SOURCE: FindEx.com, Inc.

August 23, 2006 18:15 ET

FindEx.com Announces Second Quarter 2006 Financial Results

OMAHA, NE -- (MARKET WIRE) -- August 23, 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 Monday the financial results of its operations for the second quarter ended June 30, 2006.

For the three months ended June 30, 2006, gross revenue was $700,627, compared to $1,527,334 in the three months ended June 30, 2005. For the six months ended June 30, 2006, gross revenues were $1,882,698, a decrease of $1,628,672 and 46% from the $3,511,370 gross revenues for the six months ended June 30, 2005. The decrease in gross revenues in 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 third quarter 2006) and the early release of an upgrade to the company's flagship product, QuickVerse, during September 2005. Gross margin for the three months ended June 30, 2006 was 24%, versus 62% in the three months ended June 30, 2005 and 45% for the six months ended June 30, 2006 versus 66% for the six months ended June 30, 2005. Total operating expenses for the three months ended June 30, 2006 decreased to $772,515, from $1,005,888 for the same period in 2005 and decreased to $1,603,564 for the six months ended June 30, 2006 from $2,215,474 for the same period in 2005. Total sales, general and administrative costs were $626,977 and $1,312,143 or 89% and 70% of gross sales for the three and six months ended June 30, 2006, respectively, compared to $838,092 and $1,901,257 or 55% and 54% of gross sales for the three and six months ended June 30, 2005, respectively.

The company's net income for the three months ended June 30, 2006 was $861,658, compared to a net loss of $520,766 for the three months ended June 30, 2005 and a net loss of $25,138 for the six months ended June 30, 2006, compared to a net loss of $634,837 for the six months ended June 30, 2005. During the three and six months ended June 30, 2006, the company had derivative valuation gains of $1,481,411 and $872,539, respectively, compared to valuation losses of $328,123 and $546,871, respectively, for the three and six months ended June 30, 2005, and non-recurring expenses related to registration rights penalties of $-0- and $49,314, respectively, for the three and six months ended June 30, 2006 compared to $119,000 for both the three and six months ended June 30, 2005, respectively." 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 three and six months ended June 30, 2006, the company incurred total software development costs of $206,537 and $322,000, respectively, compared to $359,676 and $661,404, respectively, for the same periods 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 quarterly report on Form 10-QSB for the fiscal quarter ended June 30, 2006, filed on Edgar, which is available at www.sec.gov.

Kirk Rowland, FindEx.com's Chief Financial Officer, commented, "We were pleased to have continued trimming our operating expenses and remained operating cash positive for the first six months, despite gross revenues being impacted by a number of factors. We believe we have become a more efficient and productive enterprise and we are projecting operating expenses to remain flat in the third and fourth quarters of 2006. We remain committed to introducing new products, as well as enhancing and upgrading our existing product lines and believe we have positioned ourselves to ramp revenue and transition the Company to operating profitability throughout the remainder of 2006."

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 company's 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
Six Months Ended June 30    2006          2005        Change             %
                    ============  ============  ============  ============
Net revenues        $  1,760,070  $  2,954,410  $ (1,194,340)          -40%
Cost of sales            969,386     1,000,285       (30,899)           -3%
                    ------------  ------------  ------------  ------------
    Gross profit    $    790,684  $  1,954,125  $ (1,163,441)          -60%
                    ------------  ------------  ------------  ------------
Total operating
 expenses             (1,603,564)   (2,215,474)      611,910           -28%
                    ------------  ------------  ------------  ------------
    Loss from
     operations     $   (812,880) $   (261,349)     (551,531)          211%
                    ------------  ------------  ------------  ------------
Registration rights
 penalties               (49,314)     (119,000)       69,686           -59%
Gain (loss) on fair
 value adjustment
 of derivatives          872,539      (546,871)    1,419,410          -260%
Other income
 (expenses)              (10,031)       (6,775)       (3,256)           48%
                    ------------  ------------  ------------  ------------
    Income (loss)
     before income
     taxes          $        314  $   (933,995) $    934,309          -100%
                    ------------  ------------  ------------  ------------
Provision (benefit)
 for income taxes        (25,452)      299,158      (324,610)         -109%
                    ------------  ------------  ------------  ------------
    Net loss        $    (25,138) $   (634,837) $    609,699           -96%
                    ============  ============  ============  ============



Balance Sheets at June 30                                          2006
                                                              ============
                                   Assets
Cash and cash equivalents                                     $     30,519
Accounts receivable, trade                                    $    154,109
Other current assets                                          $    403,256
                                                              ------------
   Total current assets                                       $    587,884
                                                              ------------
Property and equipment, net                                   $     96,222
Software license, net                                         $  1,510,522
Capitalized software development costs, net                   $    487,849
Other assets                                                  $    186,589
                                                              ------------
     Total assets                                             $  2,869,066
                                                              ============

                     Liabilities and stockholders' equity
Accrued royalties                                             $    482,131
Accounts payable, trade                                       $    619,803
Derivative liabilities                                        $  1,189,923
Other current liabilities                                     $    512,387
                                                              ------------
   Total current liabilities                                  $  2,804,244
                                                              ------------
Long-term obligations                                         $    202,059
Common stock                                                  $     49,558
Paid-in capital                                               $  7,590,440
Retained (deficit)                                            $ (7,777,235)
                                                              ------------
     Total liabilities and stockholders' equity               $  2,869,066
                                                              ============