Fireswirl Technologies Inc.
TSX VENTURE : FSW

Fireswirl Technologies Inc.

August 26, 2011 16:30 ET

Fireswirl Reports 2011 Q2 Financial Results and Improving Revenue Growth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2011) - Fireswirl Technologies Inc. (TSX VENTURE:FSW) ("the Company") today announced its financial results for the second quarter ended June 30, 2011. All figures are quoted in Canadian dollars. Financial statements and accompanying MD&A are available on SEDAR.

Highlights for the second quarter were as follows:

  • Total operating revenue increased to $5,001,975 and $9,178,947 for the and six months ended June 30, 2011 compared to $4,778,384 and $8,947,767 during the same period in 2010, representing an increase of 4.7% and 2.6%. The merchandise revenue has increased by 8.3% and 5.7% respectively offset by a decrease in the advertising and service revenue.
  • Total operating expense was $5,534,518 and $9,841,298 for the three and six months ended June 30, 2011 compared to $4,802,391 and $9,135,042 for the same period of 2010, representing an increase of 15.3% and 7.7% respectively. The increase was mainly due to the increase in cost of sales related expenses corresponding to increase in revenue and an increase in depreciation expense due to additions to assets in 2011 Q1.
  • The Company reported a comprehensive loss on common shares of $382,847 and $607,936 for the three and six month period ended June 30, 2011 compared to a comprehensive loss on common share of $153,967 and $374,628 for the same period of 2010, representing an increase in loss of 148.7% and 62.3% respectively.
  • Fully diluted loss per share was $0.01 and $0.02 for the three and six month period ended June 30, 2011 compared to fully diluted losses of $0.00 and $0.01 for the same period of 2010.
  • As at June 30, 2011, the Company had cash and cash equivalents (including restricted cash) of $2,514,676 compared to $1,145,859 as at December 31, 2010, representing an increase of 119.4%. As at June 30, 2011, the Company had working capital of $1,083,670 compared to $1,181,647 as at December 31, 2010, representing a decrease of 8.2%. The Company had long term debt of $nil as at June 30, 2011 compared to $17,424 as at December 31, 2010.
  • On April 28, 2011, the Company completed a private placement for 6,100,000 common shares at a price of $0.13 per Share. Each Unit consisted of one common share (a "Share") and one-half of a share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one Share at a price of $0.19 for a period of one year from the date of issue. 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 legal fees of $7,041 and a cash commission of $12,740, equal to 7% of the gross proceeds derived from the sale of units placed by each of Mackie Research Capital Corporation ("Mackie") and Raymond James Ltd. In addition, the Company issued to Mackie that number of compensation warrants representing 5% of the number of Units placed by Mackie. These are share issuance costs.

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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