Document and Entity Information
Document and Entity Information | 3 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information | |
Entity Registrant Name | ZIM CORP |
Entity Central Index Key | 1,124,160 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2,018 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | ||
Mobile | $ 24,249 | $ 39,294 |
Software | 97,135 | 10,426 |
Software maintenance and consulting | 88,125 | 99,575 |
Total revenue | 209,509 | 149,295 |
Operating expenses | ||
Cost of revenue | 3,350 | 3,578 |
Selling, general and administrative | 119,538 | 162,843 |
Research and development | 52,462 | 53,921 |
Total operating expenses | 175,350 | 220,342 |
Income (loss) from operations | 34,159 | (71,047) |
Other income (expense): | ||
Gain on disposition of assets | 598,041 | |
Interest income , net | 3,345 | 4,242 |
Total other income | 601,386 | 4,242 |
Income (loss) before income taxes | 635,545 | (66,805) |
Income tax benefit | $ 18,895 | $ 19,265 |
Net income | $ 654,530 | $ (47,540) |
Basic and diluted income per share | $ (0.080) | $ (0.006) |
Weighted average number of shares outstanding | 8,136,348 | 7,890,493 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 484,020 | $ 418,507 |
Accounts receivable, net | 35,253 | 38,463 |
Investment tax credits receivable | 147,474 | 131,220 |
Other tax credits | 57,073 | 82,997 |
Prepaid expenses | 8,767 | 25,595 |
Total Current Assets | 732,587 | 696,782 |
Investments | 711,953 | 117,109 |
Property and equipment, net | 28,930 | 24,334 |
Total Assets | 1,473,470 | 838,225 |
Current liabilities | ||
Accounts payable | 20,326 | 9,057 |
Accrued liabilities | 12,301 | 19,041 |
Deferred revenue | 90,890 | 60,224 |
Total current liabiliities | 123,517 | 88,322 |
Deferred rent | ||
Shareholders' equity: | ||
Preferred shares, no par value, non-cumulative dividend at a rate to be determined by the Board of Directors redeemable for CDN $1 per share. Unlimited authorized shares; issued and outstanding NIL shares at June 30, 2018 and March 31, 2018. | ||
Special shares, no par value, non-voting, Unlimited authorized shares; issued and outstanding NIL shares at June 30, 2018 and March 31, 2018. | ||
Common shares, no par value, Unlimited authorized shares; 8,136348 shares issued and outstanding as at June 30, 2018 and 8,136,348 shares as at March 31, 2018. | $ 19,491,842 | $ 19,484,482 |
Additional paid-in capital | 2,961,105 | 2,962,105 |
Accumulated deficit | (20,671,090) | (21,325,620) |
Accumulated other comprehensive income | 165,137 | (378,425) |
Total shareholders' equity | 1,349,953 | 749,902 |
Total liability and equity | $ 1,473,470 | $ 838,225 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Dividend rate redeemable | $ 1 | $ 1 |
Common shares issued | 8,136,348 | 8,136,348 |
Common shares outstanding | 8,136,348 | 8,136,348 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 654,530 | $ (43,540) |
Items not involving cash: | ||
Depreciation of property and equipment | 2,503 | 2,047 |
Stock-based compensation | (598,041) | |
Changes in operating working capital: | ||
Decrease (Increase) in accounts receivable | 3,210 | 7,492 |
Decrease (increase) in investment tax credits | 9,670 | (12,263) |
Decrease (increase) in prepaid expenses | 16,828 | 3,697 |
Increase (decrease) in accounts payable | 11,269 | 11,207 |
Increase (decrease) in accrued liabilities | (6,740) | (123) |
Increase (decrease) in deferred rent | 11,107 | |
Increase (decrease) in deferred revenue | 30,666 | (35,192) |
Cash flows provided by operating activities | 128,895 | (59,570) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | 6,456 | |
Proceeds on sale of assets | ||
Purchase of intangible asset | ||
Purchase of investment | ||
Cash flows used in investing activities | ||
FINANCING ACTIVITIES | ||
Cash flows provided by financing activities | ||
Effect of changes in exchange rates on cash | (51,926) | (1,201) |
Increase in cash and cash equivalents | 65,513 | (60,771) |
Cash and cash equivalents, beginning of period | 418,507 | 413,676 |
Cash and cash equivalents, end of period | $ 484,020 | $ 358,095 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1 - BASIS OF PRESENTATION The accompanying unaudited selected financial data of ZIM Corporation (“ZIM” or the “Company”) and its subsidiaries have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of June 30, 2018 has been derived from our audited consolidated financial statements for the year ended March 31, 2018. These selected financial data should be read in conjunction with the financial statements and notes thereto included in the latest annual report on Form 20-F. These data have been prepared on the same basis as the audited consolidated financial statements for the year ended March 31, 2018 and, in the opinion of management, include all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company. Unless otherwise stated in this Form 6-K the information contained herein has not been audited or reviewed by an independent auditor. The results of operations for the three-month period ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year. |
Going Concern
Going Concern | 3 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Going Concern | 2 - GOING CONCERN These consolidated financial statements have been prepared on a going concern basis in accordance with accounting principles generally accepted in the United States ("US GAAP").The going concern basis of presentation assumes that the Company w il commitment T fro commitment is Management is currently investigating and evaluating options that may include recapitalization of the Company and pursuing other ventures of a different nature. The consolidated financial statements do not reflect adjustments that would be necessary i I i y |
Equity Investment
Equity Investment | 3 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investment | 3 – INVESTMENT AND SUBSIDIARIES Investments and long term deposits Original Cost Carrying Value CP4H 187,367 — Equispheres 111,990 711,953 HostedBizz 1,005 — On April 30, 2016, ZIM Corporation made an equity investment in Equispheres Inc. The investment consisted of the purchase of 250,000 common shares at a price of $20,042. On August 26, 2015, ZIM Corporation made an equity investment in Equispheres Inc. The investment consisted of the purchase of 500,000 common shares at a price of $91,948. Equispheres Inc. is an advanced materials company developing new technologies for the production of metallic particles foruse in additive manufacturing. In January, 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (the ASU). Changes to the current GAAP model primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. The classification and measurement guidance will be effective for public business entities in fiscal years beginning after December 15, 2017. The effect of the adoption of this standard is an increase in the carrying value of the Equispheres investment at June 30, 2018 of $598,041 to a value of $711,953. On August 9, 2017, Connecting People for Health Co-operative Ltd. (CP4H) was acquired for an undisclosed amount. Various options to distribute the proceeds from the sale are being considered by the board of CP4H and will b e finalized at a later date. ZIM has not recognized this transaction in its financial statements as of March 31, 2018. Once the distribution has been finalized ZIM will recognize its portion of the proceeds as a gain on the sale of assets. On February 9, 2018, ZIM sold 100,000 shares of HostedBizz to HostedBizz, for cancellation, for gross proceeds of $60,000 Canadian dollars ($45,758 United States dollars). |