REDONDO BEACH, Calif., Nov. 18, 2004 (PRIMEZONE) -- CorpHQ, Inc. (Pink Sheets:COHQ) today reported that it has posted its Voluntary Quarterly Report for the period of July 1 through September 30, 2004 at http://www.pinksheets.com/quote/finance.jsp?symbol=COHQ. The information highlighted in this press release is contained in, and qualified in its entirety by the full text of, the Voluntary Report referenced above, and all readers are encouraged to consult the full report which includes, among other things, risk factors and other information necessary for a complete understanding of the company.
During the fiscal quarter ending September 30, 2004, we divested the sum of 7,148,358 shares in our portfolio company Safeguard Technology International, Inc. ("Safeguard") in a private placement. We received $595,673 from this divestiture during this period.
When compared to the fiscal quarter ending June 30, 2004, for the period ending September 30, 2004, our total current assets increased by 171%, total assets decreased by 2% and our total equity decreased by 1%, respectively. These changes in our financial position resulted primarily from the liquidity we achieved through the on-going divestiture of a portion of our holdings in Safeguard.
Net cash provided (used) by operating activities was ($75,468) for the three month period ended September 30, 2004 compared to $27,294 for the three month period ended September 30, 2003. This decrease is attributed to the fact that we had a one-time ($162,660) charge to earnings as a result of a reduction in the value of our investment in Safeguard.
Net cash provided by investing activities was $324,811 for the three month period ended September 30, 2004 compared to $0 for the three month period ended September 30, 2003. This increase is a result of the liquidity we achieved through the on-going divestiture of a portion of our holdings in Safeguard.
As of September 30, 2004, we had working capital of $395,156, total current assets of $432,840 and current liabilities of $104,151. On September 30, 2003, we had working capital of $34,388, current assets of $116,641 and current liabilities of $20,143. This increase is also a result of the liquidity we achieved through the on-going divestiture of a portion of our holdings in Safeguard.
Steve Crane, CorpHQ's Chairman and CEO said: "During the second quarter we proved that we can build a portfolio company from concept to liquidity event. We built on that momentum during the third quarter by transferring some of the value we have created into cash by divesting a portion of our holdings in our Safeguard Technology operation."
"Looking forward, we are working to reduce the cycle from concept to liquidity for our portfolio companies by evaluating new investment opportunities that are less dependent on product development and capital. We continue to work very hard on the proposed three-way merger involving Safeguard Technology, which if consummated, would be extremely valuable for all of the parties involved. We are also optimistic that the relationships with My Personal Salon and Pressto Food & Beverage, which we have nurtured for so long, will begin to bear fruit in the coming months," added Crane.
About CorpHQ, Inc.:
CorpHQ Inc. operates as a holding company and business incubator; we organize, invest in, and provide comprehensive management support and a variety of resources to high-potential companies. CorpHQ also acquires interests in and provides consultation to selected companies that are synergistic with its portfolio companies.
CorpHQ provides periodic Voluntary Financial Reports on its operations at http://www.pinksheets.com/quote/finance.jsp?symbol=COHQ.
Forward-Looking Statements
Any statements made in this press release which are not historical facts contain certain "forward-looking statements" as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
This press release is available at www.corphq.com and http://www.pinksheets.com/quote/quote.jsp?symbol=COHQ.