130,407			141,509

		$	143,993		$	155,529

INTERMAP TECHNOLOGIES CORPORATION Consolidated Statements of Cash Flows (In thousands of United States dollars)

			2008			2007

Cash flows provided by (used in) :

Operations:
	Net loss		$	(13,946	)	$	(8,911	)
	Items not involving cash and cash equivalents:
		Depreciation of property and equipment		4,437			4,846
		Amortization of multi-client data library		6,846			4,518
		Amortization of intangible assets		422			353
		Stock-based compensation		2,426			2,182
		Loss on disposal of property & equipment		683			35
		Amortization of deferred lease inducements		(220	)		(175	)
		Future income taxes		(3	)		(390	)
	Change in non-cash operating working capital			6,134			(6,173	)
				6,779			(3,715	)

Financing:
	Proceeds from issuance of common shares			418			49,059
	Proceeds from issuance of long-term debt			605			2,522
	Repayment of long-term debt			(850	)		(538	)
	Repayment of obligations under capital lease			(261	)		(323	)
	Common shares issuance costs			-			(2,413	)
	Redemption of common shares			-			(266	)
				(88	)		48,041

Investments:
	Purchase of property and equipment			(5,147	)		(10,452	)
	Investment in multi-client data library			(29,770	)		(24,891	)
	Business acquisition cost, net of cash acquired			-			(1,330	)
				(34,917	)		(36,673	)

Effect of foreign exchange on cash				(1,362	)		1,012

Increase (decrease) in cash and cash equivalents				(29,588	)		8,665

Cash and cash equivalents, beginning of year				56,835			48,170

Cash and cash equivalents, end of year			$	27,247		$	56,835

Supplemental cash flow information:
	Cash paid for interest expense		$	289		$	145

	Cash paid for income taxes		$	105		$	64