Bingo.com, Ltd.
OTC Bulletin Board : BNGOF

Bingo.com, Ltd.

February 26, 2007 09:02 ET

Bingo.com Announces Fourth Quarter Results

ANGUILLA, BRITISH WEST INDIES--(CCNMatthews - Feb. 26, 2007) - Bingo.com, Ltd. (OTCBB:BNGOF), operator of the World's Largest Bingo Hall, today announced its unaudited financial results for the fourth quarter ended December 31, 2006. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

"The fourth quarter of 2006 presented many challenges for Bingo.com," said Tarrnie Williams, the Company's CEO. "With the passing of the United States Unlawful Internet Gambling Enforcement Act, the Company was left with no choice but to halt its gaming operations and sell its entire United States gaming business to an unrelated third party. This regulatory change significantly impacted Bingo.com's revenue and therefore its profitability in both this and the first quarter of 2007. In response to this situation, the Company has accelerated its plans to expand its online gaming business in regulated countries throughout the world and expects to complete its preparations for the launch of its online bingo games in the United Kingdom in March 2007, and into other regulated markets later in 2007. We are excited by the opportunity these markets present to Bingo.com and look forward to a return to profitability."

Bingo.com results of the fourth quarter of 2006 included:

- Receipt of $180,000 towards the total purchase price of $1.2 million for the sale of the US gaming business to be paid over time.

- Total revenue of $103,630, a decrease of $729,913 from the third quarter of 2006.

- Online gaming revenue of $94,780, a decrease of $727,114 from the third quarter of 2006.

- A net loss of $336,727 for the quarter, which includes a provision for doubtful debts of $206,241.

Total revenue for the quarter ended December 31, 2006, decreased to $103,630, a decrease of 84% from revenue of $654,438 for the same period in the prior year and a decrease of 88% from revenue of $833,543 in the third quarter of 2006. Of the $103,630 revenue for the quarter, the online gaming operations provided revenue of $94,780, a decrease of 73% from gaming revenue of $353,348 in the fourth quarter of 2005 and a decrease of 88% from gaming revenue of $821,893 in the third quarter of 2006. This decrease is solely due to the Company selling its US based gaming business, effective October 12, 2006, in response to the United States Unlawful Internet Gambling Enforcement Act of 2006. The advertising revenue for the quarter ended December 31, 2006, was $8,850, a significant decrease from advertising revenue of $301,090 in the fourth quarter of 2005 and a decrease of 24% from advertising revenue of $11,650 in the third quarter of 2006. This decrease is due to management's decision in early 2006 to suspend the sale of advertising available to third parties in order to increase the number of players in the Bingo.com cash games.

Operating costs before interest, depreciation and amortization expenses were $395,863 in the fourth quarter of 2006, a decrease of 36% over operating costs of $614,802 in the third quarter of 2006. The decrease in operating expenses, particularly marketing expenses, is a result of the Company's sale of the US gaming business.

The Company has provided $206,241 for doubtful debts. These doubtful debts relate, mostly, to funds held at the First Curacao International Bank, which has been placed under the control of the Central Bank of Curacao by the Court of the Netherlands Antilles. The Company has submitted all documents required by the Central Bank of Curacao to release its funds but, due to the uncertainty of collection, the Company has provided for these funds in full. In addition, the Company has provided for the possible inability to collect funds, held with certain payment processors, which have retained these funds in response to the passing of the United States Unlawful Internet Gambling Enforcement Act.

Effective October 12, 2006, the Company, in response to the United States Unlawful Internet Gambling Enforcement Act, sold its United States cash bingo business for $1,200,000, payable by the purchaser at a variable rate over the coming months. The Company will recognize the profit from the sale of the cash bingo business as and when payment is received. During the quarter ended December 31, 2006, the Company collected $180,000 in payment for the cash bingo business.

Net loss for the quarter ended December 31, 2006, amounted to $336,727, a decrease in net income compared to net income of $40,095 for the fourth quarter of 2005, and a decrease in net income compared to net loss of $51,251 in the third quarter of 2006. This increase in net loss is a result of decreased revenue in the quarter and the large provision for doubtful debts.

Bingo.com had cash of $521,203 and working capital of $475,824 at December 31, 2006. This compares to cash of $1,071,088 and working capital of $581,855 at December 31, 2005.

About Bingo.com

Bingo.com, Ltd. operates the popular web portal www.bingo.com offering free and cash games including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,750,000 registered users and more than 800 new users everyday, www.bingo.com is one of the most recognized and most visited Bingo entertainment destinations on the web.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Specifically, readers should read the Company's Annual Report on Form 10-KSB, filed with the SEC on March 29, 2006, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005, for a more thorough discussion of the Company's financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Bingo.com, Ltd.



BINGO.COM, LTD.
(Formerly Bingo.com, Inc.)
Consolidated Balance Sheets

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December 31, 2006 2005
(Unaudited) (Audited)
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Assets
Current assets:
Cash $ 521,203 $ 1,071,088
Accounts receivable, less allowance for
doubtful accounts $206,241 (2005 $nil) 218,876 166,540
Inventory - 559
Prepaid expenses 168,864 102,040
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Total Current Assets 908,943 1,340,227

Equipment, net 145,402 96,273

Other assets 30,287 17,310

Domain name rights and intangible assets 1,274,955 1,284,842

Deferred tax asset, less valuation
allowance of $1,004,060 (2004 - $3,140,726) - -

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Total Assets $ 2,359,587 $ 2,738,652
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 361,395 $ 487,226
Accrued liabilities 56,936 64,657
Accounts payable and accrued
liabilities - related party 14,788 71,237
Unearned revenue - 135,252
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Total Current Liabilities 433,119 758,372

Long-term loan payable - related party 1,457 9,403

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Total Liabilities 434,576 767,775
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Commitments

Stockholders' equity:
Common stock, no par value, unlimited
shares authorized, 27,640,553 shares
issued and outstanding (December 31,
2005 - 26,775,903) 11,574,851 11,284,281
Stock options exercised - subscription shares - 22,600
Accumulated deficit (9,674,420) (9,360,584)
Accumulated other comprehensive loss:
Foreign currency translation adjustment 24,580 24,580
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Total Stockholders' Equity 1,925,011 1,970,877

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Total Liabilities and Stockholders Equity $ 2,359,587 $ 2,738,652
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BINGO.COM, LTD.
Consolidated Statements of Operations
For the periods ended December 31, 2006 and 2005
(Unaudited)

Three Months Three Months
Year ended Year ended ended ended
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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Advertising revenue $ 149,696 $ 1,386,479 $ 8,850 $ 301,090
Gaming revenue 2,393,765 594,582 94,780 353,348
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Total Revenue 2,543,461 1,981,061 103,630 654,438

Cost of producing
revenue 842,724 485,419 37,072 160,685
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Gross profit 1,700,737 1,495,642 66,558 493,753
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Operating expenses:
Depreciation and
amortization 62,003 45,942 18,054 13,003
General and
administrative 423,176 421,162 100,736 124,703
Provision for
doubtful debts 206,241 - 206,241 -
Salaries, wages,
consultants and
benefits 667,122 532,654 147,419 145,257
Selling and marketing 895,838 429,255 112,368 204,692
Stock-based
compensation 113,450 - 30,172 -
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Total operating
expenses 2,367,830 1,429,013 614,990 487,655
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(Loss) income before
other income
(expense) and taxes (667,093) 66,629 (548,432) 6,098

Other income (expense):
Foreign exchange losses (7,334) (25,296) (5,168) (3,734)
Gain on resolution
of debt 158,574 60,482 32,697 30,241
Loss on disposal of
equipment (6,107) (1,372) (2,603) (1,395)
Net Interest income 17,171 10,444 3,572 6,332
Other income 10,953 9,903 3,207 2,553
Profit from sale of
US cash bingo business 180,000 - 180,000 -
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(Loss) Income before
income taxes (313,836) 120,790 (336,727) 40,095

Income tax expense - - - -
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Net (loss) income $ (313,836) $ 120,790 $ (336,727) $ 40,095
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Net (loss) income
per common share,
basic and diluted $ (0.01) $ 0.00 $ (0.01) $ 0.00
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Weighted average
common shares
outstanding, basic 27,275,700 26,066,441 27,640,553 26,775,903
Weighted average
common shares
outstanding, diluted 31,646,712 30,641,793 31,783,753 31,478,753
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BINGO.COM, LTD.
Consolidated Statements of Stockholders' Equity
For the year ended December 31, 2006
(Unaudited)

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Common Stock
Subscription
Shares Amount Shares

Balance,December 31, 2005 26,775,903 $ 11,284,281 $ 22,600

Issuance of shares -
subscription shares 252,000 22,600 (22,600)

Exercise of stock options 612,650 147,446 -

Stock-based compensation - 113,450 -

Issuance of consultant stock
Option - 7,074 -

Net loss - - -
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Balance, December 31, 2006 27,640,553 $ 11,574,851 $ -
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Accumulated Other
Comprehensive loss
-----------------------------
Foreign currency Total
Accumulated translation Stockholders'
(Deficit) adjustment Equity
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Balance,December 31, 2005 $(9,360,584) $ 24,580 $ 1,970,877

Issuance of shares -
subscription shares - - -

Exercise of stock options - - 147,446

Stock-based compensation - - 113,450

Issuance of consultant stock
Option - - 7,074

Net loss (313,836) - (313,836)
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Balance, December 31, 2006 $(9,674,420) $ 24,580 $ 1,925,011
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BINGO.COM, LTD.
Consolidated Statements of Cash Flows
For year Ended December 31, 2006 and 2005

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2006 2005
(Unaudited) (Audited)
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Cash flows from operating activities:
Net income $ (313,836) $ 120,790
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation and amortization 62,003 45,942
Gain on resolution of debt (158,574) (60,482)
Loss on disposal of equipment 6,107 1,372
Stock-based compensation 113,450 -
Issuance of consultant stock option 7,074 -
Changes in operating assets and liabilities:
Accounts receivable (52,336) (109,952)
Prepaid expenses (66,824) (82,957)
Inventory 559 305
Other assets (12,977) (9,651)
Accounts payable and accrued liabilities (31,427) 23,159
Unearned revenue (135,252) 19,752
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Net cash used in operating activities (582,033) (51,722)

Cash flows from investing activities:
Acquisition of equipment (116,965) (14,976)
Proceeds on disposal of equipment 9,613 210
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Net cash used in investing activities (107,352) (14,766)

Cash flows from financing activities:
Exercise of stock options 147,446 38,833
Exercise of stock options - subscription shares - 22,600
Exercise of Warran -B- - 145,000
Proceeds from private placement - 1,004,750
Repayment of loans and notes payable (7,946) (147,639)
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Net cash provided by financing activities 139,500 1,063,544

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Net (decrease) increase in cash (549,885) 997,056

Cash, beginning of period 1,071,088 74,032
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Cash, end of period $ 521,203 $ 1,071,088
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Supplementary information:
Interest paid $ - $ 2,218
Income taxes paid $ - $ -
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