During the fiscal year ending December 31, 2003 financing activities provided the Company $640,162 in cash, primarily from funds received under a convertible promissory note of $582,616. Advances to and from related parties provided $52,777 in cash and the proceeds from stock options exercised provided $12,276 in cash. $366,917 was used in operating activities and $1,002 was used in investing activities, while exchange rates on cash and cash equivalents used $270,371 due to the strengthening of Canadian currency versus U.S. currency during the year. The resultant overall net increase in cash and cash equivalents was $1,871; where the beginning balance for the fiscal period was $1,879, the resultant balance for the period was $3,750.
For the fiscal year 2002, an overall net increase in cash and cash equivalents of $1,014 was due to net cash used in operating activities of $263,768, net cash provided by financing activities of $297,831 and cash used in investing activities of $10,400.
WordLogic has and may continue to supplement cash flows from sales with additional equity and debt financing. Substantially, expanded operations are expected to require additional capital, either from a future offering of equity or the company pursuing other methods of financing, as appropriate.
Patents & Trademarks
Six individual Patent applications have been filed for Method, system and media for entering data in a personal computing device in the United States, Canada and Europe.
On March 4, 2004 European Patent No. 1171813 entitled "Data Entry for Personal Computing Devices" was granted to the Company by the European Patent Office. There are over 7,000 claims allowed under the Patent which are directed to methods and systems for entering data on a personal computing device using a search list, a digital keyboard and a pointing device. Examples of Pointing Devices are provided for illustration in the Patent specifications and include a pen, stylus, finger, mouse, trackball or the like. The Patent also indicates that the invention may be used with a variety of personal computing devices including personal digital assistants (PDAs) and other hand-held devices, personal computers including tablets, mobile phones, internet appliances and embedded devices having a graphical display and an input interface using a Pointing Device. In addition, the Patent states the invention may be applied to several different types of digital keyboards and keyboard layouts including traditional keyboards.
In the methods and systems claimed, a digital keyboard is displayed on a user interface when a user is entering text. The user-input signal activates an automated search to obtain a list of complete words based on a partial text entry, and then a search list is provided containing completion candidates for the user to select from. Although not specifically defined in the Patent, this process is commonly known as word completion or word prediction. Preferred embodiments in the Patent include the activation of automated search when a character on the digital keyboard remains selected by the Pointing Device; the automated search is terminated when the Pointing Device is lifted from the surface of the digital keyboard; and the digital keyboard and the search list are displayed simultaneously while the keyboard is in use.
European Patent No. 1171813 has also been nationalized in Germany, France, The United Kingdom, Italy Finland, Spain, The Netherlands and Portugal.
The other five additional patents are pending in the United States, Canada and Europe.
On October 21, 2003 The Company received Trademark approval for the mark WordLogic under Reg. No. 2,774,468 pending. A similar trademark application has been approved and registered in Canada under TMA576,700.
WordLogic Corporation currently has three officers, two are engaged by management or consulting contracts and the third is employed at will.
Description of Property
WordLogic Corporation rents office space from an affiliate on a month-to-month basis. Monthly rent payments vary based on the amount of office space utilized by the Company. For 2003, the rental expense for the 3,000 square feet the Company occupies was $65,773 (2002 - $92,742) including the Companys proportionate share of utilities, property taxes and common area maintenance costs.
Property and equipment
Property and equipment consisted of the following at December 31, 2003:
Furniture and fixtures
Less: accumulated depreciation
Equipment Under Capital Lease
Equipment under Capital Lease consisted of the following at December 31, 2003:
Less: accumulated depreciation
On March 4, 2004 European Patent No. 1171813 entitled "Data Entry for Personal Computing Devices" was granted to the Company by the European Patent Office.
Directors, Executive Officers, and Significant Employees
The following information sets forth the names of the officers and directors of WordLogic Corporation