ATLANTA, Nov. 15, 2006 (PRIMEZONE) -- VuBotics, Inc. (OTCBB:VBTC) today announced financial results for the three and nine months ended September 30, 2006.
Phil Lundquist, chairman of VuBotics, stated, "During the quarter, we made meaningful progress, advancing our licensing strategy among both content providers and OEMs, which we believe will allow faster market penetration and customer adoption of VuIT(tm). Importantly, we received a fully funded pilot project at a Fortune 500 media client, further validating this strategy. We believe our licensing model, combined with supplemental advertising, present attractive opportunities for rapid and scaleable growth. In addition, we invested heavily in expansion of our intellectual property portfolio, product development, and sales and marketing. As previously announced, we completed a financing for gross proceeds of $2.2 million, providing the company additional flexibility to accelerate our sales and marketing efforts."
David Rollo, chief marketing officer at VuBotics, commented, "We recently announced that we have become a member of the BlackBerry ISV Alliance Program, which will provide additional tools and resources to enhance, market and deploy the VuIT(tm) technology. This alliance further reinforces the natural fit of our technology and provides valuable access to the BlackBerry development software, as well as marketing and sales support. We look forward to advancing our relationship with RIM and pursuing discussions with Tier I carriers who in turn can market the technology to corporate, small business, and individual consumers."
John Ellingson, chief strategy officer, stated, "Overall, we are encouraged by the business outlook, and the growing recognition we are gaining within the industry. VuIT(tm) utilizes a unique technology to display digital content based on an in-depth understanding of reading patterns, and is designed to increase both reading speed and legibility on a broad range of platforms, including mobile, broadcast and online applications. The average person reads conventional text at a pace of 175 to 200 words per minute and may lose as much 25 percent of that reading speed and comprehension on small screens such as mobile devices. We believe that using the VuIT(tm) technology allows readers to double, even triple, that speed -- reducing eyestrain and improving legibility. Given the proliferating use of cell phones for reading digital content, we believe the VuIT(tm) reader has the potential to reshape how we read and absorb information."
Total revenue for the three months ended September 30, 2006 was $37,000, compared to $0 for the same period in 2005. Operating loss for the three months ended September 30, 2006 was $498,000, compared to operating loss of $433,000 for the same period last year. Net loss for the three months ended September 30, 2006 was $506,000, or $0.01 per share, compared to net loss of $465,000 or $0.01 per share, for the same period in 2005.
Total revenue for the nine months ended September 30, 2006 was $37,000, compared to $3,000 for the same period in 2005. Operating loss for the nine months ended September 30, 2006 was $2.4 million, compared to operating loss of $1.3 million for the same period last year. Net loss for the nine months ended September 30, 2006 was $1.6 million, or $0.04 per share, compared to net loss of $1.3 million or $0.04 per share, for the same period in 2005. Net loss for the nine months ended September 30, 2006 included a gain of $798,000 related to restructuring of the company's debt.
About VuBotics
VuBotics, Inc. is an emerging technology provider dedicated to improving the reading experience. Today, VuBotics has several patent pending software applications, including VuIT(tm) Online Reader and VuIT(tm) Mobile, which are designed for content providers and aggregators worldwide. The VuIT(tm) product family uses an advanced proprietary algorithm that dynamically delivers text sequentially onto a viewing screen, word-by-word, rather than as static text across a screen, as with a piece of paper. Other VuBotics products under development include online experience metrics, and relational search and intelligent agent technologies. Based in Atlanta, Georgia, VuBotics' strategy is to take advantage of the growing market for digital content through business relationships with global media and technology companies. For more information, visit: www.vubotics.com.
VuBotics, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2771
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of VuBotics officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future VuBotics actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and VuBotics has no specific intention to update these statements.
VUBOTICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2006
(Unaudited)
ASSETS
Current Assets
Cash $ 1,128,504
Accounts receivable 37,000
Deposits 1,297
------------
Total current assets 1,166,801
Other Assets
Fixed assets, net of accumulated depreciation
of $490 17,141
Intangible assets 102,529
Impairment reserve (102,529)
------------
Total Assets $ 1,183,942
============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable and accrued expenses $ 728,458
Accrued payroll and payroll liabilities 41,706
Accrued interest 14,453
Current portion of long term debt 400,000
Due to related party (Note 6) 108,985
------------
Total current liabilities 1,293,602
Notes payable - long term 817,742
------------
Total liabilities 2,111,344
Stockholders' (Deficit)
Common stock, $0.001 par value, 50,000,000
shares authorized, 49,805,718 shares issued
and outstanding 49,806
Additional paid-in capital 12,183,270
Accumulated deficit (13,160,478)
------------
(927,402)
------------
Total Liabilities and Stockholders'
Deficit $ 1,183,942
============
VUBOTICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ------------
Revenue $ 37,000 $ 2,672
Cost of sales -- 2,675
------------ ------------
Gross profit 37,000 (3)
------------ ------------
Product development 368,038 134,066
Sales and marketing 485,343 165,157
General and administrative
expenses 1,585,340 962,756
------------ ------------
2,438,721 1,261,979
------------ ------------
Loss from operations (2,401,721) (1,261,982)
Interest expense (50,143) (103,650)
Interest income 4,732 --
Other income -- 25,000
Gain on debt restructure 798,046 --
------------ ------------
752,635 (78,650)
------------ ------------
Net loss $ (1,649,086) $ (1,340,632)
============ ============
Net loss per common share -
basic and fully diluted $ (0.04) $ (0.04)
============ ============
Weighted average number of
common shares outstanding 41,006,311 31,131,875
============ ============
VUBOTICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ------------
Revenue $ 37,000 $ --
Product development 190,534 81,504
Sales and marketing 75,041 101,624
General and administrative expenses 269,517 249,949
------------ ------------
535,092 433,077
------------ ------------
Loss from operations (498,092) (433,077)
Interest expense (12,548) (34,550)
Interest income 4,732 --
Other income -- 2,500
------------ ------------
(7,816) (32,050)
------------ ------------
Net loss $ (505,908) $ (465,127)
============ ============
Net loss per common share -
basic and fully diluted $ (0.01) $ (0.01)
============ ============
Weighted average number of common
shares outstanding 45,362,088 32,956,653
============ ============