C2 Global Technologies Inc.
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

August 10, 2006 16:26 ET

C2 Global Technologies Inc. Reports 2006 Second Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 10, 2006) -

All amounts are stated in US dollars.

C2 Global Technologies Inc. ("C2" or the "Company", formerly Acceris Communications Inc.)(OTCBB:COBT) today reported its financial results for the second quarter ended June 30, 2006.

The Company had a net loss of $2.8 million in the second quarter of 2006 compared to a net loss of $8.1 million in the second quarter of 2005. The net loss per common share in the second quarter of 2006 was $0.14, basic and diluted, compared to a net loss of $0.42, basic and diluted, in the second quarter of 2005. As a result of the disposition of the Company's telecommunications business in September 2005, the telecommunications operations for the three months ended June 30, 2006, as well as for all prior periods, have been reported as discontinued operations in accordance with GAAP. Consequently, the Company's total operating revenue from continuing operations for the three months ended June 30, 2006 and June 30, 2005 was $nil. The Company had a loss from continuing operations of $3.5 million in the second quarter of 2006 compared to a loss of $4.8 million in the second quarter of 2005.

For the six months ended June 30, 2006, the Company had a net loss of $1.8 million compared to a net loss of $16.2 million for the six months ended June 30, 2005. The net loss per common share for the six months ended June 30, 2006 was $0.09, basic and diluted, compared to a net loss of $0.84, basic and diluted, for the six months ended June 30, 2005. The Company's total operating revenue from continuing operations for the six months ended June 30, 2006 and June 30, 2005 was $nil. The Company had a loss from continuing operations of $6.2 million for the six months ended June 30, 2006 compared to a loss of $8.4 million for the six months ended June 30, 2005.

On June 15, 2006, in connection with the Company's efforts to enforce its patent rights, C2 Communications Technologies Inc., a wholly-owned subsidiary of the Company, filed a patent infringement lawsuit against AT&T, Inc., Verizon Communications, Inc., Qwest Communications International, Inc., Bellsouth Corporation, Sprint Nextel Corporation, Global Crossing Limited, and Level 3 Communications, Inc. The complaint was filed in the Marshall Division of the United States District Court for the Eastern District of Texas. The complaint alleges that the above companies' Voice over Internet Protocol ("VoIP") services and systems infringe the Company's U.S. Patent No. 6,243,373, entitled "Method and Apparatus for Implementing a Computer Network/Internet Telephone System". The complaint seeks an injunction, monetary damages and costs.

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed with the SEC on March 29, 2006, and the Company's Quarterly Report on Form 10-Q for the three months ended June 30, 2006, filed with the SEC on August 10, 2006, for further information.

About C2 Global Technologies Inc.

C2's business is focused on licensing its patents, which include two foundational patents in VoIP technology. C2 plans to realize value from its intellectual property by offering licenses to service providers, equipment companies and end-users that are deploying VoIP networks for phone-to-phone communications. For further information, please visit C2's website at www.c-2technologies.com.

Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended, that are based on management's exercise of business judgment as well as assumptions made by, and information currently available to, management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend", and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted in our securities and other regulatory filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.



C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


(In thousands of dollars, except share June 30, December 31,
and per share amounts) 2006 2005
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 10 $ 327
Restricted cash 624 1,506
Non-trade accounts receivable 60 172
Other current assets 8 13
----------- ------------
Total current assets 702 2,018
Other assets:
Intangible assets, net 50 60
Goodwill 173 173
Investments 1,100 1,100
Other assets 101 139
----------- ------------
Total assets $ 2,126 $ 3,490
----------- ------------
----------- ------------
LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable and accrued liabilities $ 895 $ 1,774
Convertible note payable 1,765 1,765
Subordinated notes payable to a related
party, net of unamortized discount 77,125 72,022
Liabilities of discontinued operations -- 4,512
----------- ------------
Total current liabilities 79,785 80,073
Convertible note payable, less current
portion and net of unamortized discount 304 1,078
Warrant to purchase common stock 949 281
----------- ------------
Total liabilities 81,038 81,432
----------- ------------

Stockholders' deficit:
Preferred stock, $10.00 par value,
authorized 10,000,000 shares, issued and
outstanding 612, liquidation preference of
$612 at June 30, 2006; issued and
outstanding 618;liquidation preference
of $618 at December 31, 2005 6 6
Common stock, $0.01 par value,
authorized 300,000,000 shares, issued
and outstanding 19,237,375 at
June 30, 2006 and 19,237,135
at December 31, 2005 192 192
Additional paid-in capital 190,027 189,162
Accumulated deficit (269,137) (267,302)
----------- ------------
Total stockholders' deficit (78,912) (77,942)
----------- ------------
Total liabilities and stockholders' deficit $ 2,126 $ 3,490
----------- ------------
----------- ------------

The notes contained in our Quarterly Report on Form 10-Q are an integral
part of these condensed consolidated financial statements

C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the Three and Six Months Ended June 30, 2006 and 2005
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
------------------- -----------------
(In thousands, except per
share amounts) 2006 2005 2006 2005
-----------------------------------------
Revenue $ -- $ -- $ -- $ --
-----------------------------------------
Operating costs and expenses:
Selling, general and
administrative 351 1,155 741 1,987
Research and development -- 151 -- 301
Depreciation and amortization 5 9 10 18
-----------------------------------------
Total operating costs and
expenses 356 1,315 751 2,306
-----------------------------------------
Operating loss (356) (1,315) (751) (2,306)
-----------------------------------------
Other income (expense):
Interest expense (3,209) (3,509) (5,551) (6,140)
Interest and other income 113 1 116 1
-----------------------------------------
Total other expense (3,096) (3,508) (5,435) (6,139)
-----------------------------------------
Loss from continuing operations (3,452) (4,823) (6,186) (8,445)
Income(loss) from
discontinued operations
(net of $0 tax) 659 (3,285) 4,351 (7,771)
-----------------------------------------
Net loss $ (2,793) $ (8,108) $ (1,835) $ (16,216)
Basic and diluted weighted
average shares outstanding 19,237 19,237 19,237 19,237

Net income(loss) per common
share -- basic and diluted:
Loss from continuing
operations $ (0.18) $ (0.25) $ (0.32) $ (0.44)
Income(loss) from
discontinued operations 0.04 (0.17) 0.23 (0.40)
-----------------------------------------
Net loss per common share $ (0.14) $ (0.42) $ (0.09) $ (0.84)
-----------------------------------------
-----------------------------------------

The notes contained in our Quarterly Report on Form 10-Q are an integral
part of these condensed consolidated financial statements




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