EX-99.01 2 ex991.htm EXHIBIT 99.01 ex991.htm
Exhibit 99.01

MacroSolve Announces FY 2012 Third Quarter Results

TULSA, OK—November13, 2012 – MacroSolve, Inc. (OTCPK: MCVE) (OTCQB: MCVE) (“MacroSolve” or the “Company”), a leading provider of mobile technologies intellectual property, today announced financial results for its third quarter of fiscal 2012, ended September 30, 2012.

Highlights for Q3 of fiscal 2012 include:

·  
Profitable sale of all assets relating to Illume Mobile business to DecisionPoint Systems, Inc. for $1,000,000, of which $250,000 was paid in cash and $750,000 was paid in stock on July 31, 2012.  In addition, MacroSolve may earn up to an additional $500,000 in cash and stock upon certain net revenue milestones being reached by DecisionPoint relating to the Illume Mobile assets;
·  
Seventh consecutive quarter of total revenue growth;
·  
Licensing and royalty revenues increased 29% to $559,000 from $432,000 in the same period of FY 2011;
·  
Gross profit increased 16% to $297,000 from $257,000 in Q3 of FY 2011; and,
·  
Streamlined operations to core executive team executing new strategy focused consulting to strategic mobile app ventures while maintaining focus on increasing IP licensing resulting in positive cash flow.

Revenues from continuing operations for the three months ended September 30, 2012 were $559,000 as compared to $432,000 in the quarter ended September 30, 2011. This 29% rise is due to increased intellectual property licensing and royalties.

Similarly, for the nine month period ended September 30, 2012, revenues from continuing operations were $1,981,000 as compared to $768,000 for the nine months ended September 30, 2011. This 158% increase in sales is a result of IP licensing, royalties and increased sales of the Company’s Illume Mobile products and services.

Gross profit from continuing operations in the third quarter of fiscal 2012 rose 16% to $297,000 from $257,000 in the third quarter of fiscal 2011. For the nine month period ended September 30, 2012, gross profit was up 151% to $1,121,000 from $447,000 in the first nine months of 2011.

Operating expenses increased 75% in the three months ended September 30, 2012 to $736,000 from $420,000 in the same period of fiscal 2011. The increase was related to one-time non-cash expenses related to writing off a $135,000 note receivable and a $293,000 website prototype, both decisions relating to the change in the Company’s focus subsequent to the sale of Illume Mobile. Ongoing operating expenses declined dramatically after the sale of Illume Mobile, including reductions in executive salaries, corporate overhead and occupancy costs. The resulting loss from operations was $(438,000) in the third quarter of fiscal 2012, up $273,000 or 169% over operating loss of $(163,000) in the third quarter of fiscal 2011.

Similarly, the loss from operations for the nine months ended September 30, 2012 was $(1,752,000), as compared to loss from operations in the same period of the prior year of $(1,304,000). The $448,000, or 34%, increase in loss from operations was primarily due to one-time non-cash expenses as the Company’s focus changed subsequent to the sale of Illume Mobile.

The Company reported a $(197,000) loss from discontinued operations for the three months ended September 30, 2012, as compared to a $(372,000) loss for the three months ended September 30, 2011, all related to the Illume Mobile operations.

Net loss after discontinued operations for the three months ended September 30, 2012 was $(678,000) or $(0.01) per share, as compared to a net loss of $(615,000) or $(0.01) in the three months ended September 30, 2011, an increase of $63,000 or 10%. The rise was primarily due to increasing Illume Mobile’s sales and marketing efforts in 2012. For the nine months ended September 30, 2012 net loss after discontinued operations was $(2,165,000) or $(0.01) per share, as compared to a net loss of $(1,845,000) or $(0.01) per share for the nine months ended September 30, 2011.

“We successfully completed a smooth transition of Illume Mobile’s workforce to DecisionPoint, preserving nineteen Tulsa-based jobs, while shedding significant operating expenses, overhead and negative cash flow in the process,” stated MacroSolve Executive Vice President and CFO, Kendall Carpenter. “MacroSolve’s executives are focused on increasing shareholder value by growing the high margin licensing and royalty side of our business while executing a new strategy of providing executive leadership to strategically selective ventures in the mobile app space.”
 
 
For further information please see MacroSolve’s full 10-Q filing at www.sec.gov.


About MacroSolve
 Founded in 1997, MacroSolve is heralded for its robust IP portfolio, while advancing throughout the mobile apps era by innovating key technologies that have laid the foundation for apps and next-gen developers. Today, MacroSolve is empowering a new era of mobile innovators seeking advisory services and IP strength from a source of experience.

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.

Contact Information
·  
Company Contact
info@macrosolve.com

 
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MACROSOLVE, INC.
           
             
BALANCE SHEETS
           
             
   
9/30/2012
   
12/31/2011
 
             
ASSETS
           
             
CURRENT ASSETS:
           
     Cash
  $ 314,811     $ 273,132  
     Accounts receivable - trade
    185,257       288,201  
     Prepaid expenses and other
    537,377       240,388  
                 
          Total current assets
    1,037,445       801,721  
                 
PROPERTY AND EQUIPMENT, at cost:
    21,650       285,976  
     Less - accumulated depreciation
    (19,350 )     (188,016 )
                 
          Net property and equipment
    2,300       97,960  
                 
OTHER ASSETS:
               
     Investment in DecisionPoint Systems, Inc.
    642,928       -  
     Note receivable
    -       135,577  
     Software development costs, net of accumulated amortization
               
        of $36,316 as of December 31, 2011
    -       1,280,903  
     Other assets
    60,362       83,329  
                 
          Total other assets
    703,290       1,499,809  
                 
TOTAL ASSETS
  $ 1,743,035     $ 2,399,490  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
     Current maturities of long-term debt
  $ 90,000     $ -  
     Revolving Line of Credit
    90,000       100,000  
     Note Payable - Shareholders
    -       169,306  
     Accounts payable - trade and accrued liabilities
    167,047       631,419  
     Unearned income
    500,000       31,400  
                 
          Total current liabilities
    847,047       932,125  
                 
LONG-TERM DEBT, less current maturities
               
    Note Payable - Shareholders
    533,681       -  
    Oklahoma Technology Commercialization Center
    147,500       237,500  
    Convertible debentures
    150,000       2,621,161  
          Total long-term debt, less current maturities
    831,181       2,858,661  
                 
COMMITMENTS AND CONTINGENCIES
               
                 
STOCKHOLDERS' EQUITY:
               
Common stock, $.01 par value; authorized 500,000,000 shares;
         
issued and outstanding 178,467,855 and 122,386,894 shares, at
         
        September 30, 2012 and December 31, 2011, respectively
    1,784,678       1,223,869  
     Additional paid-in capital
    13,226,705       10,059,029  
     Accumulated other comprehensive income
    (107,072 )     -  
     Accumulated deficit
    (14,839,504 )     (12,674,194 )
                 
          Total stockholders' (deficit) equity
    64,807       (1,391,296 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 1,743,035     $ 2,399,490  
                 
The accompanying notes are an integral part of these statements.
               
                 
 
 
 
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MACROSOLVE, INC.
                       
                         
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                       
   
For the Quarters Ended
   
Year to Date
 
For the Periods Ended September 30,
 
9/30/2012
   
9/30/2011
   
2012
   
2011
 
                         
 
                       
REVENUES:
                       
     Software products and licensing
  $ 558,738     $ 432,095     $ 1,565,579     $ 543,835  
     Solution services
    -       -       415,411       223,691  
                                 
     Net revenues
    558,738       432,095       1,980,990       767,526  
                                 
COST OF REVENUES:
                               
     Software products and licensing
    261,444       175,358       640,808       218,993  
     Solution services
    -       -       218,837       101,779  
                                 
     Total cost of revenues
    261,444       175,358       859,645       320,772  
                                 
     Gross profit
    297,294       256,737       1,121,345       446,754  
                                 
OPERATING EXPENSES:
                               
     Solution services
    -       -       323,208       286,656  
     Depreciation and amortization
    293,742       744       490,361       124,471  
     Marketing and sales
    19,641       21,057       770,883       71,854  
     General and administrative
    422,221       398,336       1,288,499       1,267,631  
                                 
     Total operating expenses
    735,604       420,137       2,872,951       1,750,612  
                                 
     Loss from operations
    (438,310 )     (163,400 )     (1,751,606 )     (1,303,858 )
                                 
OTHER INCOME (EXPENSE):
                               
     Interest income
    25       18       53       104  
     Interest expense
    (21,317 )     (57,664 )     (138,186 )     (94,609 )
     Loss on disposal of asset
    (3,486 )     -       (4,247 )     (235 )
     Stock based compensation
    (17,538 )     (21,747 )     (79,965 )     (74,285 )
                                 
     Total other expense
    (42,316 )     (79,393 )     (222,345 )     (169,025 )
                                 
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    (480,626 )     (242,793 )     (1,973,951 )     (1,472,883 )
                                 
INCOME TAXES
    -       -       -       -  
                                 
NET LOSS FROM CONTINUING OPERATIONS
    (480,626 )     (242,793 )     (1,973,951 )     (1,472,883 )
                                 
DISCONTINUED OPERATIONS
                               
    Loss from operations of discontinued Illume Mobile operations,
                               
    (including loss on disposal of $54,538)
    (197,387 )     (371,891 )     (197,387 )     (371,891 )
                                 
NET LOSS
    (678,013 )     (614,684 )     (2,171,338 )     (1,844,774 )
                                 
OTHER COMPREHENSIVE INCOME, net of tax
                               
   Unrealized holding loss arising during the period
    (107,072 )     -       (107,072 )     -  
                                 
COMPREHENSIVE INCOME
  $ (785,085 )   $ (614,684 )   $ (2,278,410 )   $ (1,844,774 )
                                 
LOSS ALLOCABLE TO COMMON STOCKHOLDERS:
                               
     Net loss
  $ (678,013 )   $ (614,684 )   $ (2,171,338 )   $ (1,844,774 )
                                 
     Loss allocable to common stockholders
  $ (678,013 )   $ (614,684 )   $ (2,171,338 )   $ (1,844,774 )
                                 
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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