[0] GSV Reports Second Quarter 2000 Results.Business Editors JERSEY CITY, N.J.--(BUSINESS WIRE)--Aug. 15, 2000 GSV GSV Greater Saphenous Vein GSV Genealogical Society of Victoria (Australia) GSV Garnisonen I Sør-Varanger (Norway military Garrison of Sør-Varanger) GSV General Systems Vehicle GSV Gross Standard Volume , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : GSVI), also known as Grove Strategic Ventures, an Internet incubator incubator, apparatus for the maintenance of controlled conditions in which eggs can be hatched artificially. Incubator houses with double walls of mud, a fireroom, and several compartments each holding about 6,000 hens' eggs were developed in ancient times; the and investment company, today announced financial results for the second quarter ended June 30, 2000. The Company reported a 17% decrease in net losses from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , which include its Internet incubator and investment operations, of $581,000 in the second quarter of 2000 from $700,000 in the second quarter of 1999. Net loss for the second quarter of 2000, which included a loss on disposal of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $11,656,000, was $12,721,000 as compared to a net loss of $1,873,000 in the second quarter of 1999. Basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net loss per common share from continuing operations for the second quarter of 2000 was ($0.05) as compared to ($0.09) in 1999. Basic and diluted net loss per common share including the effect of discontinued operations for the second quarter of 2000 was ($1.19) as compared to ($0.24) in 1999. The Company finished the quarter with $6,184,000 in cash and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying versus $6,813,000 for the quarter ended March 31, 2000. The Company also announced the sale of its MG Acquisition Corp. subsidiary, doing business as Tools for Living, to a new entity formed by two executives of Tools for Living for consideration including (i) approximately 896,000 shares of GSV, Inc. common stock owned by the executives, (ii) the purchasers assumption of the Tools for Living liabilities, and (iii) release of all obligations owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the executives under their respective employment agreements. This transaction substantially completes the Company's divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its retail assets and the transition to its recently adopted Internet incubator and investment strategy. "During the quarter, we continued to cut costs as we transition out of the retail into our internet incubator and investment business," said Jeff Tauber, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of GSV. "We are excited by the progress of our incubator and investment business and now have three companies in our portfolio, including our most significant investment to date, Telephone.com, MeetChina.com and e-Commerce Solutions. We look forward to the addition of new ventures to our portfolio." About GSV, Inc. GSV, Inc. identifies and develops attractive early stage Internet companies. GSV will provide these companies, as needed as needed prn. See prn order. , with management, marketing, financing (including early stage seed capital), human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , accounting resources, use of its facilities and its extensive expertise in business development. GSV will receive equity positions in these companies commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the level of services provided and the stage of their development. The Company's web site is located at www.gsv.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This announcement contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties that include, among others, the Company's limited operating history, anticipated losses, unpredictability of future revenues, potential fluctuation Fluctuation A price or interest rate change. in quarterly operating results, seasonality, competition, risks associated with system development and operation risks, management of potential growth, as well as the inherent risks and uncertainties of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and risks of new business areas and strategic alliances, as well as such risks (or others) that exist as to any portfolio company in which the Company invests.
GSV, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
General and
administrative $ 653,000 $ 793,000 $ 1,227,000 $ 1,441,000
Total operating
expenses 653,000 793,000 1,227,000 1,441,000
Loss from continuing
operations before
interest income (653,000) (793,000) (1,227,000) (1,441,000)
Interest income, net 72,000 93,000 153,000 215,000
Loss from continuing
operations (581,000) (700,000) (1,074,000) (1,226,000)
Discontinued
operations:
Loss from
operations (484,000) (1,173,000) (1,799,000) (2,485,000)
Estimated loss on
disposal (11,656,000) -- (11,441,000) --
Total
discontinued
operations (12,140,000) (1,173,000) (13,240,000) (2,485,000)
Net loss $ (12,721,000) $(1,873,000) $(14,314,000) $(3,711,000)
Basic and diluted
net loss per
common share:
loss per common
share from
continuing
operations $ (0.05) $ (0.09) $ (0.10) $(0.16)
effect of
adjustable
common stock
warrants (2) -- -- (0.30) --
loss per common
share from
continuing
operations
including effect
of adjustable
common stock
warrants (0.05) (0.09) (0.40) (0.16)
loss per common
share from
discontinued
operations (0.05) (0.15) (0.17) (0.32)
loss per common
share from
estimated loss
on disposal of
discontinued
operations (1.09) -- (1.09) --
Net loss per
common share
including effect
of adjustable
common stock
warrants $ (1.19) $ (0.24) $ (1.66) $ (0.48)
Weighted average
common shares
outstanding,
basic and
diluted 10,689,000 7,910,000 10,501,000 7,702,000
Cash and Accounts
Receivable, net
as of
June 30, 2000 $6,184,000
(1) The consolidated statements of operations reflect, as continuing
operations, the results of its start up Internet incubator
operations, Grove Strategic Ventures, which began operating in
February 2000. Discontinued Operations include Cybershop.com, the
Company's off-price Internet retailing operation which ceased
operations in February of 2000., electronics.net, the Company's
electronics and appliance Internet retailing operation which
ceased operations in May of 2000, and the Company's online and
direct response retailing operation Tools for Living, which was
sold in August 2000.
(2) Effect of adjustable common stock warrants reflects the exercise
of common stock warrants issued in February 2000 as part of a
private placement of the Company's common stock on December 8,
1999, in exchange for 613,486 common shares. The resulting dollar
amount of the common shares issued upon exercise, multiplied by
the closing price of the Company's common stock at the end of a
predetermined period, is divided by the weighted average number of
common shares outstanding during the period.
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