Revolutionary Concepts Announces First Quarter 2014 Financial and
Operating Results and Reports a Net Income of $774,106
CHARLOTTE, NC--(Marketwired - May 30, 2014) -
Revolutionary Concepts Inc., (OTCQB: REVO), a publicly traded
company that develops mobile video software and remote security
communication systems, announced that it has filed its Quarterly
Report on Form 10-Q for its first quarter ended March 31, 2014 with
the Securities and Exchange Commission. The Report contains
the Company's financial statements, management's discussion and
analysis (MD&A), its plans and future outlook and other
disclosures. The Results of Operations was excerpted from the Form
10-Q Report.
First Quarter Financial Results
Results of Operations
Results of Operations for the Three Months Ended March 31, 2014,
compared to the Three Months Ended March 31, 2013.
Revenues The Company has generated limited revenue since its
inception, due to it being a development stage company, and in its
efforts in developing its patented technologies for sale or
licensing. With the recent signing of a global licensing Agreement
to commercialize REVO's patented wireless security alarm services
system, we received an up-front fee of $900,000 in
consideration.
Operating Costs and Expenses Our total operating expenses for
the three-month period ended March 31, 2014 increased to $172,835
from $149,858 over the prior year period. This increase is
primarily attributable to increases in marketing expenses and
professional fees.
Our net income for the three-month period ended March 31, 2014
was a total of $774,106, compared to a net loss of ($237,757)
for the same period ended March 31, 2013. This represents a total
increase of $1,011,863, or 325.99% for the period ended March 31,
2014, as compared to the same period ended March 31, 2013. This
gain is primarily attributable to decreases in loss on derivatives,
interest expenses and the consideration received by the Company as
part of the global licensing agreement the Company entered into,
and was also offset by increases in operating expenses.
Assets Our Assets decreased by $6,873 to $141,210 for the period
ended March 31, 2014, from $148,083 for the period ended December
31, 2013, and by $153,686 as of March 31, 2013. This decrease is
primarily due to a decrease in security deposit patent costs and
prepaid expenses offset by an increase in depreciation and
amortization.
Liabilities Our total liabilities decreased by $382,482 to
$4,329,517 for the period ended of March 31 2014 from $4,711,999 as
of December 31, 2013. The decrease is attributable to the decrease
in current liabilities primarily related to our notes that were
canceled as part of the license agreement with the licensee, offset
by an increase in other accrued expenses.
Stockholder's Equity (Deficit) Our Stockholders' deficit
decreased by $375,589 to ($4,188,327) for the period ended March
31, 2014, down from ($4,563,916) as of December 31, 2013. The first
quarter decrease was due primarily to the net gain of $774,106
offset by an increase in dividends accumulated.
Cash Flows Overall, we had no significant change in cash
expenditures for the three month period ended March 31, 2014,
compared to the same prior year period.
Cash Flows from
Operating Activities
Our net cash used in operating activities of ($45,736) for the
three-month period ended March 31, 2014 is attributable to a net
operating gain of $774,106, an increase in accrued expenses and
other liabilities of $523,894, accounts payable and accrued expense
of $64,334, offset by increases in accumulated dividend adjustment
of ($450,000), reduction of Notes and interest payable of
($992,124) included as consideration for the global exclusive
license agreement
Cash Flows from
Investing Activities
Our cash used in investing activities for the three-month period
ended March 31, 2014 was ($607).
Cash Flows from
Financing Activities
The net cash provided by financing activities of $46,342 for the
three-month period ended March 31, 2014 is attributable to the
increase in unpaid capital contributions of $805, and a decrease in
Notes Payable and debt of $47,147.
REVO's Senior Vice President Solomon Ali says, "We are very
excited about the continuous improvement in the financial
performance of the Company for this quarter. With the signing of
our global licensing Agreement to commercialize REVO's patented
wireless security alarm services system, we received an up-front
fee of $900,000 in consideration. This generated a net income of
$774,106 for this period, the first in the Company's operating
history. This is very significant for us, as it demonstrates our
future growth prospects to generate additional profits. Our plans
are to continue to increase our revenues, reduce our debt, improve
our overall financial performance and create more value for our
shareholders."
The full Form 10-Q Quarterly Report is available for viewing on
the SEC's website and it is also available at our website at
www.revolutionaryconceptsinc.com. Investor Relations, SEC Filings
section.
About Revolutionary Concepts Inc. REVO is primary business
is the design and development of the "EyeTalk" Communicator
technology, a mobile video, remote smart camera security
technology. The system is designed to provide nationwide protection
and monitoring of homes and businesses against
multiple threats including robbery, fire, theft, burglary and
other intrusions through mobile phones, wireless video and remote
smart camera security technology. REVO holds patented and patent
pending applications that utilize the technology in
medical/healthcare, sporting events, child monitoring and several
other key areas. For more information visit
www.revolutionaryconceptsinc.com.
Safe Harbor Statement - There are matters discussed in this
media information that are forward looking statements within the
meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6
under the Securities Exchange Act of 1934, and are subject to the
safe harbor created by those rules. Such statements are only
forecasts and actual events or results may differ materially from
those discussed. For a discussion of important factors which could
cause actual results to differ from the forward looking statements,
refer to Revolutionary Concepts Inc.'s most recent annual report
and accounts and other SEC filings. The company undertakes no
obligation to update publicly, or revise, forward
looking statements, whether as a result of new information,
future events or otherwise, except to the extent legally
required.
For inquiries contact: Media Relations: Solomon Ali
704-837-5705