SOURCE: Sanswire

September 14, 2009 14:43 ET

Sanswire Corp. Announces Second Quarter 2009 Results

FORT LAUDERDALE, FL--(Marketwire - September 14, 2009) - Sanswire Corp. (OTCBB: SNSR) today announced that it has filed with the United States Securities & Exchange Commission its quarterly report on Form 10-Q for the quarter ended June 30, 2009.

For the quarter ended June 30, 2009, the Company reported a net loss of ($7,299,396), or ($0.04) per share, with no revenue, compared to a net loss of ($600,122), or ($0.01) per share, with no revenue for the quarter ended June 30, 2008.

The net loss for Q2 2009 is attributed to an operating loss during the quarter of ($4,394,118), compared to an operating loss of ($850,673) for Q2 2008, to interest-related expenses of ($698,705), compared to interest-related expenses of ($227,985) for Q2 2008, and to ($2,206,573) related to derivative financial instruments, compared to a slight gain from derivative financial instruments of $266,877 for Q2 2008.

Captain David Christian, CEO, Sanswire Corp., stated, "When I was appointed Chief Executive Officer this summer, I came on board fully aware of the potential Sanswire has to successfully penetrate the Unmanned Ariel Vehicle (UAV) market with our state of the art STS-111 airship. Our joint venture partners, TAO Corporation, teams of engineers and scientists have been working diligently and thoroughly on testing the airship's airborne systems in preparation for full operational flight. To date, our test results have proven to be very successful and we are encouraged by our continuing progress. In addition to the achievements we have made with our flight testing, our move to the Bulletin Boards this quarter will help us attract a more sophisticated and broader audience of individual and institutional investors, as well as increase our financing options and transparency in the investment community."

Captain Christian continued, "I have become more and more optimistic about Sanswire's future growth. Just recently there have been several initiatives put forth by our government to increase the use of, and the spending for, Unmanned Ariel Vehicles and I intend to take advantage of those opportunities. Sanswire will focus on building relationships in order to provide our national defense and law enforcement agencies with one of the most advanced UAVs on the marketplace, the STS-111. By building these kinds of relationships I am confident I can bring our product to market and truly reward all of our dedicated and committed shareholders."

Additionally, the Company announced that it would be restating its 2008 10-K and subsequent interim reports to account for gains and losses attributable to treating certain of its convertible debentures and warrants as derivatives. These comprise only non-cash gains and losses. The Company expects to provide these reports over the next several days.

Sanswire's Quarterly Report on Form 10-Q is available via its web site, www.sanswire.com.

For more news and information on Sanswire please visit http://irgnews.com/coi/SNSR where you can find a fact sheet on the company, investor presentations, and more.

About Sanswire Corp.

Sanswire Corp. (OTCBB: SNSR) develops and provides an integrated suite of aerospace communications products and services, leveraging its relationships with leaders in UAV (Unmanned Aerial Vehicle) technologies. Sanswire Corp. is focused on the design and construction of various aerial vehicles, capable of carrying payloads that provide persistent surveillance and security solutions at various altitudes. For more information, visit www.sanswire.com.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "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 involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and 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.

SANSWIRE CORP.  AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS


                                                JUNE 30,       30-Dec-08
                                                  2009         (Restated)
                                              =============  =============
                 ASSETS                        (Unaudited)
CURRENT ASSETS
Cash and cash equivalents                     $     108,671  $       4,809
Inventories                                       1,110,700             --
Current assets from discontinued operations           6,406          6,406
                                              -------------  -------------
   TOTAL CURRENT ASSETS                           1,225,777         11,215
                                              -------------  -------------
NONCURRENT ASSETS
Intangible assets, net of accumulated
 amortization of $565,075                         2,663,925             --
    Investment in joint venture                          --      3,229,000
    Deposits                                          5,400             --
                                              -------------  -------------
TOTAL NONCURRENT ASSETS                           2,669,325      3,229,000
                                              -------------  -------------
TOTAL ASSETS                                  $   3,895,102  $   3,240,215
                                              =============  =============

LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES

CURRENT LIABILITIES
Accounts payable  (including $577,400 and
 zero due to joint venture partner at June
 30, 2009 and December 31, 2008,
 respectively)                                $   4,206,382  $   3,802,777
Notes and convertible notes payable, net of
 discount of $95,707 and $134,423                 9,213,351      9,264,732
Accrued expenses and other liabilities
 (including $2,185,000 due to joint venture
 partner at June 30, 2009 and December 31,
 2008)                                            3,088,454      3,489,210
Fair value of derivative liabilities              2,884,398        748,244
Current liabilities from discontinued
 operations                                       1,387,406      1,387,406
                                              -------------  -------------
TOTAL LIABILITIES                                20,779,991     18,692,369
                                              -------------  -------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT
Series E Preferred stock, $.001 par value,
 100,000 shares authorized;
 100,000 shares issued and outstanding                  100             --
Additional paid-in capital - Series E
 Preferred stock                                    625,894             --
Common stock, $.00001 par value, 250,000,000
 shares authorized;
 224,683,775 and 184,704,015 shares issued
 and outstanding                                      2,248          1,848
Additional paid-in capital                      115,538,605    109,848,580
Accumulated deficit                            (133,051,736)  (125,302,582)
                                              -------------  -------------
   TOTAL STOCKHOLDERS' DEFICIT                  (16,884,889)   (15,452,154)
                                              -------------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $   3,895,102  $   3,240,215
                                              =============  =============






SANSWIRE CORP.  AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)


                    THREE MONTHS ENDED             SIX MONTHS ENDED
                          JUNE 30,                      JUNE 30,
                    2009           2008           2009           2008
                                (Restated)                    (Restated)
                =============  =============  =============  =============

REVENUES        $          --  $          --  $          --  $          --
COST OF
 REVENUES                  --             --             --             --
                -------------  -------------  -------------  -------------
  GROSS MARGIN             --             --             --             --
                -------------  -------------  -------------  -------------
EXPENSES
 Payroll and
  related taxes       142,902        158,664        260,336        531,035
 Consulting
  fees                661,470        585,298        754,629        716,028
 Officers' and
  directors'
  stock based
  compensation      2,900,530         52,500      2,900,530        337,500
 Amortization         565,075             --        565,075             --
 General and
  administrative      124,141         54,211        245,632        164,004
                -------------  -------------  -------------  -------------
  TOTAL
   EXPENSES         4,394,118        850,673      4,726,202      1,748,567
                -------------  -------------  -------------  -------------
LOSS FROM
 OPERATIONS        (4,394,118)      (850,673)    (4,726,202)    (1,748,567)
                -------------  -------------  -------------  -------------
OTHER INCOME
 (EXPENSE)
 Loss on
  extinguishment
  of debt                  --             --             --     (1,096,650)
 Extinguishment
  of derivative
  liabilities              --        211,611             --        291,534
 Change in fair
  value of
  derivative
  liabilities      (2,206,573)       266,877     (2,136,154)      (334,659)
 Interest
  expense, net       (698,705)      (227,985)      (886,798)      (437,521)
                -------------  -------------  -------------  -------------
  NET OTHER
   INCOME
   (EXPENSE)       (2,905,278)       250,503     (3,022,952)    (1,577,296)
                -------------  -------------  -------------  -------------
LOSS FROM
 CONTINUING
 OPERATIONS        (7,299,396)      (600,170)    (7,749,154)    (3,325,863)
GAIN (LOSS)
 FROM
 DISCONTINUED
 OPERATIONS                --             48             --           (196)
                -------------  -------------  -------------  -------------
NET LOSS        $  (7,299,396) $    (600,122) $  (7,749,154) $  (3,326,059)
                =============  =============  =============  =============

WEIGHTED
 AVERAGE NUMBER
 OF COMMON
 SHARES
 OUTSTANDING
  BASIC and
   DILUTED        205,852,582    140,369,224    195,688,165    136,715,497
                =============  =============  =============  =============

LOSS PER SHARE
 FROM
 CONTINUING
 OPERATIONS
  BASIC and
   DILUTED      ($       0.04) ($       0.01) ($       0.04) ($       0.02)
GAIN/LOSS PER
 SHARE FROM
 DISCONTINUED
 OPERATIONS
  BASIC and
   DILUTED                 --  $        0.00             --  ($       0.00)
                -------------  -------------  -------------  -------------
NET LOSS PER
 SHARE
  BASIC and
   DILUTED      ($       0.04) ($       0.01) ($       0.04) ($       0.02)
                =============  =============  =============  =============

Contact Information

  • Contact:
    The Investor Relations Group
    212-825-3210
    Investor Relations:
    Michael Crawford
    or
    Jason Strominger
    Media Relations:
    Mike Graff