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.
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
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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 and 179,831,987 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
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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 CONTINUING 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)
============= =============
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Contact: MacroSolve Contact info@macrosolve.com