SOURCE: FindEx.com, Inc.

May 22, 2006 16:49 ET

FindEx.com Announces First Quarter 2006 Financial Results

OMAHA, NE -- (MARKET WIRE) -- May 22, 2006 --FindEx.com, Inc. (OTCBB: FIND), a leading software provider for Bible study through its QuickVerse® brand, and financial and data management for churches and non-profit organizations through its Membership Plus® brand, announced today the financial results of its operations for the first quarter ended March 31, 2006.

For the first quarter ended March 31, 2006, gross revenue was $1,182,071, compared to $1,984,036 in the first quarter 2005. The decrease in gross revenue in the first quarter 2006 was primarily the result of a lack of new product releases, a delay in the annual release of Membership Plus, which is typically released in the first quarter (currently scheduled to be released in the second quarter 2006) and the early release of an upgrade to the company's flagship product, QuickVerse. Gross margin for first quarter 2006 was 58%, versus 70% in the first quarter 2005. Total operating expenses for the first quarter 2006 decreased 69% to $831,049, compared to $1,209,586 for the same period in 2005. Total sales, general and administrative costs were $586,555 or 50% of gross sales in first quarter 2006, compared to $635,718 or 32% of gross sales in the first quarter 2005.

The net loss for the first quarter 2006 was $886,796, compared to a net loss of $114,072 in the first quarter 2005. During the first quarter 2006 the company had derivative valuation losses of $608,872 compared to $218,748 for 2005, and non-recurring expenses related to registration rights penalties of $49,314 for the first quarter 2006 compared to zero for the first quarter 2005. On February 1, 2006, the SEC declared the company's registration statement filed on Form SB-2 effective, and as a result the registration rights penalties have stopped accruing.

During the first quarter 2006, the company incurred total software development costs of $115,463, compared to $301,729 for the same period in 2005. In April 2006, the company launched a new release of QuickVerse Mac® Universal Application. The QuickVerse Mac Universal Application is the first-to-market software for G-series and Intel® Apple® Mac systems. QuickVerse Mac, a leading Bible study software, applies best in class technology with a Mac interface to bring Biblical knowledge to all Apple Mac users. Both QuickVerse Black Box Edition and White Box Edition Universal Application are available, and current registered users of QuickVerse Mac can download this new version for free at QuickVerse.com.

Full details of the company's financials are contained in the company's Form 10-QSB for the fiscal quarter ended March 31, 2006, filed on Edgar, which is available at www.sec.gov.

Kirk Rowland, FindEx.com's Chief Financial Officer, commented, "We were pleased to remain cash positive in the first quarter, despite gross revenues being impacted by a number of factors, as we continued to control our expenses. FindEx has become a more efficient and productive enterprise and we are projecting operating expenses to remain flat in the second and third quarters of 2006. Our center of attention is to improve top line growth by continuing to introduce new products and platforms, such as our recently launched first-to-market QuickVerse Mac Universal Application for Bible study. We anticipate these new product introductions and consistent customer upgrades by our loyal installed base of users will help ramp revenue and transition the Company to profitability."

About FindEx.com, Inc.

FindEx.com, Inc. is focused on becoming the premier worldwide Bible study software provider. The company develops and publishes church and Bible study software products designed to simplify biblical research, streamline church office tasks, provide easy access to Bible-related stories, and enhance the user's understanding of the Bible. The company also publishes a product for the financial and data management of churches and non-profit service organizations. The company's one operating division called The Parsons Church Group was acquired in July 1999 from The Learning Company, a division of Mattel, Inc.

Key Products

The company's main product is QuickVerse, a Bible study search engine tool. Over 1,000,000 copies of QuickVerse have been sold since the product's conception. Significant and also growing in importance is the Membership Plus product, a Windows-based financial and data management product for churches and other non-profits. All products are available at the company's website www.quickverse.com.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of FindEx to be materially different from the statements made herein. Among others, these risks include but are not limited to the following: (i) limited liquidity and capital resources; (ii) serious business competition, (iii) fluctuations in operating results may result in unexpected reductions in revenue and stock price volatility; (iv) delays in product releases and introductions may result in unexpected reductions in revenue and stock price volatility, and (v) errors or defects in products may cause a loss of market acceptance and result in fewer sales. These, as well as other risks are described in the company's annual report on Form 10-KSB for the year ended December 31, 2005.

Statement of Operations for Three Months Ended March 31
                                  2006          2005         Change     %
                              -----------   -----------   -----------  ---
Net revenues                  $ 1,098,791   $ 1,677,414   $  (578,623)  34%
Cost of sales                     463,612       508,785       (45,173)   9%
                              -----------   -----------   -----------  ---
  Gross profit                $   635,179   $ 1,168,629   $  (533,450)  46%
                              -----------   -----------   -----------  ---
Total operating expenses         (831,049)   (1,209,586)      378,537   31%
Registration rights penalties     (49,314)          ---       (49,314) 100%
Loss on fair value adjustment
 of derivatives                  (608,872)     (218,748)     (390,124) 178%
Other income (expenses)            (1,932)       (3,856)        1,924   50%
                              -----------   -----------   -----------  ---
  Loss before income taxes    $  (855,988)  $  (263,561)  $  (592,427) 225%
                              -----------   -----------   -----------  ---
Provision for income taxes        (30,808)      149,489      (180,297) 121%
                              -----------   -----------   -----------  ---
  Net loss                    $  (886,796)  $  (114,072)  $  (772,724) 677%
                              ===========   ===========   ===========  ===


Balance Sheets at March 31                                    2006
                                                          -----------

                           Assets
Cash and cash equivalents                                 $    53,668
Accounts receivable, trade                                    340,023
Other current assets                                          293,360
                                                          -----------
  Total current assets                                    $   687,051
                                                          -----------
Property and equipment, net                                   105,886
Software license, net                                       1,636,399
Capitalized software development costs, net                   586,171
Other assets                                                  202,843
                                                          -----------
    Total assets                                          $ 3,218,350
                                                          ===========

              Liabilities and stockholders' equity
Accrued royalties                                         $   452,707
Accounts payable, trade                                       413,313
Derivatives                                                 2,671,334
Other current liabilities                                     469,346
                                                          -----------
  Total current liabilities                               $ 4,006,700
                                                          -----------
Long-term debt                                                275,545
Common stock                                                   49,058
Paid-in capital                                             7,525,940
Retained (deficit)                                         (8,638,893)
                                                          -----------
    Total liabilities and stockholders' equity            $ 3,218,350
                                                          ===========

Contact Information

  • Contact:

    FindEx.com, Inc.
    Kirk Rowland
    (402) 333-1900
    Email: Email Contact

    or

    Alliance Advisors
    John Lovallo
    (203) 431-0587
    Email: Email Contact