Zaio Corporation

Zaio Corporation

August 16, 2011 07:30 ET

Zaio Corporation Reports Q2-2011 Financial Results

Launches "Quick Start" program to accelerate ingestion of residential property appraisal data in a dozen key residential markets across the US

CALGARY, ALBERTA--(Marketwire - Aug. 16, 2011) - Zaio Corporation (CNSX:ZAO) (the "Company"), today reported its financial results for the three month and year-to-date periods ending June 30, 2011.

For the three month period, the Company incurred expenses of $867.5 thousand versus $460.9 thousand for the same period last year. Selling, general and administrative (SG&A) expenses accounted 38 percent of the total while database development costs accounted for 41 percent. For the same period last year, SG&A account for 31 percent of expenses while database development accounted for 48 percent. During the period, the Company raised net proceeds of $3,465.4 thousand from the issuance of convertible debentures and the conversion of a bridge loan facility to end the period with cash and cash equivalents of $2,398.8 thousand.

"During the period, management was focused on designing and implementing a "Quick Start" program to accelerate the pace at which residential property appraisal data could be ingested into the Zaio database," said David King, Zaio's President and CEO. "Over the next ten weeks, we will have resources deployed in the remaining areas of Nevada; Spokane and King County in Washington State; Boston, Massachusetts; Sacramento, Santa Clara county, LA county, Kern county, Contra Costa county and San Mateo county in California; Charlotte, North Carolina and Chicago, Illinois. Using this program, we anticipate reaching a level of data concentration in these centres that will drive customer adoption and accelerate sales."

"We selected these twelve residential markets for the Quick Start program because they offered us the most direct path to revenue recognition from the sale of appraisal products," added Randy Kass, Chairman of the Management Committee of Zone Data Systems LLC, Zaio's exclusive US licensee. "In each case, we have ZDS Zone owners who not only have the resources to collect and process the data, but who also have access to the customers within the local financial services community who are the primary users of property valuation services."

At the end of the June period, Zaio reported that its proprietary database of residential properties appraisals contained marketable data on more than 629,000 homes in the United States.

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About Zaio Corporation

Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from the Company's proprietary database of proactively maintained residential property valuations prepared by licensed appraisers across the United States. The Company's products are available in the United States through its Licensee, Zone Data Systems LLC.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

The Company believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements.

In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements.

Neither CNSX nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Zaio Corporation
    David King
    President & CEO
    (877) 318-0537

    Genoa Management Ltd.
    John Sadler
    (416) 594-9292