EX-99.1 2 ex991.htm EXHIBIT 99.1 ex991.htm
Exhibit 99.01

MacroSolve Announces 104% Increase in Gross Profit
for Fiscal 2012
 
 Eight Consecutive Quarters of Growth Driven by Mobile App Technologies & Licensing
 
 
TULSA, OK—March 05, 2013 - MacroSolve, Inc. (OTCPK: MCVE) (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technologies intellectual property, today announced financial results for its fiscal year ended December 31, 2012.
 
Highlights for the 2012 fiscal year include:
 
·  
Revenues increased 113% to $2,988,000 in FY 2012 from $1,404,000 in FY 2011;
 
·  
Gross profit increased 104% to $1,683,000 in FY 2012 from $858,000 in FY 2011;
 
·  
4th quarter revenues grew by 154% to $982,000 in Q4 of 2012 from $637,000 in Q4 of 2011
 
·  
Gross profit in Q4 of 2012 was $561,000, a 148% increase over Q4 2011 gross profit of $379,000; and
 
·  
Revenues grew by 76% on a quarter-over-quarter basis from $559,000 in Q3 of 2012 to $982,000 in Q4 of 2011.
 
Revenues for the twelve months ended December 31, 2012 were $2,988,000 as compared to $1,404,000 in the fiscal year ended December 31, 2011. This $1,584,000 or 113% rise is due to increases in IP licensing and services.
 
Gross profit for fiscal 2012 rose 104% to $1,683,000 from $825,000 in fiscal 2011 primarily due to the sale of Illume Mobile in July and the elimination of its lower margin professional services.
 
Operating expenses increased 41% in fiscal 2012 to $3,025,000 from $2,139,000 in 2011 primarily due to expansion of Illume Mobile’s sales and marketing in the first half of the year and one-time charges related to the divestiture of Illume Mobile. Loss from operations was $1,343,000, an increase of $30,000 or less than 1% over operating loss of $1,313,000 in fiscal 2011.
 
Net loss for fiscal 2012 was ($1,776,000) or $(0.01) per share, as compared to fiscal 2011 net loss of $(2,534,000), or $(0.02) per share, a decrease of ($758,000) or 30%. The decrease was primarily due to the sale of Illume Mobile and the elimination of its operating losses. The Company improved its use of cash in operations, with cash used in operating activities declining by $769,000 in fiscal 2012 as compared to fiscal 2011.
 
“During fiscal 2012, we made a strategic decision to sell the Illume Mobile business unit and implement a strategy towards debt elimination and profitability. As anticipated, we achieved positive cash flow and profitability in the fourth quarter. Our experienced management team is leveraging our unique position in the mobile app intellectual property space by providing advisory services to a portfolio of clients, including mobile app developers, fortified by intellectual property, which in combination can create substantial passive revenues and equity holdings for our shareholders." stated MacroSolve CEO and President, Jim McGill.
 
For further information please see MacroSolve's full 10K 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. For more information, visit www.macrosolve.com.
 
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:
MacroSolve Contact
info@macrosolve.com



 
Financial Statements Follow
 
 
 
1
 
 
 
MACROSOLVE, INC.
  
             
BALANCE SHEETS
  
             
   
12/31/2012
    
12/31/2011
  
             
ASSETS
            
             
CURRENT ASSETS:
            
     Cash
   $ 659,204     $ 273,132  
     Accounts receivable - trade
     74,056       288,201  
     Prepaid expenses and other
     519,330       240,388  
                 
          Total current assets
     1,252,590       801,721  
                 
PROPERTY AND EQUIPMENT, at cost:
     21,651       285,976  
     Less - accumulated depreciation and amortization
     (19,462 )     (188,016 )
                 
          Net property and equipment
     2,189       97,960  
                 
OTHER ASSETS:
                
     Investment in DecisionPoint Systems, Inc.
     579,875       -  
     Note receivable
     -       135,577  
     Software development costs, net of accumulated amortization
                
       of  $398,715 as of December 31, 2011
     -       1,280,903  
     Other assets
     64,227       83,329  
                 
                 
          Total other assets
     644,102       1,499,809  
                 
TOTAL ASSETS
   $ 1,898,881     $ 2,399,490  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
     Current maturities of long-term debt
   $ 90,000     $ -  
     Revolving Line of Credit
     -       100,000  
     Note Payable - Shareholders
     -       169,306  
     Accounts payable - trade and accrued liabilities
     84,062       631,419  
     Unearned income
     500,000       31,400  
                 
          Total current liabilities
     674,062       932,125  
                 
LONG-TERM DEBT, less current maturities
                
    Note Payable - Shareholders
     541,752       -  
    Oklahoma Technology Commercialization Center
     125,000       237,500  
    Convertible debentures
     150,000       2,621,161  
          Total long-term debt, less current maturities
     816,752       2,858,661  
                 
COMMITMENTS AND CONTINGENCIES
     -       -  
                 
STOCKHOLDERS' EQUITY:
                
Common stock, $.01 par value; authorized 500,000,000 shares;
          
issued and outstanding 179,831,987 and122,386,894 shares, at
          
        December 31, 2012 and 2011, respectively
     1,798,320       1,223,869  
     Additional paid-in capital
     13,230,111       10,059,029  
     Accumulated other comprehensive income
     (170,125 )     -  
     Accumulated deficit
     (14,450,239 )     (12,674,194 )
                 
          Total stockholders' equity (deficit)
     408,067       (1,391,296 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 1,898,881     $ 2,399,490  
                 
The accompanying notes are an integral part of these statements.
                
                 
 
 
 
2
 
 
 
MACROSOLVE, INC.
  
                         
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
  
                         
   
For the Quarters Ended
              
For the Years Ended December 31,
  
12/31/2012
    
12/31/2011
    
2012
    
2011
  
                         
 
                        
REVENUES:
                        
     Software products and licensing
   $ 969,501     $ 636,677     $ 2,529,663     $ 1,141,332  
     Solution services
     12,875       -       458,730       262,871  
                                 
     Net revenues
     982,376       636,677       2,988,393       1,404,203  
                                 
COST OF REVENUES:
                                
     Software products and licensing
     411,513       258,156       1,031,005       433,515  
     Solution services
     9,624       -       274,848       145,413  
                                 
     Total cost of revenues
     421,137       258,156       1,305,853       578,928  
                                 
     Gross profit
     561,238       378,521       1,682,540       825,275  
                                 
OPERATING EXPENSES:
                                
     Solution services
     -       -       323,167       144,542  
     Depreciation and amortization
     815       815       491,176       125,285  
     Marketing and sales
     -       -       816,273       348,969  
     General and administrative
     133,815       251,667       1,394,455       1,519,779  
                                 
     Total operating expenses
     134,629       252,481       3,025,071       2,138,575  
                                 
     Income from operations
     426,609       126,040       (1,342,531 )     (1,313,300 )
                                 
OTHER INCOME (EXPENSE):
                                
     Interest income
     111       30       164       134  
     Interest expense
     (12,846 )     (76,550 )     (150,951 )     (170,675 )
     Loss on sale of asset
     -       -       (4,247 )     (235 )
     Stock based compensation
     (9,909 )     (23,221 )     (83,872 )     (97,506 )
                                 
     Total other expense
     (22,644 )     (99,741 )     (238,906 )     (268,282 )
                                 
LOSS FROM CONTINUNIG OPERATIONS BEFORE INCOME TAXES
     403,965       26,299       (1,581,437 )     (1,581,582 )
                                 
INCOME TAXES
     -       -       -       -  
                                 
NET LOSS FROM CONTINUING OPERATIONS
   $ 403,965     $ 26,299     $ (1,581,437 )   $ (1,581,582 )
                                 
DISCONTINUED OPERATIONS (NOTE 16)
                                
    Loss from operations of discontinued Illume Mobile operations
                                
    (including loss on disposal of $54,538)
     (14,670 )     (715,940 )     (194,608 )     (952,832 )
                                 
NET LOSS
     389,295       (689,641 )     (1,776,045 )     (2,534,414 )
                                 
OTHER COMPREHENSIVE INCOME, net of tax
                                
    Unrealized holding loss arising during the period
     (63,053 )     -       (170,125 )     -  
                                 
COMPREHENSIVE INCOME
     326,242       (689,641 )     (1,946,170 )     (2,534,414 )
                                 
LOSS ALLOCABLE TO COMMON STOCKHOLDERS:
                                
     Net Income (L.oss)
   $ 389,295     $ (689,641 )   $ (1,776,045 )   $ (2,534,414 )
                                 
     Income (Loss) allocable to common stockholders
   $ 389,295     $ (689,641 )   $ (1,776,045 )   $ (2,534,414 )
                                 
Basic and diluted income (loss) per share
   $ 0.00     $ (0.01 )   $ (0.01 )   $ (0.02 )
                                 
The accompanying notes are an integral part of these statements.
                                
                                 
 
 
 
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