MARINA DEL REY, CA , a leading Internet marketing firm that
delivers search-targeted text content, video, and SEO services, has
announced financial results for its first quarter ended March 31,
2008.
InfoSearch Media reported revenue of $1.11 million for the first
quarter of 2008, a decrease from $1.31 million for the first
quarter of 2007 and $1.25 million from the fourth quarter of 2007.
The decrease from Q1 2007 was primarily due to a reduction of
$185,428 in sales for the Content Group as a decrease in legacy
license revenue of $299,306 was partially offset by sales of a new
license program launched in January 2008. The sequential decrease
from Q4 2007 reflects seasonality.
Total operating expenses decreased 37.1% to $978,320 in the
first quarter of 2008 from $1,556,402 in the same period the prior
year, as general and administrative expenses and sales and
marketing expenses were decreased by 28.5% and 53.6%, respectively.
These reductions were largely due to decreases in the number of
personnel and a lower share-based compensation expense for
employees and members of the board of directors. The Company
reported a GAAP net loss of ($198,532), or ($0.00) per share (basic
and diluted) for the first quarter of 2008, which represents a
52.2% decrease from the GAAP net loss of ($415,100), or ($0.01) per
share (basic and diluted) for the first quarter of 2007.
Operationally, although the Company has entered into a second
agreement with Demand Media, Q1 2008 included the final content
delivery for Demand Media's first contract which had generated
$300,000 in quarterly revenue. The Company has already adjusted its
expense levels accordingly and going forward will continue to
explore ways to increase liquidity and reduce its operating
expenses, including those disproportionate periodic reporting costs
of being a small public company.
"The Company's first quarter slow-down in sequential revenue was
somewhat less pronounced this year at 11.7% compared to 12.6% a
year ago. During the quarter we increased efforts to attract major
customers, expand distribution and sign new product partnerships,"
said Chief Executive Officer George Lichter, of InfoSearch Media.
"These more significant initiatives have longer sales cycles and
take more time to bear fruit, but we are encouraged by early
indications and anticipate issuing more definitive announcements in
the near future."
"The Company was able to reduce its operating expenses by more
than 35% year over year while increasing sales productivity by
using resellers to leverage our inside sales team," said InfoSearch
Media's Chief Financial Officer Scott Brogi. "We will continue to
manage costs very closely to ensure that we remain competitive for
our clients and our shareholders."
About InfoSearch Media
InfoSearch Media (http://www.InfoSearchMedia.com) is a leading,
comprehensive Internet search marketing Company and a leading
provider of cost-effective Web traffic via search optimized text
and video content, pay-per-click and SEO services. InfoSearch
Media's network of hundreds of professional writers, editors, and
technical specialists help businesses succeed on the Web by
implementing cost-effective Internet marketing solutions designed
to deliver more web traffic and conversions for customers of every
size. Whether a business needs more local traffic in 100 cities or
is a content publisher with an ongoing need for fresh, targeted Web
content, InfoSearch Media offers the outsourced solutions, capacity
and reputation to help clients secure Internet traffic.
Incorporated in 2000, the publicly-traded Company is headquartered
in Marina del Rey, California.
Safe Harbor Statement
This release contains "forward-looking statements" that involve
risks and uncertainties. Actual results may differ materially from
expectations discussed in such forward-looking statements.
Management assumes no obligation to comment on or provide an update
to its stock purchases or sales in the future except as
specifically required by law and by the Securities and Exchange
Commission. Factors that might cause such differences include, but
are not limited to the challenges of attracting new customers and
maintaining existing customers and developing, deploying and
delivering InfoSearch services; competition from existing and new
competitors; the ability to generate sufficient cash flow or
otherwise obtain funds to repay new or outstanding indebtedness;
the loss or decline in business from our key customers and other
risks described from time to time in InfoSearch Media's filings
with the Securities and Exchange Commission. In particular, see
InfoSearch Media's Annual Report on Form 10-KSB/A for the fiscal
year ending December 31, 2007 and its latest quarterly report on
Form 10-QSB for the quarter ending March 31, 2008, filed with the
Securities and Exchange Commission which are available on the SEC
website at www.sec.gov. InfoSearch Media does not assume any
obligation to update the forward-looking information contained in
this press release.
INFOSEARCH MEDIA, INC.
CONSOLIDATED BALANCE SHEETS
March December
31, 2008 31, 2007
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 247,703 $ 787,239
Restricted cash 4,927 20,000
Accounts receivable, net of allowance for
doubtful accounts of $25,500 and $0 for 2007 and
2006, respectively 371,173 215,518
Prepaid and other current assets 119,172 141,745
----------- -----------
TOTAL CURRENT ASSETS 742,975 1,164,202
EMPLOYEE ADVANCE 1,300 1,800
PROPERTY AND EQUIPMENT, NET 112,846 130,650
EQUITY WARRANT ASSET 103,276 112,049
----------- -----------
TOTAL ASSETS $ 960,397 $ 1,408,701
=========== ===========
CURRENT LIABILITIES:
Accounts payable $ 246,607 $ 228,308
Accrued salaries and bonuses and expenses 157,557 12,553
Accrued expenses 3,563 172,132
Deferred revenue 313,110 526,868
Provision for refunds payable/chargebacks (9,602) 15,842
Current Tax Liability 1,250 1,250
----------- -----------
TOTAL CURRENT LIABILITIES $ 712,485 $ 956,953
FAIR VALUE OF WARRANT LIABILITY 947,046 967,651
----------- -----------
TOTAL LIABILITIES $ 1,659,530 $ 1,923,354
----------- -----------
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, undesignated, par value $.001 per
share, 25,000,000 shares Authorized; no shares
issued and outstanding; - -
Common stock, $.001 par value, authorized
200,000,000 shares; issued and outstanding
52,493,592 for both periods ending March 31,
2008 and December 31, 2007. 52,494 52,494
Additional paid in capital 11,364,846 11,336,742
Accumulated deficit (12,116,473) (11,903,889)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT): (699,133) (514,653)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 960,397 $ 1,408,701
=========== ===========
INFOSEARCH MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months
Ended March 31,
------------------------
2008 2007
----------- -----------
CONTENTLOGIC SALES $ 1,090,487 $ 1,275,915
WEB PROPERTIES SALES 16,857 30,950
----------- -----------
NET SALES 1,107,345 1,306,865
CONTENTLOGIC COST OF SALES 345,921 461,175
WEB PROPERTIES COST OF SALES 19,959 15,321
----------- -----------
COST OF SALES 365,880 476,496
----------- -----------
GROSS PROFIT 741,465 830,369
----------- -----------
OPERATING EXPENSES
General & administrative 730,561 1,022,275
Sales & marketing 247,759 534,127
----------- -----------
TOTAL COSTS AND EXPENSES 978,320 1,556,402
----------- -----------
LOSS FROM OPERATIONS (236,856) (726,033)
----------- -----------
CHANGE IN FAIR VALUE OF WARRANTS 11,832 296,203
OTHER EXPENSES (INCOME) 21,380 -
INTEREST INCOME (NET) 4,574 16,780
----------- -----------
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE
TAX (199,070) (413,050)
TAXES FROM CONTINUING OPERATIONS (538) 2,050
----------- -----------
NET EARNINGS (LOSS) (198,532) (415,100)
----------- -----------
EARNINGS (LOSS) PER SHARE
BASIC (0.00) (0.01)
=========== ===========
DILUTED (0.00) (0.01)
=========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 52,493,592 51,825,450
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 52,493,592 51,825,450
InfoSearch Media, Inc.
Statements of Cash Flows
For the three months ended March 31,
2008 2007
--------- ---------
Cash flows from operating activities:
Net Loss (198,532) (415,100)
Adjustments to reconcile net (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 13,624 23,529
Equity Based Compensation 14,052 109,479
Change in fair value of equity warrant asset 1,751 (21,871)
Changes in fair value of warrant liability 11,832 (274,332)
Accounts receivable (155,655) 5,132
Due from Related Parties - 35,028
Due from employee advances 500 -
Prepaid Expenses and Other Current Assets 22,573 (3,281)
Accounts Payable, Accrued Expenses, and Other
Liabilities (25,549) (565,463)
Income Tax Payable - 1,250
Provision for refund (25,444) (3,991)
Deferred Revenue (213,758) 296,891
--------- ---------
Net cash provided by (used in) operating
activities (554,607) (812,730)
--------- ---------
Cash flows from investing activities:
Restricted cash 15,073 3,815
Capital expenditures - fixed assets - (35,193)
--------- ---------
Net cash used in investing activities 15,073 (31,378)
--------- ---------
Cash flows from financing activities:
Principal payments of capital lease obligations - (8,703)
Warrants exercised - 3,600
Net cash from financing activities - (5,103)
--------- ---------
Net increase (decrease) in cash and cash
equivalents (539,536) (849,212)
Cash and cash equivalents at beginning of period 787,239 2,495,654
Cash and cash equivalents at end of period 247,703 1,646,442
--------- ---------
Contact: Investors - Scott Brogi CFO 310.437.7380
IR@infosearchmedia.com Media - Len Simpson 310.437.7546
len.simpson@infosearchmedia.com
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