SOURCE: FindEx.com, Inc.

April 20, 2006 16:15 ET

FindEx.com Announces Fiscal Year 2005 Results

OMAHA, NE -- (MARKET WIRE) -- April 20, 2006 --FindEx.com, Inc. (OTC BB: FIND) a leading software provider for Bible study and churches and non-profit organizations financial and data management, announced today its financial results of operations for the fiscal year ended December 31, 2005.

FindEx.com reported gross revenues of approximately $6,309,000 for its fiscal year ended December 31, 2005, a 9% increase compared to the approximate $5,786,000 it reported in 2004. The company's gross margin for its fiscal year 2005 was 63%, versus 68% in 2004. The company reported total operating expenses of approximately $4,425,000, compared to approximately 4,178,000 in 2004, and total sales, general and administrative costs of approximately $3,706,000, or 59% of gross sales in 2005, compared to approximately $3,591,000, or 62% of gross sales in 2004.

FindEx.com reported a net loss for its fiscal year 2005 of approximately $1,581,000, compared to a net income of approximately $964,000 in 2004. During its fiscal year 2005, the company reported non-recurring expenses related to certain registration rights penalties and legal expenses of approximately $625,000 compared to approximately $226,000 in 2004. In addition, included in its net income for fiscal year 2004, the company reported an approximately $1,000,000 gain from extinguishment of debt, and income tax benefits of approximately $1,108,000. Excluding the non-recurring items related to its 2005 registration rights penalties and legal expenses, the company's pro forma net loss for 2005 would have been approximately $956,000.

During its fiscal year 2005 the company also reported incurring total software development costs of approximately $1,029,000, compared to approximately $757,000 in 2004. The company attributed these costs directly to an increase in the number of software development projects that it is pursuing on an ongoing basis.

Full details of the company's financial condition are contained in its annual report on Form 10-KSB for the fiscal year ended December 31, 2005, filed on Edgar which is available at www.sec.gov.

Kirk Rowland, FindEx.com's Chief Financial Officer, commented, "In 2005 we continued to make progress in positioning the company for the future by investing in the development of best in class software products and establishing the necessary financial discipline to more efficiently mange our business. Although our upgrade revenue was lower than expected, we maintained positive cash flow from our operating activities by reducing several unproductive advertising and marketing campaigns during our fourth quarter. Looking forward, we remain focused on building scale by introducing new products, as well as enhancing and upgrading our existing product lines. We believe this strategy will provide us with additional platforms for growth and, not only increase our market penetration, but also support our transition to long-term profitability."

About FindEx.com, Inc.

Findex.com, Inc. is focused on becoming the premier 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 Twelve Months Ended
December 31                      2005         2004           Change     %
                                ------       ------          ------  ------
Net revenues                  $5,337,342    $5,322,842       $14,500     0%
Cost of sales                 $1,973,944    $1,721,298      $252,646    15%
   Gross profit               $3,363,398    $3,601,544     $(238,146)   -7%
Total operating expenses     $(4,425,429)  $(4,177,705)    $(247,724)    6%
Other income                     $14,855    $1,012,744     $(997,889)  -99%
Other adjustments              $(436,686)    $(154,569)    $(282,117)  183%
Loss on fair value adjustment
 of derivatives                 $(33,797)    $(291,672)     $257,875   -88%
Other expenses                  $(12,898)     $(42,148)      $29,250   -69%
   Loss before income taxes  $(1,530,557)     $(51,806)  $(1,478,751) 2854%
Provision for income taxes      $(50,709)   $1,015,859   $(1,066,568) -105%
                             -----------    ----------   ----------- -----
   Net income (loss)         $(1,581,266)     $964,053   $(2,545,319) -264%
                             -----------    ----------   ----------- -----


Balance Sheets at December 31    2005         2004           Change     %
                            Assets
Cash and cash equivalents       $119,560      $341,359     $(221,799)  -65%
Accounts receivable, trade      $405,380      $566,819     $(161,439)  -28%
Other current assets            $342,810      $643,269     $(300,459)  -47%
   Total current assets         $867,750    $1,551,447     $(683,697)  -44%
Property and equipment, net     $114,191      $131,019      $(16,828)  -13%
Software license, net         $1,762,276    $2,265,783     $(503,507)  -22%
Capitalized software
 development costs, net         $707,067      $701,289        $5,778     1%
Other assets                    $253,001      $302,295      $(49,294)  -16%
     Total assets             $3,704,285    $4,951,833   $(1,247,548)  -25%
                             -----------    ----------   ----------- -----
     Liabilities and stockholders' equity
Accrued royalties               $472,548      $287,514      $185,034    64%
Accounts payable, trade         $556,042      $621,804      $(65,762)  -11%
Accrued registration rights
 penalties                      $336,686            $-      $336,686     0%
Derivatives                   $2,062,462    $1,968,750       $93,712     5%
Other current liabilities       $465,709      $473,825       $(8,116)   -2%
   Total current liabilities  $3,893,447    $3,351,893      $541,554    16%
Long-term debt                   $33,786       $42,972       $(9,186)  -21%
Deferred income taxes, net       $19,105      $157,840     $(138,735)  -88%
Common stock                     $48,620       $48,620            $-     0%
Paid-in capital               $7,461,424    $7,521,339      $(59,915)   -1%
Retained (deficit)           $(7,752,097)  $(6,170,831)  $(1,581,266)   26%
     Total liabilities and
      stockholders' equity    $3,704,285    $4,951,833   $(1,247,548)  -25%

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