SOURCE: Sanswire

Sanswire

March 30, 2011 16:14 ET

Sanswire Corp. Announces 2010 Financial Results

KENNEDY SPACE CENTER, FL--(Marketwire - March 30, 2011) - Sanswire Corp. (OTCBB: SNSR), a developer of lighter-than-air unmanned aerial vehicles and related technologies, today announced audited financial results for its fiscal year ended December 31, 2010. Sanswire today filed its Annual Report on Form 10-K with the U.S. Securities and Exchange Commission (SEC) containing its complete audited financial statements for the year ended December 31, 2010. Sanswire's Form 10-K can be accessed online at www.sanswire.com or can also be obtained through the SEC's website at www.sec.gov.

Sanswire had revenue of $250,000 in the year ended December 31, 2010 (2010) from the sale of a 50% interest in a SkySat airship, compared to no revenue in the year ended December 31, 2009 (2009). For 2010, the Company reported a net loss of $9.8 million, or $0.03 per share, an increase of 4% compared to a net loss of $9.4 million, or $0.04 per share, for 2009. The net loss for 2010 is primarily due to increased operating expenses resulting from a $2.2 million increase in research and development as a result of the Company's determination that its prototype airship as then configured required additional development and the Company's decision to utilize the airship to further product development rather than hold it out for sale in its then current form; which resulted in it charging the amount formerly in work in process inventory to research and development costs, and higher labor and hard costs related to the additional development of its airship products, higher professional fees related to the negotiation and settlement of outstanding claims, and increased general and administrative expenses due to the hiring of a new management team, offset in part by a $1.7 million decrease in stock based compensation issued to the Company's employees.

Sanswire's total assets at December 31, 2010 were $36,247 compared to $3.7 million at December 31, 2009, a decrease of 99%, primarily due to the reclassification of $1.5 million of inventory to research and development as a result of the Company's determination discussed above, and an impairment charge regarding intangible assets of $2.2 million as a result of the Company's decision to base its business going forward exclusively on the technology developed for it by Eastcor Engineering in the United States. Due largely to the factors discussed above, the Company's accumulated deficit increased to $144.5 million at December 31, 2010 from $134.7 million at December 31, 2009.

Sanswire's Chairman Michael K. Clark stated, "I joined Sanswire in June 2010 with the goal of restructuring and restarting the Company. We immediately implemented a strategy to inventory and assess the Company's outstanding issues, and during 2010, we have accomplished many of the tasks necessary to position Sanswire for growth and technological development in 2011."

Glenn D. Estrella, Sanswire's President and Chief Executive Officer, added, "We look forward to building on the progress we made in 2010 and have established far-reaching objectives to advance Sanswire's business and grow shareholder value in 2011. While we know the 2011 goals we have set for ourselves are aggressive, the management team at Sanswire is dedicated to working with our partners to commercialize our Argus One line of airships and position Sanswire to capitalize on the increasing demand for lighter-than-air UAVs." 

 Set forth below are some of the key goals management has identified to work towards accomplishing in 2011:

  • Host the first Annual Shareholder Meeting in over five years
  • Rework technical partnerships to focus on U.S.-based technology development
  • Continue to develop our Argus One line of airships and related UAV technologies
  • Test and demonstrate our Argus One airships at sponsored venues
  • Capitalize Sanswire effectively to fund operations and expansion
  • Strengthen our balance sheet by reducing debt associated with legacy issues
  • Identify and close strategic partnerships and/or acquisitions
  • Build a majority independent Board of Directors
  • Continue to strengthen and build our management team
  • Strengthen our intellectual property portfolio
  • Position Sanswire to list its common stock on a national securities market

About Sanswire Corp.

Sanswire Corp. (OTCBB: SNSR) designs, develops, markets and sells autonomous, lighter-than-air UAVs capable of carrying payloads that provide persistent security and/or wireless communications solutions at low, mid, and high altitudes. Sanswire's airships, when integrated with electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief and maritime missions.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements. These statements include the entire discussion relating to the 2011 goals and objectives of the Company, as to which there can be no assurance that the Company will achieve any or all of such goals. Forward-looking statements also include statements regarding the financial condition, results of operations and losses of the Company, the ability of the Company to build on its 2010 progress or achieve any of the goals it has established, the capabilities and advantages of the Company's technology and products, the outcome of any testing of the Company's products, the Company's ability to successfully commercialize its airships or execute its strategy and business plans, the effects of any changes in the Company's operations, the Company's ability to enhance shareholder value, the ability of the Company to capitalize on market demand for UAVs and grow the Company's business, and the Company's efforts to resolve historic issues or settle any pending or threatened litigation or claims. The words "goal," "hope," "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements, including our attainment of any of the goals set forth above, involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or Company's previously reported actual results or performance (financial or operating) to change or differ from future results, performance (financial or operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

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