C2 Global Technologies Inc.
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

November 08, 2006 18:10 ET

C2 Global Technologies Inc. Reports 2006 Third Quarter Results

TORONTO, CANADA--(CCNMatthews - Nov. 8, 2006) - C2 Global Technologies Inc. ("C2" or the "Company", formerly Acceris Communications Inc.) (OTCBB:COBT) today reported its financial results for the third quarter ended September 30, 2006. All amounts are stated in US dollars.

The Company had a net loss of $1.8 million in the third quarter of 2006 compared to net income of $1.8 million in the third quarter of 2005. The net loss per common share in the third quarter of 2006 was $0.09, basic and diluted, compared to net earnings per common share of $0.09, basic and diluted, in the third 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 September 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 September 30, 2006 and September 30, 2005 was $nil. The Company had a loss from continuing operations of $1.8 million in the third quarter of 2006 compared to a loss of $2.5 million in the third quarter of 2005.

For the nine months ended September 30, 2006, the Company had a net loss of $3.6 million compared to a net loss of $14.4 million for the nine months ended September 30, 2005. The net loss per common share for the nine months ended September 30, 2006 was $0.19, basic and diluted, compared to $0.75, basic and diluted, for the nine months ended September 30, 2005. The Company's total operating revenue from continuing operations for the nine months ended September 30, 2006 and September 30, 2005 was $nil. The Company had a loss from continuing operations of $7.9 million for the nine months ended September 30, 2006 compared to a loss of $11.0 million for the nine months ended September 30, 2005.

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 September 30, 2006, filed with the SEC on November 8, 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 September 30, December 31,
share and per share amounts) 2006 2005
------------- ------------

ASSETS

Current assets:
Cash and cash equivalents $ 20 $ 327
Restricted cash 182 1,506
Non-trade accounts receivable -- 172
Other current assets 87 90
------------- ------------
Total current assets 289 2,095
Other assets:
Intangible assets, net 45 60
Goodwill 173 173
Investments 1,100 1,100
Other assets -- 62
------------- ------------
Total assets $ 1,607 $ 3,490
------------- ------------
------------- ------------

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable and accrued
liabilities $ 631 $ 1,774
Convertible note payable, net of
unamortized discount 1,537 1,544
Subordinated notes payable to a
related party, net of unamortized
discount 79,302 72,022
Liabilities of discontinued operations - 4,512
------------- ------------
Total current liabilities 81,470 79,852
Convertible note payable, less
current portion and net of unamortized
discount 147 1,299
Warrant to purchase common stock 203 281
------------- ------------
Total liabilities 81,820 81,432
------------- ------------
------------- ------------

Stockholders' deficit:
Preferred stock, $10.00 par value,
authorized 10,000,000 shares; issued
and outstanding 612, liquidation
preference of $612 at September 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
September 30, 2006 and 19,237,135 at
December 31, 2005 192 192
Additional paid-in capital 190,482 189,162
Accumulated deficit (270,893) (267,302)
------------- ------------
Total stockholders' deficit (80,213) (77,942)
------------- ------------
Total liabilities and stockholders'
deficit $ 1,607 $ 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 Nine Months Ended September 30, 2006 and 2005
(Unaudited)


Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, ------------------- ------------------
except per share amounts) 2006 2005 2006 2005
-------------------------- --------- --------- -------- ---------

Revenue $ - $ - $ - $ -

Operating costs and expenses:
Selling, general and
administrative 306 481 1,047 2,468
Research and development - 88 - 389
Depreciation and amortization 5 9 15 27
--------- --------- -------- ---------
Total operating costs and
expenses 311 578 1,062 2,884
--------- --------- -------- ---------
Operating loss (311) (578) (1,062) (2,884)
--------- --------- -------- ---------
Other income (expense):
Interest expense (1,448) (2,055) (6,999) (8,195)
Interest and other income 6 120 122 121
--------- --------- -------- ---------
Total other expense (1,442) (1,935) (6,877) (8,074)
--------- --------- -------- ---------
Loss from continuing operations (1,753) (2,513) (7,939) (10,958)
Income(loss) from discontinued
operations (net of $0 tax) (3) 4,283 4,348 (3,488)
--------- --------- -------- ---------
Net income(loss) $ (1,756) $ 1,770 $ (3,591)$(14,446)
--------- --------- -------- ---------
--------- --------- -------- ---------

Basic and diluted weighted average
shares outstanding 19,237 19,237 19,237 19,237

Net earnings (loss) per common
share - basic and diluted:
Loss from continuing operations $ (0.09) $ (0.13) $ (0.42) $ (0.57)
Earnings (loss) from discontinued
operations 0.00 0.22 0.23 (0.18)
--------- --------- -------- ---------
Net earnings(loss) per
common share $ (0.09) $ 0.09 $ (0.19) $ (0.75)
--------- --------- -------- ---------
--------- --------- -------- ---------

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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