ATLANTA, May 16, 2007 (PRIME NEWSWIRE) -- VuBotics, Inc. (OTCBB:VBTC), developer of VuIT(tm), the global leader in small screen reading technology, today announced financial results for the first quarter ended March 31, 2007
John Ellingson, president of VuBotics, stated, "We are pleased to report that 2007 is off to a very strong start at VuBotics. Since the beginning of the year, we have signed agreements with Handmark(r), a major distributor of mobile content; Duane Morris, one of the top 100 law firms in the country; and MagneticTime, one of the leading content developers, to couple our VuIT software with their state-of-the-art text-to-speech technology. Our transition into the commercialization phase began less than a year ago, but we have already established important alliances and partnerships that will benefit the company well into the future."
"Building upon our acceptance into the Blackberry ISV Alliance Program last year, we partnered with Handmark (www.handmark.com), a leading Internet distributor of mobile content solutions for various mobile devices such as Blackberry, Treo and Windows Mobile wireless handhelds. As a result of this partnership, VulT(tm) is being offered through Handmark's website, which is accessed by consumers and businesses seeking to add capabilities to their mobile devices. We look forward to leveraging Handmark's strong relationships with the leading Tier I carriers, where our goal is to offer VuIT(tm) as a standard offering within the carrier decks. We also hope to penetrate Handmark's retail distribution channels, where Handmark commands an estimated 43 percent market share of all mobile software titles sold through retail channels."
Mr. Ellingson continued, "We have also have entered the second stage of a pilot test with Duane Morris, one of the top 100 law firms in the country, where we are confident that in a very short time, users will appreciate the value of having text delivered word-by-word in a personalized way utilizing our proprietary algorithm. We see this recent pilot program as a major validation of our software for law firms and other companies around the country that have a clear need to maximize the efficiency of their professional staff."
"We are excited to partner with MagneticTime in developing a software that combines speech technology software with VuBotics' VuIT(tm) advanced reading technology. MagneticTime's iAudioize software for iPods, PCs, PDAs and cellphones, enables users to listen to emails and documents in MP3 format. By combining iAudioize and VuIT(tm), we are developing a robust software solution that dramatically enhances the usabilty and functionality of portable media devices."
David Rollo, chief marketing officer at VuBotics, commented, "It's rewarding to see the progress we are making in securing interest in our technology. These most recent agreements and partnerships are important steps in broadening the distribution of our technology and are indicative of the scope of our target markets, which include commercial businesses, distributors and government entities, among others. We have been in discussions with a number of prospective customers and potential licensees and continue to educate and inform the public on the benefits of our technology."
Total revenue for the three months ended March 31, 2007 was $24,000, compared to $0 for the same period in 2006. Revenue for the first quarter of 2007 reflects a follow-on pilot project with a major media content provider. An operating loss for the three months ended March 31, 2007 was $495,914, compared to operating loss of $216,077 for the same period last year. Net loss for the three months ended March 31, 2007 was $498,080, or $0.01 per share, compared to net loss of $250,627 or $0.01 per share, for the same period in 2006. The increase in net loss is primarily the result of an increase in product development and marketing expenses.
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. 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.
The 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
MARCH 31, 2007 (Unaudited)
ASSETS
Current Assets
Cash $ 64,893
Accounts receivable 24,000
Deposits 1,297
------------
Total current assets 90,190
Other Assets
Fixed assets, net of accumulated depreciation
of $5,102 27,919
Intangible assets 102,529
Impairment reserve (102,529)
------------
Total Assets $ 118,109
============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable and accrued expenses $ 638,063
Accrued payroll 47,433
Accrued interest 5,416
Bridge loan 75,000
Notes payable - current portion 400,000
Due to related party 66,485
------------
Total current liabilities 1,232,397
Notes payable - long term 588,655
------------
Total liabilities 1,821,052
Stockholders' (Deficit)
Common stock, $0.001 par value, 100,000,000 shares
authorized, 52,228,718 shares issued and
outstanding 52,229
Preferred stock, $0.001 par value, 25,000,000
shares authorized, no shares issued and outstanding --
Additional paid-in capital 12,907,747
Accumulated deficit (14,662,919)
------------
(1,702,943)
------------
Total Liabilities and Stockholders' Deficit $ 118,109
============
VUBOTICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
(Unaudited)
2007 2006
------------ ------------
Revenue $ 24,000 $ --
Product development 258,364 49,600
Sales and marketing 96,646 36,715
General and administrative 164,904 129,762
------------ ------------
519,914 216,077
Loss from operations (495,914) (216,077)
Interest expense (3,811) (34,550)
Interest income 1,645 --
------------ ------------
2166 (34,550)
------------ ------------
Net loss $ (498,080) $ (250,627)
============ ============
Net loss per common share - basic
and fully diluted $ (0.01) $ (0.01)
Weighted average number of
common shares outstanding 50,342,541 36,282,469
============ ============
VUBOTICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
(Unaudited)
2007 2006
------------ ------------
Cash Flows From Operating Activities
Net loss $ (498,080) $ (250,627)
Adjustments:
Issuance of common stock for services 720,900 140,150
Depreciation 1,701 --
Changes in:
Accounts receivable (24,000) --
Accounts payable and accrued expenses (577,371) (47,565)
Accrued payroll (19,581) --
Accrued interest (626) 34,550
------------ ------------
Net cash used in operating activities (397,057) (123,492)
------------ ------------
Cash Flows From Investing Activities
Purchase of fixed assets (808) --
Cash Flows From Financing Activities
Proceeds from issuance of common
stock -- 124,188
Proceeds from bridge loan 75,000 --
Repayments of notes payable (113,689) --
Loans repayments (12,500) --
------------ ------------
Net cash (used) provided by financing
activities (51,189) 124,188
------------ ------------
Net (decrease) increase in cash (449,054) 696
Cash - beginning of period 513,947 183
------------ ------------
Cash - end of period 64,893 879
============ ============
Supplemental disclosures of cash flow
information
Cash paid for interest $ 17,589 $ --