SOURCE: Sanswire

November 17, 2009 10:59 ET

Sanswire Corp. Announces Third Quarter 2009 Results

FORT LAUDERDALE, FL--(Marketwire - November 17, 2009) - Sanswire Corp. (OTCBB: SNSR) today announced that it has filed with the United States Securities & Exchange Commission its quarterly report on Form 10-Q for the quarter ended September 30, 2009.

For the quarter ended September 30, 2009, the Company reported a net loss of $1.5 million, or $0.01 per share, with no revenue, compared to a net loss of $433,000, or $0.00 per share, with no revenue for the quarter ended September 30, 2008.

The net loss for Q3 2009 is attributed to an operating loss during the quarter of $1.5 million, compared to an operating loss $767,000 for Q3 2008, to interest-related expenses of $197,000, compared to interest-related expenses of $419,000 for Q3 2008, and to $379,000 related to derivative financial instruments, compared to a gain from derivative financial instruments of $600,000 for Q3 2008.

David A. Christian, Chief Executive Officer of Sanswire, said, "We are continuing with our business plan to bring a range of lighter-than-air Unmanned Aerial Vehicles to market for defense and border security purposes. We have focused on furthering the development of our newest airship, the STS-111, for delivery after a series of successful tests. In addition, we have established a relationship with a major defense contractor that will serve as the systems integrator and operator of the STS-111, and we are committed to growing this relationship and together pursuing business opportunities."

He concluded, "I remain as firmly convinced as ever that extended-duration UAVs have a significant role to play in keeping our country safe and secure. I am determined to bring the STS-111 to America where we can take the next steps necessary to grow our business and serve the needs of our servicemen and women."

Sanswire's Quarterly Report on Form 10-Q is available via its web site, www.sanswire.com. For more news and information on Sanswire please visit http://irgnews.com/coi/SNSR where you can find a fact sheet on the company, investor presentations, and more.

About Sanswire Corp.

Sanswire Corp. (OTCBB: SNSR) develops and provides an integrated suite of aerospace communications products and services, leveraging its relationships with leaders in UAV (Unmanned Aerial Vehicle) technologies. Sanswire Corp. 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. For more information, visit www.sanswire.com.

Forward-Looking Statements

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, 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.

                  Sanswire Corporation Income Statement

                                                 THREE MONTHS ENDED
                                                    SEPTEMBER 30,
                                                                2008
                                                2009         (Restated)
                                           --------------  ---------------

REVENUES                                   $           --  $            --

EXPENSES
  Payroll and related taxes                       153,687          135,496
  Consulting fees                                 719,488          422,768
  Officers' and directors' stock based
   compensation                                   335,750           97,500
  Amortization                                    242,175               --
  General and administrative                       95,460          111,055
                                           --------------  ---------------
     TOTAL EXPENSES                             1,546,560          766,819
                                           --------------  ---------------
 LOSS FROM OPERATIONS                          (1,546,560)        (766,819)
                                           --------------  ---------------
OTHER INCOME (EXPENSE)
  Loss on extinguishment of debt                       --               --
  Extinguishment of derivative liabilities        629,563          150,995
  Change in fair value of derivative
   liabilities                                   (378,532)         600,838
  Interest expense, net                          (197,145)        (418,697)
                                           --------------  ---------------
     NET OTHER INCOME (EXPENSE)                    53,886          333,136
                                           --------------  ---------------
LOSS FROM CONTINUING OPERATIONS                (1,492,674)        (433,683)
LOSS FROM DISCONTINUED OPERATIONS                      --               --
                                           --------------  ---------------
NET LOSS                                   $   (1,492,674) $      (433,683)
                                           ==============  ===============

 WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING
     BASIC and DILUTED                        226,806,725      155,459,034
                                           ==============  ===============

LOSS PER SHARE FROM CONTINUING OPERATIONS
     BASIC and DILUTED                     $        (0.01) $         (0.00)
LOSS PER SHARE FROM DISCONTINUED OPERATIONS
     BASIC and DILUTED                                 --               --
                                           --------------  ---------------
NET LOSS PER SHARE
     BASIC and DILUTED                     $        (0.01) $         (0.00)
                                           ==============  ===============






                  Sanswire Corporation Income Statement


                                                   NINE MONTHS ENDED
                                                     SEPTEMBER 30,
                                                                2008
                                                  2009        (Restated)
                                             --------------  -------------

REVENUES                                     $           --  $          --

EXPENSES
  Payroll and related taxes                         404,023        666,531
  Consulting fees                                 1,474,117      1,138,796
  Officers' and directors' stock based
   compensation                                   3,246,280        435,000
  Amortization                                      807,250             --
  General and administrative                        341,119        275,059
                                             --------------  -------------
     TOTAL EXPENSES                               6,272,789      2,515,386
                                             --------------  -------------
 LOSS FROM OPERATIONS                            (6,272,789)    (2,515,386)
                                             --------------  -------------
OTHER INCOME (EXPENSE)
  Loss on extinguishment of debt                         --     (1,096,650)
  Extinguishment of derivative liabilities          629,563        442,529
  Change in fair value of derivative
   liabilities                                   (2,514,686)       266,179
  Interest expense, net                          (1,083,941)      (856,218)
                                             --------------  -------------
     NET OTHER INCOME (EXPENSE)                  (2,969,064)    (1,244,160)
                                             --------------  -------------
LOSS FROM CONTINUING OPERATIONS                  (9,241,853)    (3,759,546)
LOSS FROM DISCONTINUED OPERATIONS                        --           (196)
                                             --------------  -------------
NET LOSS                                     $   (9,241,853) $  (3,759,742)
                                             ==============  =============

 WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING
     BASIC and DILUTED                          206,213,560    133,121,067
                                             ==============  =============

LOSS PER SHARE FROM CONTINUING OPERATIONS
     BASIC and DILUTED                       $        (0.04) $       (0.03)
LOSS PER SHARE FROM DISCONTINUED OPERATIONS
     BASIC and DILUTED                                   --  $       (0.00)
                                             --------------  -------------
NET LOSS PER SHARE
     BASIC and DILUTED                       $        (0.04) $       (0.03)
                                             ==============  =============





                    Sanswire Corporation Balance Sheet




                                                SEPTEMBER 30, DECEMBER 31,
                                                    2009          2008
                                                ------------  ------------
                  ASSETS                         (Unaudited)   (Restated)
CURRENT ASSETS
 Cash and cash equivalents                      $      7,692  $      4,809
 Inventories                                       1,110,700            --
 Current assets from discontinued operations           6,406         6,406
                                                ------------  ------------
     TOTAL CURRENT ASSETS                          1,124,798        11,215
                                                ------------  ------------
NONCURRENT ASSETS
 Intangible assets, net of accumulated
  amortization of $807,250                         2,421,750            --
 Investment in joint venture                              --     3,229,000
 Deposits                                             11,150            --
                                                ------------  ------------
     TOTAL NONCURRENT ASSETS                       2,432,900     3,229,000
                                                ------------  ------------
TOTAL ASSETS                                    $  3,557,698  $  3,240,215
                                                ============  ============

     LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES

CURRENT LIABILITIES
 Accounts payable  (including $385,357 due to
  joint venture partner at September 30, 2009)  $  4,874,995  $  3,802,777
 Notes and convertible notes payable, net of
  discount of $0 and $134,423                      7,290,280     9,264,732
 Accrued expenses and other liabilities
  (including $2,185,000 due to joint venture
  partner at September 30, 2009 and December
  31, 2008)                                        3,180,589     3,489,210
 Fair value of derivative liabilities              2,633,367       748,244
 Current liabilities from discontinued
  operations                                       1,387,406     1,387,406
                                                ------------  ------------
TOTAL LIABILITIES                                 19,366,637    18,692,369
                                                ------------  ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT
 Series E Preferred stock, $.001 par value,
  100,000 shares authorized;
  100,000 shares issued and outstanding                  100            --
 Additional paid-in capital - Series E
  Preferred stock                                    625,894            --
 Common stock, $.00001 par value, 250,000,000
  shares authorized;
   248,990,902 and 184,704,015 shares issued
    and outstanding                                    2,491         1,848
 Additional paid-in capital                      118,107,011   109,848,580
 Accumulated deficit                            (134,544,435) (125,302,582)
                                                ------------  ------------

     TOTAL STOCKHOLDERS' DEFICIT                 (15,808,939)  (15,452,154)
                                                ------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT     $  3,557,698  $  3,240,215
                                                ============  ============

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