EX-99.1 2 ex991.htm EXHIBIT 99.1 ex991.htm
Exhibit 99.1
 
MacroSolve Announces FY 2011 Second Quarter Results
 
63% Revenue Increase Driven by Licensing Revenues and Custom Mobile App Services
 
TULSA, Okla., August 16, 2011 – MacroSolve, Inc. (OTCPK:MCVE) (OTCQB:MCVE) (“MacroSolve” or the “Company”), a leading provider of mobile technologies, apps and solutions for business, today announced financial results for the second quarter of fiscal 2011.

Revenues for the three months ended June 30, 2011 were $219,431 as compared to $134,332 in the second quarter of fiscal 2010. This 63% rise is due to increased sales of the Company’s custom mobile app solution services as well as an increase in software and patent licensing.

“This quarter we have experienced a shift at MacroSolve which reflects the efforts, planning, and investments we’ve made in our business. Our Illume Mobile division, which provides custom mobile app services, has driven a significant increase in sales. In addition to the revenues realized in the second quarter, Illume Mobile has an additional backlog of over $100,000 in contracts. This rise from Illume Mobile, coupled with increasing licensing revenues from our patent and proprietary technologies, creates a trend that we anticipate will continue,” stated MacroSolve’s CEO, Steve Signoff.

For the six month period ended June 30, 2011, revenues were $335,431 as compared to $408,560 for the six months ended June 30, 2010. This 18% decrease in sales is a result of slightly lower maintenance revenues on a legacy services customer and the absence of hardware sales, which were offset by an increase in software and patent licensing. The Company discontinued hardware sales in 2010 due to lower profit margins. MacroSolve now focuses on growing its higher margin licensing revenues based upon its proprietary software and patents.

Loss from operations for the three months ended June 30, 2011 was $(663,385), as compared to loss from operations in the second quarter of the prior year of $(399,341). The $264,044, or 66% increase, in loss from operations was primarily due to increased consulting fees related to investor and public relations and accrued expenses related to a corporate branding and marketing initiative.

Similarly, the loss from operations for the six months ended June 30, 2011 was $(1,140,512), as compared to loss from operations in the same period of the prior year of $(769,739). The $370,773, or 48%, increase in loss from operations was primarily due to increased consulting fees related to investor and public relations and accrued expenses related to a corporate branding and marketing initiative.

Net loss for the second quarter of fiscal 2011 was $(722,716) or $(0.01) per share, as compared to second quarter fiscal 2010 net loss of $(462,261), or $(0.01) per share. For the six months ended June 30, 2011 net loss was $(1,230,118), or $(0.01) per share, as compared to a net loss of $(908,250) or $(0.01) per share for the six months ended June 30, 2010.

For further information please see MacroSolve’s full 10Q filing at www.sec.gov.
 
 
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MACROSOLVE, INC.
           
             
BALANCE SHEETS
           
   
(unaudited)
   
(audited)
 
   
6/30/2011
   
12/31/2010
 
ASSETS
           
             
CURRENT ASSETS:
           
     Cash
  $ 212,682     $ 187,025  
     Accounts receivable - trade
    73,276       31,535  
     Prepaid expenses and other
    147,562       50,324  
                 
          Total current assets
    433,520       268,884  
                 
PROPERTY AND EQUIPMENT, at cost:
    264,606       254,088  
     Less - accumulated depreciation and amortization
    (172,331 )     (162,194 )
                 
          Net property and equipment
    92,275       91,894  
                 
OTHER ASSETS:
               
     Note receivable
    135,577       135,577  
     Software development costs, net of accumulated amortization
               
        of $510,653 and $398,715 as of June 30, 2011 and
               
        December 31, 2010, respectively
    1,136,462       938,942  
     Other assets
    70,504       43,999  
                 
                 
          Total other assets
    1,342,543       1,118,518  
                 
TOTAL ASSETS
  $ 1,868,338     $ 1,479,296  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
     Current maturities of long-term debt
  $ 4,319     $ 34,176  
     Revolving Line of Credit
    100,000       -  
     Note Payable - Shareholder
    50,000       -  
     Accounts payable - trade and accrued liabilities
    185,936       123,022  
     Unearned income
    28,240       8,523  
                 
          Total current liabilities
    368,495       165,721  
                 
LONG-TERM DEBT, less current maturities
               
    Oklahoma Technology Commercialization Center
    237,500       237,500  
    Convertible secured debentures
    1,875,000       925,000  
          Total long-term debt, less current maturities
    2,112,500       1,162,500  
                 
COMMITMENTS AND CONTINGENCIES
               
                 
STOCKHOLDERS' EQUITY:
               
Common stock, $.01 par value; authorized 200,000,000 shares;
               
issued and outstanding 104,320,509 and 98,690,490 shares, at June 30, 2011 and December 31, 2010, respectively
    1,043,205       986,905  
     Additional paid-in capital
    9,714,005       9,303,920  
     Accumulated deficit
    (11,369,867 )     (10,139,750 )
                 
          Total stockholders' (deficit) equity
    (612,657 )     151,075  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 1,868,338     $ 1,479,296  
                 
The accompanying notes are an integral part of these statements.
               
 
 
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MACROSOLVE, INC.
                       
                         
STATEMENTS OF OPERATIONS (unaudited)
 
Unaudited
   
Unaudited
 
   
For the Quarters Ended
   
For the Six Months Ended
For the Periods Ended June 30
 
6/30/2011
   
6/30/2010
   
6/30/2011
   
6/30/2010
 
SALES:
                       
     Solution services
  $ 167,187     $ 123,509     $ 262,871     $ 290,449  
     Hardware sales
    -       1,117       -       78,036  
     Software and Patent licensing
    52,244       9,706       72,560       40,075  
                                 
     Net sales
    219,431       134,332       335,431       408,560  
COST OF SALES:
                               
     Solution services
    98,629       66,407       145,413       169,152  
     Hardware sales
    -       890       -       64,743  
     Software licensing
    -       -       -       -  
                                 
     Total cost of sales
    98,629       67,297       145,413       233,895  
                                 
     Gross profit
    120,802       67,035       190,018       174,665  
OPERATING EXPENSES:
                               
     Solution services
    49,339       12,713       174,797       44,787  
     Depreciation and amortization
    62,047       53,199       123,727       106,491  
     Marketing and sales
    132,668       157,474       162,586       302,331  
     General and administrative
    540,134       242,990       869,421       490,795  
                                 
     Total operating expenses
    784,188       466,376       1,330,531       944,404  
                                 
     Loss from operations
    (663,386 )     (399,341 )     (1,140,513 )     (769,739 )
OTHER INCOME (EXPENSE):
                               
     Interest income
    61       134       86       486  
     Interest expense
    (30,607 )     (40,965 )     (36,919 )     (79,438 )
     Loss on sale of asset
    (235 )     -       (235 )     (17,944 )
     Stock based compensation
    (28,550 )     (22,089 )     (52,538 )     (41,615 )
                                 
     Total other expense
    (59,331 )     (62,920 )     (89,606 )     (138,511 )
LOSS BEFORE INCOME TAXES
    (722,717 )     (462,261 )     (1,230,119 )     (908,250 )
                                 
INCOME TAXES
    -       -       -       -  
                                 
NET LOSS
  $ (722,717 )   $ (462,261 )   $ (1,230,119 )   $ (908,250 )
                                 
LOSS ALLOCABLE TO COMMON STOCKHOLDERS:
                         
     Net loss
  $ (722,717 )   $ (462,261 )   $ (1,230,119 )   $ (908,250 )
                                 
     Loss allocable to common stockholders
  $ (722,717 )   $ (462,261 )   $ (1,230,119 )   $ (908,250 )
                                 
Basic and diluted loss per share
  $ (0.01 )   $ (0.01 )   $ (0.01 )   $ (0.01 )
                                 
The accompanying notes are an integral part of these statements.
                 
 
       
 
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About MacroSolve

MacroSolve, Inc. is a pioneer in delivering mobile apps, technologies, and solutions to businesses and government. Founded in 1997, the Company has an extensive network including the top name brands in wireless hardware and software as well as wireless carriers. Leveraging its intellectual property portfolio, MacroSolve is positioned to become a leader in the mobile app space, projected to become a $17.5 billion market by 2012 according to Chetan Sharma Consulting. The Company operates through its subsidiaries including Anyware Mobile Solutions (http://www.goanyware.com) and Illume Mobile (http://www.illumemobile.com). For more information, visit MacroSolve (http://www.macrosolve.com) or call 800-401-8740.

Safe Harbor Statement

This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in our publicly filed reports. Factors that could cause these differences include, but are not limited to, the acceptance of our products, lack of revenue growth, failure to realize profitability, inability to raise capital and market conditions that negatively affect the market price of our common stock. The Company disclaims any responsibility to update any forward-looking statements.

Investor Contact:
Laurel Moody
646-810-0608
lmoody@corporateprofile.com


 
 
 
 
 
 
 
 
 
 
 
 
 
 
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