InfoSearch Media, Inc. (OTCBB: ISHM), a comprehensive search
marketing firm delivering Web traffic to world-class ecommerce and
publishing clients via search-optimized text and video content,
search engine optimization and pay-per-click services, today
announces financial results for its second quarter ended June 30,
2008.
InfoSearch Media reported revenues of $1.6 million for the six
months ended June 30, 2008, compared to $2.5 million for the six
months ended June 30, 2007. Although the Gross Profit Margin
decreased slightly to 61.1% from 62.2% for the first fiscal half of
2008 and 2007, respectively, Operating Expenses were more than
halved for the same six month periods to $1.6 million from $3.3
million as the Company implemented a number of cost reduction
measures during 2008 which resulted in a lower Loss from
Operations. Additionally a change in the fair value of warrants
previously issued by InfoSearch resulted in a non-cash gain of $0.8
million for the six months ended June 30, 2008.
The Company reported GAAP Net Income of $0.2 million, or $0.00
for per share the first half of fiscal 2008, compared to a GAAP Net
Loss of ($1.5 million), or ($0.03) per share, for the first half of
2007.
"The product diversification and customer segmentation
initiatives commenced in Q1 are now gaining traction," says Chief
Executive Officer George Lichter. "An impressive and growing list
of new first tier clients coupled with a healthier revenue mix,
positions the Company well as we enter our strongest two quarters
of the year."
"The Company has continued to bring expense levels in line with
revenues," said Chief Financial Officer Scott Brogi. "The changes
move us very close to our goal of achieving sustained cash-flow
profitability."
Recent Company Highlights:
-- Award-Winning Products & Services -- InfoSearch Media ranked in top 20
of Website Magazine's Top 50 SEO Firms and Resources of 2008, as it
expanded outside of its core of text-based content to add streaming video,
link-building and search engine optimization services to its product suite.
-- New Clients -- The Company recently signed significant new clients
among industry leaders in the online education, automotive, health, travel
and consumer goods verticals.
-- New Financing -- The Company completed an equity financing round
during the quarter with existing investors to provide additional working
capital to support new business initiatives.
-- New Location -- The Company relocated to more modern offices centrally
located in the Culver City area of Los Angeles, and in doing so reduced
overhead and improved functionality.
About InfoSearch Media
InfoSearch Media (http://www.InfoSearchMedia.com) is a leading,
comprehensive Internet search marketing Company and the largest
dedicated provider of cost-effective Web traffic via
search-optimized text and video content, pay-per-click and SEO
services. InfoSearch Media's network of professional writers,
editors, technical specialists and video producers helps businesses
succeed on the Web by implementing cost-effective Internet
marketing solutions designed to deliver more web traffic 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 Culver City, Calif.
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's filings with the
Securities and Exchange Commission. In particular, see InfoSearch's
Annual Report on Form 10-K/A for the year ended Dec. 31, 2007,
filed with the Securities and Exchange Commission, copies of which
are available upon request from InfoSearch. InfoSearch does not
assume any obligation to update the forward-looking information
contained in this press release.
INFOSEARCH MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months For the Six Months Ended
Ended June 30, 2008 June 30, 2008
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
CONTENTLOGIC SALES $ 572,594 $ 1,120,194 $ 1,605,023 $ 2,396,109
WEB PROPERTIES SALES 9,116 39,799 25,973 70,749
----------- ----------- ----------- -----------
NET SALES 581,710 1,159,993 1,630,996 2,466,858
CONTENTLOGIC COST OF
SALES 234,806 438,752 588,401 899,927
WEB PROPERTIES COST OF
SALES 26,493 16,900 46,452 32,221
----------- ----------- ----------- -----------
COST OF SALES 261,299 455,652 634,853 932,148
----------- ----------- ----------- -----------
GROSS PROFIT/MARGINS 320,411 704,341 996,143 1,534,710
----------- ----------- ----------- -----------
OPERATING EXPENSES
General &
administrative 467,230 1,349,193 1,126,520 2,371,469
Sales & marketing 208,052 427,384 448,137 961,511
----------- ----------- ----------- -----------
TOTAL OPERATING
COSTS 675,282 1,776,577 1,574,657 3,332,980
----------- ----------- ----------- -----------
LOSS FROM OPERATIONS (354,871) (1,072,236) (578,514) (1,798,269)
----------- ----------- ----------- -----------
CHANGE IN FAIR VALUE OF
WARRANTS 326,551 (61,745) 816,613 234,458
INTEREST INCOME (NET) 655 18,186 5,228 34,966
----------- ----------- ----------- -----------
EARNINGS (LOSS) FROM
CONTINUING OPERATIONS
BEFORE TAX (27,665) (1,115,795) 243,327 (1,528,846)
TAXES FROM CONTINUING
OPERATIONS 800 825 262 2,875
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
NET EARNINGS (LOSS)
FROM CONTINUING
OPERATIONS (28,465) (1,116,621) 243,065 (1,531,721)
----------- ----------- ----------- -----------
NET EARNINGS (LOSS) (28,465) (1,116,621) 243,065 (1,531,721)
=========== =========== =========== ===========
EARNINGS (LOSS) PER
SHARE FROM CONTINUING
OPERATIONS -
BASIC (0.00) (0.02) 0.00 (0.03)
=========== =========== =========== ===========
DILUTED (0.00) (0.02) 0.00 (0.03)
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 52,493,592 52,547,662 52,493,592 52,132,276
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED 52,493,592 52,547,662 52,493,592 52,132,276
INFOSEARCH MEDIA, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2008 2007
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 130,585 $ 787,239
Restricted cash - 20,000
Accounts receivable 333,248 215,518
Prepaid and other current assets 102,228 141,745
----------- -----------
TOTAL CURRENT ASSETS 566,061 1,164,202
----------- -----------
EMPLOYEE ADVANCE 2,300 1,800
PROPERTY AND EQUIPMENT, NET 110,708 130,650
EQUITY WARRANT ASSET 108,014 112,049
----------- -----------
TOTAL ASSETS 787,083 1,408,701
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 135,198 $ 228,308
Accrued salaries and bonuses and expenses 44,314 12,553
Accrued expenses 36,320 170,882
Deferred revenue 359,375 526,868
Provision for refunds payable/chargebacks 15,842 15,842
Current tax liability 1,250 1,250
----------- -----------
TOTAL CURRENT LIABILITIES 592,299 955,703
CAPITAL LEASES, NET OF CURRENT PORTION -
INCOME TAX PAYABLE -
FAIR VALUE OF WARRANT LIABILITY 147,003 967,651
----------- -----------
DEPOSIT ON SUBSCRIPTION 230,000 -
----------- -----------
TOTAL LIABILITIES $ 969,302 $ 1,923,354
COMMITMENTS AND CONTINGENCIES (Note 13)
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $.001 par value, authorized
200,000,000 shares; issued and outstanding
52,336,909 and 5, respectively 52,494 52,494
Additional paid in capital 11,426,111 11,336,742
Accumulated deficit (11,660,824) (11,903,889)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (182,219) (514,653)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 787,083 $ 1,408,701
=========== ===========
InfoSearch Media, Inc.
Statements of Cash Flows
For the six months ended June 30,
2008 2007
----------- -----------
Cash flows from operating activities:
Net Gain (Loss) $ 243,065 $(1,531,721)
Adjustments to reconcile net (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 23,832 60,038
Equity Based Compensation 89,369 169,718
Change in fair value of equity warrant
liability (820,648) (232,949)
Changes in fair value of warrant asset 4,035 -
Accounts receivable (118,030) 19,183
Due from Related Parties (500) 34,423
Prepaid Expenses and Other Current Assets 2,017 49,852
Due from employee advances - (3,700)
Security Deposit 37,500 -
Accounts Payable, Accrued Expenses, and
Other Liabilities (195,911) (352,964)
Income Tax Payable - 1,250
Provision for refund - (16,482)
Deferred Revenue (167,493) (37,325)
----------- -----------
Net cash provided by (used in) operating
activities (902,764) (1,840,677)
----------- -----------
Cash flows from investing activities:
Restricted cash 20,000 288
Capital expenditures - fixed assets (3,890) (68,250)
----------- -----------
Net cash used in investing activities 16,110 (67,962)
----------- -----------
Cash flows from financing activities:
Principal payments of capital lease obligations - (17,162)
Warrants exercised - 3,600
Deposit on Subscription 230,000 -
Net cash from financing activities 230,000 (13,562)
----------- -----------
Net increase (decrease) in cash and cash
equivalents (656,654) (1,922,201)
Cash and cash equivalents at beginning of period 787,239 2,495,654
Cash and cash equivalents at end of period $ 130,585 $ 573,453
----------- -----------
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Contact: Investors Scott Brogi CFO 310.437.7550
scott.brogi@infosearchmedia.com Media Len Simpson 310.301.7741
len.simpson@infosearchmedia.com
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