Friday,
March 26, 2010
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News
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Atna Resources Reports Fourth Quarter and Year End 2009 Results
Golden,
CO - Atna Resources Ltd. ("Atna" or the "Company")
(TSX:ATN OTCBB:ATNAF) today reported audited financial results for the
Company's fourth quarter and 2009 year end for the period ended December
31, 2009. The Company's 20-F and management's discussion and analysis for
the period are available on www.sedar.com and the Company's website at
www.atna.com. Unless otherwise designated, all amounts are in U.S.
dollars.
"Atna completed a successful start-up of operations at its Briggs
Mine in California and completed permitting activities for its Reward
Mine in Nevada. In addition, the compliant gold resource base for the
Company was increased by more than 80 percent. In 2010, the staff and
management of Atna will focus diligently on increasing production and
reducing operating costs at Briggs, continuing the development of Reward,
completing an economic assessment of the Columbia project, and unlocking
value from its interest in the Pinson project," states James
Hesketh, President & CEO.
Highlights
- Revenues of $8.7 million
- Cash and cash equivalents
at year end of $13.1 million
- Net loss of $6.0 million
or a loss per share of $0.07
- An 81 percent increase in
measured and indicated gold resource, for a total of 2.0 million
ounces, net of ounces mined in 2009
- An increase of 112 percent
in inferred gold resource for a total 1.2 million ounces, net of
ounces mined
- Gold production of 11,195
ounces of gold in dor�, and gold sales of 10,886 ounces at an
average gold price of $962 per ounce valued at $10.4 million
- Cash cost of $908 per
ounce for second half 2009 due to unforeseen start up problems
- A measured and indicated
mineral resource was declared for the Columbia gold project totaling
741,700 ounces of gold and 2.1 million ounces of silver. Inferred
mineral resource totaled an additional 453,600 ounces of gold and
1.0 million ounces of silver
- Closed in December 2009 an
offering of a $14.5 million gold participating bond ("Gold
Bonds").
- Closed in September 2009 a
$1.5 million convertible debt financing
Financial
Results
At December 31, 2009, cash and cash equivalents totaled $13.1 million.
Net cash used in 2009 for operating activities was $11.5 million,
primarily consisting of the net cash loss from operations plus cash
expended to build gold inventory-in-process of approximately 8,300 ounces
with an inventory value of $6.9 million. Net cash used in investing
activities of $6.0 million was due to purchases of property, plant and
equipment at the Briggs Mine partially offset by proceeds from sales of
assets. Net cash provided by financing activities of $13.8 million
included $13.6 million in net proceeds from the issuance of the Gold
Bonds and $1.4 million in net proceeds from the issuance of debentures partially
offset by $1.1 million of payments on capital leases.
For the year ended December 31, 2009, Atna recorded a net loss of $6.0
million, or a loss per share of $0.07, on revenues of $8.7 million. This
compares to net income of $15.8 million, or income per share of $0.20, on
revenues of $0.2 million for the year ended December 31, 2008.
2010 Outlook and Objectives
- Further increase
reserves/resources at both the Briggs and Reward mines
- The Briggs Mine is
expected to produce positive cash flow in 2010 at a production
target of 36,000 to 40,000 ounces of gold for the year
- Cash cost of production
for 2010 is estimated to range from $600 to $625 per ounce of gold
- The 2010 goal for Briggs
is to improve operational productivity while containing costs
- Complete infrastructure
development at the Reward Mine and initiate project construction
- Complete an economic
assessment of the Columbia project; continue permitting activities,
baseline environmental sampling, metallurgical test work and
initiate feasibility study
- Advance our opportunities
arising from the interest held in the Pinson project
Briggs Mine, California (100%)
Commercial production at Briggs was declared on February 26, 2010, when
the mine produced 80 ounces of gold per day for a period of greater than
30 days. At this production rate, the mine should produce sufficient cash
flow to support both its operational and capital requirements, as well as
support corporate overheads and return cash to the Company. The Briggs
Mine is expected to produce positive cash flow in 2010 at a production
target of 36,000 to 40,000 ounces of gold for the year. Cash cost of
production for 2010 is estimated to decline to $600 to $625 per ounce of
gold. The life of mine cash cost of production for current reserves is
expected to range from $500 to $525 per ounce of gold.
Approximately $15.7 million in capital has been spent on the Briggs
project through December 31, 2009. Capital spending for 2010 at Briggs is
projected to be approximately $5.1 million, primarily for capital lease
payments for major mining equipment and leach pad expansion. The pad expansion
will add an additional seven million tons of leach pad capacity, which
will be sufficient for all ores included in the current reserves.
Briggs Satellite Project (100%)
The Cecil R satellite project is located four miles north of the Briggs
Mine. In March 2010, Atna declared a measured and indicated gold mineral
resource containing 73,490 ounces and an inferred gold mineral resource
containing 99,390 ounces (at a 0.01 oz/ton Au cut-off). Gold
mineralization at Cecil R is hosted by the same geologic unit which hosts
the nearby Briggs Mine gold deposit. The gently west dipping blanket-like
zone of gold mineralization dips beneath Quaternary gravel cover and is
distributed over an area 1,500 feet by 1,200 feet and has a thickness of
10 to 60 feet.
Work on the Cecil R project will continue during 2010 with economic
evaluation of the newly defined resource, baseline environmental studies,
infill drilling to upgrade resource classification, metallurgical
testing, and permitting.
Reward Project, Nevada (100%)
The Company has received all major permits required to initiate
development activities. A project manager has been retained for the
project and an office has been opened in Beatty, Nevada. Immediate
development activities include the completion of design engineering,
development of contractor bid packages, and initial infrastructure
development. Infrastructure development includes access road
improvements, fencing, and placement of orders for long lead-time items,
power line and water supply development. Anticipated cost for this phase
of work will be approximately $3.0 million to be expended over a period
of up to six months beginning in March 2010.
The Reward operation is expected to produce approximately 139,000 ounces
of gold over a five year mine life at estimated average cash cost of $435
per ounce of gold produced. The feasibility study included capital costs
of $24.3 million for crushing and process plants, leach pads, other
facilities and infrastructure, mining fleet and deferred stripping. The
Company is currently updating project capital and economic estimates to
reflect higher gold prices, more accurate operating costs and increased
gold reserves.
Pinson Project, Nevada (30%)
Atna owns a 30 percent equity interest in the Pinson joint venture.
Pinson Mining Company ("PMC"), a subsidiary of Barrick Gold,
owns 70 percent and PMC acts as operator of the project. The project is
under further evaluation and Atna's share of project expenditures for
2009 and January 2010 totaled $0.5 million.
In 2009, PMC completed an in-house review of the project for both
underground and open pit mining potential. They are currently reviewing
their strategic options in regards to the project, which may include sale
of their interest. Should they decide to sell their interest Atna retains
a right of first refusal to match any offer within 60 days of that offer
being presented to Atna. The 2010 budget for the Pinson project includes
ongoing underground pumping and maintenance operations. Atna's share of
the 2010 budget is $0.3 million.
In January 2010, Atna acquired a 1.5 percent net smelter return royalty
("NSR") on approximately four sections of land within the area
of interest. The NSR was acquired from Barrick Turquoise Ridge Inc., a
subsidiary of Barrick Gold. One of these sections contains gold resources
previously announced by Atna.
Columbia Gold Property, Montana (100%)
Atna completed an NI 43-101 compliant Technical Report and Mineral
Resource Estimate on the property in October 2009 (filed on SEDAR on
October 21, 2009). The Technical Report declared a measured and indicated
mineral resource of 741,700 ounces of gold and 2.1 million ounces of
silver. Inferred mineral resource totaled 453,600 ounces of gold and 1.0
million ounces of silver (at a 0.01 oz/ton Au cut-off).
Montana state law currently prohibits the development of the Columbia
project as an open-pit mine using cyanide based recovery technology. As a
result, the Company is conducting conventional gravity and froth
flotation recovery analysis on bulk samples from the mineralized zones.
Initial results are promising, but additional test work and economic
analysis is required to economically optimize this process route. The
Columbia project will be required to complete an environmental impact statement
and the permitting process before any development activities can take
place on the property.
During 2010, the Company is planning to conduct additional metallurgical
test work, environmental base-line studies, and a preliminary economic
assessment of development alternatives for the property.
Conference Call
Management will host a conference call on Monday, March 29, 2010 at 11:00
am (EDT), to discuss these results and general corporate and project
activities. Participants in the US and Canada dial (877) 559 -- 1977,
International callers dial (660) 422 -- 4979. Please reference conference
ID # 64688371
A replay of the call will be available until midnight April 1, 2010, by
dialing (800) 642-1687 or (706) 645-9291, reference conference ID # 64688371.
For additional information on Atna, its mining, development and
exploration projects, please visit our website at www.atna.com.
This
press release contains certain "forward-looking statements," as
defined in the United States Private Securities Litigation Reform Act of
1995, and within the meaning of Canadian securities legislation.
Forward-looking statements are statements that are not historical fact.
They are based on the beliefs, estimates and opinions of the Company's
management on the date the statements are made and they involve a number
of risks and uncertainties. Consequently, there can be no assurances that
such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements.
The Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause future results to differ
materially from those anticipated in these forward-looking statements
include: the Company might encounter problems such as the significant
depreciation of metals prices; accidents and other risks associated with
mining exploration and development operations; the risk that the Company
will encounter unanticipated geological factors, the Company's need for
and ability to obtain additional financing; the possibility that the
Company may not be able to secure permitting and other governmental
clearances necessary to carry out the Company's exploration programs; and
the other risk factors discussed in greater detail in the Company's
various filings on SEDAR (www.sedar.com) with Canadian securities
regulators and its filings with the U.S. Securities and Exchange
Commission, including the Company's 2008 Form 20-F dated March 31, 2009.
Cautionary Note to U.S. Investors --- The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms in this
report, such as "measured," "indicated,"
"inferred," and "resources," that the SEC guidelines
strictly prohibit U.S. registered companies from including in their
filings with the SEC. Investors are urged to closely consider the
disclosure in our Form 20-F which may be obtained from us or found on
line at www.sec.gov/edgar.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
www.atna.com
ATNA RESOURCES LTD. AND
SUBSIDIARIES
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SUMMARIZED CONSOLIDATED
FINANCIAL INFORMATION
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(US dollars, Canadian GAAP
basis)
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(Audited)
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December 31,
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December 31,
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2009
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2008
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BALANCE
SHEETS
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ASSETS
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Current
assets
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$21,331,700
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$17,896,300
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Noncurrent
assets
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58,525,600
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49,515,300
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Total
assets
|
|
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79,857,300
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67,411,600
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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Current
liabilities
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9,679,500
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3,012,000
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Notes
payable - long term
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837,200
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825,000
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Gold
bonds, net of discount
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9,857,400
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-
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Noncurrent
liabilities
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5,445,800
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4,300,000
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Shareholders'
equity
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54,037,400
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59,274,600
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Total
liabilities and shareholders� equity
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$ 79,857,300
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$ 67,411,600
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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2009
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2008
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2009
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2008
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STATEMENTS
OF OPERATIONS
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Revenues
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$ 4,957,800
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$ -
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$ 8,689,200
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$ 155,100
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Cost
of sales
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5,568,300
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-
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9,126,100
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148,400
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Depreciation
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41,000
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33,700
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155,600
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125,400
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General
and administrative
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1,050,700
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908,800
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3,402,900
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4,062,900
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Exploration
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106,900
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68,800
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1,464,700
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532,800
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Other
expense (income), net
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14,800
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2,416,900
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500,000
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(17,515,300)
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Income
Tax Benefit
|
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-
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3,004,100
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-
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3,004,100
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Net
(loss) income
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(1,823,900)
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(424,100)
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(5,960,100)
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15,805,000
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Unrealized
gains (losses) on translating the
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financials
of self sustaining foreign operations
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16,000
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132,200
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(7,000)
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(394,100)
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Unrealized
(loss) gain on investments available-for-sale
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(91,700)
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326,600
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53,900
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-
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Realized
gain on available for sale securities
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|
|
|
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recognized
in net loss
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199,500
|
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-
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|
199,500
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-
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Comprehensive
(loss) income
|
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(1,700,100)
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34,700
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(5,713,700)
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15,410,900
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|
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Basic
(loss) income per share
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$ (0.02)
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$ (0.01)
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$ (0.07)
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$ 0.20
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Basic
weighted-average shares outstanding
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83,291,133
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83,291,100
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83,291,133
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79,166,725
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CASH
FLOWS
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Cash
and cash equivalents, beginning of period
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$ 1,712,400
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$ 23,201,700
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$ 16,707,300
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$ 3,581,300
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Net
cash used in operating activities
|
|
(1,064,700)
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(1,235,000)
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(9,633,200)
|
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(6,064,100)
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Net
cash (used in) provided by investing activities
|
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(746,500)
|
|
(5,316,600)
|
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(7,842,600)
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18,769,900
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Net
cash provided by (used in) financing activities
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13,153,800
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(3,200)
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13,820,000
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495,600
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Effect
of exchange rate changes on cash
|
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5,300
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60,300
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8,800
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(75,400)
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Cash
and cash equivalents, end of period
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$ 13,060,300
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$ 16,707,200
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$ 13,060,300
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$ 16,707,300
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