Notify Technology Reports Results for the Fiscal Year Ended
September 30, 2012
SAN JOSE,
Calif., Dec. 22, 2012
/PRNewswire/ -- Notify Technology Corporation (Pink Sheets:
NTFY.PK) today announced financial results for its fiscal year
ended September 30, 2012.
Total fiscal twelve-month revenue decreased 11% to
$6,107,445 in the twelve-month period
ended September 30, 2012 from
$6,833,885 during the same period in
the prior year. The net loss for the twelve
month period ended September 30, 2012
was $943,644 or $13.38 per diluted share. The company's financial
performance dropped from a net loss of $487,768, or $6.91
per diluted share, reported for the same period in the prior
year. The decrease in net income for the fiscal year
reflects a combination of a reduction in sales of the NotifyLink
and NotifySync products and the slower than anticipated growth of
the NotifyMDM product line.
"This has been a challenging year for Notify as we have
found the mobile device management (MDM) market to be much more
competitive than we expected" said David
Hanabusa, President and Chief Executive Officer of the
company. "We are continually improving our MDM product and have
invested heavily in development assets to do so.
We have also streamlined our operation where we can without
sacrificing product design."
Sales and Marketing expenses were $2,197,826 in the twelve-month period ended
September 30, 2012 compared to
$2,504,948 in the twelve-month period
ended September 30,
2011. Spending was focused on the
NotifyMDM product line and marketing of the NotifyLink product line
was deemphasized.
Research and Development expenses were $3,124,886 in the twelve-month period ended
September 30, 2012 compared to
$3,079,921 in the twelve-month period
ended September 30,
2011. The increase was due to the
investment to expedite the development of the NotifyMDM product
line while still maintaining the capability to improve and support
the NotifySync and NotifyLink products.
General and Administrative expenses decreased to
$1,639,111 in the twelve-month period
ended September 30, 2012 compared to
$1,722,342 for the twelve-month
period ended September 30,
2011. The decrease was primarily due to
incurring minimal SEC filing costs and reducing executive
compensation.
About Notify Technology
Corporation
Founded in 1994, Notify Technology
Corporation is an independent software vendor (ISV) who has
specialized in wireless mobility solutions and services for the
past 11 years. Notify's products including NotifyLink, NotifySync
and NotifyMDM support all major smart phone and tablet platforms
independent of wireless carrier or network.
Notify sells its mobility products directly and through authorized
resellers internationally. Notify is an official Apple iOS
Enterprise Development Partner, Android Development Partner,
BlackBerry Development Partner, Windows Mobile and Windows Phone
Development Partner. The Company is headquartered in San Jose, California with product development
and technical support located in Canfield, Ohio. For more information,
visit http://www.notifycorp.com or
contact 408-777-7930.
(Financial
Tables Follow)
NOTIFY TECHNOLOGY
CORPORATION
CONDENSED STATEMENTS OF
OPERATIONS
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|
|
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Three-Month Periods
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Twelve-Month Periods
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Ended
September 30,
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Ended
September 30,
|
|
|
|
2012
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|
2011
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|
2012
|
2011
|
|
|
|
(unaudited)
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(audited)
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(unaudited)
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(audited)
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Revenue:
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Product
revenue
|
$
1,423,085
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|
$
1,636,814
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|
$6,107,445
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|
$
6,833,885
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|
Total
revenue
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1,423,085
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1,636,814
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6,107,445
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6,833,885
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|
|
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Cost of
revenue:
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Product
cost
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34,013
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|
4,449
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|
82,027
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|
24,689
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|
|
Royalty
payments
|
7,485
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|
1,195
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|
19,700
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|
5,291
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|
Total cost
of revenue
|
41,498
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|
5,644
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|
101,727
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|
29,980
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Gross
profit
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1,381,587
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1,631,170
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6,005,718
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6,803,905
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|
|
|
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Operating
expenses:
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|
|
|
|
|
|
|
|
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Research
and development
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700,046
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|
796,801
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|
3,124,886
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|
3,079,921
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|
|
Sales and
marketing
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375,721
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|
602,161
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2,197,826
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2,504,948
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General
and administrative
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439,836
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455,981
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1,639,111
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1,722,342
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Total
operating expenses
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1,515,603
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1,854,943
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6,961,823
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7,307,211
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Income
from operations
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(134,016)
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(223,773)
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(956,105)
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(503,306)
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Interest
income and other, net
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2,152
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3,344
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12,461
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15,538
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Net income
(loss) before provision for income taxes
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(131,864)
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(220,430)
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(943,644)
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(487,768)
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Provision
for income taxes
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--
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--
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--
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--
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Net income
(loss)
|
$
(131,864)
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|
$
(220,430)
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$
(943,644)
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$(487,768)
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Basic net
income (loss) per share
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$
(1.87)
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$
(3.12)
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$
(13.38)
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$
(6.91)
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Basic
weighted average shares outstanding
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70,556
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|
70,556
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|
70,556
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70,556
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Diluted
weighted net income (loss) per share
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$
(1.87)
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$
(3.15)
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$
(13.38)
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$
(6.91)
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Diluted
weighted average shares outstanding
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70,556
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70,556
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|
70,556
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|
70,556
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|
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Notify Technology
CORPORATION
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Condensed Balance
Sheets
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Sept. 30,
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Sept. 30,
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|
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2012
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2011
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(unaudited)
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(audited)
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Assets:
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Current
assets:
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Cash and cash
equivalents
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$
902,447
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$
2,040,580
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Accounts receivable,
net
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156,492
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271,251
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Other
assets
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110,586
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83,235
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Total current
assets
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1,169,525
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2,395,066
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Non-current
assets
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Property and equipment,
net
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|
192,460
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|
312,272
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Lease
deposits
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|
15,602
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15,602
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Total non-current
assets
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208,062
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327,874
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Total
assets
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$
1,377,587
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$
2,722,940
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Liabilities and
shareholders' deficit
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Current
liabilities:
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Current portion of capital
lease obligation
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$
2,830
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$
2,665
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Accounts
payable
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67,534
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65,103
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Accrued payroll and related
liabilities
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330,571
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426,151
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Deferred
revenue
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2,453,860
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2,839,051
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Other accrued
liabilities
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163,832
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128,915
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Total current
liabilities
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3,018,627
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3,461,885
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Long-term
liabilities:
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Long-term Deferred
revenue
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63,588
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88,142
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Long-term capital lease
obligations
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9,289
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12,120
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Total long-term
liabilities
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72,877
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100,262
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Total
liabilities
|
|
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3,091,504
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3,562,147
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Shareholders'
deficit:
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Preferred
stock
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-
-
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-
-
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Common
stock
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|
|
71
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|
71
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|
|
Additional paid-in
capital
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23,692,964
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23,624,030
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Accumulated
deficit
|
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(25,406,952)
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(24,463,308)
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|
Total shareholders'
deficit
|
|
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(1,713,917)
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(839,207)
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Total liabilities and
shareholders' deficit
|
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$
1,377,587
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$
2,722,940
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|
|
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|
Contacts:
At Notify Technology
Corporation:
Jerry Rice, Chief Financial
Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
SOURCE Notify Technology Corporation