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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002
Commission file number 0-25680
WAVERIDER COMMUNICATIONS INC.
(Exact name of small business issuer as specified in its charter)
NEVADA 33-0264030
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
255 Consumers Road, Suite 500, Toronto, Ontario M2J 1R4
(Address of principal executive offices and Zip (Postal) Code)
(416) 502-3200
(Issuer's telephone number)
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirement for the past 90 days.
Yes __X__; No _____
Applicable only to corporate issuers:
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: July 25, 2002
114,356,311 Common shares, $.001 par value.
Transitional Small Business Disclosure Format: (check one):
Yes _____; No __X__
WAVERIDER COMMUNICATIONS INC.
FORM 10 - Q
For the Period Ended June 30, 2002
INDEX
Page
PART I. FINANCIAL INFORMATION 3
Item 1. Financial Statements 4-10
Consolidated Balance Sheets 4
Consolidated Statements of Operations 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7-10
Item 2. Management's Discussion and Analysis
or Plan of Operation 11-12
PART II OTHER INFORMATION 13
Item 6. Reports on Form 8-K 13
Signatures 13
2
PART I. FINANCIAL INFORMATION
Unaudited Consolidated Financial Statements
WAVERIDER COMMUNICATIONS INC.
Quarter ended June 30, 2002 and year ended December 31, 2001
The Financial statements for the three and six months ended June 30, 2002 and
2001 include, in the opinion of Management, all adjustments (which consist only
of normal recurring adjustments) necessary to present fairly the results of
operations for such periods. Results of operations for the three and six months
ended June 30, 2002 are not necessarily indicative of results of operations
which will be realized for the year ending December 31, 2002. The financial
statements should be read in conjunction with the Company's Form 10-K for the
year ended December 31, 2001.
3
WaveRider Communications Inc.
CONSOLIDATED BALANCE SHEETS
(in U.S. dollars)
June 30, December 31,
2002 2001
(Unaudited) (Audited)
ASSETS
Current
Cash and cash equivalents $ 2,954,720 $ 2,244,625
Accounts receivable 975,142 898,432
Due from contract manufacturers 65,997 41,295
Inventories 1,468,006 1,402,703
Current portion of notes receivable 42,845 32,800
Prepaid expenses and other assets 304,770 297,282
------------- --------------
5,811,480 4,917,137
Notes receivable 13,191 32,801
Property, plant and equipment 1,126,439 1,671,088
Goodwill 4,115,286 3,997,477
------------- --------------
$ 11,066,396 $ 10,618,503
============= ==============
LIABILITIES
Current
Accounts payable and accrued liabilities $ 2,099,669 $ 2,314,920
Consideration payable on business combination - 105,256
Promissory notes - 168,893
Deferred revenue 316,592 265,505
Current portion of obligation under capital lease 67,757 131,145
------------- --------------
2,484,018 2,985,719
Obligation under capital lease 24,881 36,312
------------- --------------
2,508,899 3,022,031
------------- --------------
SHAREHOLDERS' EQUITY
Preferred Stock, $.01 par value per share: authorized - 5,000,000 shares;
issued and outstanding 19,000 shares at June 30, 2002 and
29,000 at December 31, 2001 190 290
Common Stock, $.001 par value per share: authorized - 200,000,000 shares;
issued and outstanding - 111,647,136 shares at June 30, 2002
72,973,681 shares at December 31, 2001 111,647 72,974
Additional paid in capital 70,591,128 65,830,352
Shares to be issued 433,406 -
Other equity 13,770,301 13,748,732
Accumulated other comprehensive (loss) (50,433) (104,586)
Deficit (76,298,742) (71,951,290)
-------------- ---------------
8,557,497 7,596,472
------------- --------------
$ 11,066,396 $ 10,618,503
============= ==============
See accompanying notes to financial statements.
4
WaveRider Communications Inc.
CONSOLIDATED STATEMENTS OF LOSS, DEFICIT AND ACCUMULATED COMPREHENSIVE LOSS
(in U.S. dollars)
Three Months ended Six Months ended
June 30 June 30 June 30 June 30
2002 2001 2002 2001
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------------------------------------------------------
CONSOLIDATED STATEMENT OF LOSS
REVENUE
Product sales $ 2,295,940 $ 2,427,289 $ 3,862,875 $ 4,203,450
Internet sales 48,927 46,129 94,980 100,371
-------------- ----------- -------------- ------------
2,344,867 2,473,418 3,957,855 4,303,821
COST OF PRODUCT AND INTERNET SALES 1,685,252 1,638,744 2,836,985 3,028,146
-------------- ---------- -------------- ------------
GROSS MARGIN 659,615 834,674 1,120,870 1,275,675
-------------- ----------- -------------- -----------
EXPENSES
Selling, general and administration 1,332,454 3,490,438 3,564,736 5,987,998
Employee stock based compensation (43,500) - 160,500 -
Research and development 479,657 1,322,960 815,765 2,943,053
Depreciation and amortization 282,672 854,434 553,092 1,525,968
Bad debt expense 13,731 109,194 29,495 263,012
Interest expense 22,347 311,616 359,229 4,872,659
Interest income (13,617) (10,763) (14,495) (89,102)
-------------- ----------- --------------- -------------
2,073,744 6,077,879 5,468,322 15,503,588
-------------- ----------- --------------- -------------
NET LOSS $ (1,414,129) $(5,243,205) $ (4,347,452) $ (14,227,913)
============== =========== =============== =============
BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.01) $ (0.10) $ (0.05) $ (0.26)
============== =========== =============== =============
Weighted Average Number of Common Shares 110,182,830 60,240,772 94,826,431 57,999,108
============== =========== =============== =============
CONSOLIDATED STATEMENT OF DEFICIT
OPENING DEFICIT (74,884,613) (58,399,216) (71,951,290) (49,414,508)
NET LOSS FOR THE PERIOD (1,414,129) (5,243,205) (4,347,452) (14,227,913)
BENEFICIAL CONVERSION ON PREFERRED STOCK - (1,043,832) - (1,043,832)
-------------- ------------ -------------- ------------
CLOSING DEFICIT $ (76,298,742) $(64,686,253) $ (76,298,742) $(64,686,253)
============== ============ ============== ============
CONSOLIDATED STATEMENT OF ACCUMULATED COMPREHENSIVE INCOME
NET LOSS FOR THE PERIOD (1,414,129) (5,243,205) (4,347,452) (14,227,913)
OTHER COMPREHENSIVE INCOME/(LOSS)
Cumulative translation adjustment 28,629 54,657 50,433 (170,776)
-------------- ------------ -------------- ------------
COMPREHENSIVE LOSS $ (1,385,500) $ (5,188,548) $ (4,297,019) $(14,398,689)
============= ============ ============== ============
See accompanying notes to financial statements.
5
WaveRider Communications Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in U.S. dollars)
Six months ended June 30
2002 2001
------------------------------------
(Unaudited) (Unaudited)
OPERATIONS
Net loss $ (4,347,452) $ (14,227,913)
Items not involving cash
Depreciation and amortization 553,092 1,525,968
Non-cash financing charges 263,607 4,772,165
Charges for shares released from escrow 710,813 183,200
Compensatory shares released from escrow to employee 160,500 629,000
Non-employee stock options 21,569 85,612
Warrants issued to consultants - 117,128
Bad debt expense 29,495 263,012
Foreign exchange loss (gain) 50,410 (8,472)
Accrued interest expense on consideration payable
on business acquisition - 45,000
Net changes in non-cash working capital items (471,652) (677,508)
-----------------------------------
(3,029,618) (7,292,808)
-----------------------------------
INVESTING
Disposal (Acquisition) of property, plant and equipment 4,346 (248,491)
-----------------------------------
4,346 (248,491)
-----------------------------------
FINANCING
Proceeds from sale of shares net of issue fees 4,357,962 2,734,154
Payment of consideration payable on business combination (105,256)
Repayment of promissory notes (432,500) -
Payments on capital lease obligations (64,471) (133,160)
-----------------------------------
3,755,735 2,600,994
-----------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (20,368) (1,126)
------------------------------------
Increase (decrease) in cash and cash equivalents 710,095 (4,941,431)
Cash and cash equivalents, beginning of period 2,244,625 7,720,902
-----------------------------------
Cash and cash equivalents, end of period $ 2,954,720 $ 2,779,471
===================================
Supplementary disclosures of cash flow information:
Cash paid during the period for:
Interest 22,414 18,818
Repayment premium on redemption of promissory notes 68,775 -
Noncash investing and financing activities:
Capital lease additions - 14,715
See accompanying notes to financial statements.
6
WaveRider Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002 and December 31, 2001
1) BASIS OF PRESENTATION
The Financial statements for the three and six months ended June 30,
2002 and 2001 include, in the opinion of Management, all adjustments
(which consist only of normal recurring adjustments) necessary to
present fairly the results of operations for such periods. Results of
operations for the three and six months ended June 30, 2002, are not
necessarily indicative of results of operations which will be realized
for the year ending December 31, 2002. The financial statements should
be read in conjunction with the Company's Form 10-K for the year ended
December 31, 2001.
2) CHANGE IN ACCOUNTING POLICY
On January 1, 2002, the Company adopted Statement of Financial
Accounting Standards No. 142, Goodwill and Other Intangible Assets
("SFAS 142") and, accordingly, the Company reclassified acquired labor
force intangibles, in the amount of $98,949, to goodwill in compliance
with the requirements of the standard. In addition, the Company ceased
the amortization of goodwill, totaling $3,997,477, as of the beginning
of fiscal 2002.
SFAS 142 requires goodwill to be tested for impairment under certain
circumstances, written down when impaired, and requires purchased
intangible assets other than goodwill to be amortized over their useful
lives unless these lives are determined to be indefinite. During the
first quarter, the Company completed the transitional impairment
analysis and determined that there is no impairment charge. During the
second quarter, the Company performed an annual impairment test and
determined that there is no impairment charge. In the future, the
Company expects to perform an annual impairment test in the second
quarter of each year.
The following tables reflect consolidated results adjusted as though
the Company's adoption of SFAS 142 had occurred as of January 1, 2001:
Three months ended June 30, Six months ended June 30
2002 2001 2002 2001
---------------------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Loss - as reported $ (1,414,129) $ (5,243,205) $(4,347,452) $(14,227,913)
Amortization of goodwill and acquired labor force - 600,283 - 1,038,824
------------------------------ ------------------------------
Net Loss - as adjusted $ (1,414,129) $ (4,642,922) $(4,347,452) $(13,189,089)
============================== ==============================
Basic and fully diluted loss per share - as reported $ (0.01) $ (0.104) $ (0.05) $ (0.263)
Amortization of goodwill and acquired labor force - 0.010 - 0.018
------------------------------ ------------------------------
Basic and full diluted loss per share - as adjusted $ (0.01) $ (0.094) $ (0.05) $ (0.245)
============================== ==============================
3) ACCOUNTS RECEIVABLE
June December
30, 2002 31, 2001
--------------------------------
(Unaudited) (Audited)
Accounts receivable - trade $ 1,069,347 $ 1,370,805
Other receivables 138,713 163,037
Allowance for doubtful accounts (232,918) (635,410)
--------------------------------
$ 975,142 $ 898,432
================================
7
WaveRider Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002 and December 31, 2001
4) INVENTORIES
June December
30, 2002 31, 2001
--------------------------------
(Unaudited) (Audited)
Finished products $ 1,286,034 $ 959,786
Raw materials 181,972 442,917
--------------------------------
$ 1,468,006 $ 1,402,703
================================
5) GOODWILL
During the 6 month period ended June 30, 2002, goodwill increased by
$117,809 due to foreign exchange.
6) PROMISSORY NOTES
Under the terms of the promissory notes issued October 19, 2001, the
promissory note holders had the right to demand repayment of the
outstanding notes as a result of the Company completing additional
financing with net proceeds in excess of $5 million. As a result, on
March 28, 2002, the Company repaid the principal amount of $432,500
plus accrued interest and repayment premium.
During the quarter ended March 31, 2002, $263,607 and $64,726 was
charged to the consolidated statements of loss for accretion of the
promissory notes and accrual of interest and repayment premium,
respectively.
7) RESTRUCTURING CHARGES
In March 2002, the Company announced it intention to close the Calgary
Research and Development facility and integrate its operations in
Toronto. It is expected that the transition will be completed in the
third quarter of 2002. As a result, $110,000 was charged to the
consolidated statement of loss in the period ended March 31, 2002 for
the cost of canceling the Company's facility lease commitments. A
credit of $32,945 was recorded in the consolidated statement of loss in
the period ended June 30, 2002 when a final surrender of lease and
acceptance agreement was reached with the landlord.
8) SHAREHOLDERS' EQUITY
a) Public Offering - During March, 2002, the Company issued 30,096,662
shares of common stock for cash consideration of $4,497,000, less costs
of $165,734.
b) Conversion of Preferred Stock - During the six months ended June 30,
2002, 10,000 shares of the Series D 5% convertible preferred stock were
converted to 5,661,830 shares of common stock.
c) Release of Escrow Shares - With the change in terms in September 2001,
the escrow arrangement ceased to be related to the original Major
Wireless acquisition and is now considered to be in the substance of a
stock compensation arrangement. Accordingly, the fair value of the
remaining 5.4 million shares held in escrow was charged to the
consolidated statement of loss (and not recorded as goodwill) at March
31, 2002, when it was determined probable that the escrow milestones
would be met.
Prior to the determination, one of the escrow shareholders, through
mutual agreement, returned 18,750 share of common stock to the Company
for cancellation. The remaining 5,381,250 common shares held in escrow
were recorded at a fair value of $914,813 based on the stock price of
$0.17 at March 31, 2002. The Company charged $204,000 and $710,813 to
the consolidated statement of loss as compensation and selling, general
and administration expenses respectively.
8
WaveRider Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002 and December 31, 2001
On April 24, 2002, the Company achieved the fourth milestone and
released 1,345,313 shares of common stock. Based on the stock price of
$0.13 on that date, the intrinsic value of the shares released to an
employee was reduced by $12,000 from the amount recorded in March. The
Company credited the $12,000 to the consolidated statement of loss as
compensation expenses.
On or about June 6, 2002, the Company achieved the fifth milestone and
released 1,345,313 shares of common stock. Based on the average stock
price of $0.145 during that period, the intrinsic value of the shares
released to an employee was reduced by $7,500 from the amount recorded
in March. The Company credited the $7,500 to the consolidated statement
of loss as compensation expenses.
At June 30, 2002, the company credited $24,000 to the consolidated
statement of loss as compensation expenses, based on the intrinsic
value of the shares held in escrow for an employee. Changes in the
intrinsic value of the stock held by an employee will continue to be
charged to the consolidated statements of loss until the last milestone
is actually met and the shares are released from escrow.
As a result of the determination that achievement of the milestones was
probable, the $21,569 fair value of certain performance based
non-employee options was charged to consulting expense, in March 2002.
d) Employee Stock Purchase Plan - On May 1, 2002, the Company issued
224,338 shares of common stock for cash consideration of $26,696 to
employees under the Company's Employee Stock Purchase Plan
9) COMMITMENTS AND CONTINGENCIES
a) Letter of Credit
The Company has issued a letter of credit in the amount of $600,000 to
one of its contract manufacturers.
b) Employee Stock Option Agreements
The Company has three existing employee stock option plans -- the
Employee Stock Option (1997) Plan, the 1999 Incentive and Nonqualified
Stock Option Plan and the Employee Stock Option (2000) Plan which have
authorized shares of 6,250,000, 3,000,000 and 6,000,000 shares,
respectively. Through June 30, 2002, the Company had awarded 5,941,592
options under the Employee Stock Option (1997) Plan, 2,359,240 options
under the 1999 Incentive and Nonqualified Stock Option Plan and
5,259,279 options under the Employee Stock Option (2000) Plan.
c) Employee Stock Purchase Agreement
On July 7, 2000, the shareholders approved the establishment of the
Company's Employee Stock Purchase (2000) Plan, which has 3,000,000
authorized shares. Under the terms of the plan, employees are eligible
to purchase shares of the Company's common stock at 85% of the lower of
the opening or closing price dufring any plan period. By the end of the
second quarter of 2002, 392,736 shares of common stock had been
purchased under the Plan. The offerings under the plan run for
six-month periods commencing May 1 and November 1.
d) Litigation
On January 30, 2002, a former employee of the Company filed suit for
breach of contract of employment and has made claims in the amount of
$345,000 plus costs. The Company believes that the case is without
merit and plans to vigorously defend this lawsuit. No provisions have
been made for expenses that may be incurred to resolve the lawsuit and,
although there can be no assurance as to the ultimate outcome,
management believes it will not have a material impact on the Company's
business, results of operations and financial condition.
9
10) SEGMENTED INFORMATION
INDUSTRY SEGMENTS
The Company operates in one industry segment: wireless data
communications product.
GEOGRAPHIC SEGMENTS
The Company operated in the following geographic segments;
Three Months ended Six Months ended
June 30 June 30
2002 2001 2002 2001
----------------------------------------------------------------------------
Revenue by Region (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Canada $ 254,774 $ 197,012 350,266 $ 289,843
Australia 534,882 1,074,453 977,089 1,819,628
United States 1,279,058 357,878 1,987,440 629,474
Rest of World 276,153 844,075 643,060 1,564,876
------------------------------------------------------------------------------
$ 2,344,867 $2,473,418 $3,957,855 $4,303,821
==============================================================================
Six months ended June 30, 2002 (Unaudited)
Canada Australia Total
----------------------------------------------------
Property, plant and equipment $ 1,015,622 $ 110,817 $ 1,126,439
Goodwill 2,843,090 1,272,196 4,115,286
----------------------------------------------------
$ 3,858,712 $ 1,383,013 $ 5,241,725
====================================================
Year ended December 31, 2001 (Audited)
Canada Australia Total
----------------------------------------------------
Property, plant and equipment $ 1,524,076 $ 147,012 $ 1,671,088
Goodwill 2,843,090 1,154,387 3,997,477
----------------------------------------------------
$ 4,367,166 $ 1,301,399 $ 5,668,565
====================================================
11) COMPARATIVE FIGURES
Certain comparative amounts have been reclassified, where appropriate,
to correspond with the current period's presentation.
12) SUBSEQUENT EVENTS
At the annual general meeting of shareholders, held July 9, 2002, the
shareholders of the Company approved an amendment to the Company's
Restated Certificate of Incorporation to increase the authorized
number of shares of common stock from 200,000,000 to 400,000,000.
10
ITEM 2.
Management's Discussion and Analysis or Plan of Operation.
The following discussion is intended to assist in an understanding of
the Company's financial position and results of operations for the quarter ended
June 30, 2002.
Forward-Looking Information.
This report contains certain forward-looking statements and information
relating to the Company that are based on the beliefs of its management as well
as assumptions made by and information currently available to its management.
When used in this report, the words "anticipate", "believe", "estimate",
"expect", "intend", "plan", and similar expressions as they relate to the
Company or its management, are intended to identify forward-looking statements.
These statements reflect management's current view of the Company with respect
to future events and are subject to certain risks, uncertainties and
assumptions. Should any of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described in this report as anticipated, estimated or expected. The
Company's realization of its business aims could be materially and adversely
affected by any technical or other problems in, or difficulties with, planned
funding and technologies, third party technologies which render the Company's
technologies obsolete, the unavailability of required third party technology
licenses on commercially reasonable terms, the loss of key research and
development personnel, the inability or failure to recruit and retain qualified
research and development personnel, or the adoption of technology standards
which are different from technologies around which the Company's business
ultimately is built. The Company does not intend to update these forward-looking
statements.
Liquidity and Capital Resources.
The Company has funded its operations for the most part through equity
financing and has had no line of credit or similar credit facility available to
it. The Company's outstanding shares of Common stock, par value $.001 per share,
are traded under the symbol "WAVC" in the over-the-counter market on the OTC
Electronic Bulletin Board by the National Association of Securities Dealers,
Inc. The Company must rely on its ability to raise money through equity
financing to pursue its business endeavors. The majority of funds raised have
been allocated to the development of the WaveRider(R) line of wireless data
communications products and the operations of the Company.
During the first six months of 2002, the Company raised $4,497,000,
less cash expenses of $165,734, through the sale of 30,096,662 shares of common
stock registered by the Company on an S-3 shelf registration statement and
$26,696 through the sale of 224,338 shares of common stock to employees through
the Company's Employee Stock Purchase (2000) Plan.
Based on the Company's current plans and projections, Management
believes that the Company has the funds to meet its current and future financial
commitments until it achieves positive cash flows from operations.
Current Activities.
The Company currently has approximately 54 employees located in its
head office in Toronto, Ontario, its Research and Development facility in
Calgary, Alberta and its sales offices and subsidiaries in the United States,
Canada and Australia, as well as at its subsidiary, JetStream Internet Services
in Salmon Arm, British Columbia. The majority of these employees are involved in
the design, development and marketing of the WaveRider(R) line of wireless data
communications products.
11
Results of Operations
Revenue
Total revenue increased 45% compared to Q1 2002 but declined 5%
compared to Q2 2001. WaveRider has increased its focus on North American sales
resulting in significant quarter on quarter growth with the growing acceptance
of the LMS network systems. Revenue in the United States has increased 81% in Q2
2002 compared to Q1 2002 and 257% compared to Q2 2001. Revenue outside of North
America showed a marked decline due to the reduction in staff the Company
implemented in Q3 2001 and the loss of sales opportunities in the Middle East.
It is management's view that international sales will recover over time.
Cost of Product and Internet Sales
Gross Margin on Product and Internet Sales declined in Q2 2002 to 28.1%
from 28.6% in Q1 2002 and 33.7% in Q2 2001. The declines are the result of the
increased focus in North America where competition has resulted in lower overall
pricing. The Company expects to be able to offset the pricing pressures in the
future through economies of scale and product refinements to allow it to
maintain and enhance margins in the second half of the year.
Expenses
Selling, general and administrative expenses, including stock based
compensation, decreased to $1,288,954 in Q2 2002 from $3,490,438 in the
corresponding period of 2001 and from $2,436,282 in Q1 2002. The decrease from
Q1 2002 was the result of: incurring expenses in Q1 2002 in the amount of
$936,382 related to the fair value of escrow shares; recovering $43,500 of these
expenses in Q2 2002 as a result of a reduction in the market price of the
Company's common stock; and, ongoing focus on control of discretionary spending.
The decline from prior year is the result of the significant staff reductions in
Q3 2001 and continued focus on discretionary spending.
As discussed in the Company's 10-K for 2001, the Company has moved to a level of
sustaining engineering for its NCL and LMS product families, with Research and
Development costs in Q2 2002 amounting to $479,657, compared to $1,322,960 for
the corresponding quarter in 2001 and $336,108 in Q1 2002. In March 2002, we
announced that we intend to close our Calgary facility during the second half of
2002 and transition the operations to our Toronto location. We anticipate that
we will continue to maintain our reduced expenditure levels through 2002, as we
consolidate our Research and Development activities into our Toronto location.
The final costs of this transition have not been determined but due to the
relatively long transition period the company does not expect to incur
significant costs for severance or termination of agreements.
Depreciation and amortization expense declined to $282,672 in Q2 2002 from
$854,434 in Q2 2001 and as a result of the change in accounting policy, which
ended the amortization of goodwill effective January 1, 2002.
Interest and other expenses amounted to $22,347 in Q2 2002 compared to $311,616
in Q2 2002 and $336,882 in Q1 2002. Included in interest and other expenses in
Q1 2002 was $263,607 related to the accretion of the promissory notes. Costs in
Q2 2001 were the result of the costs of conversion of the promissory notes
issued in December 2000.
12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
None
Signatures:
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized,
WaveRider Communications Inc.
Date: July 26, 2002 /s/ D. Bruce Sinclair
-------------------------------------
D. Bruce Sinclair
President and Chief Executive Officer
/s/ T. Scott Worthington
-------------------------------------
T. Scott Worthington
Chief Financial Officer.
13