COLLEGE POINT, N.Y., Nov. 15, 2004 (PRIMEZONE) -- Essential Reality, Inc. (Pink Sheets:ESSR) announced its results for the third quarter and the nine months ended September 30,2004. The results are those of Alliance Distributors Holding, Inc., a wholly owned subsidiary that the Company acquired on June 29, 2004. The business of Alliance Distributors Holding, Inc. is the only business of the Company.
For the quarter ended September 30, 2004 revenues were $6,924,000, and the Company reported a net loss of $43,000. For the nine months ended September 30, 2004, revenues were $20,201,000 and net income was $40,000. The comparative results for the three and nine months ended September 30, 2003 include the results from August 11, 2003, the date of commencement of operations.
Jay Gelman, Chairman and CEO, said, "We are pleased that we have established ourselves with many major manufacturers in our industry and with key retail outlets within our regional marketplace."
The Company also announced that it has entered into a new financing arrangement with Rosenthal & Rosenthal. The credit facility is an asset based revolving line of credit with a maximum limit of $5,000,000. Jay Gelman said, "Rosenthal & Rosenthal and Alliance have had a relationship since late 2003 through the Rosenthal & Rosenthal factoring division. The new arrangement will allow us to take fuller advantage of all our borrowing power and will give us the ability to take further advantage of opportunity purchases."
For additional information see the Company's SEC Report on Form 10QSB for the period ended September 30, 2004.
ABOUT ALLIANCE DISTRIBUTORS HOLDING, INC.
Alliance Distributors Holding, Inc., which does business as Alliance Distributors, is a full service wholesale distributor of interactive video games and gaming products for key manufacturers and 3rd party publishers in the video game industry. Alliance offers comprehensive support on PlayStation 2, PS1, X-Box, Game Cube, and GameBoy systems, peripherals and software titles.
SAFE HARBOR
Certain of the above statements contained in this press release may contain forward-looking statements which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including but not limited to, risks associated with technological change, competitive factors and general economic conditions. The Company has no duty and undertakes no obligation to update such statements.
ESSENTIAL REALITY, INC
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003(1) 2004 2003(1)
-------------------------- -------------------------
Sales $ 6,924,181 $ 352,710 $ 20,200,199 $ 352,710
Cost of sales 5,966,406 334,184 17,363,624 334,184
------------ ------------ ------------ -----------
Gross profit 957,775 18,526 2,836,575 18,526
Selling,
general and
administrative
expenses 980,454 74,977 2,704,112 74,977
------------ ------------ ------------ -----------
Income (loss)
from
operations (22,679) (56,451) 132,463 (56,451)
Interest
expense 20,444 64 81,052 64
------------ ------------ ------------ -----------
Income (loss)
before
provision for
income taxes (43,123) (56,515) 51,411 (56,515)
Provision for
income taxes -- -- 11,167 --
------------ ------------ ------------ -----------
Net income
(loss) (43,123) (56,515) 40,244 (56,515)
------------ ------------ ------------ -----------
Preferred
stock
dividends 105,977 -- 106,819 --
------------ ------------ ------------ -----------
Net loss
available to
common
shareholders $ (149,100) $ (56,515) $ (66,575) $ (56,515)
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(1) The three and nine months ended September 30, 2003 include the
results from August 11, 2003, the date of commencement of
operations.