6-K 1 softcare_6k-112002.txt FORM 6-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of November, 2002 Soft Care EC Inc. (Translation of registrant's name into English) 210-889 Harbourside Drive North Vancouver, BC V7P 3S1 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F.[.X]... Form 40-F..... Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ..... No [X]..... If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________ DESCRIPTION OF FILED INFORMATION: Press Release Dated November 20, 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SoftCare EC Inc. (Registrant) By: "Martyn Armstrong" ------------------ President and CEO Date: 20 November 2002 Shares Issued: 23,243,617 Fully Diluted: 28,759,947 Symbols: SCE-TSX-Ven SFCEF-OTC NR-02-15 NEW CHIEF FINANCIAL OFFICER JOINS SOFTCARE, PREVIOUS CFO RESIGNS ---------------------------------------------------------------- NORTH VANCOUVER, BRITISH COLUMBIA, NOV 20, 2002 - SoftCare EC Inc. (TSXV:SCE, OTC:SFCEF), www.softcare.com is pleased to announce that Mr. John Versfelt has been appointed Chief Financial Officer (CFO). Mr. Versfelt is currently the President of American Resource Management Consultants Inc. The wealth of experience Mr. Versfelt brings to the position is wide and varied. His past experience includes strategic management of small cap growth oriented companies; corporate restructuring, organization and control of senior administration; business systems analysis and design, project management and contract agreement negotiating. Mr. Versfelt's career has spanned more than 20 years in the public markets. He has completed debt and equity financing for many public companies. Mr. Wayne Zielke has resigned as of Nov 18, 2002 as Chief Financial Officer of SoftCare and has resigned his board position. SoftCare, its Management and Board of Directors thank Mr. Zielke for his years of service and wish him all the best with his future endeavors. SoftCare develops business relationship management software allowing companies to conduct business-to-business e-commerce and the creation of B2B industry portals. Our e-business management software is open and scaleable allowing for the integration with existing and future technologies, lowering operating costs and streamlining the supply chain while delivering benefits to all business e-trading relationships. On behalf of the Board of Directors, ----------------------- Martyn A. Armstrong President and CEO FOR MORE INFORMATION CONTACT: Corporate Communications Clive Massey SoftCare EC Inc 888 763 8227 toll free 604 983 8083 tel. 604 983 8056 fax cmassey@softcare.com The foregoing contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The statements may be identified by such forward-looking terminology as "expect," "believe," "may," "will," "intend," "plan," and similar statements or variations. Such forward-looking statements are based on our current estimates and assumptions and involve certain significant risks and uncertainties, including: risks associated with and dependence on the industry subject matter of the information; fluctuations in quarterly revenues due to lengthy selling cycles, product implementation cycles, customer budget cycles, and timing of revenue recognition; dependence on major customers; successful and timely development and introduction of new products and versions; rapid technological changes; increased competition; retention of key senior managers; and other industry related factors. Other important factors that should be considered are included in the company's 20F (November 28, 2001) and 6Ks and other reports filed with the SEC and on SEDAR. Actual results may differ materially. The company assumes no obligation for updating any such forward-looking statements.

AUGUST 31 AUGUST 31 MAY 31, 2002 2001 2002 $ $ $ --------------------------------------------------------------------------------------------- ASSETS CURRENT Cash and cash equivalents 463,393 83,176 14,663 Accounts receivable, less allowance for doubtful accounts of $72,328 [note 3] 136,267 134,756 167,162 Short-term investments [note 4] -- 2,276,255 535,075 Prepaid expenses and other 70,979 42,345 79,857 --------------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 670,639 2,536,532 796,757 --------------------------------------------------------------------------------------------- Capital assets [note 5] 168,841 287,112 172,255 --------------------------------------------------------------------------------------------- TOTAL ASSETS 839,480 2,823,644 969,012 ============================================================================================= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT Bank indebtedness [note 6] 250,000 -- 250,000 Accounts payable and accrued liabilities [notes 7 and 14] 174,767 221,997 246,847 Current portion of obligations under capital leases [note 8] 39,305 81,827 48,212 Current portion of subsidiary redeemable Class A preference shares [note 9] 30,000 30,000 30,000 Deferred revenue 112,494 96,088 114,494 --------------------------------------------------------------------------------------------- TOTAL CURRENT LIABILITIES 606,566 429,912 689,553 --------------------------------------------------------------------------------------------- Obligations under capital leases [note 8] 3,877 45,106 14,472 Subsidiary redeemable Class A preference shares [note 9] 5,000 35,000 12,500 --------------------------------------------------------------------------------------------- TOTAL LIABILITIES 615,443 510,018 716,525 --------------------------------------------------------------------------------------------- Commitments and contingencies [note12] SHAREHOLDERS' EQUITY Common stock [note 11] 16,626,438 15,810,538 16,240,438 Shares to be issued 13,500 -- 13,500 Special Warrants [note 10] -- -- -- Additional paid-in capital 621,255 550,055 621,255 Deferred stock compensation -- 11,308 -- Unearned Employee Stock Bonus Plan [note 11] (990,957) (1,002,265) (990,957) Deficit (16,046,199) (13,056,010) (15,631,749) --------------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 224,037 2,313,626 252,487 --------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 839,480 2,823,644 969,012 ============================================================================================= SEE ACCOMPANYING NOTES On behalf of the Board: /S/ MARTYN ARMSTRONG /S/ WAYNE ZIELKE -------------------------------- -------------------------------- Martyn Armstrong, Director Wayne Zielke, Director PREPARED BY MANAGEMENT

THREE MONTHS ENDED THREE MONTHS ENDED AUGUST 31 AUGUST 31 2002 2001 $ $ REVENUE ----------------------------------------------------------------------------------------------------- Software sales 60,427 12,474 Consulting services 12,587 9,477 Training services -- -- Maintenance fees 43,137 45,299 ----------------------------------------------------------------------------------------------------- Total revenues 116,151 67,250 ----------------------------------------------------------------------------------------------------- EXPENSES ----------------------------------------------------------------------------------------------------- Salaries and wages 236,155 446,889 Stock based compensation [notes 11] Selling expenses 1,822 16,302 General and administrative expenses [notes 12 and 14] 284,427 325,831 Depreciation and amortization 11,731 27,512 ----------------------------------------------------------------------------------------------------- Total expenses 534,135 816,534 ----------------------------------------------------------------------------------------------------- Operating (loss) for the period (417,984) (749,284) ----------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSE) ----------------------------------------------------------------------------------------------------- Interest income 3,533 51,546 Interest expense - long-term -- -- ----------------------------------------------------------------------------------------------------- Total other income (expense) 3,533 51,546 ----------------------------------------------------------------------------------------------------- LOSS FOR THE PERIOD (414,451) (697,738) ===================================================================================================== Basic and diluted (loss) per share [note 2] (0.02) (0.04) ===================================================================================================== SEE ACCOMPANYING NOTES PREPARED BY MANAGEMENT

COMMON STOCK SPECIAL WARRANTS SHARES TO BE ISSUED ---------------------------- ---------------------------- --------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT # $ # $ # $ ----------------------------------------------------------------------------------------------------------------------------------- BALANCE, MAY 31, 2000 15,356,128 10,452,670 1,495,000 5,087,468 -- -- Shares issued on exercise of Special Warrants [note 10] 1,495,000 5,087,468 (1,495,000) (5,087,468) -- -- Shares issued on exercise of Agents' Warrants [note 10] 138,600 170,400 -- -- -- -- Special Warrants issued in private placement [note 10] -- -- 138,889 100,000 -- -- Stock based compensation [note 11] -- -- -- -- -- -- Adjustment of employee stock bonus plan [note 11] -- -- -- -- -- -- Loss for the year -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- BALANCE, MAY 31, 2001 16,989,728 15,710,538 138,889 100,000 -- -- Share Issued on exercise of special Warrants[note 10] 138,889 100,000 (138,889) (100,000) -- -- Special Warrants issued in private placement net of costs [note 10] -- -- 1,000,000 120,000 -- -- Stock based compensation [note 11] -- -- -- -- -- -- Shares issued on exercise of Special Warrants 1,000,000 120,000 (1,000,000) (120,000) -- -- Units issued in private placement 650,000 175,500 -- -- -- -- Shares issued on exercise of Share Purchase Warrants 15,000 2,400 -- -- -- -- Shares to be issued for employees terminated [note 11] -- -- -- -- 90,000 13,500 Units issued in private placement [note 11] 1,200,000 132,000 -- -- -- -- Loss for the year -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- BALANCE, MAY 31, 2002 19,993,617 16,240,438 -- -- 90,000 13,500 Units issued in private placement [note 11] 3,250,000 386,000 -- -- -- -- Loss for the three months ended August 31, 2002 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- BALANCE, AUGUST 31, 2002 23,243,617 16,626,438 -- -- 90,000 13,500 ===================================================================================================================================

UNEARNED TOTAL ADDITIONAL DEFERRED EMPLOYEE SHAREHOLDERS' PAID-IN STOCK STOCK EQUITY CAPITAL COMPENSATION BONUS PLAN DEFICIT (DEFICIT) $ $ $ $ $ ---------------------------------------------------------------------------------------------------------------- BALANCE, MAY 31, 2000 -- -- (1,279,975) (6,791,821) 7,468,342 Shares issued on exercise of Special Warrants [note 10] -- -- -- -- -- Shares issued on exercise of Agents' Warrants [note 10] -- -- -- 170,400 Special Warrants issued in private placement [note 10] -- -- -- 100,000 Stock based compensation [note 11] 332,800 -- -- -- 332,800 Adjustment of employee stock bonus plan [note 11] 217,255 -- 289,018 -- 506,273 Loss for the year -- -- -- (5,566,451) (5,566,451) ---------------------------------------------------------------------------------------------------------------- BALANCE, MAY 31, 2001 550,055 -- (990,957) (12,358,272) 3,011,364 Share Issued on exercise of special Warrants[note 10] -- -- -- -- -- Special Warrants issued in private placement net of costs [note 10] -- -- -- -- 120,000 Stock based compensation [note 11] 71,200 -- -- -- 71,200 Shares issued on exercise of Special Warrants -- -- -- -- -- Units issued in private placement -- -- -- -- 175,500 Shares issued on exercise of Share Purchase Warrants -- -- -- -- 2,400 Shares to be issued for employees terminated [note 11] -- -- -- -- 13,500 Units issued in private placement [note 11] -- -- -- -- 132,000 Loss for the year -- -- -- (3,273,477) (3,273,477) ---------------------------------------------------------------------------------------------------------------- BALANCE, MAY 31, 2002 621,255 -- (990,957) (15,631,749) 252,487 Units issued in private placement [note 11] -- -- -- -- 386,000 Loss for the three months ended August 31, 2002 -- -- -- (414,450) (414,450) ---------------------------------------------------------------------------------------------------------------- BALANCE, AUGUST 31, 2002 621,255 0 0 (16,046,199) 224,037 ================================================================================================================

THREE MONTHS ENDED THREE MONTHS ENDED AUGUST 31 AUGUST 31 2002 2001 $ $ --------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Loss for the period (414,451) (697,738) Items not affecting cash: Depreciation and amortization 11,731 27,535 Stock based compensation -- -- Loss on disposal of subsidary -- -- Changes in non-cash working capital: Accounts receivable 30,895 (13,162) Prepaid expenses and other 8,878 46,324 Work in progress -- -- Accounts payable and accrued liabilities (72,079) (53,099) Deferred revenue (2,000) (15,976) --------------------------------------------------------------------------------------------------------------- CASH (USED IN) OPERATING ACTIVITIES (437,026) (706,116) --------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Purchase of capital assets (8,317) (3,324) Sale (purchase) of short-term investments 535,075 (2,276,255) --------------------------------------------------------------------------------------------------------------- CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 526,758 (2,279,579) --------------------------------------------------------------------------------------------------------------- Redemption of sub redeemable Class A preference shares (7,500) (7,500) Repayment of long-term debt -- -- Increase in (repayment of) obligations under capital leases (19,502) (23,429) Special Warrants issued -- -- Common stock issued on exercise of Agents Warrants 386,000 -- --------------------------------------------------------------------------------------------------------------- CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 358,998 (30,929) --------------------------------------------------------------------------------------------------------------- Decrease in cash and cash equivalents 448,730 (3,016,624) --------------------------------------------------------------------------------------------------------------- Cash and cash equivalents, beginning of period 14,663 3,099,800 --------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD 463,393 83,176 =============================================================================================================== SUPPLEMENTAL DISCLOSURE Interest paid 4,079 4,213 ---------------------------------------------------------------------------------------------------------------

AS AT AUGUST 31, ACCUMULATED NET BOOK COST DEPRECIATION VALUE $ $ $ --------------------------------------------------------------------------------------------------- 2002 --------------------------------------------------------------------------------------------------- Computer and testing equipment 401,681 341,868 59,813 Computer software 174,713 169,426 5,287 Office equipment 43,078 22,122 20,956 Office furniture 131,510 53,812 77,698 Display booths 25,063 19,976 5,087 --------------------------------------------------------------------------------------------------- Leasehold improvements - - - --------------------------------------------------------------------------------------------------- 776,045 607,204 168,841 --------------------------------------------------------------------------------------------------- 2001 Computer and testing equipment 396,803 277,721 119,082 Computer software 161,800 140,513 21,287 Office equipment 35,520 18,617 16,903 Office furniture 131,510 34,387 97,123 Display booths 21,755 18,204 3,551 --------------------------------------------------------------------------------------------------- Leasehold improvements 45,356 16,190 29,166 --------------------------------------------------------------------------------------------------- 792,744 505,632 287,112 ---------------------------------------------------------------------------------------------------

Subsidiary redeemable Class A preference shares Amount # $ ----------------------------------------------------------------------------------------- Balance, May 31, 2001 72,500 72,500 Redemption of shares for cash (30,000) (30,000) ----------------------------------------------------------------------------------------- Balance, May 31, 2002 42,500 42,500 Redemption of shares for cash (7,500) (7,500) ----------------------------------------------------------------------------------------- Balance, August 31, 2002 35,000 35,000 Less: current portion (30,000) (30,000) ----------------------------------------------------------------------------------------- Subsidiary redeemable Class A preference shares 5,000 5,000 =========================================================================================

WEIGHTED AVERAGE EXERCISE STOCK OPTIONS PRICE # $ ----------------------------------------------------------------------------------------- BALANCE MAY 31, 2000 990,000 1.74 Options granted to directors, employees and consultants 1,085,339 0.73 ----------------------------------------------------------------------------------------- BALANCE, MAY 31, 2001 2,075,339 1.21 Adjustment to effect repricing of 1,130,000 options - (0.68) Options granted to directors, consultants and employees 1,286,000 0.19 Options forfeited (383,063) (0.40) Options expired (40,000) (1.75) ----------------------------------------------------------------------------------------- BALANCE, MAY 31, 2002 2,938,276 0.38 Options granted to an employee 190,000 0.15 Options expired as a result of the resignation or termination of directors, consultants and employees: (160,000) (1.75) (385,835) (0.40) (100,000) (0.37) (60,000) (0.35) (150,000) (0.10) ----------------------------------------------------------------------------------------- BALANCE, AUGUST 31, 2002 2,272,441 0.28 =========================================================================================

2002 2001 $ $ ---------------------------------------------------------------------------------- Non-capital loss carryforwards 4,246,000 3,670,000 Share issue costs 375,000 775,000 Unused capital cost in excess of net book value 337,000 350,000 Other 32,000 40,000 ---------------------------------------------------------------------------------- Total future assets 4,990,000 4,835,000 Valuation allowance (4,990,000) (4,835,000) ---------------------------------------------------------------------------------- Net future assets - - ==================================================================================

2002 2001 $ $ ---------------------------------------------------------------------------------------- Tax at statutory rate (1,407,000) (2,484,000) Foreign tax rate differentials 13,000 109,000 Expenses not deductible for tax 5,000 506,000 Temporary difference for which no new tax benefit has been recognized 1,536,000 2,092,000 Amortization of share issue costs for tax and accounting (147,000) (153,000) Other (70,000) ---------------------------------------------------------------------------------------- - - ========================================================================================

THREE MONTHS ENDED THREE MONTHS ------------------ ENDED AUGUST 31, AUGUST 31, 2002 2001 $ $ --------------------------------------------------------------------------------------------------- Net income (loss) in accordance with Canadian GAAP (414,451) (697,738) --------------------------------------------------------------------------------------------------- Effects of accounting for compensation expense - - --------------------------------------------------------------------------------------------------- Net income (loss) in accordance with U.S. GAAP (414,451) (697,738) --------------------------------------------------------------------------------------------------- Income (loss) per share[i] (0.02) (0.02) --------------------------------------------------------------------------------------------------- Weighted average number of common shares outstanding under U.S. GAAP 20,314,165 17,018,267 --------------------------------------------------------------------------------------------------- Proforma income (loss) per share[ii] (0.01) (0.04) --------------------------------------------------------------------------------------------------- Proforma weighted average number of common shares outstanding under U.S. GAAP 27,851,330 19,093,606 ---------------------------------------------------------------------------------------------------

Filing Compare · OPEN EC TECHNOLOGIES INC