TARRYTOWN, N.Y., May 27, 2010 (GLOBE NEWSWIRE) -- Debt Resolve, Inc. (OTCBB:DRSV) (the "Company") announced the completion of a major financing round and its First Quarter 2010 results of operations.
Financing
Debt Resolve has completed a major financing round. From June 1, 2009 to April 30, 2010, the Company completed financing from individual accredited investors and a private placement for total gross proceeds of $1,462,459. The proceeds were used to fund the cash portion of the Company's balance sheet restructuring and for general working capital. Preliminary numbers were released in a press release on October 20, 2009. This round of private financing is now complete.
First Quarter 2010
On May 24, 2010, Debt Resolve filed its form 10-Q with its results for the three months ended March 31, 2010.
Since the start of the Company's restructuring on July 1, 2009, current balance sheet liabilities have been reduced from $9,220,719 as of June 30, 2009 to $4,202,112 as of March 31, 2010, a 54% reduction in these liabilities over the 9 month period. Subsequent to March 31, the Company has removed another $634,756 of these liabilities from the balance sheet, resulting in a total reduction of $5,653,363, or 61%. These improvements leave a pro-forma balance of $3,567,356 of current liabilities, excluding current period transactions other than the settlements. The remaining balance of these old liabilities will be discharged by continuing to negotiate settlements at substantial discounts, by conversions to stock or by payments made over 1-2 years at low payment rates. Agreements are already in place for some of these items.
Cash used in operations was $387,695 for the period. The remainder of the net loss of $3,299,116 was non-cash accounting charges and options, warrants and notes issued for the provision of services to the Company by consultants in the amount of $2,911,421.
For the three months ended March 31, 2010, revenue was $29,826, up from $17,528 for the three months ended December 31, 2009 and $24,495 for the three months ended March 31, 2009.
Mr. James Brakke, Co-Chairman and CEO stated, "We continue to make consistent progress toward transforming Debt Resolve into a strong, successful company. I have been working to augment our sales effort for the balance of 2010 and to secure the long-term funding required to position Debt Resolve to dominate its markets."
Mr. Rainey, President and CFO stated, "To date, we have achieved our stated goals from our September 29, 2009 press release with regard to restructuring the Company and securing the interim funding required to rebuild it, including raising $469,000 during the first quarter of 2010. The Company is focused on rapidly building sales through an augmented sales team and with completing the recapitalization of the Company. In addition, we are on track to deliver major system upgrades this year."
The Debt Resolve patented double-blind bidding technology provides the Company with the exclusive right to negotiate online debt settlements. Company clients invite their customers to settle outstanding accounts by making real time offers from their computer or PDA 24 hours a day, 7 days a week, in any language and any currency in the world. Debt Resolve provides to its clients a low-cost, functionally simple collection option while simultaneously eliminating the substantial legal exposure that exists with live debt collectors. Consumers have the opportunity to resolve their outstanding accounts with dignity on their own terms, delivering valuable customer satisfaction and loyalty to Company clients.
About Debt Resolve, Inc.
Debt Resolve provides lenders, collection agencies, debt buyers and hospitals with a patent-based online bidding system for the resolution and settlement of consumer debt and a collections and skip tracing solution that is effective at every stage of collection and recovery. The company is publicly held and trades on the OTC Bulletin Board under the symbol DRSV. Debt Resolve is headquartered in Tarrytown, New York. For more information, visit http://www.b2i.us/irpass.asp?BzID=1976&to=ea&s=0.
Forward Looking Statements
Certain statements in this press release and elsewhere by management of the Company that are neither reported financial results nor other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of the Company's operations. Debt Resolve undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised to consult any further disclosures made on related subjects in the Company's reports filed with the SEC. For more information, visit http://www.b2i.us/irpass.asp?BzID=1976&to=ea&s=0.