SOURCE: ID Watchdog, Inc.

ID Watchdog, Inc.

August 31, 2012 09:13 ET

ID Watchdog Announces Second Quarter 2012 Results

DENVER, CO--(Marketwire - Aug 31, 2012) - ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced its results for the second quarter ended June 30, 2012. All amounts are in U.S. dollars.

For the second quarter ended June 30, 2012, revenues totaled $470,320 and the Company recognized an operating loss of $(512,045). Net loss for the second quarter was $(499,884), or $(0.00) per ordinary share. Revenue decreased $52,731, or 10.1%, from $523,051 for the second quarter of 2011 to $470,320 for the second quarter of 2012. Revenue increased on a sequential basis by $26,263, or 5.9%, from $444,057 reported for the three months ended March 31, 2012. This increase was primarily the result of an increase in the number of employees subscribing to our services through their employer's benefit programs.

"We made great progress during the second quarter in building a foundation to significantly expand our base of customers who subscribe to our services through their employer's benefit program," said Michael Greene, CEO of ID Watchdog. 

Also, as of July 2012, we have now integrated our identity theft protection services with all five of our existing anti-virus and desktop software partners. "While the revenue generated from this channel is slower to grow than expected, we continue to work diligently with our partners to expand our customer base from this channel," said Michael Greene CEO of ID Watchdog.

The Company will be holding a conference call on September 5, 2012 at 2:15 p.m. MST to discuss its second quarter 2012 financial results and future growth plans. If you would like to participate in this event please register by opening the following hyperlink or copying it to your internet browser: https://app.conductnow.com/event/1084/IDwatchdog-2nd-Quarter-Earnings

   
   
ID Watchdog, Inc.  
Consolidated Interim Condensed Statements of Operations  
(Unaudited)  
   
   
    Three months ended June 30,     Six months ended June 30,  
    2012     2011     2012     2011  
                                 
Revenue   $ 470,320     $ 523,051     $ 914,377     $ 1,095,694  
                                 
Cost of revenue     299,719       190,433       585,729       349,319  
Gross profit     170,601       332,618       328,648       746,375  
                                 
Operating expense:                                
  General and administrative expense     427,741       758,594       854,013       1,221,568  
  Sales and Marketing expense     121,102       139,833       213,179       259,679  
  Stock-based compensation expense     110,838       359,040       342,171       369,798  
  Depreciation and amortization expense     22,965       18,689       46,899       75,140  
      682,646       1,276,156       1,456,262       1,926,185  
Operating loss     (512,045 )     (943,538 )     (1,127,614 )     (1,179,809 )
                                 
Other income (expense):                                
  Gain (loss) on warrant liability     195,316       (1,543,000 )     380,519       (2,304,000 )
  Interest income     1,172       1,180       4,611       2,394  
  Interest expense     (184,327 )     (176,253 )     (371,219 )     (325,500 )
      12,161       (1,718,073 )     13,911       (2,627,106 )
                                 
  Net loss and comprehensive loss applicable to ordinary shares   $ (499,884 )   $ (2,661,611 )   $ (1,113,703 )   $ (3,806,915 )
  Basic and diluted net loss per share applicable to ordinary shares   $ (0.00 )   $ (0.03 )   $ (0.01 )   $ (0.04 )
  Weighted average number of shares outstanding - basic and diluted     118,494,338       101,348,330       118,386,535       89,670,030  
                                 
                                 
                                 
Consolidated Balance Sheet Data      
    June 30,
2012
    December 31,
2011
 
    (Unaudited)     (Unaudited)  
Cash and cash equivalents and available-for-sale securities   $ 996,593     $ 1,589,688  
Total Assets   $ 1,311,356     $ 1,990,838  
Total Long-term liabilities   $ 2,915,672     $ 2,979,360  
Total Liabilities   $ 3,689,443     $ 3,675,199  
Total Shareholders' Deficit   $ (2,378,087 )   $ (1,684,361 )
                 
                 

Financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent quarterly reports and our annual report. These documents are available online at www.sedar.com and in the "About Us" section of our website at www.IDWatchdog.com.

About ID Watchdog, Inc.
ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides patent-pending, three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.

Forward-Looking Statement
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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