Certain assets, like building and property, depreciate at a very slow rate, with useful lives of approximately 30+ years. Other assets, like computers and technical equipment, may only last a few years. The reason this is important, is because certain companies choose to accelerate its depreciation amounts, in an effort to reduce short-term taxable income, and pay less taxes. Although net income is negatively affected, a company’s operating cash flows are not altered by this non-cash depreciation charge. That being said, the companies on today’s list have high depreciation rates, at more than 66% of depreciating asset values.
Helix Biopharma Corp. (TSX: HBP) – $2.05
Biotechnology & Medical Research
Helix BioPharma Corporation is a Canada-based biopharmaceutical company focused on cancer therapy. It is developing products for the treatment and prevention of cancer based on its technologies. The Company’s product development initiatives have focused on its L-DOS47 and Topical Interferon Alpha-2b new drug candidates. Helix’s most advanced product clinically is its Topical Interferon Alpha-2b as a treatment for certain skin/mucosal lesions caused by HPV infections.
- Market Cap: $171,943,124
- Revenue (LTM): $0
- Depreciation % of PP&E: 84.06%
- Depreciation (2014): $232,000
Pure Technologies Ltd. (TSX: PUR) – $7.11
Business Support Services
Pure Technologies Ltd is engaged in development and application of technologies for inspection, monitoring and management of physical infrastructure, including water and hydrocarbon pipelines, buildings and bridges. The Company’s business model incorporates four distinct but complementary business streams: sales of monitoring technologies for pipelines, bridges and structures; revenue from data analysis, site maintenance, and from technology licensing; technical services including pipeline inspection, leak detection and condition assessment, and engineering services in areas related to asset management.
- Market Cap: $371,423,974
- Revenue (LTM): $79,853,000
- Depreciation % of PP&E: 82.96%
- Depreciation (2014): $7,151,000
Spectra7 Microsystems Inc. (TSXV: SEV) – $0.54
Semiconductors
Spectra7 Microsystems Inc., formerly Chrysalis Capital VIII Corporation, is Canada-based analog semiconductor company delivering resolution and signal fidelity to consumer and wireless infrastructure products. It is a consumer connectivity company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading consumer electronics manufacturers in Virtual Reality (VR), Wearable Computing and Ultra-HD 4K/8K Displays. The Company has two revenue generating product lines featuring products in volume mass production: interconnect products and wireless products.
- Market Cap: $68,846,447
- Revenue (LTM): $6,169,938
- Depreciation % of PP&E: 66.70%
- Depreciation (2014): $138,231
TIO Networks Corp. (TSXV: TNC) – $1.15
Business Support Services
TIO Networks Corp. is a Canada-based information technology company that specializes in processing bill payment transactions through a secure Internet enabled platform. The Company is a cloud based, multi-channel bill payment processor. It serves telecom, wireless, cable and utility network operators in North America. The Company, through its subsidiary, Global Express Money Orders, Inc., is licensed to sell money orders in 13 states and the District of Columbia.
- Market Cap: $67,369,168
- Revenue (LTM): $68,257,730
- Depreciation % of PP&E: 66.61%
- Depreciation (2014): $560,590
Stellar Biotechnologies Inc. (TSX: KLH) – $0.82
Biotechnology & Medical Research
Stellar Biotechnologies, Inc. (Stellar) is a biotechnology company engaged in the aquaculture, research and development, manufacture and commercialization of Keyhole Limpet Hemocyanin (KLH) protein. KLH is a high molecular weight and immune-stimulating protein. It operates under the brand name Stellar KLH. Its products include Stellar KLH protein in various grades, formulations and configurations for both clinical and preclinical applications. Stellar KLH can be used for therapeutic vaccine conjugation, as a carrier molecule in immunotherapies and as an immune stimulant in immunotoxicology applications.
- Market Cap: $67,780,481
- Revenue (LTM): $520,000
- Depreciation % of PP&E: 66.36%
- Depreciation (2014): $172,162
