C2 Global Technologies Inc.
TSX : CXS
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

November 11, 2005 08:00 ET

C2 Global Technologies Inc. Reports Third Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 11, 2005) - C2 Global Technologies Inc. ("C2", formerly Acceris Communications Inc.) (OTCBB:COBT.OB) today reported its financial results for the third quarter ended September 30, 2005.

Significant events in the quarter ended September 30, 2005, which will contribute to the long term success of C2:

- Completed the disposition of its Telecommunications business, recording a net gain on sale of $6.4 million and the accompanying extinguishment of $23.5 million of third party obligations. The completion of this transaction resulted in the extension of all related party debt through December 31, 2006, and the securing of funding to pursue the Company's business strategy through the same date, via a Keep Well agreement with its controlling shareholder, Counsel Corporation ("Counsel").

- Was awarded patents in VoIP technology from the People's Republic of China and in Canada. The patents correspond to U.S. Patent No. 6,243,373.

As a result of disposition of the Telecommunications business, the Telecommunications operations for the three and nine months ended September 30, 2005, 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 third quarter ended September 30, 2005 and 2004 was $nil. For the three months ended September 30, 2005, the Company had a loss from continuing operations of $2.5 million compared to a loss from continuing operations of $2.7 million for the third quarter of 2004. The Company's net income was $1.8 million in the third quarter of 2005 compared to a loss of $6.9 million in the third quarter of 2004. The net income per common share was $0.09 in the third quarter of 2005 versus a net loss per common share of $0.36 in the third quarter of 2004.

For the nine months ended September 30, 2005, the Company's total operating revenue was $nil compared to $0.5 million in the first nine months of 2004. The Company had a loss from continuing operations of $11.0 million compared to a loss from continuing operations of $7.0 million for the nine months ended September 30, 2004. The Company recorded a net loss of $14.4 million for the nine months ended September 30, 2005 versus a net loss of $16.3 million for the nine months ended September 30, 2004. The net loss per common share was $0.75 for the nine month period in 2005 versus a net loss per common share of $0.84 in the first nine months of 2004.

"The sale of our telecommunications business will allow C2 to focus on the growing Voice over Internet Protocol market" said Kelly Murumets, President of C2 Global Technologies Inc.

Please see the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2005, filed with the SEC, for further information.

About C2 Global Technologies

C2 Global Technologies inc. ("C2") is focused on licensing its technology and patents, which includes two foundational patents in the Voice over Internet Protocol ("VoIP"). 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, 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 September 30, December 31,
and per share amounts) 2005 2004
-------------------------------------- -------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 94 $ 44
Restricted cash 1,800 --
Other current assets 28 1
Assets of discontinued operations -- 14,965
-------- --------
Total current assets 1,922 15,010
Furniture, fixtures, equipment and software, net -- 50
Intangible assets, net 65 80
Goodwill 173 173
Investment in preferred stock 1,100 1,100
Other assets 157 211
Assets of discontinued operations, less current
portion -- 7,385
-------- --------
Total assets $ 3,417 $ 24,009
-------- --------
-------- --------
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 2,718 $ 2,010
Subordinated convertible note payable,
net of unamortized discount 1,765 1,768
Liabilities of discontinued operations 4,320 32,584
-------- --------
Total current liabilities 8,803 36,362
Subordinated convertible note payable,
net of unamortized discount 1,465 2,630
Warrants, convertible to common stock 91 322
Liabilities of discontinued operations,
less current portion -- 645
Subordinated notes payable to a related
party, net of unamortized discount 67,348 46,015
-------- --------
Total liabilities 77,707 85,974
-------- --------
Stockholders' deficit:
Preferred stock, $10.00 par value,
authorized 10,000,000 shares, issued and
outstanding 618 at September 30, 2005
and December 31, 2004, liquidation
preference of $618 at September 30, 2005
and December 31, 2004 6 6
Common stock, $0.01 par value,
authorized 300,000,000 shares, issued
and outstanding 19,237,135 at September
30, 2005 and December 31, 2004 192 192
Additional paid-in capital 188,771 186,650
Accumulated deficit (263,259) (248,813)
-------- --------
Total stockholders' deficit (74,290) (61,965)
-------- --------
Total liabilities and stockholders' deficit $ 3,417 $ 24,009
-------- --------
-------- --------

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, 2005 and 2004
(unaudited)

Three Months Nine Months
Ended Ended
September 30, September 30,
(In thousands of dollars, -----------------------------------
except per share amounts) 2005 2004 2005 2004
------------------------- ------ -------- --------- ---------

Revenue $ -- $ -- $ -- $ 540
------ -------- --------- ---------

Operating costs and expenses:
Selling, general and
administrative 490 779 2,489 2,393
Research and Development 88 119 389 225
Depreciation and amortization 9 5 27 15
------ -------- --------- ---------
Total operating costs and
expenses 587 903 2,905 2,633
------ -------- --------- ---------
Operating loss (587) (903) (2,905) (2,093)
------ -------- --------- ---------
Other income (expense):
Interest expense (2,055) (1,855) (8,195) (6,395)
Interest and other income 120 21 121 1,440
------ -------- --------- ---------
Total other income (expense) (1,935) (1,834) (8,074) (4,955)
------ -------- --------- ---------
Loss from continuing operations (2,522) (2,737) (10,979) (7,048)
Gain(loss) from discontinued
operations (net of $0 tax) 4,292 (4,130) (3,467) (9,243)
------ -------- --------- ---------
Net gain(loss) $ 1,770 $(6,867) $(14,446) $(16,291)
------ -------- --------- ---------
------ -------- --------- ---------

Basic and diluted weighted
average shares outstanding 19,237 19,261 19,237 19,262

Net gain(loss) per common share -
basic and diluted:
Loss from continuing operation $(0.13) $ (0.14) $ (0.57) $ (0.36)
Gain(loss) from discontinued
operations 0.22 (0.22) (0.18) (0.48)
------ -------- --------- ---------
Net loss per common share $ 0.09 $ (0.36) $ (0.75) $ (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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