Fireswirl Technologies Inc.

Fireswirl Technologies Inc.

August 30, 2010 18:10 ET

Fireswirl Reports 2010 Q2 Record Revenue Growth and Improved Profitability

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2010) - Fireswirl Technologies Inc. (TSX VENTURE:FSW), "the Company", today announced its financial results for the second quarter ended June 30, 2010. All figures are quoted in Canadian dollars. Financial statements and accompanying MD&A are available on SEDAR.

Highlights for the third quarter were as follows:

  • Total revenue for the three and six months ended June 30, 2010 increased by 9,486% and 5,573% to $4,778,384 and $8,948,207 respectively compared to $49,849 and $157,723 for the same periods a year earlier. The increase was mainly due to the increase in the scale of operations after the consolidation of XCXD's business.

  • Total operating expenses for the three and six months ended June 30, 2010 increased by 132% and 118% to $606,797 and $1,160,566 respectively from $261,199 and $532,497 during the same periods in 2009. The increase was mainly due to the increase in the scale of operations after the consolidation of XCXD's business.

  • Loss and comprehensive loss for the three and six months ended June 30, 2010 decreased by 47% and 32% to $153,967 and $374,628 respectively compared to net loss of $289,793 and $546,935 during the same periods of 2009. This net loss translated into a loss per share of $0.00 (rounded to two decimal places) and $0.01 for the three and six months ended June 30, 2010 respectively compared to a loss per share of $0.01 and $0.02 for the same periods in 2009.

  • As at June 30, 2010, the Company had cash and cash equivalents of $818,507 compared to $1,467,401 as at December 31, 2009, representing a decrease of 44%. As at June 30, 2010, the Company had working capital of $1,910,355 compared to $1,855,426 as at December 31, 2009, representing an increase of 3%. The Company had long-term debt of $ 42,902 as at June 30, 2010 compared to $64,315 as at December 31, 2009.

  • On June 17, 2010, the Company completed a private placement for 7,000,000 common shares at a price of $0.05 per Share. The Company raised aggregate gross proceeds of $350,000 from the sale of the shares. All shares issued with respect to the private placement are subject to a hold period that expires four months and a day from the closing. In connection with the Private Placement, the Company paid a commission to Mackie in the aggregate amount of $3,500, which represents an amount equal to 7% of the gross proceeds derived from the sale of the Brokered Shares. The Company intends to use the net proceeds of the Private Placement for working capital and operating expenses.

About Fireswirl

Fireswirl Technologies Inc. (TSX VENTURE:FSW) is focused on creating transactional revenue by engineering electronic and mobile commerce solutions for content providers. The Company's technology has broad applications for solutions requiring multiple payment interfaces, multicurrency and multi-language capabilities. Our solutions can be adapted to any industry seeking high volume or micro-payment solutions involving a wide base of users through internet or wireless applications.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fireswirl Technologies Inc. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, foreign exchange fluctuations, general demand, competition and our ability to implement our business plans and strategies in a timely manner or at all. These risks, as well as others, could cause actual results and events to vary significantly. Fireswirl Technologies Inc. does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

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