SSC SEC Services Corp. (SECUF)

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Update on Input Capital from Fundamental Research Corp.

Analysts’ Ideas of the Week – January 12, 2015
( these guys do a wonderful job IMO)

Q3-FY2015 Operational Update Sends Input Capital Higher
Last week Input Capital (TSX-V:INP) released their Q3-FY2015 update on operations for their quarter ended
December 31, 2014. Input plans to release their financial statement and MD&A for the quarter at a later date.
Input reported a strong quarter for revenue and an impressive quarter of deployments.

Sales of canola in the quarter were 8,027 tonnes of canola at an average price of $437 per tonne for total revenue
from canola streams of $3.5 million. Input also reported $1.2 million in canola trading revenue. Input noted that
the remaining canola from the FY2014 harvest has been complete, which was approximately 3,664 tonnes of
canola. Previously, management had estimated 35,000-40,000 tonnes of canola would be due to Input in the
FY2015 harvest season. After taking into account the canola from the previous harvest season, Input received approximately 4,363 tonnes of canola in Q3 from their FY2015 contracts. We had expected approximately half
of the FY2015 canola to be delivered in this quarter. We are not particularly concerned with the exact timing of
the canola deliveries, and feel that as the company progresses, the estimated timing of deliveries will improve.

We have estimated an average price of $440 for the FY2015 harvest year, with Q3 being in line with that
estimate. The cash price in January 2015 has averaged around $430, with the March 2015 futures contracts
trading at $450 per tonne. We feel that the price per tonne of canola will remain around our estimate in Q4.

The highlight of the update was the deployment of $16.9 million into 26 streaming contracts. Our major concern
from our last report was pace of deployment due to the $64.1 million in cash Input had at the end of Q2. Input
reported that of the 26 contracts, 22 are new customers which we feel is encouraging and highlights Input’s
marketing plan and ability to attract new farmers. Input now has 42 farmers under contract. Input’s
management had previously discussed that they maintained a strong pipeline of deals, and this quarter showed
their ability to close on those deals. From the update, management remains positive that their awareness
campaign is working and that deployment will continue at these levels. We anticipate continued strength in
deployment of capital in Q4.
After the operational update, Input’s stock jumped to $2.45, from $2.10.

We continue to maintain a positive
outlook on Input.

credit also goes to:
Daniel Iwata, BA, Dip. Fin. Mgmt.
Equity Research Associate
http://www.researchfrc.com/new/