PLYMOUTH MEETING, Pa., Aug. 22, 2005 (PRIMEZONE) -- SmartServ Online, Inc. (OTCBB:SSRV), a Mobile Virtual Network Operator (MVNO) that provides mobile phone service with the best in low cost prepaid minute plans and the latest in mobile content, today announced results of operations for the second quarter ended June 30, 2005.
Robert Pons, President and CEO of SmartServ commented, "We continue to pursue the launch of our prepaid mobile phone service, Uphonia, and investigate new strategic and financing opportunities. At the same time we are exploring ways to improve the margins of our prepaid calling card division."
Revenues were $12,666,000 for the quarter ended June 30, 2005, compared to $114,000 for the comparable quarter in 2004. The net loss for the second quarter was $945,000 before an accrued preferred stock dividend of $1,207,000 and $2,152,000 thereafter, or $0.38 loss per basic and diluted share, compared to a net loss of 616,000 before an accrued preferred stock dividend of $1,102,000 and $1,718,000 thereafter, or $0.60 loss per basic and diluted share for the second quarter of 2004.
For the six months ended June 30, 2005, revenues were $24,160,000 compared to $188,000 for the comparable period in 2004. The net loss for the first six months of 2005 was $3,340,000 before an accrued preferred stock dividend of $2,401,000 and $5,741,000 thereafter, or $1.07 loss per share, compared to $7,232,000 or $2.72 loss per share in the first six months of 2004.
About SmartServ
SmartServ, headquartered in Plymouth Meeting, PA is a Mobile Virtual Network Operator (MVNO) that provides mobile phone service with the best in low cost, pre-paid minute plans, discounted international long distance, and the latest in mobile content, such as ringtones, mobile games, and images. SmartServ products and services are marketed under the UPHONIA(tm) brand. For more information please visit: www.SmartServ.com.
Forward-Looking Statements
This news release may contain forward-looking statements that involve risks and uncertainties. Forward-looking statements in this document and those made from time-to-time by the Company are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. Certain factors that could cause or contribute to such differences are described from time to time in the Company's filings with the Securities and Exchange Commission, including but not limited to, the "Risk Factors" described under the heading "Certain Factors That May Affect Future Results" in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2004 and other SEC filings.
SmartServ Online, Inc.
Condensed Consolidated Balance Sheets
June 30 Dec. 31
2005 2004
----------- -----------
(Unaudited)
Assets
Current assets
Cash $ 334,817 $1,792,856
Investments 100,349 99,697
Accounts receivable, net 3,464,339 92,496
Prepaid expenses 24,891 349,040
---------- ----------
Total current assets 3,924,396 2,334,089
Property and equipment, net 58,264 73,500
Other assets
Goodwill 1,743,819 --
Intangibles, net of
accumulated amoritization of
$197,121 and $123,201 as of
June 30, 2005 and December 31,
2004, respectively 837,768 911,688
Security deposit 18,787 18,237
---------- ----------
Total Assets $6,583,034 $3,337,514
========== ==========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $4,052,620 $ 446,528
Accrued liabilities 2,051,003 1,419,248
Current portion of notes
payable 32,956 36,898
---------- ----------
Total current liabilities 6,136,579 1,902,674
Notes payable -- 13,415
Commitments and Contingencies
---------- ----------
Total liabilities 6,136,579 1,916,089
---------- ----------
Total stockholders' equity 446,455 1,421,425
---------- ----------
Total Liabilities and
Stockholders' Equity $6,583,034 $3,337,514
========== ==========
SmartServ Online, Inc.
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30 June 30
--------------------------- --------------------------
2005 2004 2005 2004
------------- ----------- ------------ ----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 12,665,795 $ 114,004 $ 24,159,646 $ 187,715
------------- ----------- ------------ ----------
Costs and expenses
Direct costs
of revenues (12,892,081) (674,729) (24,378,776) (981,595)
Sales and
marketing
expenses (258,447) (98,514) (519,138) (142,220)
General and
administrative
expenses (347,615) (704,185) (2,378,144) (1,365,134)
Stock-based
compensation (113,170) 893,034 (226,340) (639,107)
------------- ----------- ------------ ----------
Total costs
and expenses (13,611,313) (584,394) (27,502,398) (3,128,056)
------------- ----------- ------------ -----------
Loss from
operations (945,518) (470,390) (3,342,752) (2,940,341)
------------- ----------- ------------ -----------
Other income (expense)
Interest
income 1,328 9,546 3,895 12,767
Interest expense
and other
financing
costs (483) (154,948) (1,092) (2,092,029)
Legal
settlement -- -- -- (196,800)
------------- ----------- ------------ -----------
845 (145,402) 2,803 (2,276,062)
------------- ----------- ------------ -----------
Net loss $ (944,673) $ (615,792) $ (3,339,949) $(5,216,403)
============= =========== ============ ===========
Preferred stock
dividend
accrued (1,207,403) (1,102,254) (2,401,538) (2,016,094)
------------- ----------- ------------ ----------
Net loss applicable
to common
share-
holders $ (2,152,076) $(1,718,046) $ (5,741,487) $(7,232,497)
============= =========== ============ ===========
Basic and diluted
loss per
share $ (0.38) $ (0.60) $ (1.07) $ (2.72)
============= =========== ============ ===========
Weighted average
shares outstanding
- basic and
diluted 5,734,936 2,870,230 5,348,734 2,658,889
============= =========== ============ ===========