SOURCE: MacroSolve, Inc.

August 26, 2013 17:20 ET

MacroSolve Announces 111% Increase in 2Q13 Operating Income

Third Consecutive Quarter of Net Income Driven by Mobile App Technologies & Licensing

TULSA, OK--(Marketwired - Aug 26, 2013) - MacroSolve, Inc. (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technology intellectual property and app venture mentorship, today announced financial results for its second quarter ended June 30, 2013.

Highlights for the second quarter of 2013 include:

  • Net revenues were $302,000 for the second quarter of 2013, a 47% increase over the same period in 2012
  • Net income from continuing operations in the second quarter of 2013 increased $224,000, or 111%, over the same period in 2012; and
  • Operating expenses in the second quarter of 2013 decreased by $183,000, a 55% decrease over the same period in 2012

Net revenues for the second quarter of 2013 increased $96,000 or 47%, to $302,000 as compared to $206,000 in the same period in 2012, as adjusted for the discontinuance of the Illume Mobile operations which was sold to DecisionPoint Systems, Inc. in July 2012. Similarly, for the six month period ended June 30, 2013, revenues increased $63,000 to $968,000 from $905,000 for the same period in 2012. A significant source of revenue comes from the Company's enforcement of its '816' patent. 

Net income for 2Q13 was $12,000 or $0.00 per share, as compared to the 2Q12 net loss of $(234,000), or $(0.00) per share, an increase in net income of $246,000. The increase was primarily due to the sale of Illume Mobile and the elimination of its operating losses as well as corporate restructuring following the sale. The Company improved its use of cash in operations, with $156,000 cash provided by operating activities in the second quarter of 2013 as compared to ($608,000) cash used in operating activities over the same period in 2012. Cash on hand at June 30, 2013 was $821,000, an increase of $118,000 as compared to $703,000 on March 31, 2013 and an increase of $722,000 as compared to $99,000 on June 30, 2012.

Operating expenses decreased 55% in the second quarter of 2013 to $152,000 from $335,000 in the same period of 2012, as adjusted for the Illume Mobile divestiture. After the sale, the Company restructured its management and strategically reduced its operating overhead, resulting in $22,000 net income from continuing operations in the second quarter of 2013, a $202,000 increase, or 112%, from $(180,000) loss from continuing operations in the same period of 2012.

"The year-to-date financial results are positive in all respects," stated Kendall Carpenter, CFO. "We are running a lean operation, growing cash, reducing debt and increasing equity investments in our mobile app venture customers, a successful execution of our 2013 business strategy."

For further information please see MacroSolve's full 2Q13 10Q filing at www.sec.gov.

About MacroSolve
Founded in 1997, MacroSolve is heralded for its robust IP portfolio, while advancing throughout the mobile apps era by innovating key technologies that have laid the foundation for apps and next-gen developers. Today, MacroSolve is empowering a new era of mobile innovators seeking advisory and patent services and IP strength from a source of experience. For more information, visit www.macrosolve.com.

Safe Harbor Statement
This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in our publicly filed reports. Factors that could cause these differences include, but are not limited to, the acceptance of our products, lack of revenue growth, failure to realize profitability, inability to raise capital and market conditions that negatively affect the market price of our common stock. The Company disclaims any responsibility to update any forward-looking statements.

Financial Statements Follow

             
             
MACROSOLVE, INC.            
             
BALANCE SHEETS (UNAUDITED)            
             
For the Periods Ended:   6/30/2013     12/31/2012  
             
ASSETS            
             
CURRENT ASSETS:            
  Cash   $ 821,240     $ 659,204  
  Accounts receivable - trade     128,606       74,056  
  Prepaid expenses and other     46,319       519,330  
    Total current assets     996,165       1,252,590  
                 
PROPERTY AND EQUIPMENT, at cost:     4,237       21,651  
  Less - accumulated depreciation and amortization     (1,298 )     (19,462 )
    Net property and equipment     2,939       2,189  
                 
OTHER ASSETS:                
  Investment in DecisionPoint Systems, Inc.     650,557       579,875  
  Investment in MEDL Mobile Holdings, Inc.     53,939       -  
  Investment in Endexx Corporation     13,982       -  
  Other assets     68,955       64,227  
    Total other assets     787,433       644,102  
                 
TOTAL ASSETS   $ 1,786,537     $ 1,898,881  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Current maturities of long-term debt   $ 90,000     $ 90,000  
  Accounts payable - trade and accrued liabilities     125,487       84,062  
  Unearned income     10,000       500,000  
    Total current liabilities     225,487       674,062  
                 
LONG-TERM DEBT, less current maturities                
  Note Payable - Shareholders     557,631       541,752  
  Oklahoma Technology Commercialization Center     80,000       125,000  
  Convertible debentures     150,000       150,000  
    Total long-term debt, less current maturities     787,631       816,752  
                 
COMMITMENTS AND CONTINGENCIES     -       -  
                 
STOCKHOLDERS' EQUITY:                
Common stock, $.01 par value; authorized 500,000,000 shares; issued and outstanding 185,683,100 and 179,831,987 shares, at June 30, 2013 and December 31, 2012, respectively     1,856,831       1,798,320  
  Additional paid-in capital     13,232,497       13,230,111  
  Accumulated other comprehensive income     (96,521 )     (170,125 )
  Accumulated deficit     (14,219,388 )     (14,450,239 )
  Total stockholders' equity     773,419       408,067  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,786,537     $ 1,898,881  
                 
                 
 
 
MACROSOLVE, INC.          
                     
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)          
                     
    For the Quarters Ended     For the Year to Date  
For the Periods Ended June 30,   6/30/2013   6/30/2012     6/30/2013   6/30/2012  
                     
                     
                     
Net revenues   $ 302,253   $ 206,275     $ 968,351   $ 905,507  
                             
Cost of revenues     129,069     73,761       408,116     357,027  
                             
Gross profit     173,184     132,514       560,235     548,480  
                             
Selling, general and administrative expense     151,766     334,781       307,893     672,074  
                             
Income from operations     21,418     (202,267 )     252,342     (123,594 )
                             
OTHER INCOME (EXPENSE):                            
  Interest income     4,008     20       4,220     28  
  Interest expense     12,755     32,012       25,306     116,156  
  Loss on sale of asset     -     -       436     761  
                               
  Total other expense     8,747     31,992       21,522     116,889  
                             
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFOREINCOME TAXES     12,671     (234,259 )     230,820     (240,483 )
                             
INCOME TAXES     -     -       -     -  
                             
NET INCOME (LOSS) FROM CONTINUING OPERATIONS     12,671     (234,259 )     230,820     (240,483 )
                             
DISCONTINUED OPERATIONS                            
  Loss from operations of discontinued Illume Mobile operations     -     (545,175 )     -     (1,243,981 )
                             
NET INCOME (LOSS)     12,671     (779,434 )     230,820     (1,484,464 )
                             
OTHER COMPREHENSIVE INCOME, net of tax                            
  Unrealized holding gain arising during the period     73,603     -       73,603     -  
                             
COMPREHENSIVE INCOME (LOSS)   $ 86,274   $ (779,434 )   $ 304,423     (1,484,464 )
                             
INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS:                            
  Net income (loss)   $ 12,671   $ (779,434 )   $ 230,820     (1,484,464 )
                               
  Income (loss) allocable to common stockholders   $ 12,671   $ (779,434 )   $ 230,820     (1,484,464 )
                             
Basic and diluted net income (loss) from continuing operations per share   $ 0.00   $ (0.00 )   $ 0.00   $ (0.00 )
                             
Basic and diluted net loss from discontinued operations per share   $ 0.00   $ (0.00 )   $ 0.00   $ (0.01 )
                             
Basic and diluted net income (loss) per share   $ 0.00   $ (0.00 )   $ 0.00   $ (0.01 )
                             
                             

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