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QTCE (.0014)Offers New Friction-Free Marketing System Trial to Car and Driver Website >LONDON, Aug. 14, 2006 (PRIMEZONE) -- Quantech Electronics Corp. (Pink Sheets:QTCE), software developer for marketing communications, announced today that Quantech has proposed a large-scale trial of its new "friction-free" marketing system to the leading website, http://www.caranddriver.com.
Quantech proceeds with the penetration phase of its friction-free marketing system on schedule, by offering the system to world leading website, http://www.caranddriver.com for a trial period. Car and Driver, published by Hachette Filipacchi Media, U.S., Inc., is the world's largest automotive magazine, presenting unsurpassed technical expertise and test reports on the latest new cars to a readership of over 10,000,000. In the next few weeks the publication's website (http://www.caranddriver.com) will start deploying behavioral targeting solutions to their clients, original equipment manufacturers in the auto industry.
"A trial of this scale would be extremely exciting for Quantech, and we would expect Car and Driver to reap results within a very short horizon. Until now, automation and customization were two mutually exclusive terms, but Quantech's new system changes this. Our new system adapts marketing communications to each customer's preferences based on his or her individual online behavior patterns of interactions. The new system makes such a customized one-on-one approach both technologically feasible and financially cost effective," reports Liat Matilsky, CEO of Quantech.
Quantech's new online behavioral-based system delivers positive, measurable results for publishers, advertisers and many benefits to consumers by creating a friction-free environment for customers to interact with commercial websites. Using sophisticated behavioral analytics to create friction-free interactions ensures that collected information flows in both directions, and that genuine benefits are reaped by customers and companies.
About Quantech
Quantech Electronics Corp. is a web-based software development company based in the U.K., that offers development services focusing on web-based desktop communication tools, call center support tools, and development packages designed to enhance the effectiveness of web-based advertising and instant messaging. Quantech Electronics Corp. develops powerful, easy-to-use software that enhances the effectiveness and efficiency of its customers' online and offline businesses. Driven to provide comprehensive solution packages for their clients' entire online business needs, Quantech focuses on customized developments for medium to large businesses, as well as start-ups. Offering several unique technologies and forged notable strategic alliances, Quantech's rapid-response systems construct client infrastructure at competitive prices. The company's client base includes medium to large sized businesses, as well as start-ups.
Forward-Looking Statements
Certain statements in this news release may contain 'forward-looking' information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.
DC Brands International Securing Another Coke Syrup Distributor
DENVER, CO, Aug 14, 2006 (MARKET WIRE via COMTEX) -- At the close of business Monday, DC Brands International, Inc. (PINKSHEETS: DCBI) announced they will be entering into a new on-premise bag-in-box distribution relationship with another predominant Coke authorized syrup distributor based in California within the next 30 days. A bag-in-box syrup distributor is a specific type of distributor who delivers concentrated forms of beverages that hook up to fountain guns or hand held guns that typically mix and dispense carbonated beverages. These distributors also, in many instances, either own or rent the equipment and may provide full service and maintenance of those gun/fountain systems. On-premise establishments typically gravitate towards concentrated bag-in-box products due to increased profits and ease of dispensing. Dickens Energy Cider is manufactured and sold in five gallon bag-in-box containers with a 5 - 1 mix ratio yielding 30 gallons of consumable product. DC Brands VP of Sales, Richard Muscarella stated, "This potent relationship completes distribution of our entire product line within this region of California. With an existing large distributor in place whose forte is distributing canned and bottled products, this new relationship with a predominant syrup distributor who carters to nearly 1,000 on-premise establishments provides DC Brands with abundant coverage for both on and off premise establishments. The beauty of this scenario is that there is absolutely no conflict between distributors; they clearly have different markets and products. Additional benefits include the ever exploding consumption of shooters or energy bombs at these types of establishments. When patrons order energy shooters or bombs, Dickens becomes the Energy source of that cocktail mix, thereby eliminating the need to compete with other energy drinks. Guaranteed consumption cannot be beat! Additionally, having Dickens distributed on the gun in areas where our canned product is distributed provides us with greater exposure. Without question this fuels the consumer to look for and request Dickens Energy Cider at both on premise and off premise establishments."
For more information on the company, visit their web site at DickensEnergyCider.com Primary Contact: Keith Howard 303-279-3800
Note: Except for the historical information contained herein, this news release contains forward-looking statements that involve substantial risks and uncertainties. Among the factors that could cause actual results or timelines to differ materially are risks associated with research and clinical development, regulatory approvals, supply capabilities and reliance on third-party manufacturers, product commercialization, competition, litigation, and the other risk factors listed from time to time in reports filed by DC Brands International with the Securities and Exchange Commission, including but not limited to risks described under the caption "Important Factors That May Affect Our Business, Our Results of Operation and Our Stock Price." The forward-looking statements contained in this news release represent judgments of the management of DC Brands International as of the date of this release. DC Brands International and its managers and agents undertake no obligation to publicly update any forward-looking statements.
Conatct:
Keith Howard
303-279-3800
-------------------- "Man who excels at putting worm on hook is Master Baiter"
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Summit Financial Services Announces Second Quarter Results 8/14/2006
BOCA RATON, Fla., Aug 14, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Summit Financial Services Group, Inc. (OTC Bulletin Board: SFNS) today reported its revenues and net income for the three- and six-month periods ended June 30, 2006. For the quarter ended June 30, 2006, the Company reported revenues of $7.12 million, an increase of approximately 32% from the $5.38 million in revenues reported for the quarter ended June 30, 2005. For the 2006 quarter, the Company reported net income of $38,000 versus a loss of $18,000 for the 2005 quarter.
For the six-month period ended June 30, 2006, the Company reported revenues of $13.7 million, an increase of approximately 36% from the $10.1 million in revenues reported for the six-month period ended June 30, 2005. For the 2006 period, the Company reported net income of $99,000 versus net income of $74,000 for the 2005 period.
Marshall Leeds, the Company's Chairman, Chief Executive Officer and President, stated: "Our growth in revenues reflects our continued focus on the expansion of Summit's network of financial advisors. Our earnings for both the three- and six-month periods were impacted by this continued focus and the related costs of investing in the development of our financial advisor network."
The Company is a Florida-based financial services firm that provides a broad range of securities brokerage and investment services, primarily to individual investors. The Company currently offers its services through a network of approximately 200 registered representatives, and its business plan is focused on recruiting financial advisors to increase the size of its network of affiliated registered representatives.
This press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission. Any such statements are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934 (as amended), and they involve a number of risks and uncertainties that could cause actual results to differ materially from those that may be anticipated by or from the forward-looking statements. Important factors that could cause such a difference are set forth in the Company's filings with the Securities and Exchange Commission and include, but are not limited to, investor confidence and the performance of the securities markets, and the availability of suitable candidates for the Company's acquisition or recruitment.
For additional investor relations information, contact Summit Financial Services Group, Inc., Boca Raton, Florida - Steven C. Jacobs, CFO, 561-338-2600.
Hartville Group Announces Financial Results for the Second Quarter of 2006; 33% Higher Revenues; 44% Lower Cash Losses 8/14/2006
CANTON, Ohio, Aug 14, 2006 (BUSINESS WIRE) -- Hartville Group, Inc. (OTCBB:HTVL) today announced financial results for the Company's second quarter of 2006.
Gross revenue for the three months ending June 30, 2006 of $1.4 million was $339,000 (33%) higher than the $1.0 million of gross revenue for the comparative period of 2005. This included $551,000 in reinsurance and commission income for the three months ending June 30, 2006, a 121% increase from the $250,000 reported in the comparative period of 2005. The net loss for the three months ending June 30, 2006 was $2.7 million, or $(0.14) per fully diluted share based on 19.6 million shares compared to a net loss of $2.3 million, or $(0.16) per fully diluted share based on 14.5 million shares for the comparative period of 2005. Adjusting the net losses for non-cash expenses of $1.7 million and $670,000, the cash loss was $915,000 and $1.6 million for the three months ending June 30, 2006 and 2005, respectively, which reflects a $731,000 (44%) improvement.
Gross revenue for the six months ending June 30, 2006 of $2.7 million was $585,000 (28%) higher than the $2.1 million of gross revenue for the comparative period of 2005. This included $1.1 million in reinsurance and commission income for the six months ending June 30, 2006, a 182% increase from the $382,000 reported in the comparative period of 2005. The net loss for the six months ending June 30, 2006 was $5.1 million, or $(0.28) per fully diluted share based on 18.6 million shares compared to a net loss of $4.4 million, or $(0.30) per fully diluted share based on 14.6 million shares for the comparative period of 2005. Adjusting the net losses for non-cash expenses of $3.2 million and $1.3 million, the cash loss was $2.0 million and $3.1 million for the six months ending June 30, 2006 and 2005, respectively, which reflects a $1.1 million (36%) improvement.
The Company also recently announced the successful completion of a financial restructuring which substantially reduced the Company's debt and provided significant working capital to fund further operations. Effective August 1, 2006, the Company entered into a Conversion Agreement and Release with the holders of the two year convertible debentures due November 2006. In redeeming this debt, the Company issued 35,169,377 shares of common stock and paid $1,373,303. As a result of this transaction, the Company now has approximately 55 million shares outstanding. As part of the financial restructuring, the Company issued $5,063,291 of Original Issue Discount Secured Convertible Debentures due July 2009 in order to provide additional working capital and to facilitate the retirement of the $12 million of convertible debt.
"The wide-ranging operational improvements we have attained over the past 18 months are illustrated by our positive increase in commissions earned by Petsmarketing and the Reinsurance profit earned by Hartville Re," commented Dennis Rushovich, the Company's chief executive officer. "We have experienced year-over-year improvements compared to last year's results, as well as sequential improvements from our already improved first quarter of this year. Also, both the launch of key marketing initiatives, and the positive operational progress, were essential to the completion of our recently-announced successful financial restructuring. As well as substantially reducing the Company's debt burden, those restructuring transactions provided significant working capital to fund further operations."
BUSINESS SEGMENT RESULTS
Reinsurance Company
Three Month Results
Total premiums were $1.8 million of which $913,000 was retained by Hartville Re for the three months ending June 30, 2006, compared to the three months ending June 30, 2005, where total premiums were $1.6 million of which Hartville Re retained $786,000. The premium amount retained increased by $126,000 (16%) which was due primarily to the increase in total premiums. Total premiums for the three months ending June 30, 2006 are more than the comparative period of 2005 due to an increase of 3,190 (14%) of pets insured and also an increase in the average premium per pet.
Losses for the three months ending June 30, 2006 of $511,000 were $20,000 (3.8%) lower than losses of $531,000 for the comparative period of 2005. Ceded costs for the three months ending June 30, 2006 of $306,000 was $58,000 (23%) higher than ceded costs of $248,000 for the comparative period of 2005. The higher ceded cost was a result of the higher retained premium and the 2.5% premium fee paid to the Company's agency for handling claims.
Six Month Results
Total premiums were $3.7 million of which $1.8 million was retained by Hartville Re for the six months ending June 30, 2006, compared to the six months ending June 30, 2005, where total premiums were $3.1 million of which Hartville Re retained $1.6 million. The premium amount retained increased by $209,000 (13%) which was due primarily to the increase in total premiums. Total premiums for the six months ending June 30, 2006 are more than the comparative period of 2005 due to an increase of 3,190 (14%) of pets insured and also an increase in the average premium per pet.
Losses for the six months ending June 30, 2006 of $1.0 million were $210,000 (17%) lower than losses of $1.2 million for the comparative period of 2005. The lower losses for the six months ending June 30, 2006 were mainly from increased reserve for losses in 2005 when Hartville Re went from 0% reinsurance on new and renewal business at December 31, 2004 to 50% reinsurance on all business starting February 1, 2005. Ceded costs for the six months ending June 30, 2006 of $598,000 was $100,000 (20%) higher than ceded costs of $498,000 for the comparative period of 2005. The higher ceded cost was a result of the higher retained premium and the 2.5% premium fee paid to the Company's agency for handling claims.
Insurance Agency and Holding Company
Three Month Results
Commission income earned by Petsmarketing of $456,000 for the three months ending June 30, 2006 was $213,000 (88%) higher than commission income earned of $243,000 for the comparative period of 2005. This increase in commission income was due to the increase in total premiums, the increase of 2.5% in the agency's commission rate for handling claims, the implementation of the $10 annual policy holder fee, and the 5% premium tax passed through to customers (which was previously paid by Petsmarketing).
General and administrative (G&A) expenses of $2.0 for the three months ending June 30, 2006 were $151,000 (7.1%) lower than general and administrative expenses of $2.1 million for the comparative period of 2005. Adjusting G&A expenses for non-cash items of $489,000 and $322,000, the cash G&A expenses were $1.5 million and $1.8 million for the three months ending June 30, 2006 and 2005, respectively, which reflect a $318,000 (18%) decrease. Included in non-cash expenses were options issued to employees, depreciation, amortization and shares issued to an employee. Non-cash expenses increased $167,000 mainly due to the options issued to employees in February 2006 and shares issued to an employee, both accounted for under the new FAS No. 123(R), "Share-Based Payments," which we adopted effective January 1, 2006.
Included in G&A expenses were marketing expenses of $484,000 and $404,000 for the three months ending June 30, 2006 and 2005, respectively. Adjusting the marketing expenses for capitalization of deferred acquisition costs of $0 and $200,000, the cash marketing expenses were $484,000 and $604,000 for the three months ending June 30, 2006 and 2005, respectively, which reflects a $120,000 (20%) decrease. In the first quarter of 2005, the grocery store coupon program costs were capitalized as deferred policy acquisition costs.
Adjusting G&A expenses for non-cash items and after removing marketing, pure cash G&A expenses were $998,000 and $1.4 million which reflects a $398,000 (29%) decrease for the three months ending June 30, 2006 and 2005, respectively.
Six Month Results
Commission income earned by Petsmarketing of $875,000 for the six months ending June 30, 2006 was $376,000 (75%) higher than commission income earned of $499,000 for the comparative period of 2005. This increase in commission income was due to the increase in total premiums, increase of 2.5% in the agency's commission rate for handling claims, the implementation of the $10 annual policy holder fee, and the 5% premium tax passed through to customers, which was previously paid by Petsmarketing.
General and administrative expenses of $4.3 million for the six months ending June 30, 2006 were $401,000 (10%) higher than general and administrative expenses of $3.9 million for the comparative period of 2005. Adjusting G&A expenses for non-cash items of $1.2 million and $629,000, the cash G&A expenses were $3.1 million and $3.3 million for the six months ending June 30, 2006 and 2005, respectively, which reflects an $188,000 (5.8%) decrease. Included in non-cash expenses were options issued to employees, depreciation, amortization and shares issued to an employee. Non-cash expenses increased $590,000 mostly due to the options issued to employees in February 2006 and shares issued to an employee, both accounted for under the new FAS No. 123(R), "Share-Based Payments," which we adopted effective January 1, 2006.
Included in G&A expenses were marketing expenses of $1.0 million and $744,000 for the six months ending June 30, 2006 and 2005, respectively. Adjusting the marketing expenses for capitalization of deferred acquisition costs of $0 and $600,000, the cash marketing expenses were $1.0 million and $1.3 million for the six months ending June 30, 2006 and 2005, respectively, which reflects a $318,000 (24%) decrease. In the first and second quarters of 2005, the grocery store coupon program costs were capitalized as deferred policy acquisition costs.
Adjusting G&A expenses for non-cash items and after removing marketing, pure cash G&A expenses were $2.0 million and $2.5 million which reflects a $471,000 (19%) decrease for the six months ending June 30, 2006 and 2005, respectively.
About Hartville Group, Inc.
Hartville Group, Inc. (Hartville Group) is a holding company whose wholly owned subsidiaries include Hartville Re Ltd. (Hartville), Petsmarketing Insurance.com Agency, Inc. (the Agency) and Wag N' Pet Club, Inc. Hartville is a reinsurance company that is registered in the Cayman Islands, British West Indies. Hartville was formed to reinsure pet health insurance that is being marketed by the Agency. The Agency is primarily a marketing/administration company concentrating on the sale of its proprietary health insurance plans for domestic pets. Its business plan calls for introducing its product effectively and efficiently through a variety of distribution systems. The Agency accepts applications and underwrites certificates electronically.
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in the Company's Form 10-K, Form 8-K and Form 10-Q reports. The Company undertakes no obligation to update or revise any forward-looking statement.
Tables Follow
Hartville Group, Inc. and SubsidiariesConsolidated Statements of IncomeFor the Three and Six Months Ended June 30, 2006 and 2005Unaudited Three Months Ended Six Months Ended June 30, June 30, 2006 2005 2006 2005 ------------ ------------ ------------ ------------Premiums $ 912,664 $ 786,277 $ 1,829,639 $ 1,620,470Losses (511,160) (531,233) (1,030,578) (1,240,171)Ceded costs (305,690) (247,750) (598,052) (497,581) ------------ ------------ ------------ ------------Reinsurance income (loss) 95,814 7,294 201,009 (117,282)Commission income 455,619 242,521 875,276 499,124General and administrative expenses (1,971,151) (2,122,439) (4,281,111) (3,879,995) ------------ ------------ ------------ ------------Operating loss (1,419,718) (1,872,624) (3,204,826) (3,498,153) ------------ ------------ ------------ ------------Other income 15,366 25,078 34,831 65,358Other expenses (1,255,502) (468,764) (1,969,837) (977,418) ------------ ------------ ------------ ------------Loss before taxes (2,659,854) (2,316,310) (5,139,832) (4,410,213)Provision for taxes - - - - ------------ ------------ ------------ ------------Net loss $(2,659,854) $(2,316,310) $(5,139,832) $(4,410,213) ============ ============ ============ ============Net loss per common share $ (0.14) $ (0.16) $ (0.28) $ (0.30)Weighted average common shares outstanding 19,630,508 14,546,340 18,618,007 14,561,235 Hartville Group, Inc. and SubsidiariesConsolidated Balance SheetsJune 30, 2006 (Unaudited) and December 31, 2005 June 30, December 31, 2006 2005 (Unaudited) ------------- ------------- ASSETSCash and cash equivalents $ 2,041,280 $ 4,125,579Commission receivable 26,000 -Other receivables 138,996 205,278Prepaid expenses 1,106,848 2,371,861Property and equipment - net 1,225,114 1,640,883Deferred policy acquisition costs - net 825,130 1,004,051Licensing fees, less accumulated amortization of $52,512 and $52,060 1,977 2,429Other assets 68,067 67,570 ------------- -------------Total Assets $ 5,433,412 $ 9,417,651 ============= ============= June 30, December 31, 2006 2005 (Unaudited) ------------- ------------- LIABILITIES AND STOCKHOLDERS' EQUITYAccounts payable and accrued expenses $ 394,079 $ 556,300Reserve for claims 352,525 377,573Premium deposits 1,704,446 1,691,743Unearned commissions 14,063 20,245Debt (June 30, 2006 was offset by discount of $10,157,326 on convertible securities issued in 2004 and $98,289 on convertible securities issued on September 30, 2005; December 31, 2005 was offset by discount of $10,992,210 on convertible securities issued in 2004 and $108,227 on convertible securities issued on September 30, 2005) 2,109,925 1,296,570 ------------- -------------Total Liabilities 4,575,038 3,942,431Stockholders' EquityCommon stock, 200,000,000 and 50,000,000 shares authorized at June 30, 2006 and December 31, 2005, respectively: $.001 par value; 19,724,508 issued and 19,630,508 outstanding at June 30, 2006 and 14,983,703 issued and 14,889,703 outstanding at December 31, 2005 19,725 14,984Additional paid in capital 23,329,978 22,811,733Retained deficit (22,420,829) (17,280,997)Less: treasury stock at cost, 94,000 shares (70,500) (70,500) ------------- ------------- 858,374 5,475,220 ------------- -------------Total Liabilities and Stockholders' Equity $ 5,433,412 $ 9,417,651 ============= ============= SOURCE: Hartville Group, Inc.
Hartville Group, Inc. Investor Relations Vicki Pratt, 866-820-7764 ext. 104 330-484-8143 (direct) OR General Inquiries, 866-820-7764 (toll-free) 330-484-8166 (direct) 330-484-8081 (fax)
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SANZ Announces Preliminary Operating Results for Second Quarter 2006 8/14/2006
ENGLEWOOD, Colo., Aug 14, 2006 (BUSINESS WIRE) -- SAN Holdings, Inc. (OTCBB:SANZ) reported revenue of $13.9 million and gross profit of $3.2 million for its quarter ending June 30, 2006. Net loss for the June 2006 quarter was $2.1 million and net loss available to common shareholders was $3.2 million (net loss per share of $0.03), and included a deemed dividend related to the beneficial conversion feature of convertible Series A preferred stock issued by SANZ in April and May of 2006. Excluding this item, net loss per share would have been $0.02.
Bob Ogden, SANZ' CFO, stated, "For the quarter, both revenue and gross profit were up when compared to the June 2005 quarter primarily as a result of strong performance in our Commercial Storage Solutions business. Our professional services revenue was only notionally higher compared to the prior year quarter primarily due to delayed starts on new projects in our Federal Storage Solutions business. Sales of software and services from our EarthWhere(TM) segment were down as compared to the 2005 quarter due to contract award delays on certain Department of Defense opportunities. Operating expenses for the June 2006 quarter increased from the June 2005 quarter primarily from absorbed temporary underutilization of Federal professional services staff and increased EarthWhere business and software development expenses to address specifically the Defense market sector."
SANZ' CEO, John Jenkins, noted, "We are pleased with the second consecutive quarter of improving performance from our Commercial Storage Solutions business and expect to see these trends continue through the balance of the year as we rollout some new additional service offerings directed at the data security market. With the recent release of new engagements, our Federal professional services business closed the June quarter at full utilization and we returned to a hiring mode. We entered the September quarter with a good pipeline of EarthWhere software and service opportunities that includes important new clients in our current prime target sector of the Defense and Intelligence communities. Some of this business has already closed, and we expect significant new orders from this sector over the next few weeks. We introduced our EarthWhere(TM) Pro Series at the ESRI user conference attended by nearly 14,000 in San Diego last week. This product series is designed to tightly integrate with the ESRI geospatial product framework. ESRI is the world leader in Geographic Information System (GIS) technology.
Conference Call Information: Time: 1:30 PM Pacific (4:30 Eastern) Dial-in number: 1-888-603-6873 International Dial-In number: 1-973-582-2706 Conference ID # 7628049 Internet Simulcast: http://viavid.net/dce.aspx?sid=0000334A
About SANZ
SANZ is a nationwide data storage consulting and system integration firm focused exclusively on the design, deployment and support of intelligent data management. As part of its business model, SANZ has developed specialized expertise in the data management challenges of geotechnology users. SANZ' software product, EarthWhere, is a spatial data provisioning application that manages, processes and delivers customized spatial imagery. SANZ is a subsidiary of SAN Holdings, Inc. http://www.sanz.com
FORWARD-LOOKING STATEMENTS:
This press release contains statements that are "forward-looking statements" under the Federal securities laws. These forward-looking statements include statements regarding our expectations, beliefs, or intentions about the future, and are based on information available to us at this time. We assume no obligation to update any of these statements and specifically decline any obligation to update or correct any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Actual results could vary materially from our expectations. Factors that could cause actual results to vary materially include, but are not limited to: component quality and availability, transition to new products, changes in business conditions, changes in the company's sales strategy, competition in the storage management engineering services marketplace, competitive pricing pressures, continued market acceptance of the company's products, delays in the development of new technology, changes in customer buying patterns, one-time events and other important factors disclosed previously and from time to time in our filings at the SEC.
SAN Holdings, Inc.Condensed Consolidated Balance Sheets(Unaudited)(In thousands) June 30, December 31, 2006 2005 ------------ ------------Assets Cash and cash equivalents $- $6 Accounts receivable, net 7,704 11,832 Other current assets 2,957 2,912 ------------ ------------ Total Current assets $10,661 $14,750 Property & equipment, net 592 673 Capitalized software, net 1,125 872 Goodwill 22,808 22,808 Intangible assets, net 1,598 1,736 Other assets 368 378 ------------ ------------ Total assets $37,152 $41,217 ============ ============Liabilities and Stockholders' Equity Bank debt $2,124 $20,401 Other current liabilities 14,029 13,975 ------------ ------------ Total current liabilities 16,153 34,376 Long-term debt 5,443 - Total Stockholders' Equity 15,556 6,841 ------------ ------------ Total Liabilities & Stockholders' Equity $37,152 $41,217 ============ ============SAN Holdings, Inc.Condensed Consolidated Statements of Operations(Unaudited)(In thousands, except for share and per share data) For the three months ended June 30, 2006 2005 ------------- ------------ Revenue $13,906 $13,273 Cost of sales 10,661 10,087 ------------- ------------ Gross profit 3,245 3,186 Gross margin percentage 23.3% 24.0% Selling, engineering, general and administrative expenses 4,839 3,544 Depreciation and amortization 226 278 ------------- ------------ Loss from operations (1,820) (636) Interest expense (291) (405) Charge for warrants issued to related party for debt guaranty - (520) Other income (expense) - 1 ------------- ------------ Net loss $(2,111) $(1,560) ============= ============ Deemed dividend related to beneficial conversion feature of convertible Series A Preferred Stock (1,068) - Net loss available to common stockholders $(3,179) $(1,560) ============= ============ Basic and diluted net loss per share $(0.03) $(0.01) ============= ============ Weighted average common shares -- basic and dilute 115,878,022 107,895,625 ============= ============SAN Holdings, Inc.Condensed Consolidated Statements of Cash Flows(Unaudited)(In thousands) For the six months ended June 30, 2006 June 30, 2005 ------------- ------------- Net cash provided by (used in) operating activities $1,206 $(384) Net cash used in investing activities (649) (658) Net cash provided by (used in) financing activities (563) 629 ------------- ------------- Net increase (decrease) in cash and cash equivalents $(6) $(413) Cash and cash equivalents at beginning of period 6 486 Cash and cash equivalents at end of period $- $73 ============= ============= SOURCE: SANZ Inc.
Liolios Group Inc. for SANZ Inc. Ronald Both, 949-574-3860 ron*liolios.com
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General Environmental Management, Inc. Announces Second Quarter 2006 Results 8/14/2006
POMONA, CA, Aug 14, 2006 (MARKET WIRE via COMTEX News Network) -- General Environmental Management, Inc. ("GEM") (OTCBB: GEVM), a leading environmental and waste remediation company, today announced financial results for the second quarter and six months ended June 30, 2006.
"Our second quarter revenue grew 19 percent sequentially, driven primarily by sales of our K2M services," stated Tim Koziol, chairman and CEO of GEM. "We completed the integration of K2M this quarter and its higher margin services drove our gross profit to $1 million. Recently, we secured $25 million in financing and are working toward the acquisition of a privately held North American waste management service provider. When completed, this acquisition would expand our geographic scope to a national scale."
Total revenue for the quarter ended June 30, 2006 was $4.3 million, compared to $4.2 million in the same quarter of 2005. Gross profit as a percentage of revenue for the second quarter of 2006 was approximately 23 percent, compared to approximately 14 percent in the second quarter of 2005. Net loss for the second quarter of 2006 was $1.8 million, or $0.06 per common share, compared to a net loss of $2.3 million, or $0.09 per common share, in the second quarter of 2005.
Total revenue for the six months ending June 30, 2006 was $8.0 million, compared to $7.5 million in the same period last year. Net loss for the first half of 2006 was $2.9 million, or $0.10 per share, compared to $3.7 million or $0.14 per common share, in the six months ended June 30, 2005.
Brett Clark, chief financial officer of GEM, added, "We have been able to achieve economies of scale in the integration of our recent acquisitions, which has resulted in lower operating expenses and reduced our cash usage from operations. The resulting more efficient infrastructure, combined with our expected full year revenue growth of 20 to 25 percent as compared to 2005, brings us closer to our long-term goal of sustainable profitability."
Recent Highlights
-- In August, received $25 million in total investment proceeds from Laurus Master Fund, Ltd through a secured three-year note in the principal amount of $29.5 million and seven-year warrants to purchase 13,636,362 shares of the company's common stock at an exercise price of $0.24 per share. The proceeds are currently held in an escrow account and will be released to GEM upon fulfillment of certain conditions, including GEM's acquisition of a privately held North American waste management service provider. -- In June, received a two-year contract to provide its environmental services and solutions to the City of Santa Monica, CA. Under the terms of the contract, GEM will provide technical on-site personnel for the transportation and disposal of all hazardous and non-hazardous waste, and employ its EnviroConstruction services on an as-needed basis. -- In June, awarded a five-year contract worth $3 million from the Metropolitan Water District (MWD) of Southern California. GEM is providing services for the management of hazardous and non-hazardous waste from the public utility. Services include project oversight, labor, logistics, transportation and disposal services, training, and Environmental, Health, Safety (EHS) Consulting Services. -- In May, awarded a subcontract from Jacobs Engineering Group, Inc. (Jacobs) valued at $500,000 for the period of May through August 2006. The contract included the on-site management, transportation and disposal of contaminated soil from a remote location on Kodiak Island.
About General Environmental Management, Inc.
General Environmental Management, Inc. (www.go-gem.com) is a full service hazardous waste management and environmental services firm providing integrated environmental solutions managed through its proprietary web-based enterprise software, GEMWare, including the following service offering: management and transportation of waste; design and management of on-site waste treatment systems; management of large remediation projects; response to environmental incidents and spills; and environmental, health and safety compliance. Headquartered in Pomona, California, GEM operates five field service locations and one Treatment, Storage and Disposal Facility (TSDF), servicing all markets in the Western U.S.
Statements made in this press release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the management of GEM. No forward-looking statement can be guaranteed. GEM undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect GEM's business.
-Tables to follow-
GENERAL ENVIRONMENTAL MANAGEMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2006 2005 ------------ ------------ (Unaudited) CURRENT ASSETS: Cash in bank $ 68,474 $ 47,995 Accounts receivable, net of allowance for doubtful accounts of $238,013 and $236,021, respectively 3,505,647 5,143,754 Prepaid expenses and current other assets 497,778 126,268 ------------ ------------ Total Current Assets 4,071,899 5,318,017 ------------ ------------ Property and Equipment - Net of accumulated depreciation $1,012,690 and $865,814 respectively 2,776,152 2,478,556 Restricted cash 878,247 566,698 Intangibles 1,612,518 306,996 Deferred financing fees 507,585 - Deferred acquisition costs 358,799 - Deposits 135,772 59,120 Goodwill 644,647 644,647 ------------ ------------ TOTAL ASSETS $ 10,985,619 $ 9,374,034 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable - financing agreement $ 558,558 $ 1,094,780 Accounts payable 2,383,333 3,920,923 Accrued expenses 1,422,272 414,616 Accrued Disposal costs 307,373 789,414 Payable to related party 831,736 121,123 Deferred rent 15,502 16,255 Current portion of notes payable 70,904 83,106 Notes payable to investors 692,941 1,359,448 ------------ ------------ Total Current Liabilities 6,282,619 7,799,665 ------------ ------------ Financing agreement, net of current portion 1,681,874 - Notes payable, net of current portion 1,023,295 1,536,652 Notes payable to investors 792,306 - ------------ ------------ Total Liabilities 9,780,094 9,336,317 Convertible notes, net of discount 91,610 - STOCKHOLDERS' EQUITY Series A convertible preferred stock, net of offering costs of $ 37,732, 10% dividend, liquidation, preference $1 per share, $.001 par value, 50,000,000 shares authorized, 250,000 shares issued and outstanding 212,628 212,628 Common stock, $.001 par value, 200,000,000 shares authorized, 28,250,635 and 27,893,576 shares issued and outstanding 28,252 27,895 Additional paid in capital 17,063,903 13,083,970 Accumulated deficit (16,190,868) (13,286,776) ------------ ------------ Total Stockholders' Equity 1,113,915 37,717 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,985,619 $ 9,374,034 ============ ============ GENERAL ENVIRONMENTAL MANAGEMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended Six months ended ---------------------- ---------------------- June 30, June 30, June June 2006 2005 30,2006 30,2005 --------- --------- --------- --------- REVENUES $ 4,349,839 $ 4,246,795 $ 7,997,757 $ 7,541,256 COST OF REVENUES 3,338,327 3,670,251 6,126,696 6,506,777 ----------- ----------- ----------- ----------- GROSS PROFIT 1,011,512 576,544 1,871,061 1,034,479 OPERATING EXPENSES 2,191,472 2,711,040 3,942,749 4,473,717 ----------- ----------- ----------- ----------- OPERATING LOSS (1,179,960) (2,134,496) (2,071,688) (3,439,238) OTHER INCOME (EXPENSE): Interest income 6,323 4,643 11,671 6,132 Interest and financing costs (610,630) (221,653) (896,887) (366,752) Other non-operating income 22,826 31,320 52,812 107,230 ----------- ----------- ----------- ----------- Net Loss (1,761,441) (2,320,186) (2,904,092) (3,692,628) Preferred stock dividends (16,871) - (16,871) - ----------- ----------- ----------- ----------- Net Loss applicable to common share holders $(1,778,312) $(2,320,186) $(2,920,963) $(3,692,628) =========== =========== =========== =========== Calculations of net loss per common Share, basic and diluted: $ (.06) $ (.09) $ (.10) $ (.14) =========== =========== =========== =========== Weighted average shares of common stock outstanding, basic and diluted 28,250,635 26,254,698 28,168,279 25,512,605 =========== =========== =========== ===========
enherent Corp. Reports Second Quarter Results 8/14/2006
NEW YORK, NY, Aug 14, 2006 (MARKET WIRE via COMTEX News Network) -- enherent Corp. (OTCBB: ENHT) (www.enherent.com) (the "Company") today reported revenues and earnings for the second quarter ending June 30, 2006.
Revenues for the three months ended June 30, 2006 increased $ 38,000 or 0.50% to $7.54 million compared to $7.51 million for the quarter ended June 30, 2005. Revenues for the six months ended June 30, 2006 increased $3.3 million, or 29.4%, to $14.6 million compared to $11.3 million for the prior year period. The increase during the six month period was attributable primarily to the additional revenues generated from the merger of Dynax Solutions, Inc. into the Company on April 1, 2005.
Net income for the three months ended June 30, 2006 was approximately $26,000, or $ 0.00 per share, compared to net loss of approximately $283,000, or $(0.01) per share for the second quarter of 2005. The change in net income was due primarily to non-recurring Merger expenses incurred by the Company during the three months ended June 30, 2005 and a reduction in operating expenses during the three months ended June 30, 2006. Net loss for the six months ended June 30, 2006 was approximately $491,000, or $(0.01) per share, compared to approximately $871,000, or $(0.02) per share, for the prior year period. The net loss decrease was due primarily to non-recurring expenses incurred during the six months ended June 30, 2005 pertaining to the Merger, partially offset by stock based compensation expenses incurred as a result of the adoption of SFAS No. 123(R) on January 1, 2006.
Pamela Fredette, Chairman, CEO and President, commenting on the second quarter, said, "We saw an improvement in our net income for the quarter. We look forward to the second half of the year as we execute on our 2006 goals on both a financial and operational level."
About enherent
enherent Corp. (OTCBB: ENHT) is an information technology professional services firm providing its clients with (a) consultative and technology staffing resources; and (b) teams of technical consultants trained in the delivery of solutions related to systems integration, network and security, and application services. enherent also provides solutions outsourcing involving software development. enherent customers can be found in many different industry segments, from the Fortune 500 to middle-market enterprises. The company, headquartered in New York City, operates throughout the northeastern United States and has sales locations in Connecticut, New York City, Long Island, N.Y. For more information visit www.enherent.com.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on certain assumptions and analyses made by the Company derived from its experience and perceptions. Actual results and developments may vary materially from those described because they are subject to a number of known and unknown risks and uncertainties. Such risks and uncertainties include, but are not limited to, future demand for the Company's services; general economic, market and business conditions; the Company's ability to increase the amount of services rendered to existing clients and develop new clients and reduce costs of providing services; the Company's ability to recruit and retain IT professionals; and various other factors discussed in the Company's filings with the Securities and Exchange Commission including those set forth under Item 1A of the Company's recent Form 10-K. The Company disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.
CONTACT INFORMATION: Lori Stanley enherent Corp. lstanley*enherent.com (212) 331-8633
SOURCE: enherent Corporation
mailto:lstanley*enherent.com
-------------------- The difference between genius and stupidity is that genius has its limits
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Form 10QSB for HOMELAND SECURITY CAPITAL CORP 14-Aug-2006
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Introductory Statements
Forward-Looking Statements and Associated Risks. This Report contains forward-looking statements. Such forward-looking statements include statements regarding, among other things, (a) our projected sales and profitability, (b) our growth strategies, (c) anticipated trends in our industry, (d) our future financing plans, (e) our anticipated needs for working capital, (f) our lack of operational experience, and (g) the benefits related to ownership of our common stock. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, including those described in "Business Risk Factors" of our Form 10-K for the year ended December 31, 2005. Actual results could differ materially from these forward-looking statements as a result of changes in trends in the economy and our company's industry, demand for our products, competition, reductions in the availability of financing and availability of raw materials, and other factors. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Report will in fact occur as projected.
Overview
Homeland Security Capital Corporation (together with any subsidiaries shall be referred to as the `Company,' `we,' `us' and `our') was incorporated in Delaware on August 12, 1997, and is located in Arlington, Virginia. The Company focuses on the acquisition and development of homeland security businesses.
The Company's original business was to develop and manufacture, at third party plants, digital set top boxes and digital video servers for the interactive television and high speed Internet markets.
On June 3, 2003, the Company elected to become a business development company ("BDC"), to be regulated pursuant to Section 54 of the Investment Company Act of 1940, as amended (the "Investment Company Act"). A business development company is an investment company designed to assist eligible portfolio companies with capital formation and management advice. The Company then changed its business plan to primarily seek investments in developing companies.
On December 30, 2005, at a special stockholders meeting (the "Special Meeting"), the stockholders of the Company voted to amend the Certificate of Incorporation of the Company to change the name to `Homeland Security Capital Corporation' and voted to withdraw the Company's election as a BDC. Accordingly, the Company has changed its business plan to primarily seek acquisition of companies that provide homeland security products and services.
The Company is seeking to build consolidated enterprises through the acquisition and integration of multiple businesses in the homeland security industry. We will seek to create long-term shareholder value by taking controlling interests in companies that provide homeland security products and services and helping them develop through superior operations, management and acquisitions. Our value creation strategy is designed to foster significant growth at our platform companies by providing leadership and counsel, capital support and financial expertise, strategic guidance and operating discipline, access to best practices and industry knowledge. We are targeting emerging companies in fragmented sectors of the homeland security industry. These target companies are generating revenues from promising security products and services but face challenges in scaling their businesses to capitalize on opportunities in the homeland security industry.
As part of the Company's new business strategy, the Company acquired a majority interest in Nexus Technologies Group, Inc. ("Nexus") on February 8, 2006 through the purchase of $3.4 million in preferred stock of Nexus. Nexus is a mid-Atlantic security integrator for the corporate and governmental security markets. Based in Hawthorne, N.Y., Nexus' subsidiaries began operations in 2001. Nexus specializes in non-proprietary integrated security solutions, including access control, alarm, video, communication, perimeter protection and bomb and metal detection security systems. Where applicable in this annual report, references to the `Company,' `we,' `us' and `our' shall include Nexus.
Critical Accounting Policies
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported in the financial statements, including the notes thereto, and related disclosures of commitments and contingencies, if any. We consider our critical accounting policies to be those that are complex and those that require significant judgments and estimates in the preparation of our financial statements, including valuation of our investments. Management relies on historical experience and on other assumptions believed to be reasonable under the circumstances in making its judgment and estimates. Actual results could differ materially from those estimates.
Revenue Recognition - Nexus recognizes revenues on its security system installation and integration contracts using the percentage of completion method.
Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments - The carrying amount of items included in working capital approximates fair value because of the short maturity of those instruments. The carrying value of the Company's debt approximates fair value because it bears interest at rates that are similar to current borrowing rates for loans of comparable terms, maturity and credit risk that are available to the Company.
Debt Offering Costs - Debt offering costs are related to private placements and are being amortized on a straight line basis over the term of the related debt, most of which is in the form of convertible debentures. Should conversion occur prior to the stated maturity date the remaining unamortized cost is expensed.
Investment Valuation - Investments in equity securities are recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation, respectively. The fair value of investments that have no ready market, are determined in good faith by management, and approved by the Board of Directors, based upon assets and revenues of the underlying investee companies as well as general market trends for businesses in the same industry. Because of the inherent uncertainty of valuations, management's estimates of the values of the investments may differ significantly from the values that would have been used had a ready market for the investments existed and the differences could be material.
Income Taxes - The Company accounts for income taxes using the asset and liability method, whereby deferred tax assets and liabilities are determined based upon the differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance related to the deferred tax assets is also recorded when it is more likely than not that some or all of the deferred tax asset will not be realized.
Results of Operations
Three Months Ended June 30, 2006 Compared With the Three Months Ended June 30, 2005
Revenues
For the three months ended June 30, 2006, the Company had sales of $2,053,707 consisting of fees earned by Nexus on security systems installation and integration contracts. The Company had no sales for the three month period ended June 30, 2005. The increase in sales is due to the implementation of the Company's new business strategy of acquiring and integrating businesses that provide homeland security products and services.
Cost of goods sold
For the three months ended June 30, 2006, cost of sales was $1,166,315 consisting of materials, labor and other costs incurred by Nexus associated with security systems installation and integration contracts. The Company had no cost of sales for the three months ended June 30, 2005. The increase in cost of sales is due to the implementation of the Company's new business strategy of acquiring and integrating businesses that provide homeland security products and services.
General and administrative expenses
General and administrative expenses for the three months ended June 30, 2006 were $1,273,635 compared to $192,239 for the three months ended June 30, 2005. The increase of $1,081,396 or 562% in general and administrative expenses is primarily due to general and administrative expenses that were incurred in the acquisition of Nexus. The increase consisted of additional professional fees of $38,125 for the acquisition of Nexus, additional personnel costs of $701,138, increases in facility and insurance expenses of $188,085 and general administrative costs of $154,048. These costs and other expenses were incurred in connection with the Company's change in business strategy for the three month period.
Other income and expense
The Company had net other income of $860,016 for the three months ended June 30, 2006 compared to net other expenses of $(179,547) for the three months ended June 30, 2005 for an increase of $1,039,563 or 579%. Income was increased by a positive change in the derivative valuation of $1,194,955, settlement of trade payables of $169,684 and interest income of $5,761. Other income and expense was decreased by increases in interest expense of $42,560, amortization of debt discounts of $236,291, amortization of debt offering costs of $43,332 and recording of minority interest in the consolidated Nexus subsidiaries of $8,654.
Net income (loss)
As a result of the foregoing, the Company recorded a net income of $473,773 for the three months ended June 30, 2006 compared to a net loss of $371,786 for the three months ended June 30, 2005. This represents an increase in the net income of $845,559 or 227%.
Six Months Ended June 30, 2006 Compared With the Six Months Ended June 30, 2005
Revenues
For the six months ended June 30, 2006, the Company had sales of $2,741,737, consisting of fees earned by Nexus on security systems installation and integration contracts. The Company had no sales for the six month period ended June 30, 2005. The increase in sales is due to the implementation of the Company's new business strategy of acquiring and integrating businesses that provide homeland security products and services.
Cost of goods sold
For the six months ended June 30, 2006, cost of sales was $1,931,386, consisting of materials, labor and other costs incurred by Nexus associated with security systems installation and integration contracts. The Company had no cost of sales for the six months ended June 30, 2005. The increase in cost of sales is due to the implementation of the Company's new business strategy of acquiring and integrating businesses that provide homeland security products and services.
General and administrative expenses
General and administrative expenses for the six months ended June 30, 2006 were $2,329,966 compared to $392,920 for the six months ended June 30, 2005. The increase of $1,937,046 or 493% in general and administrative expenses is primarily due to general and administrative expenses that were incurred in the acquisition of Nexus. The increase consisted of additional professional fees of $242,089 for the acquisition of Nexus, additional personnel costs of $1,255,457, increases in facility and insurance expenses of $184,604 and general administrative costs of $254,896. These costs and other expenses were incurred in connection with the Company's change in business strategy for the six month period.
Other income and expense
The Company had net other income of $248,044 for the six months ended June 30, 2006 compared to net other expenses of $(279,647) for the six months ended June 30, 2005 for an increase of $527,691 or 189%. Income was increased by a positive change in the derivative valuation of $805,077, recording a minority interest in the loss of the consolidated Nexus subsidiary of $60,225, and interest income of $15,554. Other income and expense was decreased by increases in interest expense of $22,423, amortization of debt discounts of $240,345, amortization of debt offering costs of $31,691, a reduction in the settlement of trade payables of $18,762 and a reduction in investment income of $39,944.
Net loss
As a result of the foregoing, the Company recorded a net loss of $1,271,571 for the six months ended June 30, 2006 and a net loss of $672,567 for the six months ended June 30, 2005. This represents an increase in the net loss of $599,004 or 89%.
Liquidity and Capital Resources
The primary source of financing for the Company since its inception has been through the issuance of common and preferred stock and debt. The Company had cash on hand of $646,280 at June 30, 2006 and $1,094,061 at December 31, 2005. Our primary needs for cash are to fund our ongoing operations until such time as they begin to generate sufficient cash to fund operations and to have cash available to make additional acquisitions of businesses that provide homeland security products and services. While we believe that we have sufficient cash on hand to satisfy our current operating commitments, we will require significant additional funding in order to make additional acquisitions.
While we currently do not have any commitments in place for additional funding, on August 29, 2005, the Company entered into term sheet agreement with Cornell Capital Partners to enter into a $50 million standby equity distribution agreement (the "SEDA Financing"). Based on the SEDA term sheet, Cornell Capital Partners shall commit to purchase up to $50 million of Common Stock of the Company over the course of 24 months after an effective registration of the Company's common stock, par value $.001 per share (the "Common Stock"). The Company shall have the right, but not the obligation, to sell Common Stock to Cornell Capital Partners, in advances up to $1,000,000 each. Upon closing, the Company shall issue to Cornell restricted shares and/or warrants of the Company's Common Stock in an amount equal to 2% of the commitment amount based on a share price of $0.001 per share. The number of restricted shares issued shall be limited to less than 4.9% of the total outstanding shares of the Company at closing. Upon each advance, Cornell Capital Partners shall receive directly from escrow cash compensation equal to 5% of the gross proceeds of such advance. The Company shall sell to Cornell Capital Partners the Common Stock at a purchase price equal to 98% of the market price, which is defined as the lowest closing bid price of the Common Stock during the five consecutive trading days after the date an advance notice is given to Cornell Capital Partners. As of August 14, 2006, the Company has not received any definitive documents in connection with the SEDA Financing. The final terms and conditions of the SEDA Financing may be subject to modification as mutually agreed upon by the Company and Cornell Capital Partners at the time of entering into definitive agreements.
The Company entered into a Securities Purchase Agreement with Cornell Capital Partners, dated as of February 6, 2006, which provided for the purchase by Cornell Capital Partners of a Convertible Debenture (the "Debenture") in the amount of $4,000,000, which debenture is convertible into Common Stock. The conversion price of the Debenture shall be equal to the lesser of (1) $0.01 or (2) a ten percent discount to the lowest daily volume weighted average price of the Common Stock for the thirty days preceding conversion. Cornell Capital Partners will be entitled to convert the Debenture at a conversion price into Common Stock, provided that Cornell Capital Partners cannot convert into shares of Common Stock that would cause Cornell Capital to own more than 4.9% of the issued and outstanding Common Stock. The Debenture will bear interest at 5% per annum and the principal amount will be payable on the third anniversary of the effective date of the Debenture. If the Common Stock is trading below the conversion price, the Company may redeem the Debenture at any time upon the payment of a redemption premium equal to twenty percent of the amounts redeemed.
On February 6, 2006, the Company entered into an Investment Agreement with Cornell Capital Partners, pursuant to which the Company exchanged with Cornell Capital Partners 1,000,000 shares of Series G Convertible Preferred Stock (the "Series G Preferred Shares") for 450,000,000 shares of the Company's Common Stock owned by Cornell Capital Partners. Each share of Series G Preferred Shares may be converted, at Cornell Capital Partners' discretion, into 450 shares of the Common Stock. The Series G Preferred Shares are senior to all Common Stock and all series of preferred stock of the Company. Each share of Series G Preferred Share has a liquidation preference of $0.10 plus any accrued and unpaid dividends. The holders of Series G Preferred Shares are not entitled to receive any dividends. The Company paid a $10,000 structuring fee to Yorkville Advisors Management, LLC in connection with the transaction.
During the six months ended June 30, 2006, we had a net decrease in cash of $(447,781). Our sources and uses of funds were as follows:
Cash Flows from Operating Activities
We used net cash of $(3,788,018) in our operating activities during the six month period ended June 30, 2006. Our net cash used in operating activities resulted primarily from the Company's net loss of $(1,271,571) for the six months ended June 30, 2006, a use of $(2,547,690) from net changes in operating assets and liabilities for the six months ended June 30, 2006 and the net change in derivative and debt discounts of $321,744. These uses have been offset by $271,216 from the use of stock issued as compensation and for payment of expenses, $21,065 in depreciation and amortization and $72,220 in amortization of debt offering costs for the six months ended June 30, 2006.
Cash Flows from Investing Activities
We used net cash of $(237,492) in our investing activities during the six month period ended June 30, 2006, consisting primarily $202,991 in purchases of fixed assets and an increase of $240,000 in other assets, offset by an increase of $205,499 in minority interest in consolidated subsidiaries.
Cash Flows from Financing Activities
We provided cash of $3,577,729 from financing activities during the six month period ended June 30, 2006, consisting of $4,000,000 in proceeds from convertible debentures issued less $430,000 in costs associated with the issuance of those debentures. We also converted debentures and received net proceeds of $7,729 in cash.
As of June 30, 2006, we had positive net working capital of $176,914.
-------------------- Rule 1: Always Protect Your Capital Rule 2: Earn slow, Don't lose fast
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vFinance Announces Second Quarter Results; 53% Revenue Growth 8/14/2006
BOCA RATON, Fla., Aug 14, 2006 (BUSINESS WIRE) -- vFinance, Inc. (OTCBB:VFIN), a financial services company that is an industry leader in providing high growth companies and investors seeking above market returns access to a full range of investment banking, trading and investment opportunities, reported results for its second quarter ended June 30, 2006.
Revenues for the second quarter 2006 were $9,655,508, compared to $6,320,674 in 2005, an increase of $3,334,834 or 53%. The increase was due to the asset purchase of Sterling Financial, increased retail brokerage income due to recruitment of new brokers, increased trading profits and higher revenues from success fees from investment banking.
The Company reported a net loss of ($425,124) for the quarter or ($0.01) per fully diluted share, compared to a loss of ($69,462) or ($0.00) per fully diluted share in 2005. The increased loss includes unrealized losses in the second quarter of 2006 of ($240,774) versus ($10,348) in 2005 as well as and non-cash expenses totaling $371,371 in Q2 2006 as compared to $75,416 in the same period the prior year.
The firm saw an improvement in cash flow as net cash used in operating activities for the six months ending June 30, 2006 was $119,707 versus $502,696 in the same period the prior year. The Company maintained a strong balance sheet with $3,908,652 of unrestricted cash, $1,827,225 in trading securities, $770,264 account receivable from our clearing broker and no long-term debt.
"As a result of investments in infrastructure, acquisitions and growth of our investment banking business, we grew our top line despite a generally weak market," said Leonard Sokolow, CEO and President. "Given a stable market, we are confident as we digest the new acquisitions that the firm will be able to improve profitability through expense reduction and increases in productivity."
"As in the past, we will take advantage of our strong balance sheet and poor market conditions to grow through acquisition," said Timothy Mahoney, Chairman and COO. "As our growth continues during these difficult market conditions, we are prepared to incur non-cash expenditures in good will and stock based compensation to grow a strong diversified income stream and a strong balance sheet while operationally working to improve cash flow from operations."
About vFinance, Inc.
vFinance, Inc. (http://www.vfinance.com), is a global financial services company which specializes in emerging opportunities. The Company provides investment banking and advisory services to micro, small and mid-cap high-growth companies. Institutional and high net-worth investors seeking above-market returns are offered a full range of investment opportunities and asset management services in over 30 cities in the U.S. and other parts of the world. Institutional investors can gain direct market access (DMA) and execute orders for most securities through one of the many electronic trading platforms offered by vFinance. These platforms route orders to the NYSE, NASDAQ, ECNs, and to vFinance's trading desk. The Company's trading desk offers market making in over 2600 micro and small cap stocks, ADR liquidity pools, and effective market liquidation strategies. vFinance also provides its expertise and order execution services for fixed income securities, including treasuries, bonds, and emerging market sovereign debt. The Company possesses an exceptional understanding of small-cap and micro-cap market stocks gained from its specialized market making and investment banking activities, and from the large number of plans posted, summarized, or described on its website which is ranked as a leading destination for companies seeking capital, with one half million unique visitors annually from over 150 countries.
For vFinance, Inc. Investors
This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements by management, statements concerning internal operations, marketing, management's plans, objectives and strategies, and management's assessment of market factors and conditions, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitations, the volatility of domestic and international financial, bond and stock markets, intense competition, extensive governmental regulation, litigation, substantial fluctuations in the volume and price level of securities and other risks as detailed in the Company's filings with the Securities and Exchange Commission. vFinance, Inc. assumes no obligation to update any forward-looking information in this press release.
Northstar Electronics, Inc. Announces Its 2006 Second Quarter Results 8/14/2006
VANCOUVER, British Columbia, Aug 14, 2006 (BUSINESS WIRE) -- Northstar Electronics, Inc. (OTCBB:NEIK), specializing in advanced sonar technology for Homeland Security and defense, today announced its 2006 second quarter results.
Revenues for the three months ended June 30, 2006 were US$346,152 compared to US$363,557 in the same period of last year. Revenue consists of product and contract sales and government assistance. The Company incurred a loss for the quarter of US$213,335 or US$0.01 per share compared to a loss of US$238,743 or US$0.01 per share for the same period of 2005.
Revenues for the six months ended June 30, 2006 were US$986,258 compared to revenues of US$660,466 for the same period a year earlier. The Company incurred a net loss for the six months of US$339,750 or US$0.02 per share compared to a loss of US$453,074 or US$0.03 recorded for the same period of 2005.
In the first half of 2006, the Company continued work on a contract from Lockheed Martin awarded in 2005. Under this contract, Northstar is performing a technology update on command and control consoles for navy submarines.
Also, the Company completed a plan for a new line of commercial marine products, the development of which began subsequent to the end of the second quarter. These products will complement the Company's NETMIND sonar system and are also intended for the broader marine transportation market.
Northstar's CEO, Dr. Wilson Russell, said: "The Company made great progress in the first half of 2006 in our efforts to win new contracts in Homeland Security, air defense and naval defense and we expect positive results in the second half. We also foresee an increase in sales of the NETMIND system in the second half in Europe and the United States as well as the introduction of a new commercial marine product."
About Northstar Electronics, Inc.
Northstar Electronics provides technologies and products to the Homeland Security, defense and aerospace industries, in addition to offshore petroleum and commercial fishing. Northstar Electronics, through its wholly owned subsidiaries, Northstar Technical Inc. and Northstar Network Ltd., specializes in advanced sonar technology, systems integration, and electronics contract manufacturing.
Safe Harbor:
Note: Included in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by those sections. Although the company believes such expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain internal and external factors.
For Investor Relations Contact: Northstar Electronics, Inc. 409 Granville Street Suite #1455 Vancouver, B.C. V6G 3A3 604-685-0364 Fax: 604-685-8337 OR For Media Contact: YES International Mr. Rick Kaiser 3419 Virginia Beach Blvd. Suite #252, Virginia Beach, Virginia 23454 757-306-6090 Fax: 757-306-6092 yes*yesinternational.com OR Martin E. Janis & Company, Inc. Ms Beverly Jedynak 625 North Michigan Avenue Suite # 420 Chicago, Illinois 60611 312-943-1000 Ext.12 Fax: 312-943-3538 b.jedynak-janispr*att.net
SOURCE: Northstar Electronics, Inc.
For Investor Relations Contact: Northstar Electronics, Inc. 604-685-0364 OR For Media Contact: YES International Mr. Rick Kaiser, 757-306-6090 yes*yesinternational.com OR Martin E. Janis & Company, Inc. Ms Beverly Jedynak, 312-943-1000, Ext.12 b.jedynak-janispr*att.net
Copyright Business Wire 2006
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BIO-key International Announces Strong Revenue Growth for Second Quarter 2006; New Common Equity Raised at Premium to Market Debt Reduced by More Than 50% 8/14/2006
WALL, N.J., Aug 14, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- BIO-key International, Inc. (OTC Bulletin Board: BKYI), a leading supplier of mobile and wireless solutions for public safety worldwide, today announced its financial results for the second quarter ended June 30, 2006.
For the second quarter of 2006, the Company reported revenue of $3.8 million or 22% sequential growth from the $3.1 million reported for the first quarter of 2006. The operating loss for the second quarter was $1.3 million or an improvement of 27% from the $1.8 million reported for the first quarter of 2006. Gross margin for the quarter improved to 78.9% compared to 76.0% for the first quarter of 2006. Net loss for the quarter was $1.1 million or a net loss per basic share of $0.02 compared to a net loss of $3.8 million or a net loss per basic share of $0.08 in the first quarter of 2006.
Mike DePasquale, BIO-key's Chief Executive Officer, stated, "I am pleased and excited at the solid progress the Company has made over the last few months resulting in strong sequential organic revenue growth. During that period we have seen continued growth in maintenance revenues, including $635,000 from the completion of a long-term contract, providing us with an on- going annuity stream, greater activity in our sales pipeline and an increase in the size of contracts won and are currently pursuing. In addition, we continue to focus on cost containment that led to a 27% sequential quarterly reduction in operating losses during the second quarter of 2006. We believe this progress is a significant inflection point for the Company's continued and future success."
Mr. DePasquale added, "Subsequent to the close of the second quarter we completed several initiatives that significantly improve the Company's liquidity and strengthens our balance sheet." These initiatives included:
* A recapitalization of the balance sheet that resulted in a reduction of total debt of more than 50%, and included the conversion of all of the Company's 2009 15% Subordinated Notes to preferred equity. As part of this restructuring, the company also converted a portion of its senior debt to common equity and extended the maturity of the remaining payments due in 2006. The resulting improvements from the recapitalized debt reduced our debt from approximately $11 million at the end of the second quarter to approximately $5 million. * The completion of a common equity raise of $2 million at 50 cents per share or a 25% premium to market from the stock's closing price on July 31, 2006. We believe the significant premium paid by institutional investors reflects their confidence in the Company's business strategy and growth potential. This new common equity will provide the company with additional capital for growth. * The Board of Directors has approved Mike DePasquale as the sole Chief Executive Officer. As a result, former co-CEO, Tom Colatosti, will remain Chairman of the Board.
DePasquale concluded, "We are pleased with our strong second quarter revenue growth performance. Furthermore, recent activity in the sales pipeline lead us to believe that we should continue to see revenue growth in the second half of 2006 as well as continued progress towards profitability. The recapitalized debt and new equity provide us with the financial resources to execute our plan."
Additional information on revenue and the Company's financial performance will be provided on BIO-key's second quarter 2006 earnings conference call to be held on Tuesday, August 15th at 9:00 a.m. Eastern Time. Dialing 303-262- 2139 and asking for the BIO-key call at least 10 minutes prior to the start time can access the conference call live. The conference call will also be broadcast live over the Internet by logging onto http://www.bio-key.com . A telephonic replay of the conference call will be available through August 22nd, 2006 and may be accessed by dialing 303-590-3000 and using the pass code 11068298#. Additionally, an archive of the webcast will be available shortly after completion of the call on the Company's website (http://www.bio-key.com ) for a period of three months.
About BIO-key
BIO-key International, Inc., headquartered in Wall, New Jersey, develops and delivers advanced identification solutions and information services to law enforcement departments, public safety agencies, government and private sector customers. BIO-key's mobile wireless technology provides first responders with critical, reliable, real-time data and images from local, state and national databases. BIO-key's high performance, scalable, cost-effective and easy-to-deploy biometric finger identification technology accurately identifies and authenticates users of wireless and enterprise data to improve security, convenience and privacy and to reduce identity theft. Over 2,500 police, fire and emergency services departments in North America use BIO-key solutions, making BIO-key the leading supplier of mobile and wireless solutions for public safety worldwide. (http://www.bio-key.com )
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. The words "estimate," "project," "intends," "expects," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of BIO-key International, see "Risk Factors" in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company also undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
Contacts: BIO-key International, Inc. Mike DePasquale, CEO 732-359-1111 DRG&E Gus Okwu, Managing Director 203-752-0446 Ken Dennard, Managing Partner 713-529-6600
SOURCE BIO-key International, Inc.
Mike DePasquale, CEO of BIO-key International, Inc., +1-732-359-1111; or Gus Okwu, Managing Director, +1-203-752-0446, or Ken Dennard, Managing Partner, +1-713-529-6600, both of DRG&E, for BIO-key International, Inc. http://www.prnewswire.com
Copyright (C) 2006 PR Newswire.
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Pro Tech Communications Reports Second Quarter Results 8/14/2006
FORT PIERCE, Fla., Aug 14, 2006 (BUSINESS WIRE) -- Pro Tech Communications, Inc. (OTCBB:PCTU) reported net sales for the three months ended June 30, 2006 of $300,197, compared to $288,082 in the same period in 2005. Net loss for the three months ended June 30, 2006 was $1,940,433, compared to $431,849 for the same period a year ago. The current loss includes an impairment charge on intangible assets of $1,500,000. Excluding this impairment charge, net loss for the three months ended June 30, 2006 would have been $440,433.
Net sales for the six months ended June 30, 2006 was $613,860, compared to $586,273 in the same period in 2005. Net loss for the six months ended June 30, 2006 was $2,408,495, compared to $884,165 for the same period a year ago. Excluding the impairment charge on intangible assets, net loss for the six months ended June 30, 2006 would have been $908,495.
"Although the application of our accounting policies resulted in the reduction of the value of our intangible assets on our balance sheet, we believe strongly in the value of these assets to our company," said Richard Hennessey, President. "Pro Tech remains fully committed to developing and bringing to market a comprehensive line of innovative products utilizing our licensed technologies."
About Pro Tech Communications, Inc.
Pro Tech Communications, Inc. engineers, designs and distributes audio and communications solutions and other products for business users, industrial users and consumers. The company's mission is to utilize its patented technologies to deliver the most advanced, feature-rich, durable and comfortable products at the most competitive price. Pro Tech's most recognized brands include the Apollo(TM) line of high-performance products for office and call center environments, the ProCom(TM) line of highly-durable headsets for drive-through restaurant personnel and the NoiseBuster(R) electronic noise canceling consumer audio headphone and safety earmuff. For more information, visit www.protechcommunications.com.
Pro Tech Communications, Inc. (Unaudited) For The Three Months For The Six Months Ended June 30, Ended June 30, ------------------------------------------------------- 2006 2005 2006 2005 ---- ---- ---- ----Net sales $ 300,197 $ 288,082 $ 613,860 $ 586,273Net loss $(1,940,433)(a) $ (431,849) $(2,408,495)(a) $ (884,165)Net loss per share $ (0.03)(a) $ (0.01) $ (0.03)(a) $ (0.01)Weighted average number of common shares outstanding 75,234,140 75,234,140 75,234,140 74,312,137(a) Includes $1,500,000 impairment charge on intangible assets. Cautionary Statement Regarding Forward-Looking Statements
Statements in this press release that are not historical are forward-looking. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially, including but not limited to: Pro Tech's ability to generate sufficient funds to execute its business plan; its ability to obtain additional financing if and when necessary; general economic and business conditions; the level of demand for Pro Tech's products and services; the level and intensity of competition in its industry; difficulties or delays in manufacturing; Pro Tech's ability to develop new products and the market's acceptance of those products; and its ability to manage its operating costs effectively. These forward-looking statements speak only as of the date of this press release. Pro Tech undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These and other factors affecting Pro Tech's business and prospects are discussed in greater detail in Pro Tech's filings with the Securities and Exchange Commission, which are available online in the EDGAR database at www.sec.gov.
SOURCE: Pro Tech Communications, Inc.
Pro Tech Communications, Inc. Joanna Lipper, 203-226-4447 ext. 3506 jlipper*nctgroupinc.com
Copyright Business Wire 2006
-------------------- The difference between genius and stupidity is that genius has its limits
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Poly-Pacific International Inc. - News Release 8/14/2006
EDMONTON, Aug. 14, 2006 (Canada NewsWire via COMTEX News Network) -- Poly-Pacific International Inc. (TSX-V:PMB)("Poly-Pacific") announces that, subject to regulatory approval, it intends to complete a non-brokered offering of a minimum of 1,500,000 units ("Units") and a maximum of 3,000,000 Units at a price of $0.10 per Unit for gross proceeds of a minimum of $150,000 to a maximum of $300,000 by way of a private placement (the "Private Placement"). Each Unit is comprised of one (1) common share ("Common Share") and one-half (1/2) Common Share purchase warrant. Each whole warrant entitles the holder to purchase one (1) additional Common Share at a price of $0.25 per Common Share for a period of two (2) years following the date of closing.
Poly-Pacific intends to use the proceeds from the Private Placement for general working capital purposes.
On Behalf of the Board of Directors,
Thomas Lam, President
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
SOURCE: Poly-Pacific International Inc.
Mr. Randy Hayward, Telephone: (604) 293-8885, Facsimile: (604) 293-8234
Copyright (C) 2006 CNW Group. All rights reserved.
-------------------- The difference between genius and stupidity is that genius has its limits
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Dragon Announces 2006 Second Quarter Results 8/14/2006
VANCOUVER, BRITISH COLUMBIA, Aug 14, 2006 (CCNMatthews via COMTEX News Network) -- Dragon Pharmaceutical Inc. (TSX:DDD)(OTCBB:DRUG)(BBSE:DRP) today announced financial results for the three months ended June 30, 2006. As previously disclosed, Dragon sold a part of its formulation business effective July 1, 2006. As a result, the following information only reflects the results of the continuing operations which exclude the formulation business sold.
Highlights for the Second Quarter, 2006
- Sales increased by 111% to $13.89M from $6.57M from the same period in 2005, mainly due to the increase in Chemical Division sales.
- Gross profit was $2.39M with a gross margin of 17.2%.
- International market sales increased by 498% to $5.09M as compared to the same period in 2005.
- Dragon agreed to sell part of its formulation business of the Pharma Division for $14.79M, $12.63M of which are for business and assets and $2.17M are for the net working capital related to the business.
Financial Summary
Dragon reported sales of $13.89M for the second quarter ended June 30, 2006, representing an increase of 111% compared to the same period of 2005. The increase in sales was mainly due to the growth of sales from the Chemical Division, which increased by 144% to $11.92M from $4.88M for the same period in 2005.
Gross profit and gross margin were $2.39 million and 17.2% for the second quarter of 2006, an improvement from $1.00 million and 15.2% for the same period in 2005. The gross margin of Chemical Division increased from 3.8% to 20%, while that of Pharma Division dropped from 24.9% to -14.7%. The Pharma Division's gross margin decrease was partially due to switching into the whole sale business model through distributors rather than to hospitals, therefore selling prices are lower with less selling expense included.
The Company's General Administration expenses and interest expenses increased by $1.16M compared to the same period of last year, and include an increase of $250K in accounting and auditing expenses, and an increase of $530K non-cash interest expenses related to long-term account payables. The discontinued operations recorded a profit of $546K during the second quarter. With the effect of these factors, Dragon reported a net loss of $320,997.
Product Segment
For the sales in the second quarter of 2006, $1.57 million, or 11% of which were from the Pharma Division, $11.92 million, or 86% of which were from the Chemical Division and $0.40 million, or 3% of which, were from the Biotech Division. For the same period in 2005, 14% of sales were from the Pharma Division, 74% of sales were from the Chemical Division and 12% of sales were from the Biotech Division.
Management's View on Business
Since the second quarter of 2006, the Chinese pharmaceutical industry has been facing significant uncertainties as a result of series of market and industrial reforms by Chinese government, including additional price controls, investigation of commercial bribery in drug distribution and stricter quality and GMP inspections.
The operational results of Dragon revealed the anti-risk capability of the business in the tough market situation:
Chemical sales kept increasing with strong market share being captured;
As the main product of the Company, 7ACA's market price dropped by 20% in the second quarter, yet the 7ACA sales exceeded first quarter sales. With summer being the low season for 7ACA, 115 tons were sold in the second quarter, representing an increase of 26% compared to the first 2006 quarter. The Company's market share in China for this product is 15%. The Company believes that its 7ACA production cost is the lowest among all manufacturers.
The Company sold 7.4 tons of Clavalanic Acid in the second quarter, an increase of 40% compared to the first quarter of this year. The Company's market share in China is 60% for the product.
The Formulation business and assets were sold at a gain;
As previously disclosed, management believes that market and industrial reform will adversely affect the formulation business of direct drug sales to hospitals, and management has successfully entered into a transaction to sell the type of business and assets for $12.63M with a gain of $4.48M. After this sale, the Company's remaining 30 drug approvals are mostly cephalosporin active pharmaceutical ingredients and powder for injection. The Company is going to take advantage of upstream synergy to become one of the significant suppliers in this more focused product market.
International sales kept increasing for more diversified market coverage
The sales made to international market in the second quarter were $5.09M, which represented 37% of the total sales. The export of Clavalanic Acid was 64% of its total sales. Indian is still the main market area and efforts to open up other developing country markets have been made with a number of trial orders sent in the second quarter.
Management believes that the Company will continue to face the same types of challenges in the third quarter but believes that the Company will achieve positive results from industry reforms. "We believe that the market will be more regulated and transparent alongside with the reform," said Mr. Han, Chairman and CEO of the Company, "This will provide with us a better business environment."
This press release contains forward looking statements, including but not limited to that the Company will be a significant supplier in its remaining Parma Division and that will be able to maintain or increase its sales in an more regulated environment. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward looking statement. Readers should not place undue reliance on forward looking statements, which only reflect the view of management as of the date hereof. The Company does not undertake the obligation to publicly revise these forward looking statements to reflect subsequent events or circumstances. Readers should carefully review the risk factors and other factors described in its periodic reports with the Securities and Exchange Commission.
SOURCE: Dragon Pharmaceutical Inc.
Dragon Pharmaceutical Inc. Maggie Deng (604) 669-8817 or North America Toll Free: 1-877-388-3784 ir*dragonpharma.com www.dragonpharma.com
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CalbaTech Announces Six Month Revenues; LifeStem, Initially in California, Expects to Launch Service in Florida, New York, North Carolina and Other States in the Near Term 0500 8/15/2006
IRVINE, Calif., Aug 15, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- CalbaTech, Inc. (OTC Bulletin Board: CLBE), an emerging life sciences company (http://www.CalbaTech.com ) concentrating on providing products and platforms to the biotech and pharmaceutical research market and to academic institutions, and banking of adult stem cells for possible future therapeutic uses, today announced its second quarter financial results.
Revenues for the first six months of 2006 totaled $655,122, up five percent from the same period in 2005. Revenues were down slightly in the second quarter, dropping from $310,525 in 2005 to $242,558 in 2006 because of down time while the Company moved two subsidiaries into a new facility. Gross profit increased and totaled $205,377 in the second quarter of 2006 compared to $129,665 in 2005. Accounting for derivative liability recognition caused the company to achieve net revenues of approximately $13,000 for the six-month period, as compared to a loss of approximately $2.2 million for the same period in 2005.
The Company also announced that LifeStem, its wholly owned subsidiary, presented its Stem Cell MicroBank(TM) Service at a national convention of medspa owners and anticipates launching its MicroBank(TM) Service in Florida, New York, North Carolina and other states soon after the August 15th, 2006, California launch date. LifeStem is projecting $3.9 million in revenues in the first twelve months of operating the nation's first service to collect micro-quantities of adult stem cells from multiple tissue sources for future potential therapeutic use.
James DeOlden, CalbaTech CEO, said the Company anticipates that revenues will increase throughout the balance of 2006, not only due to launching LifeStem's Stem Cell Microbank(TM) Collection Service, but also due to two subsidiaries, Molecula, Inc. and KD Medical, Inc., having combined operations to be more efficient and having moved into a new facility that should increase quality and improve manufacturing capabilities.
-------------------- ......in Psychiatry circles it's known as a "warning sign"
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ComCam Brings Cingular Wireless 3G Into View PR Newswire - August 15, 2006 08:20
WEST CHESTER, Pa., Aug 15, 2006 /PRNewswire-FirstCall via COMTEX/ -- ComCam International, a subsidiary of ComCam, Inc. (OTC Bulletin Board: CMCA), a networked video solutions company, announced that it has validated the Sierra Wireless AirCard(R) 860 running on Cingular Wireless networks. Cingular Wireless, LLC, is a joint venture between AT&T Inc. and BellSouth Corporation.
According to ComCam's CEO, Don Gilbreath, "ComCam MicroServers and cameras are now operable over Cingular Wireless 3G Broadband Network using the Sierra Wireless AirCard(R) 860, thus enabling ComCam video command and control technology over a national wireless network. Now Cingular joins our growing list of approved networks. From the small-town suburban backyard to national borders, setting up wireless cameras just got easier. ComCam video MicroServers can easily connect to a user's favorite surveillance camera and ComCam's Web-based DVR, the ComCam VideoLocker(TM). Now our users have an easy solution for viewing, controlling and archiving video and other sensor data with an easy to get wireless broadband service. For our dealers this represents an even more compelling technology bundle by virtue of its simplicity and ability to reach new markets and uses."
ComCam develops network video command and control products as well as provides solutions and technical services to US government agencies, Fortune 500 companies, research facilities and original equipment manufacturers, systems integrators and dealers worldwide. Its goal is to enable disparate hardware technologies not only to communicate better with each other but also to enhance human communications employing these technologies. VideoLocker(TM) is a trademark of ComCam International Inc. All other trademarks or registered trademarks belong to their respective owners.
A number of statements contained in this press release may be considered to be forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results the Company may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. The Company encourages the public to read the information provided here in conjunction with its most recent filings on Form 10KSB and Form 10QSB. The Company's public filings may be viewed at http://www.sec.gov.
Contacts: David Rosen V.P., Corporate Development ComCam International, Inc. Tel. 610.436.8089 drosen*comcam.net http://www.comcam.net
This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com .
SOURCE ComCam, Inc.
-------------------- "As long as there are dreamers, there are dreams that will come true."
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Homeland Security Capital Corp. Announces Second Quarter Financial Results Tuesday August 15, 8:37 am ET Company Q2 '06 Revenues Increase 199% Over First Quarter; Total YTD Revenue $2,742,000
ARLINGTON, Va., Aug. 15 /PRNewswire-FirstCall/ -- Homeland Security Capital Corp. (OTC Bulletin Board: HMSC - News), a company focused on acquiring, developing and consolidating homeland security-related businesses, announced today that second quarter revenues increased 199% to $2,054,000 for the second quarter ended June 30, 2006, compared to revenue of $688,000 in the first quarter of 2006, resulting in YTD revenues of $2,742,000 through June.
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The company's gross profit for the quarter increased to $887,000, versus a loss of ($77,000) in the first quarter of 2006. General and administrative expenses increased 21% to $1,274,000 in Q2 '06, compared to the first quarter, and were $2,330,000 YTD.
The company reported a net income of $474,000 in the quarter and a net loss of ($1,272,000) for the six months ended June 30, 2006. The net income for the quarter resulted primarily from a positive change of $1,195,000 in the derivative valuation related to the derivative liability, which was originally recorded by the company when it received funding from Cornell Capital in February 2006 in the form of a debenture. The discount is adjusted monthly based on market value of the company's common stock, its volatility and conversion price of the debenture. The company continues to work with Cornell Capital to restructure this debt into a more predictable form of financing.
C. Thomas McMillen, Homeland Security Capital chairman and CEO, said, "We continue to make progress at our subsidiary Nexus in revenue growth and cost restructuring, both key elements in the long-term success of the company. I am pleased with the integration process of this portfolio company into our overall strategy of building shareholder value through strategic acquisitions and partnerships with companies in homeland security-related businesses. We continue to identify undervalued companies that fit our model. We believe we have an extraordinary opportunity to build Homeland Security Capital Corp. into a meaningful player in the homeland security marketplace."
In June and July 2006, the company restructured the operating expenses of its operating subsidiary Nexus Technologies. The restructuring resulted in annualized expense reductions and eliminations of one-time transaction costs of $1,472,000 associated with the Nexus merger. If these expense reductions and eliminations were in place on the date of acquisition, Nexus would have reported a YTD net income through June of approximately $15,000 versus the actual YTD loss of ($455,000) as of June 30. The cost restructuring is intended to realign costs associated with the levels of revenues expected over the next six months.
About Homeland Security Capital Corp.
Homeland Security Capital is a consolidator in the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland. Homeland Security Capital intends to operate businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. The company will enhance the operations of these companies by helping them generate new business, grow revenues and improve cash flows. For more information, visit http://www.hscapcorp.com .
For investor relations information regarding Homeland Security Capital, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info*hawkassociates.com . An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com .
Forward-looking statements: This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, which address future activities, performance, events or developments, are forward-looking statements. Although Homeland Security Capital Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements.
Source: Homeland Security Capital Corp.
-------------------- Now We Movin On Up!!
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CalbaTech Announces Six Month Revenues; LifeStem, Initially in California, Expects to Launch Service in Florida, New York, North Carolina and Other States in the Near Term PR Newswire - August 15, 2006 5:01 AM ET
CalbaTech, Inc. (OTC Bulletin Board: CLBE), an emerging life sciences company (http://www.CalbaTech.com ) concentrating on providing products and platforms to the biotech and pharmaceutical research market and to academic institutions, and banking of adult stem cells for possible future therapeutic uses, today announced its second quarter financial results.
Revenues for the first six months of 2006 totaled $655,122, up five percent from the same period in 2005. Revenues were down slightly in the second quarter, dropping from $310,525 in 2005 to $242,558 in 2006 because of down time while the Company moved two subsidiaries into a new facility. Gross profit increased and totaled $205,377 in the second quarter of 2006 compared to $129,665 in 2005. Accounting for derivative liability recognition caused the company to achieve net revenues of approximately $13,000 for the six-month period, as compared to a loss of approximately $2.2 million for the same period in 2005.
The Company also announced that LifeStem, its wholly owned subsidiary, presented its Stem Cell MicroBank(TM) Service at a national convention of medspa owners and anticipates launching its MicroBank(TM) Service in Florida, New York, North Carolina and other states soon after the August 15th, 2006, California launch date. LifeStem is projecting $3.9 million in revenues in the first twelve months of operating the nation's first service to collect micro-quantities of adult stem cells from multiple tissue sources for future potential therapeutic use.
James DeOlden, CalbaTech CEO, said the Company anticipates that revenues will increase throughout the balance of 2006, not only due to launching LifeStem's Stem Cell Microbank(TM) Collection Service, but also due to two subsidiaries, Molecula, Inc. and KD Medical, Inc., having combined operations to be more efficient and having moved into a new facility that should increase quality and improve manufacturing capabilities.
About CalbaTech
CalbaTech, Inc. (OTC Bulletin Board: CLBE) is an emerging life sciences company (http://www.CalbaTech.com) concentrating on providing products and platforms to the research market for biotech and pharmaceutical companies and to academic institutions.
Contact: Paul Knopick E&E Communications (949) 707-5365 pknopick*eandecommunications.com
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ATWT (.004) Continues to Move Forward Implementing Its Business Strategy Company Business Model and Marketing Blueprints Prove Successful Aug 15, 2006 12:04:00 PM
MEMPHIS, TN -- (MARKET WIRE) -- 08/15/06 -- ATWEC Technologies (PINKSHEETS: ATWT) announced today the future for ATWEC, and our underlying mission of ensuring our children's safety, looks as bright as ever, as legislators and now the insurance industry begin to hear the message. "While a child left unattended on a bus, car, van... etc. is not the most common occurrence, it does happen never-the-less," added CEO Alex T. Wiley, "and one time per year, is one time too many."
The recent endorsement of the KiddieVoice� product line by West Bend Mutual Insurance Company is a major step forward indicating that ATWEC is well on the way to becoming the industry leader in child transportation safety protection. West Bend insures childcare agencies in seven states located throughout the Mid-West and is now offering its client premium discounts for installing KiddieVoice� products. West Bend services about 14% of the national market, and ATWEC accepts the challenge of capturing this business with the endorsement of a respected partner.
ATWEC is also aware of legislation proposed for several other states that will require devices such as KiddieSystem(TM) to become mandatory. "We began this process five years ago working to get legislation passed within our own home state of Tennessee and continue to work with other states to pass such legislation. Now we look forward to the insurance industry further validating the purpose of having such devices.
"Ultimately, the shareholders of the corporation will benefit as the group continues to promote the issues for child safety and the devices needed to accomplish the great task before us," said Mr. Wiley.
For more information on ATWEC Technologies, visit the company's web site: www.atwec.com.
NOTE: Certain statements made in this press release are company-based projections within the scope of the Private Securities Act of 1995. Such statements involve known and unknown risks. Uncertainties and other mitigating factors may influence desired outcomes. Such risks, uncertainties and/or other mitigating factors include but are not limited to new economic conditions, risks associated in product development, market acceptance of new products and continuing product demand, level of competition and other factors both known and unknown as described within this Company's reports and other filings with appropriate regulatory agencies.
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Sitestar Posts Strong Second Quarter Results
Company Doubles Net Income, Reduces Current Notes Payable and Sets the Stage for Continued Growth
LYNCHBURG, Va., Aug 15, 2006 (PRIMEZONE via COMTEX News Network) --
Sitestar Corporation (OTCBB:SYTE), a provider of residential and business Internet access and value-added computer services, today announced its financial results for the quarter ended June 30, 2006. Highlights included dramatically increased net income and earnings before interest, taxes, depreciation and amortization (EBITDA) and significantly reduced current notes payable. The company maintained its above industry-average retention rate for its Internet access customers and continued to pursue and qualify target ISPs for acquisition.
Sitestar more than doubled net income for the first six months of 2006, posting $515,343 compared to $227,810 for the same period in 2005. The company's gross revenue for the first six months in 2006 was $2,822,552, representing an increase of $1,241,545 or 78.5 percent compared to the same period in 2005. In addition, net profits increased 75 percent over the first quarter of 2006. Further, Sitestar reported a 108.9 percent EBITDA increase of $574,079 for the 2006 year to date compared to the same period in 2005. Lastly, the company paid down total current notes payable by $610,437 or 50.8 percent from December 31, 2005, underscored by the retirement of debt for its 2005 purchase of the dial-up and residential Internet customer base from Idacomm.
"Sitestar has delivered on its promise to increase net income and EBITDA while servicing debt," said Frank R. Erhartic, Jr., CEO for Sitestar. "We have established a repeatable process through which we can increase our subscriber base through self-funded acquisitions and then retire that debt over a compressed period of time. Given our strong operating efficiency and extremely high customer retention rate, we believe Sitestar generates exceptional value to our current and prospective shareholders."
Sitestar has embarked upon an aggressive campaign in 2006 to grow its business by acquiring ISPs, forming strategic partnerships and reducing customer attrition. The company plans to build upon the momentum of its strong second quarter financial results and recent purchase of the customers of First Net with additional acquisitions in target markets. Sitestar is continuing to market its value-added services such as the SurfBoost(TM) web accelerator to Sitestar dial-up subscribers to increase both customer retention and share-of-wallet.
About Sitestar
Sitestar (http://www.sitestar.com) is an Internet and computer solutions provider that offers narrow and broadband Internet access, Web hosting and design, and other value-added services. The company's customers include residential and commercial accounts throughout the United States and Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value. Sitestar is headquartered in Lynchburg, Va. Its wholly owned subsidiaries include Sitestar.net (http://www.sitestar.net), NetRover, Inc. (http://www.netrover.com), SurfWithUs.Net (http://www.surfwithus.net), Lynchburg.net (http://www.lynchburg.net), Advanced Internet Services (http://www.advi.net), Computers by Design (http://www.computersbydesign.com) and CBD Toner Recharge (http://www.recharge.net).
Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Stockholders are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, Sitestar's ability to expand its customer base, make strategic acquisitions, general market conditions, and competition and pricing. Although management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the report will prove to be accurate.
Sitestar Corporation Frank Erhartic, Jr. 434-239-4272 Fax: 818-332-4213 investorrelations*sitestar.com http://www.sitestar.com 7109 Timberlake Road Lynchburg, VA 24502 (C) 2006 PRIMEZONE, All rights reserved.
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Grand Entertainment & Music, Inc. Retains Marketing Executive for Qbanito Album Launch
MONTREAL -- (MARKET WIRE) -- 08/15/06 -- Grand Entertainment & Music Inc. (PINKSHEETS: GMSC) announces that it has retained Martha Maza Victor as its head marketing agent for the upcoming release of the Qbanito Spanish album.
Ms. Victor will serve as the head coordinator for the official launch of the Qbanito Spanish album in North America. She has already secured radio and television airtime in key U.S. markets and will continue to develop a concentrated marketing campaign involving touring, interviews, and advertising.
Martha Maza Victor is the president of the Miami-based public relations firm, The Noise Corp. Ms. Victor has an extensive background in music promotion and possesses over 25 years of industry experience involving marketing and distribution. She held the position of Talent Promotions & Marketing Executive for over 15 years in Univision's Television & Music Division, where she worked with such well-known artists as Julio Iglesias, Enrique Iglesias, and Daddy Yankee.
Fred Berlin, President, stated, "I am extremely pleased with this opportunity to work with Martha. I have been aware of her and her abilities for many years, and I know she will be a very valuable resource in the upcoming Qbanito promotion. Her years of experience in the Latin U.S. music markets, along with her vast industry contacts, will help ensure that this project gets the attention and awareness it deserves."
"I am thrilled to be a part of the Qbanito project," commented Ms. Victor. "I have had many opportunities to work with the brightest Latin music stars over the years, and I am confident when I say that a talent such as Qbanito's is rare. I firmly believe it is only a matter of time before he joins the likes of Daddy Yankee and Don Omar as one of the leaders in the current Reggaeton scene."
About Grand Entertainment & Music, Inc.
Based in Montreal, PQ, and incorporated in November 1998, the Company is an independent music company that produces, promotes, markets and controls the copyrights on music recordings in multiple formats. Additionally, the Company's multi-million dollar studios produce voice-overs and sound tracks for commercials and film, which are used on the radio, television and in theatres. Cherry Studios has produced thousands of records in its studios and has to its credit a total of 23 gold and platinum records. GEM, a pioneer in the Internet distribution and digital download field, currently owns and controls all its content and distribution rights. Having both content and distribution rights will enable the company to fulfill its mission of becoming a leading consolidator of quality music catalogues as well as a premier production, recording, publishing and Internet distribution company in the music industry.
Safe Harbor Statement
This release contains forward-looking statements with respect to the results of operations and business of Grand Entertainment & Music (GEM) Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.
Contact: Grand Entertainment & Music, Inc. Investor Relations: (866) 795-4366 IR*Gmsc-info.comwww.gmsc-info.com
-------------------- The difference between genius and stupidity is that genius has its limits
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RCVA (.33) Net Income Increases 494 Percent for Quarter Ending June 30, 2006 Over Comparable Period Aug 15, 2006 3:07:00 PM 2006 PrimeZone Media Network
NEW YORK, Aug. 15, 2006 (PRIMEZONE) -- Receivable Acquisition & Management Corporation (OTCBB:RCVA) announced today that its net income was $137,018 during the quarter ended June 30, 2006 versus a net loss of $44,797 during the quarter ended June 30, 2005, a 494% increase. Net collections for the period ended June 30, 2006 were $302,535 versus $213,575 for the period ended June 30, 2005, a 42% increase.
Max Khan, CEO, said, "We are delighted with the current results and believe the company is heading in the right direction which is indicated by our quarter to quarter finance income increases. We expect to ramp up purchases of portfolios of consumer receivables over the next several quarters however we cannot provide any guarantees."
With portfolios held as of June 30, 2006, RCVA estimates remaining collections of $2,784,000 over the next 24-36 months.
Information about Receivable Acquisition & Management Corporation (RCVA):
Based in New York City, Receivable Acquisition & Management Corporation specializes in acquisition and liquidation of performing, sub-performing and non-performing receivables. The Company outsources all its collections to specialists in the U.S. and United Kingdom. For additional information, please visit our Web site at http://www.ramcoglobal.com.
Except for historical information contained herein, the matters set forth in this news release are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995.) Although Receivable Acquisition & Management Corporation believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from Receivable Acquisition & Management Corporation's expectations. Factors that could contribute to such differences include those identified in Receivable Acquisition & Management Corporation's Form 10-K for the fiscal year ended September 30, 2005, and those described from time to time in Receivable Acquisition & Management Corporation's other filings with the Securities and Exchange Commission, news releases and other communications, including that RAM may not be able to purchase receivable portfolios at favorable prices or on sufficiently favorable terms or at all. Receivable Acquisition & Management Corporation's reports with the Securities and Exchange Commission are available free of charge through its website at http://www.ramcoglobal.com.
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