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InfoSearch Media's 2005 Revenue Grows 234% Year Over Year 3/13/2006
MARINA DEL REY, CA, Mar 13, 2006 (MARKET WIRE via COMTEX) -- Leading online media and search marketing firm InfoSearch Media, Inc. (OTC BB: ISHM) today reported revenue of $9.4 million, compared to $2.8 million for 2004, an increase of 234%.
In accordance with generally accepted accounting principles (GAAP), InfoSearch reported income of $0.4 million, or $0.01 per share (basic and diluted) for 2005, compared to a net loss of $(4.3 million), or $(0.13) per share (basic and diluted) for 2004. The results for the 2005 fiscal year included $0.6 million in non-cash equity compensation expenses related to options and restricted stock grants provided to consultants, members of the Board of Directors and employees and $0.5 million gain related to a change in the fair value of warrants issued in November 2005.
"We view 2006 as a year of investment in our business as we further develop and enhance our two product groups, Content Logic and Web Properties, and set the foundation to further scale our business. As a result of our efforts in building the two businesses, we expect modest revenue growth in 2006, with 2006 revenues primarily derived from ContentLogic, and accelerating overall growth in 2007," explained George Lichter, CEO of InfoSearch. "With the addition of Answerbag.com, we now have the essential pieces in place to take advantage of the increased opportunity presented by web-based content. We expect to maintain our leadership position in the delivery of both user-generated and internally developed content for search engine marketing," concluded Mr. Lichter.
About InfoSearch Media
InfoSearch Media (http://www.infosearchmedia.com) helps businesses succeed on the web by implementing content-based solutions that can simultaneously increase online search engine rankings and website sales performance. Priced for the small and medium sized business, Infosearch Media drives website performance through its two products: ContentLogic and ArticleInsider.
Safe Harbor Statement
This release contains "forward-looking statements" that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to the challenges of attracting new customers and maintaining existing customers and developing, deploying and delivering InfoSearch services; a failure to complete our contemplated financing arrangements; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers and other risks described from time to time in InfoSearch's filings with the Securities and Exchange Commission. In particular, see InfoSearch's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from InfoSearch. InfoSearch does not assume any obligation to update the forward-looking information contained in this press release.
INFOSEARCH MEDIA, INC. STATEMENTS OF OPERATIONS Year Ended December 31, ----------------------------------- 2005 2004 ----------- -----------NET SALES $ 9,364,401 $ 2,799,622COST OF SALES 2,344,021 1,650,907 ----------- -----------GROSS PROFIT 7,020,380 1,148,715 ----------- -----------COSTS AND EXPENSES: Selling expenses 2,337,747 2,299,243 General and administrative 4,839,126 3,163,017 ----------- ----------- TOTAL COSTS AND EXPENSES 7,176,873 5,462,260 ----------- -----------LOSS FROM OPERATIONS (156,493) (4,313,545)CHANGE IN FAIR VALUE OF WARRANTS 536,900INTEREST INCOME/EXPENSE 50,373 (9,319) ----------- -----------NET INCOME/(LOSS) $ 430,780 $(4,322,864) =========== ===========LOSS PER SHARE - BASIC AND DILUTED $ 0.01 $ (0.13) =========== ===========BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 42,277,775 33,560,275 =========== ===========DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 43,055,104 33,560,275 =========== =========== INFOSEARCH MEDIA, INC. BALANCE SHEET DECEMBER 31, 2005 (Unaudited) ASSETS ------CURRENT ASSETS: Cash $ 4,828,560 Accounts receivable 4,449 Due from related parties 25,000 Prepaid expenses and other current assets 209,762 ----------- TOTAL CURRENT ASSETS 5,067,771EMPLOYEE ADVANCE 2,500PROPERTY AND EQUIPMENT 285,021CONTENT DEVELOPMENT 349,054SECURITY DEPOSIT 37,500 ----------- TOTAL ASSETS $ 5,741,846 =========== LIABILITIES AND STOCKHOLDERS' DEFICIT -------------------------------------CURRENT LIABILITIES: Accounts payable and accrued expenses, payroll and taxes $ 606,073 Current portion of deferred revenue 2,074,103 Provision for refunds payable/bad debts 44,151 Current portion of capital lease obligations 33,004 ----------- TOTAL CURRENT LIABILITIES 2,757,331CAPITAL LEASE OBLIGATIONS 17,621FAIR VALUE OF WARRANTS LIABILITY 2,526,272DEFERRED REVENUE 553,943 ----------- TOTAL LIABILITIES 5,855,167STOCKHOLDERS' DEFICIT: Preferred stock, undesignated, par value $0.001 per share, 25,000,000 shares authorized; no shares issued and outstanding; - Common stock, $0.001 par value, authorized 200,000,000 shares; issued and outstanding 33,918,400 42,278 Additional paid in capital 6,056,291 Accumulated deficit (6,211,890) ----------- TOTAL STOCKHOLDERS' DEFICIT (113,321) ----------- TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT $ 5,741,846 =========== INFOSEARCH MEDIA, INC. STATEMENTS OF CASH FLOWS Year Ended December 31, ----------- ----------- 2005 2004 ----------- -----------CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ 430,780 $(4,322,864) ----------- ----------- Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 420,595 77,798 Stock based compensation 645,502 - Change in fair value of warrants (536,900) Changes in assets and liabilities: Accounts receivable 130,577 (106,872) Prepaid expenses and other current assets (160,706) (31,652) Accounts payable, accrued expenses and other liabilities (40,405) 192,782 Amounts refunded to customers (754,659) 798,810 Deferred revenue (4,608,043) 4,655,910 ----------- ----------- Total adjustments (4,904,039) 5,586,776 ----------- -----------NET CASH (USED IN) AND PROVIDED BY OPERATING ACTIVITIES (4,473,259) 1,263,912 ----------- -----------CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures - Fixed assets (158,459) (190,109) Capital expenditures - Content development (604,491) - ----------- -----------NET CASH USED IN INVESTING ACTIVITIES (762,950) (190,109) ----------- -----------CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments of capital lease obligations (32,034) (20,737) Loan to stockholders - 69,486 Gross proceeds from private placement and sale of Common Stock 8,767,845 (4,000) ----------- -----------NET CASH PROVIDED BY FINANCING ACTIVITIES 8,735,811 44,749 ----------- -----------NET INCREASE IN CASH 3,499,602 1,118,552CASH - BEGINNING OF PERIOD 1,328,958 210,406 ----------- -----------CASH - END OF PERIOD $ 4,828,560 $ 1,328,958 =========== ===========SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest $ 12,791 $ 9,319 =========== =========== Investor Contact:Alex WellinsThe Blueshirt Group, for InfoSearch Media415-217-5861Contact via http://www.marketwire.com/mw/emailprcntct?id=A185F1B94D246981Media Contact:InfoSearch Media, Inc.Frank Knuettel, IIChief Financial Officer310-822-1103Contact via http://www.marketwire.com/mw/emailprcntct?id=C96868835F1DD75C SOURCE: InfoSearch Media Inc.
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