FORT LAUDERDALE, Fla., July 9, 2008 (PRIME NEWSWIRE) -- GlobeTel Communications Corp. (Pink Sheets:GTEM) today announced that it has filed with the United States Securities & Exchange Commission its annual report for the year ended December 31, 2006 on Form 10-KSB.
For the year ended December 31, 2006, the Company reported a net loss of ($27,268,267), or ($0.26) per share, on revenues of $37,808, compared to a net loss of ($39,082,945), or ($0.52) per share, on revenues of $839,163 for the year ended December 31, 2005. The first two quarters of fiscal 2006 consist of results previously issued but restated within the current 10-KSB filing.
The net loss for fiscal 2006 is attributed to an operating loss of ($19,701,385) and losses from discontinued operations totaling ($7,566,882) which include GlobeTel Wireless and Centerline Communications. Restated 2005 revenues were adjusted to show the movement of these divisions to discontinued operations.
Jonathan Leinwand, Chief Executive Officer, stated, "We are happy, finally, to overcome a major compliance hurdle -- the filing of the fiscal 2006 results. We are working diligently to complete our 10-K for fiscal 2007. While we do that, we remain extremely focused on strengthening our core competencies within the high-, mid- and low-altitude airship business. We would like to acknowledge the continuing patience exhibited by the community of GlobeTel stakeholders, and thank them for their support."
GlobeTel Communications has made its Annual Report on Form 10-KSB available via its web site, www.globetel.net.
About Sanswire Networks and GlobeTel Communications Corp.
GlobeTel Communications Corp. develops and provides an integrated suite of aerospace communications products and services, leveraging its relationships with leaders in UAV (Unmanned Aerial Vehicle) technologies. Sanswire Networks is focused on the design and construction of various aerial vehicles, capable of carrying payloads that provide persistent surveillance and security solutions at various altitudes. Please visit www.sanswire.com or www.sanswiretao.com.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including a lawsuit filed by the U.S. Securities & Exchange Commission and delayed filings of quarterly results, any of which could cause the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31,
2006 2005
(restated)
REVENUES $ 37,808 $ 839,163
COST OF REVENUES 96,168 774,829
GROSS (LOSS) MARGIN (58,360) 64,334
EXPENSES
Payroll and related taxes 3,916,409 3,180,953
Consulting fees 623,219 3,473,234
Officers' and directors'
compensation 1,931,774 12,082,809
Bad debts 93,571 1,372,221
Research and development 1,573,150 9,467,670
General and Administrative 4,730,437 5,533,417
Depreciation and amortization 289,914 68,566
TOTAL EXPENSES 13,158,474 35,178,870
LOSS FROM OPERATIONS (13,216,834) (35,114,536)
OTHER INCOME (EXPENSE)
Loss on settlement -- (1,256,873)
Loss on disposition of
unconsolidated foreign subsidiary -- (352,300)
Loss on disposition of equipment (682,695) --
Loss on impairment of equipment (5,222,066) --
Interest income 45,410 44,214
Interest expense (625,200) (148,414)
NET OTHER EXPENSE (6,484,551) (1,713,373)
LOSS FROM CONTINUING OPERATIONS (19,701,385) (36,827,909)
LOSS FROM DISCONTINUED OPERATIONS (7,566,882) (2,255,036)
NET LOSS $ (27,268,267) $ (39,082,945)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
BASIC and DILUTED 105,643,655 75,072,487
LOSS PER SHARE FROM CONTINUING
OPERATIONS
BASIC and DILUTED ($0.19) ($0.49)
LOSS PER SHARE FROM DISCONTINUED
OPERATIONS
BASIC and DILUTED ($0.07) ($0.03)
NET LOSS PER SHARE
BASIC and DILUTED ($0.26) ($0.52)
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, DECEMBER 31,
2006 2005
ASSETS (restated)
------------- -------------
CURRENT ASSETS
Cash and cash equivalents $ 4,243 $ 1,065,952
Accounts receivable, less
allowance for doubtful accounts
of $0 and $408,128 271,262 77,905
Prepaid expense - related party -- 185,960
Prepaid expense -- 67,060
Loans to employees -- 46,068
Deposits 72,987 1,212,921
Current assets from discontinued
operations 106,033 710,840
------------- -------------
TOTAL CURRENT ASSETS 454,525 3,366,706
------------- -------------
EQUIPMENT, NET -- 717,425
------------- -------------
OTHER ASSETS
Assets held for sale, net -- 5,279,567
Other assets from discontinued
operations 54,380 1,047,824
------------- -------------
TOTAL OTHER ASSETS 54,380 6,327,391
------------- -------------
TOTAL ASSETS $ 508,905 $ 10,411,522
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LIABILITIES AND STOCKHOLDERS'
EQUITY(DEFICIT)
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 2,463,605 $ 702,052
Notes and convertible notes
payable, net of discount
of $882,128 6,262,598 --
Bank Overdraft 14,664 --
Accrued officers' and directors'
compensation -- 97,382
Accrued expenses and other
liabilities 460,097 459,528
Related party payables -- 57,500
Current liabilities from
discontinued operations 895,697 1,192,870
------------- -------------
TOTAL CURRENT LIABILITIES 10,096,661 2,509,332
------------- -------------
LONG-TERM LIABILITIES
Due to former employee payable
in stock -- 237,600
Due to related party payable
in stock 4,598,333 7,160,000
------------- -------------
TOTAL LONG-TERM LIABILITIES 4,598,333 7,397,600
------------- -------------
TOTAL LIABILITIES 14,694,994 9,906,932
------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY(DEFICIT)
Series A Preferred stock, $.001
par value, 250,000 shares
authorized; no shares issued and
outstanding: -- --
Series B Preferred stock, $.001
par value, 500,000 shares
authorized; no shares issued and
outstanding: -- --
Series C Preferred stock, $.001
par value, 5,000 shares
authorized; no shares issued and
outstanding: -- --
Series D Preferred stock, $.001
par value, 5,000 shares
authorized; no shares issued and
outstanding: -- 1
Additional paid-in capital -
Series D Preferred stock -- 999,999
Common stock, $.00001 par value,
250,000,000 shares authorized;
109,470,803 and 98,192,101 shares
issued and outstanding 1,095 982
Additional paid-in capital 94,733,346 81,570,082
Stock subscriptions receivable:
Series D Preferred Stock -- (500,000)
Common Stock (130,282) (44,494)
Accumulated deficit (108,790,248) (81,521,980)
------------- -------------
TOTAL STOCKHOLDERS'
(DEFICIT) EQUITY (14,186,089) 504,590
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY(DEFICIT) $ 508,905 $ 10,411,522
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