EX-99.01 2 ex9901.htm EXHIBIT 99.01 ex9901.htm
Exhibit 99.01

MacroSolve Announces $923,000 Increase in Net Income
for First Quarter 2013 over First Quarter 2012
 
 Second Consecutive Quarter of Net Income Driven by Mobile App Technologies & Licensing
 
 
TULSA, OK—April 30, 2013 - MacroSolve, Inc. (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technologies intellectual property, today announced financial results for its first quarter ended March 31, 2013.
 
Highlights for the first quarter of 2013 include:
 
·  
Net income increased $923,000 to $218,000 in 1Q13 from $(705,000) net loss in 1Q12;
 
·  
Net income from continuing operations increased $225,000 to $218,000 in 1Q13 from $(7,000) in 1Q12; and
 
·  
Operating expenses decreased 49% to $155,000 in 1Q13 from $303,000 in 1Q12.
 
Net income for 1Q13 was $218,000 or $0.001 per share, as compared to the 1Q12 net loss of $(705,000), or $(0.004) per share, an increase of $923,000.  The increase 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 $443,000 in 1Q13 as compared to 1Q12, resulting in a $378,000 increase in cash at March 31, 2013, which was $702,000 as compared to $325,000 on March 31, 2012.
 
Operating expenses decreased 49% in 1Q13 to $155,000 from $303,000 in 1Q12, as adjusted for the Illume Mobile divestiture. After the sale, the Company restructured its management and strategically reduced its operating overhead, resulting in $218,000 net income from continuing operations in 1Q13, a $225,000 increase from $(7,000) in 1Q12.
 
Revenues for 1Q13 were $666,000 as compared to $699,000 in 1Q12, as adjusted for the discontinuance of the Illume Mobile operations which was sold to DecisionPoint Systems, Inc. in July 2012.  A significant source of revenue comes from the Company’s enforcement of its ‘816’ patent. The $(33,000), or 5% decrease, is attributable to fluctuations inherent to the nature of legal proceedings.
 
“The strategic restructuring of the Company following the divesture of Illume Mobile in 2012 is proving to be a sound one.” stated CFO Kendall Carpenter. “We continue to execute on our plan for profitability, positive cash flow and debt reduction by monetizing our intellectual property and expanding our business and patent advisory services for small and medium-sized mobile app ventures. Our core management team has demonstrated their breadth of experience, leading to impressive first quarter results.”
 
For further information please see MacroSolve's full 1Q13 10Q 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 and patent 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
 
 
 
 
 
 
MACROSOLVE, INC.
            
             
BALANCE SHEETS
            
             
For the Periods Ended:
  
3/31/2013
    
12/31/2012
  
             
ASSETS
            
             
CURRENT ASSETS:
            
     Cash
   $ 702,632     $ 659,204  
     Accounts receivable - trade
     341,799       74,056  
     Prepaid expenses and other
     11,604       519,330  
                 
          Total current assets
     1,056,035       1,252,590  
                 
PROPERTY AND EQUIPMENT, at cost:
     4,237       21,651  
     Less - accumulated depreciation and amortization
     (1,154 )     (19,462 )
                 
          Net property and equipment
     3,083       2,189  
                 
OTHER ASSETS:
                
     Investment in DecisionPoint Systems, Inc.
     730,433       579,875  
     Investment in MEDL Mobile Holdings, Inc.
     60,272       -  
     Other assets
     69,658       64,227  
                 
                 
          Total other assets
     860,363       644,102  
                 
TOTAL ASSETS
   $ 1,919,481     $ 1,898,881  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
     Current maturities of long-term debt
   $ 90,000     $ 90,000  
     Accounts payable - trade and accrued liabilities
     180,379       84,062  
     Unearned income
     -       500,000  
                 
          Total current liabilities
     270,379       674,062  
                 
LONG-TERM DEBT, less current maturities
                
    Note Payable - Shareholders
     549,648       541,752  
    Oklahoma Technology Commercialization Center
     102,500       125,000  
    Convertible debentures
     150,000       150,000  
          Total long-term debt, less current maturities
     802,148       816,752  
                 
COMMITMENTS AND CONTINGENCIES
     -       -  
                 
STOCKHOLDERS' EQUITY:
                
Common stock, $.01 par value; authorized 500,000,000 shares;
          
issued and outstanding 184,663,869 and179,831,987 shares, at
          
        March 31, 2013 and December 31, 2012, respectively
     1,846,639       1,798,320  
     Additional paid-in capital
     13,241,670       13,230,111  
     Accumulated other comprehensive income
     (9,295 )     (170,125 )
     Accumulated deficit
     (14,232,060 )     (14,450,239 )
                 
          Total stockholders' equity (deficit)
     846,954       408,067  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 1,919,481     $ 1,898,881  
                 
 
 
 
 
 
 

 
MACROSOLVE, INC.
            
             
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
            
 
For the Quarters Ended
  
For the Quarters Ended March 31,
  
3/31/2013
    
3/31/2012
  
             
             
Net revenues
   $ 666,098     $ 699,232  
                 
Cost of revenues
     279,047       283,266  
                 
Gross profit
     387,051       415,966  
                 
Selling, general and administrative expense
     155,108       302,668  
                 
Income from operations
     231,943       113,298  
                 
OTHER INCOME (EXPENSE):
                
     Interest income
     212       8  
     Interest expense
     12,551       84,144  
     Loss on sale of asset
     436       761  
     Stock based compensation
     1,019       34,625  
                 
     Total other expense
     13,794       119,522  
                 
INCOME (LOSS) FROM CONTINUNIG OPERATIONS BEFORE        INCOME TAXES
     218,149       (6,224 )
                 
INCOME TAXES
     -       -  
                 
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
     218,149       (6,224 )
                 
DISCONTINUED OPERATIONS (NOTE 11)
                
    Loss from operations of discontinued Illume Mobile operations
     -       (698,806 )
                 
NET INCOME (LOSS)
     218,149       (705,030 )
                 
OTHER COMPREHENSIVE INCOME, net of tax
                
    Unrealized holding loss arising during the period
     (9,295 )     -  
                 
COMPREHENSIVE INCOME
   $ 208,854     $ (705,030 )
                 
INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS:
                
     Net income (loss)
   $ 218,149     $ (705,030 )
                 
     Income (loss) allocable to common stockholders
   $ 218,149     $ (705,030 )
                 
Basic and diluted income (loss) per share
   $ 0.001     $ (0.004 )